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IACC MEETING ROOM OF THE FUTURE: A SURVEY OF MEETING VENUE OPERATORS AND SUPPLIERS

RESEARCH PARTNER: DEVELOPMENT COUNSELLORS INTERNATIONAL

TABLE OF CONTENTS

3 / Introduction & Research Scope

4 / Experience Creation

7 / Meeting Space and Room Design – Towards Creative, Flexible Meeting Spaces.

10 / Food & Beverage

13 / Investment and Venue Innovation

14 / Technology

15 / Internet Infrastructure & Bandwidth

19 / Collaborative & Interactive Technologies

22 / Research Conclusion

23 / Volunteers & Research Partners

24 / Summary Infographic

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INTRODUCTION & RESEARCH SCOPE

PREDICT. CREATE. SHAPE. IACC Meeting Room of the Future™ is an initiative led

by IACC, with the goal to share the association’s vision on what meeting spaces

will look like and function like in the future. The initiative brings together research,

trends and innovations with the single goal of predicting, creating and shaping the

future of meeting environments.

In August and September 2016 a study was conducted to gain insights from global

venue operators, industry experts and suppliers with the goal of understanding

how they are responding to the changing needs and expectations of meeting

planners. This is the 2nd survey published following similar research undertaken

with global meeting planners, with the aim of understanding needs and potential

to evolve meeting and learning environments which foster collaboration, ideas

exchange and relationship building.

As the industry evolves and expands, just as meeting planners must continually

evaluate all elements of the meeting experience, operators and suppliers must also

ensure they are meeting and anticipating the changing needs of planners.

Two separate surveys were conducted among venue operators and suppliers to the

meetings industry on select meeting elements including:

• Role in experience creation

• Meeting space/room design

• Internet

• Technologies

• Food & beverage

Over 65 venues across 4 continents took part in the research. The profile of

venues surveyed includes a high number of IACC-certified venues, where

meetings, conferences and training represented between 50% and 100% of their

business mix. Their focus on meetings includes the average group size of less than

100 delegates. The venues already offer dedicated meeting spaces and not simply

multi-use function rooms.

Suppliers to the venues were separately surveyed and these included global

meeting space designers, architects, technology companies, nutritionists and

furniture manufacturers.

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EXPERIENCE CREATION

A key finding from the meeting planner analysis was the increasing importance

of “experience creation”. Approximately 75% of responding meeting planners

reported that their current role involves more “experience creation” versus two

to five years ago. Conference planners and speakers are in a non-stop battle for

attention against all of the content, entertainment options and social media activity

taking place during conferences and meetings. Power has shifted to the partici-

pants such that venues and hosts have to deliver powerful and engaging expe-

riences. Gamification, Design Thinking and Matchmaking at conferences, are all

good examples of experiences satisfying this important trend.

Venue operators and suppliers are aware of the changing expectations of meeting

delegates and the majority of venue operators see it as their role to provide a

great meetings experience, providing new options to the meeting planner. 55.7%

of venue operators report that it is their role to provide the “experience creation”

element for clients and their delegates. A slightly smaller percentage of suppliers

(51%) feel that it is their role to provide “experience creation” elements.

Venue Operator’s Role to Provide “Experience Creation”

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Venue operators and suppliers are offering a variety of on-site and off-site ame-

nities to foster this “experience creation”. When asked with how they assist with

experience creation, suppliers report that they look to customise their service to

closely align with client’s goals as well as offer services to encourage audience

interaction and engagement. Suppliers also feel that it is their responsibility to

suggest innovative and unique additions to their client’s programs.

Conference and meeting venue operators are addressing their client’s needs by

offering meeting rooms that are designed to foster creativity, themed food and

beverage and ice-breakers. A significant percentage of operators are also offering

outdoor meeting rooms or spaces as well as other physical spaces and activities

that promote team building.

Supplier’s Role to Provide “Experience Creation”

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Dianne Budion Devitt at

Meetings Design company

DND Group feels that should

venues offer a position or

service in meeting design, it

could elevate the delegate

experience by having some-

one focusing on the physical

space, the flow of the actual

participants combining and

juxtaposing the content with

the movement from one

topic to another.

