After
the 2009-2010 economic crises, agent members experienced a dip in
overseas venue finding enquiries, but have seen an upsurge of 60% in
the number of international briefs in the last two years. The
increase is characterised by shortened lead-in times, smaller events
and an overall reduction in spend, which reflects the
prevailing local
marketconditions and wise caution on the part of
meeting planners.
Chris
Parnham, managing director of Zibrant and vice chair of the HBAA,
commented: “We are seeing fewer large meetings, and an increased
number of smaller meetings, which are being booked with shorter lead
times. About 75% of small meetings are now being booked within two
weeks of the delivery date.”
Germany,
Ireland and the Netherlands continue
as key destinations;
however, Greece and Portugal have seen notable declines.
Jacqui
Kavanagh, managing director, Trinity Conferences, said: “We have
seen fewer bookings in countries that are economically unsettled: for
example, a client who held their event in Athens in
2011 has moved it to Malta this year. However,
the destination itself,
venue, access and other factors are still extremely important and
these are always elements that cannot be compromised. Our clients are
looking for good value for
money and service, and fulfillment of their event
objectives. Security and
connectivity are paramount, and even the hint of civil unrest or
disruption can mean that a destination will be entirely
dismissed by bookers.”
Jacqui
Loftus, managing director, Paragon Europe, said, “Having worked
extensively on international events, we have noticed that Madrid and
Barcelona have dropped off the radar somewhat over the past few
years. However, Cannes, Nice and Monaco are currently at the
forefront. Trending events for 2012 are B2B seminars,
international exhibitions and brand lead experiential events and,
although budget and lead-times have been cut, the client’s
expectation of quality remains high.”
“Clients
are nervous of Greece and their defaulting - and of the on-going
strikes which disrupt events. But clients looking for low delegate
rates are booking Budapest and Prague rather than Portugal, but
that's because they are fashionable meetings destinations, more
than being fearful of Portugal”, commented Des McLaughlin, managing
director of Grass Roots HBI.
In
terms of the financial implications of booking meetings and events a
year ahead, the biggest factors for consideration were cancellation
terms and currency fluctuations.
Andrew
Deakin, director of Conference Care and HBAA executive committee
member, said: “It’s difficult in anydestination to obtain
long term commitment; clients seem to be minimising liabilities by
holding off until the very last minute. They are concerned about
the security of their deposits, the stability of the
country, strikes, and the perception of holding a European event, as
well as anything and everything else that could present an obstacle.”
Jacqui
Kavanagh added: “Our clients are now looking at
different destinations and have thought about new ways of
managing their risks. These have varied according to the client,
their events and the economic conditions of thedestination. For
example, one of our clients spreads the risk of currency fluctuations
by having bank
accounts in £ sterling, US $ and Euros and
decides which one is best to use when a payment is required. For
another client, we negotiated with the venue to use an Escrow Account
in order to minimise the risk.”
She
continued: “Event insurance, VAT and contracting have also become
more important factors and we suggest that clients compare the
options from different insurance companies before purchasing cover.”
Peter
Ducker, executive director of the HBAA, commented: “The demand by
corporates to
host events
in Europe is being mirrored with the international hoteliers signing
up to the HBAA’s International Charter of best practice. We are
seeing hotel groups including Dolce Hotels and Mövenpick, who have a
predominantly European base, signing up so that they can benefit from
the UK's buying power.”
