IBTM meetings industry research america focus report

©www.aibtm.com/The Right Solution Lim

Introduction & Methodology

Welcome to the IBTM Global Meetings Industry Research

Meetings Industry Research project provides exhibitors, visitors and all those involved in the meetings

industry with valuable information on buying trends and destination choice in particular.

This report focuses on the results for the Americas region and analyses the results of

and 100 suppliers. The survey was closed

date. The research focuses on the event

in the Americas in the last twelve months

compare results with those of the 2012 surve

destinations and regions are most popu

Online surveys were set up Spring 2013

supplier databases of Reed Travel Exhibitions and

the Americas. Although their databases together hold over

were made to target the key buyers and suppliers.

Twitter, Facebook and LinkedIn.

year to year and caution has therefore been applied in drawing conclusions on trends.

The survey will be repeated in Autumn 201

trends and provide indications of ho

dedicated research for the China and Asia reg

at CIBTM 2-4 September 2013.

I hope that the findings of this research give some useful inf

your business strategy for developing business from the Meetings and Events sector. Further

information on the region can be found at

Sally Greenhill

Managing Director, The Right Solution

IBTM Global Meetings Industry Research for Americas 2013

imited 5th June 2013

Methodology

Global Meetings Industry Research for the Americas 2013.


with valuable information on buying trends and destination choice in particular.

This report focuses on the results for the Americas region and analyses the results of

00 suppliers. The survey was closed 20th May 2013, thereby ensuring the results are right up to

focuses on the events being organised by qualified buyers of events t

in the last twelve months. This year, the second year for the survey,

ts with those of the 2012 survey to monitor trends including which countries,

most popular for events.

Spring 2013 and invitations to participate were emailed to the buyer and

ases of Reed Travel Exhibitions and PCMA focused on buyers and suppliers based in

gh their databases together hold over 25,000 potential participants,

were made to target the key buyers and suppliers. The link to the online survey was also promoted via

Twitter, Facebook and LinkedIn. With all results the participating respondents are not identical from


The survey will be repeated in Autumn 2013 for launch at EIBTM 19-21 November in

trends and provide indications of how the market has changed since the Spring. In the meantime

dedicated research for the China and Asia region is being undertaken and the results will be available

.

I hope that the findings of this research give some useful information and provide evidence to support

ur business strategy for developing business from the Meetings and Events sector. Further

information on the region can be found at www.aibtm.com.

Managing Director, The Right Solution & Analyst of IBTM Global Meetings industry research


1

as 2013. The IBTM Global


with valuable information on buying trends and destination choice in particular.

This report focuses on the results for the Americas region and analyses the results of over 250 buyers

, thereby ensuring the results are right up to

qualified buyers of events taking place

, the second year for the survey, we are able to

countries,

and invitations to participate were emailed to the buyer and

focused on buyers and suppliers based in

25,000 potential participants, selections

The link to the online survey was also promoted via

respondents are not identical from


November in order to monitor

n the meantime

results will be available

ormation and provide evidence to support

ur business strategy for developing business from the Meetings and Events sector. Further

Analyst of IBTM Global Meetings industry research


©www.aibtm.com/The Right Solution Limited 5th June 2013 2

Summary of key results

The full results for the survey are outlined in this report with the key results as follows:

Volume and value

1. Average number of events per buyer/planner respondent is up to 25 from 20 last year

2. Incentive travel up to 46% from 44%

3. Over 50% had organised exhibitions, up from 44% last year

4. 59% of buyers had spend in excess of $600,000

5. 5.9% of buyers had spend in excess of $10 million

6. Average number of delegates attending events in the Americas is 249

7. Budget changes in last twelve months average 3.7% rise, but increased volume of events was

not necessarily matched by increased budgets

Destinations

8. More events took place within the Americas and fewer in Europe and Asia last year

9. Outside of the Americas region the UK, France and Germany attracted significant numbers of

events last year

10. The destinations attracting highest volume of events aren't always those attracting highest

spend - clearly offering good value can earn destinations more events

11. Top regional countries for volume of events are the US, Canada, Mexico and Puerto Rico

12. Top states/areas for volume of events are Florida, California and New York

13. Top states/areas for value of business placed are Nevada, Georgia and California

14. Highest satisfaction ratings are for Anguilla, British Virgin Islands and Antigua & Barbuda

Forecasts for year ahead

1. 76% of planners predict increased use of new technology to shape event content