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Elements Offered by Venue Operators to Assist with “Experience Creation”

Venue operators and suppliers agree that there is a trend towards flexible and

creative meeting space.

Survey participant, Rachael Bartlett of Warwick Conferences commented

“Clients want to dictate layouts dependent on what they want to do, they are

no longer satisfied with ‘traditional room set-ups’ citing these as ‘stuffy’ & ‘old

fashioned’. Different configurations are often required throughout the day.

Staff have to be more flexible to react during the day to changing demands

depending on the outputs of individual company needs.

Approximately 66% of venue operators anticipate that in the next 3 to 5 years’

flexibility of meeting space will become MORE important as a meeting venue

element, only slightly ahead of the projected importance of access to

interactive technology. In contrast, meeting planners placed a slightly higher

priority on the access to interactive technology over the flexibility of meeting

space. This priority by the planners may be skewed higher based on the

profile of a number of planners surveyed, being responsible for groups of

150 plus attendees.

A notable difference between the expectations of meeting planners and the

priorities of venues is the importance of networking space adjacent to the

meeting space. Approximately 40% of meeting planners feel this type of

space is important versus 29% of meeting venues, which highlights a need for

venue designers and operators to view their spaces outside of the meeting

room differently, as being more important areas for their delegates.

MEETING SPACE AND ROOM DESIGN – TOWARDS CREATIVE, FLEXIBLE MEETING SPACES

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Suppliers, specifically architects and meeting space designers, have also seen

changes in the demand for various types of room layouts. 50% report an increased

demand for both larger (100+ pax) and smaller (<25 pax) rooms with flat-flooring

and flexible tabling and seating.

In response to the trend towards flexible meeting space and room design, 69% of

venue operators report that now 75% or more of their meeting rooms have furni-

ture/equipment which allows for multiple flexible layouts.

When asked for examples of new furniture and equipment that venue operators

were incorporating into their facilities, these were highlighted the most often:

Furniture“Fireside chat” seating

Bean bag chairs

Chalk paint walls

Communal Tables

Creative Partitions

Ergo or Eco-Friendly Furniture

High-top Tables

Kitchen/Dining Style Furniture

Lounge Areas and Seating

On-site Recreational Facilities

EquipmentMoveable/portable tech

Charging Stations

Digi Tables

Gaming Equipment

Holography Display

Interactive White Boards

Mobile A/V Equipment

Presentation Technology

Small Theater

Videoconferencing Equipment

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Venue Operator Perceptions of the Meeting Venue Elements that will be MORE Important in the Next Three to Five Years

Both operators and suppliers report cost of investment as the greatest barrier to

investing in new furniture/equipment for more flexible, creative spaces.

While planners, operators and suppliers all identify the growing importance of flex-

ibility in meeting space room design, operators and suppliers do not see substantial

investment in outdoor meeting spaces as a priority.

Heidi Neisen of SICO, manufacturers of mobile and folding furniture commented

Product versatility and flexibility is important in both design and

application. We are continually trying to develop products that help

venue operators create a vast number of solutions with minimal effort.

We are in the process of developing a multifunctional line of flexible

catering equipment/furniture that lends itself to maximum creativity

with minimal effort and cost. This eliminates costly implementation of

new products and provides the most flexibility with a single product”.

Although many venues offer teambuilding or group activities, they do not see

activities being as much of an important aspect of the meeting in the next 5 years

as planners do. If it is the role of the venue to provide the meeting experience, then

they will need to look to other ways to create memorable experiences.

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Meeting planners placed a high degree of importance on the refreshment

breaks and meals, how they impact delegates and facilitate networking and

the building of relationships. Continuous refreshment break stations remain the

preferred solution, with fewer options, but healthier snacks. 20% of venue

operators say they see a trend in venues offering conference delegates

continuous refreshment break services throughout the day.

Survey participant Jeu Bressers of Kapellerput Conference Centre commented

Our clients want us to set up their breakout group areas outside in

the fresh air more and more these days.”

In response, it is encouraging that 77% of venue food & beverage suppliers say

they offer continuous refreshment break services.

