Global Meetings Spend Will Stay Flat in 2018

The American Express Meetings & Events 2018 forecast predicts minor regional spend variations, including a slight uptick in North America and a slight downturn in Asia/Pacific. Yet the sellers' market continues, so meeting owners will have to make budget choices. Amex M&E surveyed 600 meeting organizers in July about their planned activity and spend for 2018 and now has released the results.

North America

Amex M&E forecast a 1 percent increase in meetings spend for the U.S., citing a rise in the number of meetings projected for the U.S., as well as a 0.5 to 1 percent increase in cost per attendee. The meetings consultancy predicts a 1.5 percent decline in Canadian meetings spend, mostly due to a pullback in meeting duration. The sellers' market for hotels will challenge meeting owners to make choices about where they will spend their money. Amex sees a 3.5 percent increase in U.S. hotel group rates coming down the pike. The firm predicts a slightly more manageable 3 percent increase in group rates for Canadian hotels. Offsite activities will be the first to see cuts, according to an Amex M&E survey of meeting organizers. Concentrating spend on the meeting hotel could help organizers maximize their negotiation power and create a more engaging experience for attendees. Meeting organizers reported pressure to plan events with tight lead times, but they also report slow meeting-approval processes. Increasing demand in the U.S. and rising costs that require creative solutions will heighten that issue.

Europe

Amex M&E's survey showed meetings activity in Europe would remain flat in 2018. As always, however, aggregate numbers are deceiving in the context of Europe, where Switzerland anticipates a 5.5 percent rise in training meetings and U.K. data indicates a 1.5 percent increase in training meetings, as well as a 2.2 percent jump in conferences and product launches.  On the flip side, Swiss respondents predicted 5.8 percent declines in conferences and tradeshows, while other countries reported flat numbers for many meeting types. Group hotel rates, in aggregate, remain steady, but Poland, Switzerland and the U.K. predict significant increases that will eat into budgets. Amex M&E predicts growth in electronic sourcing and more meetings consolidation efforts to roll through the region next year.

Asia/Pacific

Meetings activity is expected to remain fairly stable in 2018 for Asia/Pacific, with small decreases of 0.8 percent to 1.2 percent among certain meeting types. China and Hong Kong reflect these broader strokes, while Singapore stands out with predicted decreases of 1.4 percent to 2.2 percent for most meeting types. Singapore data also indicates shrinking group sizes, while Australia may see size increases of as much as 2.4 percent. It's no surprise to see Singapore reporting a decrease in meetings spend, estimated to fall 3.7 percent. Australia is more bullish on spend, predicting a 1.9 percent rise for 2018. No matter the market, Asia/Pacific meeting owners are likely to be squeezed by rising group rates at their hotels. The average increase is estimated at 1.7 percent, but that's driven largely by the 5.7 percent increase expected in Australia.

Central & South America

Amex M&E expects little change in meetings activity or the mix of meeting types in Central and South America for 2018. It does expect group size to grow in the region; with that growth, Amex M&E predicts more focus on meetings management tools and technologies. Country-by-country data indicates flat spend. Argentina is an outlier; cost per attendee is expected to increase 2 percent, but it won't be driven by hotel rates, which are expected to remain steady for 2018. Mexico, however, may see group hotel rate increases as high as 3.1 percent.