MPI Predicts Strong Year For IndustryMeeting Professionals International and American Express in their annual FutureWatch report, released Jan. 11, predicted a second year of solid increases in the global meetings industry in key economic indicators including spending, international travel, employment and training budgets underscoring overall fiscal and corporate health. According to the report, meeting planners at corporations, associations and independent planning companies forecasted a 5 percent budget increase in 2005, building on a 3 percent increase in 2004. For suppliers, overall revenues were projected to increase 13 percent in 2005, building on a 10 percent gain in 2004. The increasing gap between planner spend and supplier revenue projections indicates that 2004 predictions of a meeting industry swing back to a sellers' market may be less likely, according to MPI. "Meetings industry suppliers are hoping to capitalize on positive economic trends and continue to set aggressive revenue goals," said Colin Rorrie, president and CEO of MPI, in a statement. "The differential against planner budget expectations indicates 2005 will continue to be a buyers' market, creating supplier opportunities to demonstrate value as they face market share battles to ensure individual revenue goals are met."
Fueled By Survey, Hertz Debuts Mtgs. ProgramCar-rental provider Hertz on Jan. 10 launched a new program for meetings and conventions with special discounted rates, complimentary rental certificates, site inspection discounts and free customized flyers. The move was in response to a survey that indicated planners expect to book more off-site meetings in the year ahead, according to a company release. The survey, carried out by Orlando-based marketing services firm YPB&R, found that 19 percent of meeting planners expected to book more events off-site
(Meetings Today, Dec. 6, 2004). The guaranteed meeting rates automatically are compared to Hertz published rates and attendees are assigned a convention reference number they can present at the time of registration. Guaranteed event rates are available up to one week before and one week after the event. Other offers in the new meeting package include site inspection discounts and a Hertz meeting services coordinator assigned to aid meeting planners in conference logistics. Meeting planners who book 20 completed rentals per meeting earn $250 in rental certificates that can be redeemed within two years.
PGI Cuts Destination Management BusinessWashington, D.C.-based event marketing and communication agency PGI Inc. closed eight of its 28 destination management business offices on Dec. 8, 2004, in the wake of a failed merger attempt. Bob McCormick, PGI's chief operating officer, said in a press teleconference that destination management services would be handled by PGI event management operations. Destinator, the distinct brand PGI had developed for destination services
(Meetings Today, Oct. 20, 2003), has been discontinued. McCormick declined to specify what company PGI had been in negotiations with for a merger, but said PGI had decided to remain an independent company for the foreseeable future. Industry speculation had focused on Carlson Marketing Group as the potential merger partner for PGI. McCormick was named president in addition to his role of COO of PGI strategic events. McCormick insisted that PGI was a profitable organization but that the closures reflected a lack of new opportunities in the marketplace. "If we really took a look at what the opportunities were for PGI in that marketplace, there wasn't an opportunity to grow the business. You could almost say the offices were flat in the ability to create additional opportunities for us," McCormick said.
Denver’s TG Worldwide Closes DoorsDenver-based TG Worldwide Meetings and Incentives closed its doors early last month after 23 years of business. The family-owned company filed for Chapter 7 liquidation after a poor third quarter in 2004 "led to cash flow problems from which we could not recover," company president Travis Wright told the Denver Post. TG Worldwide reported gross sales of $55 million in 2000, but sales dropped to $38 million in 2001.