DMC Network Sees Corp. Revenue Rising
Destination management companies expect to see increased revenue from corporate meeting planners next year, according to a survey by Washington, D.C.-based Global Events Partners released last month.
The survey of 60 partner DMCs in 40 countries showed that more than 80 percent of respondents expected revenues from corporate events to increase next year. Approximately two-thirds of respondents expected that the number of large corporate events with more than 200 attendees would increase in 2006, according to the release. The remaining respondents, predominantly outside the United States, attributed a predicted fall-off to "the large numbers of big events held in 2005, making year-over-year comparisons weaker, and increasing interest among meeting planners in holding smaller, more targeted events in more intimate settings," according to the release.
Respondents said that Las Vegas and Orlando would continue to be hot destinations for corporate meeting and events. Less than 10 percent of respondents said New York City and San Francisco would be popular destinations for groups from within their regions in 2006. Partner DMCs cited short lead times, increasing operating costs, staff training and retention and pressures on profit margins from corporate procurement departments as expected challenges next year.