Meeting planners in North America will enjoy a buyer's market in 2017, predicts the meetings and events division of Carlson Wagonlit Travel, CWT Meetings & Events, which yesterday published its "2017 Meetings and Events Forecast" in which it says hotel supply will outstrip demand for the first time since 2009, creating a unique opportunity for meeting planners who are flexible with destinations and dates to reduce costs and increase value.
"By being flexible with timing and destinations, planners can take full advantage of the current market to optimize their meetings and events and produce better results," said Cindy Fisher, vice president and global head, CWT Meetings & Events.
According to Fisher, GDP growth will decelerate in 2017. However, weakening demand shouldn't be misinterpreted as a weakening industry. On the contrary, CWT Meetings & Events predicts overall industry growth despite the fact that there will be reduced meeting spend in some regions.
"Heading into 2017, our forecast predicts significant growth in meetings and events for regions around the world," Fisher said.
Planners' pocketbooks will fare best in Brazil and worst in Asia Pacific, suggests the CWT Meetings & Events forecast.
"In Brazil, hotel rates are expected to decrease as the recent World Cup and Olympic Games created a solid infrastructure and a supply surplus," the company explained in a press release. "For Asia Pacific, costs per attendee and group size are expected to grow with a 25 percent increase in the number of meetings."
In Europe, CWT Meetings & Events predicts, groups will continue meeting, but will likely downgrade to midscale venues. "Strict company guidelines, reduced budgets, saving targets, and increasing industry regulations for buyers could benefit midscale hotels poised to get more M&E bookings," it said.
CWT Meetings & Events also shared its predictions for major trends driving meetings in 2017. The top three, it said, will be rising food-and-beverage costs due to increased production prices, changes in imports and exports, and growth in special dietary requests from attendees; increased focus on safety and security to include manifests of all meeting attendees to facilitate emergency planning; and increased virtual attendance thanks to technology advances that enable two-way interaction capabilities.
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