Meeting News - October 6, 2008 - (Page 15) MN Exclusive Research MN Outlook 2009: Financial market meltdown raises fears Exclusive Research continued from cover and social responsibility ranked far lower, too. MN’s research was corroborated by a separate study from Chester, NJ-based Martin Akel & Associates, in which meetings professionals cited the economy (81%) and the need to negotiate even better deals with suppliers (78%) as chief concerns. Further, 58.3 percent noted increasing pressure to develop fresh and creative approaches to meetings. “In this downturn, it will be even more important than ever for events to be morale boosters for employees and clients,” said Patricia Ahaesy, partner at New York City-based corporate events planning firm P&V Enterprises. “Budgets obviously will be tighter. Events should make people feel good, and planners and producers will be using their creativity overtime to accomplish this.” The MN-surveyed planners were relatively bullish about their meetings volumes, though association planners expressed much more confidence than corporate and independent planners. Corporate, association, and other planners were in line with each other in terms of attendance forecasts, with roughly half of each respondent segment anticipating a small dip. But that was before the financial crisis came to a head in mid-September, which instead has heightened worries among both planners and suppliers, while beginning to turn planning conditions upside down. Said one planner on MiForum, MN’s online community,“I thought Bear Stearns’ collapse was a unique event. . .it’s going to be even Planners Expect Attendee Numbers to Stand Up The average attendance at off-site meetings you hold next year will: 47.6% 47.2% 48.9% 50% 40% Association Planners 30% Other Planners 20% 11.7% 11.3% 10.4% 11.6% 10% 2.4% 3.3% 5.1% 1.0% 0.8% 2.4% 2.3% 0% Increase significantly 0.0% Increase slightly Stay about the same 34.3% Corporate Planners 36.8% Total 37.6% 38.8% Decrease slightly 46.5% Decrease significantly Source: 391 of MeetingNews survey respondents A Breakneck Market Compared to 4-5 years ago, three-quarters of planners (76%) find there’s a more rapid pace of change in the meetings market. Rapid change Less rapid 0.8% 23.6% 75.6% The same Source: Martin Akel & Associates tougher as the fallout affects other industries.” The “The $700 billion bailout that is before Conearly consensus was that lead times, for example, will gress will have everything to do with business in become more intense. the next six to nine months,” said Tom Blackman, The full brunt of Wall Street’s collapse won’t be sales and marketing director of Seascape Beach known until it “hits everybody in their wallets,” said Resort in Monterey, CA, at press time. Blackman Jacquie Brave, partner at Accenting Chicago Events said if companies feel credit is hard to get, meet& Tours, a DMC. But already, in speaking with ings will lose appeal, since they are borne from some national association planners at the Motiva- new projects.“Without lending, there’s not much tion Show in Chicago, Brave said the 2009 plans in the way of new projects.” they had in place were changed.“They are cutting One analyst, Chicago-based Tim Brooks, back, and there is less long-range planning in order founder of Meeting Trader LLC, offered this picto make changes more rapidly.” ture: reduced number of meetings, days Hannah Greenberg, conference services shaved from existing bookings, cancellations MN director for Cherry Hill, NJ-based Meeting Exclusive on 8 percent of pre-existing contracts, and Research Mavericks, said she senses an oncoming crisis groups experiencing attrition up to 25 perat a financial services client. She traditionally cent. He said meetings will be booked even has organized separate U.S. and European ver- closer to operating dates, and hotels will begin to sions of an annual meeting for that large, global offer discounts in return for greater prepayment. financial institution. A major lender to banks and He doesn’t expect a recovery until late 2009. the government, the company had decided to hold a “It’s unwillingness to contract until absolutely combined annual in the U.S. in January to boost positively sure they’re doing the meeting,” said camaraderie between the two offices, but after the Atlanta Marriott Gwinnett Place sales manager Wall Street events,“all has changed,” said Greenberg. Kevin Priger, of groups. “I don’t want them to “The company is reconsidering [a merged contract meetings that they end up downsizing event], in spite of the fact that contracts have been or canceling, incurring attrition. This situation executed. If the company does change its plan— would inevitably result in strained relationships.” which I believe it will—the meeting objectives will But in the face of the potentially dire situation, change and planning will begin at square zero.” continued on page 24 October 6, 2008 MeetingNews 15 www.meetingnews.com http://www.mimegasite.com/mimegasite/research/index.jsp http://www.meetingnews.com
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