2. 63% are predicting use of new destinations for next twelve months

3. Main areas for events for next twelve months remain the Americas but around 50% of buyers

visiting AIBTM are interested in Europe and 40% in Asia

4. Budget changes for next twelve months average 5.2% rise

5. Small budget increases do not match higher costs which is a key issue that planners are

having to deal with despite signs that the economy is on the upturn

6. 52% predict increased attendance numbers yet only 37% predict increased budgets so these

will be stretched to accommodate more people

7. Top ten industry sectors for this year reveal higher placing for manufacturing/industrial, retail

and science while Government/administration has gone from the top ten.



Full Research results

The key characteristics of the buyer respondents for this survey are shown below. The buyers views

from the 251 organising events in the Americas form the main focus of the analysis outlined here with

suppliers views added in where relevant. The greater percentage of buyers were agency or third party

organisers. 102 suppliers also participated in the survey of which 38% were hotels, 31% convention

and visitor bureaus and 9% were conference and events venues.

Number of buyer respondents

Global 271

Based in the Americas 240

Reported on events in the Americas 251

Buyers’ Regions

Americas 88.5%

Europe 6.3%

Asia 2.6%

Australasia 1.8%

Africa 0.1%

Buyer respondent types

Agency/Third Party Organiser 50.0%

Corporate 22.5%

Not for Profit 10.9%

Trade/Association/Society 10.8%

Other 5.8%

The sectors below reveal that Government/administration has gone from the top ten since last year,

manufacturing has moved up from 9th position last year and retail and science are now in the top ten.

Top Ten Industry Sectors for Americas based suppliers

Financial / Banking / Insurance 79.2%

Pharmaceuticals / Medical 63.6%

Training / Education 63.6%

Electronic / Communications 61.0%

Automotive 54.5%

Manufacturing / Industrial 54.5%

Food / Beverage / Tobacco 50.6%

Construction / Engineering 49.4%

Retail 46.8%

Science 45.5%


Event types The broad range of types of events being organised by buyers

below. Compared with the 2012 results there is

increase from 44% to 46% for incentive travel. Business

33% while other event types show very similar results. It should be

identical year on year and this can account for variations in results.

Numbers of events, regions and countries

The sample buyers organised 6,313

buyer, up from an average of 20 per buyer in 2012

of choice shown below reveal buyers making more selections in the Americas region

in Europe and Asia. This may be due to budget limitations as sho

93.3%81.7%

32.9%

14.2%5.0%

Americas buyers’ event regions last twelve months



ypes of events being organised by buyers in the Americas are shown in the chart

Compared with the 2012 results there is a rise from 44% to over 50% for exhib

46% for incentive travel. Business Travel has seen a reduction

while other event types show very similar results. It should be noted that respondents are not

identical year on year and this can account for variations in results.

egions and countries

,313 events in the Americas resulting in an average of

from an average of 20 per buyer in 2012, the majority of which were in the USA.

buyers making more selections in the Americas region

This may be due to budget limitations as shown by subsequent results.

81.7%

32.5%

46.3% 47.1% 50.8%

25.4%

Buyers event types

5.0% 5.8% 3.3%

29.2%

13.8% 14.2%

95.0%



4

are shown in the chart

rise from 44% to over 50% for exhibitions and an

ravel has seen a reduction from 37% to

noted that respondents are not

an average of 25 events per

which were in the USA. The regions

buyers making more selections in the Americas region and fewer events

wn by subsequent results.



