Home' micenet eMag : micenet October 2017 Contents T
he overall cost per attendee per
day for meetings and events
around the globe increased in
2017 and is expected to continue
rising next year, according to the 2018
Meetings and Events Future Trends report
prepared by CWT Meetings & Events.
The report by CWT Meetings & Events, a
division of global travel management
company Carlson Wagonlit Travel, shows the
regional differences and cost projections as
well as the latest industry trends and top
destinations. Key findings in markets are:
North America has seen the cost per
attendee per day increase by three per cent
in 2017 with new supply growth slightly
exceeding demand. In the US, hotel and air
travel prices are both expected to increase
by 2.5 per cent in 2018, with expectations
that new supply growth and increasing
demand will be about evenly matched.
Hotel prices are expected to increase in
2018. On top of that, domestic leisure travel
has been increasing, meaning some hotels and
resorts may limit group blocks at peak times.
According to CWT booking data, the top
10 destinations for meetings and events in
North America in 2017 are:
1 New York, USA
2 Toronto, Canada
3 Cupertino/San Jose, USA
4 Chicago, USA
5 Indianapolis, USA
6 San Francisco, USA
7 Austin, USA
8 Houston, USA
9 Orlando, USA
10 Las Vegas, USA
Destinations such as Hawaii, Washington DC, and California’s wine region remain popular for
meetings and events. CWT also expects to see a number of places in Arizona becoming more
popular as new hotels come online in 2018. However, as long as demand outstrips supply,
there is unlikely to be much change from 2017.
The cost per attendee per day for meetings and events in Latin America has increased by one
per cent in 2017. In 2018 CWT expects both hotel and air fare costs to undergo nominal growth
across the region, with some notable local variations.
Looking at hotels, a trend in the region – particularly Argentina – sees event organisers
forfeiting luxury accommodation in exchange for better food and beverage options, enhanced
Wi-Fi and more flexible services. This is driving demand in midscale hotels across the whole
region. CWT expects venue costs to increase by three to five per cent in popular markets like
Colombia and Mexico, while the overall figure for the region is for venue costs to increase by
two per cent.
According to CWT booking data, the top five destinations* for meetings & events in Latin
America in 2017 are:
1 São Paulo, Brazil
2 Rio de Janeiro, Brazil
3 Mexico City, Mexico
4 Bogota, Colombia
5 Buenos Aires, Argentina
[*Only five destinations were selected as there is a significant drop of venues / destination
demand after Buenos Aires.]
In 2018, CWT expects there to be an estimated 20 per cent reduction in group sizes in Brazil
due to the weakened economy, as clients with less budget are looking to do more domestic
events. Rio de Janeiro is set to host many events, buoyed by the new hotels and venues
following last summer’s Olympic Games. However, there are major security considerations
which will slow the city’s growth as an event destination.
Europe, Middle East and Africa
The cost per attendee per day for meetings and events in Europe, the Middle East and Africa has
increased by four per cent this year. Costs are increasing slightly while the economy across the
region is flat, once you take inflation and currency fluctuations into account. In real terms, meeting
and events costs are going up incrementally, and this is expected to continue into 2018.
That said, Brexit could mark a major change for most of Europe. To date, the main impact
has been to attract people to the UK due to the reduction in value of the pound sterling. But it is
too early to define what the ultimate impact will be. CWT expects to have a better idea by 2019
when the UK is scheduled to formally leave the EU.
The EMEA hotel market doesn’t have the same pressure on supply as the Americas. It isn’t
A global study by CWT Meetings & Events is predicting costs will rise in 2018.
MEETINGS AND EVENT
COSTS TO RISE IN 2018
NEWS | BRAD FOSTER
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