Daily cost per meeting and event attendee continues to rise globally
The total daily cost per attendee for meetings and events has grown in 2017 worldwide and is expected to continue to do so next year, according to a trends report released by CWT M&E. The study shows regional differences and cost forecasts, as well as the latest trends in the industry.
With an expected increase of 3.7% in hotel rates and 3.5% in aéreas for 2018, the upward trend is likely to continue. This will have a significant impact on some of the major destinations such as London, Sao Paulo and Rí
As far as global aérea industry capacity is concerned, growth of around 7% in 2017 and 6% in 2018 is forecast. The segmentation of airfares is broadening the interest of travelers, who can purchase from basic and restricted economy fares to various enhanced fares with specific service options.
In the hotel sector, there is increasing pressure from suppliers on buyers to opt for dynamic pricing rather than negotiated fixed rates.
EUROPE, MIDDLE EAST AND AFRICA
The daily cost per attendee for meetings and events is up 4% this year. While costs are rising slightly, the region's economy is remaining flat, once inflation and currency fluctuations are taken into account. In real terms, meeting and event costs are progressively increasing, a trend that is expected to continue in 2018.
Agreed-fee programs are giving way to more fee-based programs. Rates based on accommodation, food and beverage, audiovisuals, etc. are also taking precedence over per-delegate daily rates.
It is impossible to ignore the weight of security and prevention when choosing venues in Europe, the Middle East and Africa, with many countries being ruled out. Nor should we forget the impact of the terrorist attacks in Barcelona, Berlin, Brussels, London, Manchester and Paris, even if it is short term.
Against this scenario, Italy and Portugal –with their reasonable prices– are gaining popularity. Germany and UK continue to hold their own. In addition, cities such as Berlín, Düsseldorf, Cologne and Vienna are attracting more interest. There are also new destinations emerging, particularly for the incentive market. Led by Bordeaux, Toulouse and Palma de Mallorca, they are developing new structures and facilities and have existing or new connections as well as offering low prices.
ASIA PACÍFICO
The daily cost per attendee for meetings and events in Asia Pacífico has increased by 5% in 2017. Prices are not undergoing too much change in the region, neither hotel nor aére, with growth of 3.5% and 2.8%, respectively.
Hotels remain the preferred venues in almost all of the region, especially in China, where new hotels are opening every week.Australia Australia and New Zealand are a case apart in the region in this regard as, due to little recent hotel development, demand for unique spaces is higher. Despite the ever-growing hotel stock in China, prices are expected to continue to rise due to demand coming from both business and leisure travel.
Overall, in Asia Pacific, security is putting a damper on people's desire to travel as Indonesia,Malaysia,,Philippines and Thailand are experiencing geopoliticaltensions. Despite the threats, the Thai government is working hard to encourage people to continue visiting the country and the growing number of visitors shows the power that local authorities can have.
Singapore remains a popular hub for meetings due to the abundance of relevant venues and its excellent connections to South Korea and Vietnam are emerging destinations. In South Korea, Pyeongchang, which will host the Olympic Winter Games next year, stands out.Taiw is also on the rise. Costs in Tokyo are higher than in other parts of Japan, although the city has excellent connections. Kyoto, Okinawa and Osaka are gaining popularity, especially among people in Asia Pacific thanks to direct flights.
LATIN AMERICA
The daily cost per attendee of meetings and events in Latin America increased by 1% in 2017. In 2018, both hotel and aéreo costs are expected to experience a nbsp;nominal growth across the region with notable local variations.
As far as hotels are concerned, there is a trend in the region–especially in Argentina– to forgo luxury accommodations in favor of better food and beverage options, stronger wifi and more flexible services. This is driving demand for mid-range hotels across the region. Space costs are expected to increase by 3-5% in popular markets such as Colombia and México and 2% in the regionón as a whole.
In 2018, an estimated 20% reduction in group size is expected in Brazil due to a weakening economy that will cause clients with smaller budgets to seek to organize domestic events. Rá o de Janeiro is expected to host a number of events due to the blossoming of new hotels and venues following last summer's Olympic Games. However, there are important security considerations to take into account, which could undermine the city's growth as an event destination.
Major hotel developments and renovations in Colombia are putting the destination on the radar of the U.S. meetings and events market. For example, Medellin's hotel plant is improving considerably, as are its convention centers. The coffee region is becoming more and more attractive because it is different and the costs are low.
Other lesser-known destinations are beginning to distinguish themselves in the region, including the exotic but accessible Atacama Desert in Chile, as well as the Iguazuacute Falls on the border between Argentina and Brazil.
NORTH AMERICA
In North America, increases in daily cost per attendee are running at 3% in 2017, with growth in new supply slightly outpacing demand. In the U.S., hotel and aéreo prices are expected to increase 2.5 % in 2018. There are also expectations that the growth in new supply and the increase in demand will be matched.
In 2018, hotel prices are expected to grow. In addition, considering that domestic leisure travel has increased, certain hotels and resorts may limit group blocking during peak periods.
Destinations such as Hawái, Washington D.C. and the vital California region remain popular for hosting meetings and events. Different locations in 2018 in Arizona Arizona are also expected to become more popular as new hotels come online. However, as long as demand outstrips supply, it is unlikely that there will be too much difference from 2017.