Tides Of Change: Trends Disrupting The Meetings Industry

The Trends Disrupting The Meetings

Industry Tides Of

Change

3

1) Identify

four new

consumer

behaviors

shaped by

recession.

4

2) Discuss trends disrupting the meetings industry.

anticipating what

opinion to be.

John Maynard Keynes, 1936

average opinion expects the

average

We devote our intelligences to

Rely on

Guesstimates

Opinions

Absence Of Good Economic Models

Crowds

higher rates of unemployment, years before housing prices get back to old highs, a weaker dollar, more government debt, more taxes, a little deflation, then a lot more inflation and an end to U.S. global economic downturn…

~ Don Reynolds, Economist, 21st Century Forecasting

More Regulation, A WeakerConsum

er

Welcome To

TheNew Normal

4 New Consumer/Attendee Types

New behaviors

Adoption of

New Normal

Great Recession

Shaped

Decitica Research

Research showed new lens

on how consumers

internalized

their recession experience

Steadfast

Frugalists 20% of population 6 in 10 women Fewer Gen X & Gen Y Already considered

tightwads Most difficult to

market to

Involuntary Penny Pinchers 29% of population 6 in 10 women Primarily Gen X Forced frugality Challenging group

to attract

Pragmatic

Spenders 29% of population 6 in 10 men Over represented by people in 60s 1/3 HHI > $75K Best group to

market to

Apathetic Materialists 22% of population

Slightly more women

than men Gen Y Indifferent Attractive target for

youth market

So What?What Does This Mean To You?• Steadfast Frugalists• Involuntary Penny Pinchers• Pragmatic Spenders• Apathetic Materialists

1 in 5 U.S. Meeting Professionals

doubt economy in recovery

CEIR Index For Exhibits DownFor nine straight quarters

Struggling Economic

Growth

55 %Consumer Optimism

Economy Improves

Next Year

Struggling Economic

Growth

9.6 %Unemployment*

*Not Included8.9 Million Part-Time

6.2 Million Jobless 27 wks or >

2.4 Million not in labor force

1.1 Million discouraged workforce

1.3 Million did not search for job

Americans Saving

More

6% Income

Spending Less

Fragile

Economy

18 more monthsEconomic

TurmoilDouble Dip Recession4th Quarter 2011 USA

1st & 2nd Quarter 2011

Europe & Asia

Roger Martin-Fagg , Global Event Summit, London, 9/2010

41Million Minutes

Spent on Facebook

More than GoogleAugust 2010

10 New NormalsThe impact of the new normal on

meeting and event professionals

Tides Of

Change

Impact of New Normal On Meetings Industry

Four Major Waves

Tides Of Change On Meetings Industry

Four Major Waves1. Buyer & Seller

Changes

Four Major Waves1. Buyer & Seller

Changes2. Biz Model Disruptors

Four Major Waves1. Buyer & Seller

Changes2. Biz Model Disruptors

3. Programming

Pressures

Four Major Waves1. Buyer & Seller

Changes2. Biz Model Disruptors

3. Programming

Pressures4. Attendee

Expectations

Wave #1 Buyer & Seller

Changes

1. Buyers Market

On an inflation-adjusted basis ... it’s going to probably take eight to ten years to get hotel room rates back to where they were in 2007.

Mark Lomanno, President Smith Travel Research

• Price Integrity • Rate Transparency• Less Brand loyalty

TRUST!

1. Buyers Market

2. Move from Transactions to Relationships

Trust is

differentiat

or

• Online footprint

• Social mediainteractions

• There B4 the Sale

• Geo-location

2a. Relationship Sales: Hotel

2.0

Process to monitor, engage & manage conversations &relationships with existing & prospective customers & influencers across the Internet, social networks & digital channels. ~ Mark Walsh

2b. Relationship Sales: Social CRM

3. Reg List Lures

4. Buyers Still Stung

byExtravagant Label

Optimism up.

Budgets not.

Incentive Research Foundation Pulse Survey Report, 8/2010

5. More For Less New Frugality

• New Competitive Set

• Buy up, not down• Packages

6. Group Biz Commoditized

• RFP Overload

• Grids

• Selling brass & glass

• More small biz

7. Billboard EffectExpedia/Cvent

8. Push To Pull

42

What struck most

about buyers & seller

changes?

Small Group Discussion

Wave #2Business Model Disruptors

Innovation9. Creative

Destruction

New ways to create

value Drive out old

10. Rise Of

Free

Increased pressure to create

value

11. Self-Organized Communities

12. 2011 Hotel & Airfare Rates Rise

13. No Longer Serves Us

14. Shorter Lead

Times

15. Procurement Depts Taking Over Incentive

TravelIncentive Research Foundation Pulse Survey Report, 8/2010

SMM16. Smarter

Buyers

17. C-Suite more involved indecisions

aboutconferences & travel

18. Increased Demand ROI &

ROO

19. Successful Shows

At expense of weaker

shows

Continue To

Grow

19a. Successful Shows See

Growth Reputation for

best

Ed, Networking

Quality,

BuyersInnovatio

nFocus on

programming

20. Exhibit Revenue Mix Changes

Traditional 85% booth, 15%

sponsorshipLess booth, more

sponsorship

21. Current Exhibit Biz Model

Not likely sustainable. ~ Doug

Ducate CEIR President & CEO

58

Which biz disruptors are impacting you?

Small Group Discussion

Wave

#3

Programming Pressures

21. Increased PressureProgrammingNetworking

New Products

22. Speakers With

Substance In

Motivational out

unless Programming packed with

relevance

23.

Extending

The Reach• Technology

infrastructure

• Helping your customers reach their customers beyond four walls of venue

24. Untraditional Room Setups

Conduit For

25. Your Conference Seen

As Connections

Novices: 1-5

yrs

26. Three Audience Types

Mature: 6-10 yrs

Experienced: 11

yrs >

To Plan For

27. Education Vs. Information

Is your

programmingInformation

DumpsInteractive Learning

67

28. Active Learningwhen the learner

is involved in more

to a lecture.

than just listening

68

How will new

programming pressures

impact you?

Small Group Discussion

Wave

#4

Attendee Expectations

29. Online Content & CommunitiesThreat or Opportunity

30. Monologues To Dialogues

To Polylogues

31. Participatory Culture

32. More Adult White

Space

33. Problem

CentricNot Content Centric

34. One Size Fits All Out

Mass Customization

Free Wi-Fi

Expectation

35. Attendee

36. On-Demand &Mobile Access

37. Green

ContinuesTo Drive

Decisions

38. Attracting Younger Audiences

80

1) Identify

four new

consumer

behaviors

shaped by

recession.

• Steadfast Frugalists• Involuntary Penny Pinchers• Pragmatic Spenders• Apathetic Materialists

82

2) Discuss trends disrupting the meetings industry.

Four Major Waves1. Buyer & Seller

Changes2. Biz Model Disruptors

3. Programming

Pressures4. Attendee

Expectations

To expect a normal recovery cycle, whether it is corporate profits or lending or consumer spending or capital investment, or pick the category—increased meeting attendance, or association growth, or…

is just notreasonable.

~ Don Reynolds, Economist 21st Century Forecasting

85

Planning Meetings & Events…

Not A Piece Of Cake

86

Adult Ed & Meetings

Thank You

Stay Cool!

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