Despite headwinds, 2020 global meetings and events could post eight pc growth

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Friday, 20 September 2019

THE US$840 billion global meetings and events industry is poised for eight per cent growth in 2020 despite looming geopolitical and economic headwinds, according to the 2020 Future Trends Report published by  CWT M&E.

The report says the protracted trade war between the US and China is creating general uncertainty in the global business community heading into 2020. 

Adding to the anxiety is the future of Brexit and its cascading impact on the European Union, while in Asia, the protests in Hong Kong that started in June have impacted demand across the region. 

Growing concern over climate change also is clouding business sentiment. 

Despite these issues, there are reasons to be upbeat, says Kurt Ekert, president and chief executive at CWT. 

“Face-to-face meetings are critical to establishing connections between brands and their customers, and employees and their companies, especially during times of uncertainty,” Ekert said.

Knowing how to manage risks globally while putting together an authentic and measurable experience for all participants will be key for success in this space in the coming year and beyond.” 

Digitisation 

The  report identifies key developments in the industry in 2020, including digitisation, with event web sites being created at a rapid pace— up 52 per cent year-over-year — as more customers utilise these sites to drive increased engagement. 

Mobile devices are also adding new functionality, with apps that allow organisers to create a higher degree of personalisation for attendees.

CWT M&E estimates the number of event apps created since 2017 has jumped 83 per cent, while the percentage of attendees downloading apps rose from 50 per cent in 2017 to 74 per cent year-to-date in 2019. 

Demographics 

This emphasis on digitisation is being driven by the changing demographics as millennials are poised to become the biggest group of business travellers globally from 2024 onwards. 

Right at their heels are the so-called centennials (born 1996 onwards), the first group that can claim to be digital natives as they have never known a world without the internet, smartphones and apps. 

“This younger group of travellers is all about experience, authenticity and participation,” said Derek Sharp, senior vice president and managing director, CWT Meetings & Events. “Not content to merely ‘attend’ events, millennials and centennials use technology to actively ‘participate’ in the experience — pre-event, during the event, and after it. Organisers are responding with innovations that put a premium on the ability to personalise experiences, coupled with ways of measuring the resulting engagement.” 

Authenticity 

When it comes to experiential events, including incentive travel, the report shows a move towards experiences that feel authentic, where travellers can immerse themselves in a destination like locals and not as high-end tourists.

Hand-in-hand with this trend is the growing attraction of off the beaten track destinations versus the usual ‘tier one’ cities. 

This has raised some safety and security issues with 42 per cent of travellers subjected to pre-travel risk assessments as part of the travel approval process, a five per cent increase year-over-year. 

Socially and environmentally responsible incentives also rank high for 2020, fuelled by this next generation of participants who view climate change as an increasingly pressing issue, according to the report’s findings. These sustainable initiatives include replanting trees and other efforts to care for the environment — and leave a lasting legacy long after an event concludes. 

Global programs 

As global meetings and events programs become more centralised, new technologies in the form of artificial intelligence and bots are transforming how these programs are managed across multiple regions and markets. 

Organisations are taking advantage of these innovative tools to derive more visibility and real-time data and feedback. As technology shrinks timelines and response times, the result is a streamlined process that ultimately leads to better adoption and a changing mindset around meetings. 

Regional forecast 

The report also includes CWT M&E’s regional projections around costs per attendee, average lead times, meeting duration, group size, and average spend on food and beverage in 2020.