When operators, venue designers and architects were asked if the number of

refreshment break stations and/or spaces increased or decreased in the past

two to three years, 31% cite an increase in the number of areas created for

networking and refreshment breaks.

FOOD & BEVERAGE

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Not only are venue operators supplying continuous refreshments, but their food

& beverage offerings are moving towards healthier, locally sourced finger foods

that allow meeting attendees to freely move about the space and mingle with

other attendees. When asked to report whether various statements were true

or false, venue operators and suppliers were consistent on the top 5 trends in

food & beverage products and services.

Venue operators and suppliers are implementing more initiatives around

health and wellness, promoting the importance of sustainability, incorporating

locally sourced food items, promoting healthy eating and active living and

overall making significant changes to their food and beverage offerings.

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When asked if the number of refreshment break stations and/or spaces has

changed in the past two to three years, 32% of suppliers reported an increase

while 64% said the number of stations and/or spaces had remained the same.

This observation is reflected in venue operator’s perception of refreshment

break stations. 60% of operators said ‘yes’ when asked if areas and facilities

for refreshment break stations could generally be better developed to improve

the delegate experience.

Changes Implemented in Food & Beverage Offerings

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59% of venue operators identified the cost of investment as being a barrier to

developing meeting spaces and investing in technology. This is clearly a challenge

for some operators, but for new entrants developing new meeting venues cost is

possibly not a barrier resulting in very different meeting experiences between the two.

At the same time the research identified a strong reliance on customer feedback

to steer investment and venue facilities and services development. The research

team highlighted that pioneers look at feedback as existing in an eco-system,

considering feedback from a number of sources and not in a silo from just one

source, i.e. clients. Feedback should include sales, operations and clients and has

to be balanced, understanding a lot of times people do not know what they want

until they can see and experience it! Human centric design is one approach, since

in this industry it is easy to adopt observational research at a venue to understand

the needs of clients, which they cannot define. There is a limit to how much you can

innovate by only using customer feedback.

Venue operators are not investing more in terms of internet infrastructure, but they

are investing more in 2016 than in 2015 in other types of new technologies.

Barriers to Providing More Flexible Meeting Spaces

“Other” responses: Space constraints; lack of interest among clients

(old-fashioned); cost benefit analysis.

INVESTMENT AND VENUE INNOVATION

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Jessie States, Manager of

Professional Development

for MPI comments on the

link between demand and

venues need for investment.

Jessie referenced the last

edition of MPI Meetings

Outlook, where 54% of

meeting planners surveyed

predicted increased budget

spend in the next year as

demand improves. If venues

can use improving reve-

nues to support increased

investment in facilities and

services which meet the

changing landscape, then

they will be well placed for

the coming years.

The technology used in the meetings and events industry is constantly evolving

and it is imperative for operators and suppliers to ensure they are providing the

most relevant and effective equipment. Given the rapid pace of change, it is inter-

esting to see that more than 61% of operators purchase their technology outright

compared to 14% that acquire their equipment via a lease/rental agreement.

Leasing equipment on a reasonable fixed term (say up to 5 years), ensures the

venue would have to update technology before it risked becoming too out of

date and causing the venue to be considered a laggard in its meeting

technology offering.

TECHNOLOGY

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Acquisition of Technology among Operators

While there are notable changes and expectations around meeting room design,

the number one priority across the meetings and events industry is providing high

quality broadband internet.

In the previous meeting planner study, 81% of meeting planners reported the recent

introduction of new technologies in their meetings that encourage communication

between hosts and delegates. Most, if not all, new technologies and devices require

internet connectivity.

The rapidly expanding use of internet is driving the importance of quality internet

infrastructure and bandwidth across the industry. When asked how much they

agree or disagree on a scale from 1 (strongly disagree) to 10 (strongly agree) with

various statements, operators provided an average rating of 9.4 and suppliers

provided a rating of 9.0 for the statement “High quality broadband is critical in

meeting venues”.

