Surveys raise optimism

By Christine Born

Matching the mood of other national business surveys, the results of the most recent survey of meeting planners indicate a trend toward a more positive outlook, giving industry members a reason for some much needed year-end cheer. Twelve percent of all meeting professionals participating in the October 2009 Business Barometer from Meeting Professionals International (MPI) said they expect gradually improving economic and/or business conditions in the next six months, a significant increase over the 3 percent who expressed similar opinions in the previous survey in August.

The increase in guarded optimism replaced concerns over the public perception of meetings as the most often mentioned current influence on the meetings and events industry. While those concerns are expected to continue for the foreseeable future, resulting in fewer high-profile events and frills as well as more careful site selection, survey results show their influence waning for the first time since November 2008.

Other responses to the business barometer indicate already identified trends continuing, including:
• shorter lead times, organizational indecision, revised budgets, and budgets which have not been approved contributing to decreased lead times;
• existing anecdotal evidence that many organizations are developing a new culture, which examines the value of each element of meetings, further slowing the decision-making process;
• travel restrictions and cutbacks affecting the industry by limiting both the number of meetings and events and the number of attendees;
• planners seeking to reduce overall costs of meetings with virtual technology.

The first indication that U.S. health care reform may represent a negative influence on meetings and events business showed up in the October report. The survey also began measuring employment trends within the industry, although no results were released by MPI.

In related news, two reports, one from the National Business Travel Association (NBTA) and one from the U.S. Travel Association, establish a clear link between business travel and profit. During the economic downturn, about 85 percent of companies reduced their spending on business travel. However, the trade groups’ independent findings provide evidence that while curbing travel may save money in the short term, there are significant long-term benefits from investing in business travel. Henry H. Harteveldt, a Forrester Research travel analyst, agreed with the reports’ findings in a November 23 article in The New York Times. “We are social beings,” he said. “There are emotional as well as rational benefits to face-to-face meetings.”

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Read the full MPI report.