Demand for meetings and events to grow by 5-10% next year

Demand for meetings and events will grow by 5% to 10% next year, and average call sizes will increase in nearly every region, according to the 2019 Trends Report published by CWT Meetings & Events. Hotel rates are also expected to increase by 3.7% and airfares by 2.6%.

In Europe, the Middle East and Africa, the industry continues to make positive progress, with mature European markets demanding greater engagement and creativity, making events the ideal showcase to maximize the power of "face-to-face" in an increasingly digitized world.

The rates a areas in Western Europe are expected to be the fastest growing globally, with an expected increase of 4.8% in 2019. However, the picture is different in Eastern Europe, where rates are expected to decline by 2.3 %, while the Middle East and &Africa are on a similar downward trend, at around 2 %.

Also, hotel prices in Western Europe are expected to experience the largest increase worldwide, with rises of up to 5.6% next year. In Eastern Europe, the forecast is for a 1.9% decline in hotel rates, while the forecast for the Middle East and Africa is for a 1.5% decrease.

Latin America has experienced a 26.7 % increase in average group size, which will decrease by 5 % in 2019. Despite increased positivity, economic growth in the region is expected to remain relatively slow next year. Hotel prices will drop by 1.3% in 2019, while room rates will fall by 2%.

The recession in Brazil, the region's largest economy, has led major global hotel brands to abandon their properties and local companies to take their place. Growth in Argentina is expected to stabilize in 2019 following the collapse in the value of the Argentine peso and the securing of a new loan of $50.billion from the International Monetary Fund.

The forecast for Colombia augurates stability in 2019, with continued annual growth in meetings demand. In Mexico, the renegotiation of the North American Free Trade Agreement (NAFTA) with the United States and Canada is likely to affect the country's economy.Per and Chile, meanwhile, will continue to enjoy stable demand for meetings.

The region's buoyant economy North America is driving meetings growth, and the market will see a 14% increase in group size in 2019.

The tech companies, in particular, are adapting to the demand for more customized, attendee experience-focused events by holding smaller meetings, ranging from 20 to 50 people, in different cities on a semiannual cycle.

The increasing regulation of transparency in the pharmaceutical industry is affecting budgets. Still, the cyclical nature of the global industry means that some companies are investing in their meetings and events programs for new product launches, while those that are losing product patents are looking to realize savings of up to 30%. CWT M&E forecasts that average hotel prices will rise 2.8 % in 2019, increasingá costs for meeting buyers. With rising oil prices starting to affect airline profits, there will also be some inflation in average airfares, which are expected to rise 1.8% in 2019.

In Asia Pacific the current strong growth in the region is expected to continue in 2019, with a 3 % increase in average meeting size and continued expansion in China on a year-on-year basis.Vietnam, Myanmarand Philippinesare in full swing: many multinational companies are establishing a presence there, with a consequent increase in inbound and outbound travel in these markets expected in the coming year.

The Asia Pacific region is expected to lead global growth in 2019. Aéa rates are forecast to increase by 3.2% in 2019 and hotel rates are expected to increase by 5.1%. With such strong growth across the region, companies are increasingly willing to spend on meetings and events.

 

With such strong growth across the region, companies are increasingly willing to spend on meetings and events.

 

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