According to operators, the top three technology-related items being invested in more this year based on feedback from clients includes:

1. Bandwidth 33%

2. A/V Equipment 20%

3. Collaborative Technology 15%

INTERNET INFRASTRUCTURE & BANDWIDTH

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Venue operators indicated faster broadband speeds as the top technology-relat-ed item they are investing more in this year. Similarly, suppliers indicated faster broadband as the top technology-related item they feel is more important this year based on client feedback.

Meeting room acoustics came a close second in terms of importance and effect they have on the meeting environment. Jeff Loather of Electro-Media Design Inc commented "There are several take-aways here. Good room acoustics must be built into the facility. Most acoustics problems cannot be easily (or inexpensively) fixed after the building is built. This applies to purpose built facilities as well as alternative event spaces and re-purposed venues. Portable sound equipment can be used sometimes to reduce the effects of reverberant spaces, but the spaces are still an assault on our sense of hearing and comfort".

Loather further comments "There are three elements to experiential acoustics; Background Noise (including from electronic equipment in the room), Reverberation (the current interior design trends toward “boutiquing” are using more hard surfaces such as timber, glass, tile, and sheet mecreating issues) and thirdly Isolation From Adjacent Spaces. Sounds that “bleed” into meeting spaces from adjacent meetings, service corridors, the parking garage below, the traffic and lawn mowers outside!".

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Respondents Asked to Rate out of 10 How Much They Agreed with the Following Statements

When it comes to internet speed, the majority of venue operators are offering

bandwidth speeds over 150 MB in meeting rooms, public spaces and guest rooms.

Over 30% of operators, however, are unsure if they’re offering enough as demand

for greater speed continues to rise. Suppliers agree – the internet infrastructure

in venues generally isn’t enough. When asked what percentage of venues they

dealt with in 2015 offered insufficient internet infrastructure, supplier respondents

reported an average of 76% of Non-IACC member venues did not provide sufficient

internet, limiting the usability and/or negatively impacting client experience. 75%

of responding venue suppliers reported Wi-Fi bandwidth as a factor negatively

impacting their ability to provide their products and services to meeting attendees.

Technology Investment Priorities among Operators

Are Operators Providing Sufficient Bandwidth?

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It may be a co-incidence, but the amount of venues who said they offered over

50mb of bandwidth in meeting areas was a similar percentage to those who said

they are currently satisfied with the bandwidth they offer.

Currently 89% of venues provide internet free of charge, but 55% of those require a

log in. 11% of venues still require meeting delegates to pay for Wi-Fi, which indicates

the balance has finally tipped and internet is being considered vital core offering

needed by all and not an add-on.

On the topic of paid versus free Wi-Fi, Georgina Yarranton of New Zealand Home

Loans commented,

Access to strong, fast, secure broadband should be a given at all

meetings and should be provided free by the venue. It still boggles

me that some venues charge a premium for using Wi-Fi. When (free

broadband) becomes the norm we’ll be able to use other technolo-

gies without barriers.”

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Meeting planners reported an increasing percentage of budgets are devoted to

securing and implementing new technologies such as event apps, beacon technol-

ogy to track traffic and attendance and video conferencing technology. Over 77%

of planners report that access to interactive technologies such as tools to encour-

age audience participation, collaborative communication platforms and others, are

more important now than they were five years ago.

Many venue operators, however, are still not offering collaborative technologies in

meeting room spaces.

Operators Offering Collaborative Technologies

57% of venue operators indicated that they did not currently offer collaborative

technologies (products which allow greater participation between delegates

and presenter, such as Microsoft’s SurfaceHub, or Barco’s ClickShare and other

related technologies) in any of their meeting rooms. 32% indicated they did offer

collaborative technologies but considered this offering a premium with an addi-

tional charge to the client. Venue suppliers also view collaborative technology as

a premium product offering to clients. 63% indicated they provide the technology,

but at a cost to the client.

COLLABORATIVE & INTERACTIVE TECHNOLOGIES

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These extra costs are creating barriers to greater collaborative technology use from

clients. Meeting planners expect the access to interactive technology to become

more important than the current top priority when considering venues, the flexibil-

ity of space. This increased demand from clients could shift operator and supplier

views to provide more collaborative technology as a core deliverable in the near

future.