The chart above shows that the UK, France and Germany are

significant numbers of events outside of the Americas region

For the next twelve months their selected countries

Next twelve months top countries for events

1. USA

2. Canada

3. Mexico

4. Brazil

5. Chile

6. Costa Rica

7. Dominican Republic

8. Panama

9. Argentina

10. Puerto Rico

90.4%

26.7%18.8%

Americas buyers’ top event countries last twelve months



the UK, France and Germany are the only countries that

outside of the Americas region last year.

their selected countries to date are all within the Americas region

top countries for events

Dominican Republic

18.8%15.0%10.0% 9.6% 8.8% 7.9% 7.9%



5

that attracted

all within the Americas region:

7.1%




Hosted Buyers countries of choice

In contrast 694 of the hosted buyers visiting AIBTM in June 2013 listed the following countries as their

areas of interest for events in the future (outside the US), showing just how much interest there is in

areas outside the US for the future:

Country Percentage of responses

Canada 65.1%

Caribbean 58.2%

Western and Northern Europe 56.3%

UK and Eire 47.8%

Mexico 47.7%

Southern and Mediterranean Europe 47.6%

Latin America 45.5%

Asia 39.5%

Central and Eastern Europe 32.1%

Africa 24.9%

Australasia and Pacific 23.8%

Bermuda 23.6%

Middle East and North Africa 22.2%

Russia and CIS 14.7%

The results have shown that the Caribbean, Canada, Mexico and Latin America have already

attracted meetings business from the US. However the other countries listed need to be persuasive of

their appeal and value in order to translate the interest into event bookings.



Spend, destinations, volume and value

The high volume of spend on events in the Americas is shown in the chart below. This is clearly

influenced by the fact that 50% are third party organisers organising large volumes of events. It can be

seen that 59% of buyers had spend (value of business placed) in excess of $600,000. 5.9% of these

had spend in excess of $10 million. Excluding the 5.9% with spend in excess of $10m, the mean

spend for Americas buyers was $2,134,492.

Buyers total spend on events in the Americas for last twelve months

• For 87.5% of buyers their budget changes in the last 12 months averaged 3.7% rise. 12.5% of

respondents weren’t sure of the changes.

• For the next 12 months the average budget change is +5.2%. 10% of respondents were unsure

of budget changes.

12.1%

3.6%

5.3%

5.3%

14.2%

21.3%

16.4%

16.9%

4.9%

0% 5% 10% 15% 20% 25%

Not Stated

US$1 - US$50,000

US$50,001 - US$150,000

US$150,001 - US$300,000

US$300,001 - US$600,000

US$600,001 - US$1,500,000

US$1,500,001 - US$3,000,000

US$3,000,001 - US$10,000,000

US$10,000,001 or more



The top ten countries with highest usage for events and average value of business placed are shown

in the table below. It can be seen that the highest volume doesn't always translate into highest value.

Perhaps this is because those destinations offering good value attract higher volume.

Country with highest usage for events

Average value of business placed per

buyer US$

United States 1,686,299

Canada 838,182

Mexico 748,750

Puerto Rico 616,250

Bahamas 681,250

Dominican Republic 292,647

Costa Rica 275,000

Brazil 560,417

Argentina 284,615

Panama 180,000

The regions with the highest volume of events placed by buyers are shown in the table below. As with

the countries the volume doesn’t necessarily follow into the highest value of business. Florida remains

the most popular state for events as it was in the 2012 survey.

States/areas with highest usage for events by buyers

Mean value of business placed

in US $

Florida 510,000

California 523,476

New York 456,356

Texas 410,000

Illinois 216,379

District of Columbia (Washington) 311,458

Nevada 720,833

Georgia 584,615

Arizona 392,361

Massachusetts 425,000

It is also interesting to see the countries with the highest volume of events are not scoring the highest

satisfaction ratings - perhaps because they are too busy? Some of the more exotic and exclusive

locations are scoring the highest satisfaction ratings.

