Meeting Procurement Trends for 2018

august 2018 successful meetings - 1

Recently, Successful Meetings sent a survey out to our readership asking them to tell us about their international events. Of the respondents 51 percent were corporate planners, 32 percent were association planners, and 17 percent were third party or independent planner. Of that pool, 30 percent said their company's procurement department was not involved in managing their meetings spend. Here's what else they had to say.

Organizations' estimated meetings spend be for 2018

More than $50M: 4%
$20M to $49.9M: 5%
$10M to $19.9M: 4%
$6M to $9.9M: 6%
$1M to $5.9M: 23%
$500K to $999K: 16%
$250K to $499K: 9%
$100K to $249K: 10%
$50K to $99K: 5%
Less than $50K: 18%

How organizations manage meetings spend

Through an internal meetings manager: 44%
Through an internal meetings department: 32%
Company owner or executive director manages the meetings spend: 29%
Through an internal corporate travel procurement department: 16%
Outsourced to a third party meeting planning company: 13%
Our budget is managed by a committee: 11%
Outsourced to a third party corporate travel procurement department: 6%

How involved is your company's procurement department in managing your meetings?

Very involved: 36%
Somewhat involved: 34%
Not involved: 30%

Are you required to manage meetings procurement through a central department or technology tool?

Not required: 66%
If a predetermined number of attendees is met: 16%
If a predetermined number of room nights is met: 3%
If the budget exceeds a predetermined limit: 15%

What meetings procurement practices does your organization have in place?

Limits contract signing authority: 58%
Requires standard payment process: 48%
Requires use of onsite meeting space when feasible: 46%
Requires use of standard RFP: 32.%
Requires senior-level approval of individual meetings: 31%
Requires use of preferred meeting suppliers: 29%
Requires the use of designated meeting planner: 29%
Pre-negotiated meetings facility contracts: 24%
Requires facility sourcing by procurement/mtgs./travel dept.: 23%
Requires use of videoconferencing when applicable: 22%
Requires at least three bids for any contract: 17%
Requires use of preferred transient suppliers: 12%
Pre-negotiated ancillary charges for meetings: 11%

What meetings expense items does your organization consolidate for procurement purposes?

Hotel accommodations: 70%
Meeting space/facility rental: 62%
Food and beverage: 58%
Audiovisual services: 52%
Airfare: 46%
Site selection costs: 45%
Ground transportation: 38%
Event production: 34%
Speakers: 23%
Event Promotion/marketing: 17%

What are the benefits of consolidating the purchasing of meetings expense items?

Budgetary control: 76%
Leveraging volume with suppliers: 46%
Spending transparency: 44%
Improved quality: 33%
Sourcing documentation: 19%
Reduced liability: 26%
Reduced headcount: 12%