Global project team member Corbin Ball highlights,

The trend you see is AV requests are simplified. As long as broad-

band is there, people bring their own devices. This is where the

emphasis is these days. Also the size of the meeting should be

considered carefully in terms of what collaborative technology is

relevant, as it differs according to the number of delegates involved”.

Meeting planners, venue operators and venue suppliers all agree that video

conferencing technology is the foremost collaborative technology. 85% of venue

operators currently provide the technology to meeting attendees, while 86% of

suppliers offer video conferencing hardware as part of their suite of products.

The top collaborative technologies provided by operators and suppliers also

includes Smart phone audience participation and screen sharing software.

Meeting planners indicated that conference apps, social media campaigns and

audience participation apps were the top three technologies implemented at

meetings in the past five years.

It was evident from this research, that venue operators are increasingly looking to

hire staff with IT backgrounds on the basis that is it easier to teach IT specialists AV

skills, than it is to teach AV specialists IT skills.

Collaborative Technologies Offered by Venue Operators

When asked what technologies will have the biggest impact and be in greatest

demand over the next three years, suppliers ranked Video Conferencing/Live

streaming technology as number one, followed by collaborative technology and

reactive spaces/gestural technology.

Survey participant Mark Jones of Wyboston Lakes Conference Centre commented

Clients want more space per event with more circulation space and

really close access to coffee/tea/juice breakouts. Natural daylight,

highly efficient air-conditioning and superfast broadband are now

essentials. We have 600Mbps and are increasing to 1300 Mbps in a

few weeks. AV must be HD ready and ‘plug and play’ with on-site AV

technical support at all times.

Whilst virtual reality is not seen as a significant technology used in conference

venues now, the research did identify the growing use of VR by venue operators

to create virtual site inspections, i.e. one venue in London uses VR to showcase

their latest venue ahead of their formal opening in January 2017 and Shangri-La

uses Oculus Rift technology to create VR experiences for many of their hotels

worldwide.

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In MPI’s last edition of

Meetings Outlook, the report

highlights the increasing use

of live streaming to increase

attendee participation.

Venue operators whose properties are focused on delivering meetings are, not sur-

prisingly, aware of and in agreement with meeting planners on the major changes

and trends affecting meetings now and those likely to in the next 2-5 years.

However, there are also differences identified in this research which raise important

questions:

• Do venue operators have staff skilled in designing the experience at the venue?

• Are venues maximising public areas to create valuable informal meeting and

socialising spaces?

• Is a lack of investment in the meeting environment now, going to place existing

venues at the back of the line behind new venue entrants?

• Is the industry overly reliant on client feedback alone when making important

investment decisions?

• Are venues investing in new technologies but ignoring the need to invest in

internet infrastructure, including bandwidth?

• As technology plays a greater role, do operators have the right skills in place

and the right purchasing policy and lifecycle in place for technology?

Just as meeting planners and meeting designers have to carefully choose the

meeting venue and spaces which will result in a powerful meeting experience

for the delegates, the venue operator plays an important role in providing expe-

riences that will help create a strong community amongst meeting participants

during their event.

The need to connect with the outside world and keep in touch with work and

family will continue to impact the length of breaks and the style of food and

beverage service to support the need to complete multiple tasks during break

and meal times throughout the day.

The venue facilities and food and beverage offer plays an important part in

ensuring that the wellbeing of the delegate is being looked after. Where outdoor

spaces are available, they should be made available for networking, food and

beverage service and team activities.

Often venues are in a very strong position in terms of the quality of the internet and

bandwidth available to clients, but are not doing this justice in terms of marketing

and using it as a competitive edge. It is clearly a priority for planners as identified in

the 2016 planner research.

RESEARCH CONCLUSION

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IACC wishes to thank the following research contributors and volunteers who have

made this research and report possible.