Country Satisfaction rating

Anguilla 3.0

British Virgin Islands 3.0



Country Satisfaction rating

Antigua and Barbuda 3.0

Cayman Islands 2.8

Netherlands Antilles 2.5

Canada 2.5

Aruba 2.4

United States 2.4

Saint Kitts and Nevis 2.3

Jamaica 2.3

Typical size of events in the last 12 months

Comparing the results in the chart below with research results for other IBTM Portfolio regions show

that more events take place for larger numbers of delegates in the Americas than in countries

elsewhere in the world. The average number of attendees for all events is 249.

Market conditions The market conditions experienced over the last twelve months are shown below with the percentage

who had increased volume of events not being matched by increased budgets .

Experienced last twelve months Increase Decrease Stay the Same

Volume of events for last twelve months 42.3% 14.5% 43.2%

Budgets last twelve months 33.2% 14.7% 52.1%

0.0%

2.1%

13.6%

20.9%

31.9%

10.6%

8.5%

3.8%

8.5%

0% 5% 10% 15% 20% 25% 30% 35%

2 - 10

11 - 25

26 - 50

51 - 100

101 - 300

301 - 500

501 - 1000

1001 - 2000

2001 +



Changes forecast for the next twelve months

Over 50% of buyers in the Americas forecast increased attendance at their events yet only 37%

predict increased budgets so the budgets will be working hard to accommodate more people. 76%

are predicting increased use of new technology to shape event content. Are new technologies helping

to use budgets more cost effectively or are they actually costing more? 39% said marketing budgets

will increase.

Bearing in mind that the earlier results show the vast majority of events have taken place in the

Americas in the last twelve months, it is interesting to see that 63% are forecasting use of new

destinations in future and nearly 32% are expecting increased attendees from outside the host

country.

Expected changes in the next 12 months Increase Decrease Stay the Same

Volume of events for next twelve months 44.1% 5.9% 50.0%

Budgets for events next twelve months 36.7% 8.4% 54.1%

Marketing and promotional budgets 38.6% 12.9% 48.5%

New technology shaping event content 75.6% 0.9% 23.5%

Attendance numbers at your events 52.4% 8.2% 39.5%

Percentage of attendees from outside the host country 31.6% 8.7% 59.7%

Increasing use of new destinations for events 63.5% 2.2% 34.3%

What will have most impact on increasing meetings and events business in future?

Buyers and suppliers' verbatim comments and views centred around the following issues on what

would have most impact on increasing their event business in the next twelve months:

1. Budgets

2. Economy e.g. positive growth for the Global economy, economy slowly bouncing back

3. Rates/prices/cost issues including hotel rates and airfares

4. Business activities

5. (Better) Marketing

6. Technology and increased social networking

Decreased budgets and higher costs are the key issues that planners are having to deal with.

However the growth in volume shown earlier in this report also follows through into positive comments

such as 'pent up demand and increasing consumer confidence' and 'number of employees increased'.

The continuing reorganisation of many clients for third parties is increasing the number of events held.

Negative comments relate to 'the government restrictions placed on conference attendance and

sponsorship' and 'the Sunshine act and other anti fraud laws affecting attendance and number of

investigator meetings'.



Use of new technologies

The chart below reveals the continuing rise and wide use of new technologies. The trend for

attendees driving content on the day is possible through new technologies and accessing online

content and virtual meeting attendance is on the increasezxevt+987. It seems likely that all of these

will continue to see increased use in future.

1.5%

6.5%

8.5%

14.6%

16.1%

31.2%

31.7%

36.2%

37.7%

43.7%

46.7%

46.7%

50.3%

73.4%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Holograms

Crowdsourcing

Location aware software e.g. Foursquare

Virtual meetings instead of face to face …

Cloud computing to assist with event …

Virtual meetings in addition to face to face …

QR codes (specific matrix barcodes) for …

Audience response systems

Electronic RFP products e.g. Starcite, Cvent

Smartphones / tablets handed out for delegate …

Web based access to conference content …

Apps for providing delegate information

Web based access to conference content …

Social media to communicate before/ during/ …

IBTM meetings industry research america focus report

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