Optimism is returning strongly to the meetings/incentive travel sectors within Europe following three soft and challenging years…
Optimism is returning strongly to the meetings/incentive travel sectors within Europe following three soft and challenging years, according to the latest IMEX Quarterly Barometer of Business Tourism Confidence. Research was conducted amongst 200 buyers in a dozen European countries during May and June. Key descriptive words being used by decision-makers are `bullish`, `buoyant`, `upbeat`, `promising`, and `expansive`.
MICE budgets are becoming more realistic, client confidence is returning, and the final destabilising effects of 9/11 are fading away. The result is the most positive 12-month overall outlook for the industry since the regular IMEX polls began a year ago.
Findings this quarter (to June) indicate that nearly 76% of buyers and agencies expect that their demand will grow during the next year. Over 18% forecast that this will be `significantly up`, with that of the balance, `slightly up`. This combined total contrasts with equivalent recent proportions of 69% (July 2004), 63% (November 2004), and 60% (February 2005). The underlying pattern holds also for budget forecasts with the combined figure for anticipated growth currently running at 55%, also a new high.
Appropriate budgets
The perception is emerging that client companies are again allocating appropriate budgets for meetings and incentives, that events will again grow in size and that average lead times are lengthening; that said, last-minute requests are still common. There is a stronger appreciation that corporate events are not `costs`, but an essential part of the process of marketing goods and services. A commonly-held view is that electronic communication has served to interfere with human contact and that people are again very eager to meet with one another in order to exchange information, develop skills, and expand business. According to one buyer, `doomthinking` is a thing of the past.
Challenges
On the other hand the challenges experienced in recent years have brought changes to the sector that buyers predict are set to continue. For instance, costings remain tight; the emphasis is on greater creativity, even so-called `crazy` ideas; security-concerns are paramount; and levels of professionalism are expected to be very high. Where tax regimes are strict it is more likely that meetings and incentives (or `MeetCentives`) will include training and teambuilding activities. Because of competition (and electronic communication) there is a strong sense that demand is `moving much quicker`, and that clients are `less loyal and more likely to shop around for agencies`. A worry for intermediaries is that corporate buyers are using the internet more and more, with the consequence that extra emphasis has to be placed on originality and imaginative thinking.
Underlying trends for meetings/incentive travel themes continue to highlight the importance of healthy lifestyles and wellness, together with a growing concern for the environment in the context of evidence for climate change. Others point to the increasing trend for companies to include socially responsible elements into meetings and incentive programmes. Many report the increased use of technology to augment decision-making before and during conferences, especially by associations.
Overtaking 2001 levels
The conclusion of the majority of buyers is that meetings/incentive travel demand is now overtaking the levels reached in 2001, and on a broader global basis than before. Much depends on economic and political stability, and there is no doubt that that the market overall has become more competitive. Nevertheless, there is much to be confident about, for as one IMEX respondent put it, `I get the feeling that ours is one of the few booming industries nowadays`.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