Volunteer Group Chair

Ellen Sinclair BENCHMARK, a global hospitality company

Volunteers & Contributors

Paul Dolce Dolce Hotels and Resorts

Jeu Bressers

Cedric Fasbender

Creston Woods

Jeff Loather

Corbin Ball

Jessie States

Chris Kelly

Kapellerput Conference Hotel

BENCHMARK, a global hospitality company

Deloitte university Conference Center

Electro Media Design Ltd

Corbin Ball Associates

Meeting Professionals International (MPI)

Convene

Marie-Claire Andrews ShowGizmo

Adam Lanteigne Microsoft

Juraj Holub Sli.Do

Dianne Devitt The DND Experience Group

Joe Santo PSAV

Robyn Domber Development Counsellors International

Louise Silbermann Summits Conference Centres, Chicago

Heidi Neisen SICO Furniture

VOLUNTEERS

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MEETING ROOM OF THE FUTURE

50-100%

Over 65 venues across 4 continents took part in the research.

Of the business of IACC venues researched is derived from meetings and conferences

of venue operators report that it is their role to provide the “experience

creation” element for clients and their delegates

of venue operators anticipate that in the

next 3 to 5 years’, flexibility of meeting space will become

MORE important

of meeting planners feel networking spaces outside of the meeting room are

important vs. 29% of venue operators

Flexibility of meeting space

Access to interactive technology

Multiple options for food & beverageservice styles and spaces

Increased/enhanced public space to accomodate increased socialisation

Access to authentic local area experiences

Networking spaces adjacent to the meeting/event space

Other 3.8%

16.5%

29.1%

30.4%

30.4%

64.6%

65.8%

55.7%

66%40%

Meeting planners placed a high degree of importance on the

refreshment breaks and meals, how they impact delegates and

facilitate networking and the building of relationships.

Of operators and designers cite an increase

in the number of areas created for networking

and refreshment breaks

31%

Venue Operator Perceptions of the Meeting Venue Elements that will be MORE Important in the Next Three to Five Years

of venue operators report that now 75% or more of

their meeting rooms have furniture/equipment

which allows for multiple flexible

layouts

69%When asked for examples of new furniture and equipment

that venue operators were incorporating into their facilities, these were highlighted the most often:

“Fireside chat” seating

High-toptables

Ergo or eco friendly furniture

Video conferencing

equipment

On site recreational

facilities

Chalk paint wallsBean bag

chairs

Communal tables

Creative partitions

Mobile A/V equipment

Presentation technology

Small Theatre

Kitchen/dining style

furniture

Lounge areas and

seating

Moveable/portable

tech

Charging stations

Digi tablesGaming

equipmentInteractive

white boards

Holography display

• global meeting• space designers• architects• technology• companies• nutritionists• furniture manufacturers

Suppliers to the venues were separately surveyed and these included:

When venues were asked what barriers are there, if any, to providing more flexible meeting spaces they answered...

Venue operators are not investing more in 2016 in terms of internet

infrastructure, but they are investing more in 2016 than in 2015 in other types of new technologies

Venue operators and suppliers are implementing

more initiatives around health and wellness

‘High quality broadband is critical in meeting venues’

When it comes to internet speed, the majority of

venue operators are offering bandwidth speeds over 150 MB in meeting rooms, public

spaces and guest rooms

Venue suppliers also view collaborative technology as a

premium product offering to clients

When asked if the number of refreshment break stations and/or

spaces has changed in the past two to three years, 32% of suppliers reported

an increase

According to operators, the top three technology-related items being invested in more this year based on feedback

from clients includes:

Cost of investment 59.7%

49.4%

18.2%

18.2%

13%

Product storage issues

No barriers

Other

Product Innovation

of operators purchase their technology outright compared to 14% that

acquire their equipment via a lease/rental

agreement.

61%

of venue operators identified the cost of

investment as being a barrier to developing meeting spaces and

investing in technology

59%

Collaborative technology

A/V equipment

Bandwidth

33%

20%

15%

Planners

Suppliers

Operators

9.2

9.0

9.4

75%of responding venue

suppliers reported Wi-Fi bandwidth as a factor negatively

impacting their ability to provide their

products and services to meeting attendees

89%of venues provide

internet free of charge

The top collaborative technologies provided by operators and suppliers also include Smart phone audience

participation and screen sharing software

These extra costs are creating barriers to

greater collaborative technology use from

clients