Suppliers may tighten booking conditions for meetings and events

The meetings and events industry will see positive growth globally in 2016, but a tightening of booking conditions is expected, which will affect negotiations between suppliers and organizers. These are the key findings of CWT's latest forecast study.

 

The study highlights that the terms of full and partial cancellation will become stricter, which will make negotiations with suppliers more important for meeting planners.

The fourth edition of this forecast, which is published annually, provides event planners with comprehensive regional data - average daily cost per attendee and average group size included - so they can plan and budget for the coming year.

Major findings in the different regions of the world include:

• The unpredictable economy Asia Pacific could hinder the situation in the region, although stronger demand from China and India could drive up group sizes and prices.

• The high demand for meeting and event space in North America exceeds supply, making this market more favorable for sellers. Against this backdrop, planning takes on special relevance.

• Meanwhile, in Europe, purchasing managers are gaining bargaining power as the region is experiencing slow but steady growth.

• Peaks of high demand are set to occur during the 2016 Olympic Games and during the Paralympic Games next summer, potentially resulting in a shortage of meeting space.

This year's report also offers a number of practical tips for meeting and event planners heading into 2016. Among the recommendations include:

-Plan ahead: be aware that certain hotels in high-demand markets do not block space when dealing with availability requests. It is advisable to decide if you can be flexible with dates.

-Careful budgeting without neglecting the attendees: food and beverages are still a very important item within the cost per attendee. It is recommended to adjust this item to manage budgets without neglecting the promotion of healthy alternatives that continue to be a very popular option among attendees.

-Time is money: the advance notice with which registrations and contracts with venues are made continues to shorten. However, lengthening the lead time for larger events can provide organizers with greater bargaining power.