The state of the industry is strong, with a consensus that the outlook for meetings and events is bright. The conversation no longer centers around recovery; rather, it’s focused on industry growth, the pace of which has exceeded expectations.
“The meetings industry is recovering much faster than the forecast originally predicted coming out of the pandemic,” says Gretchen Hall, COO of Destinations International. “In some markets, it has already surpassed pre-pandemic levels.”
Jessie States, vice president of the MPI Academy, agrees. “More than three-fourths of professionals are very optimistic about the state of the meeting and events industry right now,” she says. “Most businesses expect they are going to be back to 2019 conditions by the end of the year or early next year, if they aren’t already.”
Indeed, ConventionSouth’s 2023 Industry Trends Survey, fielded online Aug. 1-20, shows more than 63 percent of respondents are planning two or more events in a Southern destination during the next 12 months. And 85 percent say attendance levels are the same or higher than last year, with 61 percent of those who report higher numbers saying the increase is 11 to 25 percent.
Though optimism is high and growth is expected to continue, many challenges plague the industry. ConventionSouth talked with Hall, States, and other insiders and experts for a comprehensive view of the current state of the meetings and events industry and a peek at what’s to come.
Struggling to fill roles
A staffing shortage is the top issue facing the industry, many experts say. “Half of businesses in our industry say that they are hiring full-time positions, and that’s a record number,” States says. “Another 44 percent that are hiring are finding it very difficult to fill those roles. While a lot of hiring is happening, jobs are remaining open because they can’t be filled.”
In addition to people changing careers in the past few years, many industry professionals retired. “There has been a lot of knowledge
lost through the retirement of so many during the pandemic,” States notes. “The average age in our industry dropped significantly.
A lot of businesses learned that their succession plans weren’t as solid as they might have thought, so there is a challenge right now for many organizations with training up a new workforce.”
More than 48 percent of ConventionSouth’s survey participants say the staffing shortage is one of their biggest challenges.
Both suppliers and buyers are feeling the pinch. The shortage is affecting the attendee experience, too, particularly at hotels where some amenities might be curtailed.
“A recent survey showed 82 percent of hotels still have open jobs, and approximately one-third of them have so many open jobs that it’s impacting operations,” says Chip Rogers, president and CEO of the American Hotel & Lodging Association. “It doesn’t mean your room isn’t getting cleaned—it will like always—but what guests might experience are shorter hours at some ancillary businesses connected to the hotel, whether it’s shops, restaurants, or bars.”
Yet Hall thinks the experiences of recent years have raised awareness and understanding of the issue. “I do think that attendee expectations have changed somewhat,” she says. “We’ve become a little more accustomed to understanding staffing shortages, so we’re okay, for example, having housekeeping make our beds every other day instead of on a daily basis.”
Many organizations have come up with workarounds for staff shortages at events. For example, Destinations International leaned on volunteers at a recent convention it hosted in Dallas, Texas. “Everyone is trying to get creative to make up for these shortages so that it doesn’t negatively impact the experience for attendees,” Hall says. “Many groups are looking for additional support from the destinations they are traveling to. Groups are also using more technology to make up for staffing shortages, as well, such as self-service stations or online registration.”
Costs outpacing budgets
Thirty-five percent of respondents to ConventionSouth’s survey say client budget reductions are a big challenge. And more than 64 percent say budget restrictions are among the concerns they are hearing from clients. Fewer than 19 percent report that their clients are saying their travel and event budgets are increasing.
Even for those whose budgets have increased, many costs are outpacing the boost. “That creates a challenge for organizations in making sure they are budgeting for next year’s events appropriately given that everything from catering to audio-video to the price of facilities, room nights, and transportation are all increasing significantly right now,” States says.
Higher costs are by far the No. 1 concern planners in our survey say they are hearing from clients, racking up 83 percent of the vote. Among the biggest challenges planners themselves face, rising prices took first and second place in our survey, with 85 percent noting higher event costs and 60 percent noting higher accommodation costs.
That is making it harder to produce experiences, particularly when it comes to food and beverage, says Nicole Bowman, vice president of marketing and communications for the International Association of Exhibitions and Events. “Many organizers are trying to find different ways to provide food and beverage activations, such as make-your-own trail mix and bottled water instead of coffee and tea service,” Bowman says. “After all, if it’s going to cost the same as coffee and tea, why not do something different?”
Our survey respondents are thinking along the same lines. Forty-six percent say they are considering scaling back F&B offerings to save money.
Rising costs not only require more planning thought, they also necessitate considering whether to hold an event at all, says Adam Mogelonsky, a partner at Hotel Mogel Consulting Ltd. “It’s causing them to make a more shrewd decision about how much money they are putting toward the event,” he says. “If it’s hosted, they have to ensure the event is more meaningful to attendees in order to justify the increased cost they are spending on everything.”
Reimagining meetings
Still, the past years shone a light on the importance of gatherings. As Mogelonsky says, “Time spent together in person is invaluable, especially coming out of the pandemic.” It bodes well for live meetings that this year’s ConventionSouth survey shows only 15 percent of respondents are hearing health and safety concerns from their clients, down significantly from 37 percent last year.
While the desire to meet in person continues, the expense and the trend toward people attending fewer meetings is changing meeting styles. Many clients are demanding more bang for their buck to justify events, particularly longer ones. “There has to be a very specific purpose for a meeting or event,” Mogelonsky says. “For example, you have to ask why you are spreading out the event over two-and-a-half days when you have to take so much time to get there and back, costs are high while budgets are reduced, when you could perhaps instead do a tighter meeting in one longer day.”
Along with shorter gatherings, some organizations are hosting fewer meetings and events. “We’ve seen consolidation of meetings where previously it was two, and now, they are combining into one,” Hall says.
Even with some reducing their meeting numbers, Bowman does not see hybrid events coming back into the mainstream. “It’s outrageously expensive,” Bowman says. “Unless you know you will reach that international audience that maybe can’t travel to the United States right now—which is a very unique position that only a very small percentage are in—it’s not worth it to produce a hybrid event. We’re seeing organizers go away from hybrid.”
Indeed, fewer than 17 percent of our survey respondents say they are planning to offer hybrid options.
Shifting sentiments
Attendee sentiments have changed in the past few years. “Attendees value their personal time now more than ever, and there are a lot of meeting options out there,” Hall says. “That means attendees are being much more selective in where they spend their time.”
Higher attendance fees also are driving selectivity; in fact, nearly 43 percent of our survey respondents say they plan to increase event registration prices to manage costs.
These factors have attendees emphasizing quality over quantity. “Attendees want to be assured before they leave for an event that it is worth their time,” Bowman says. “That means event organizers must not only think through the event’s value and the return on investment for the attendee, but also communicate it to the attendees so they will feel that it’s worth their time to attend.”
What makes an event meaningful to attendees has changed, too, shifting away from the traditional meeting format, States says. “The significance of big-name speakers or star-level entertainment has significantly decreased,” she says. “The greater focus and emphasis is on spontaneous conversations, pure learning, true networking, and facilitative networking as opposed to networking receptions of the past.”
Offering practical content and education are increasingly important. “Attendees want to know that they are going to come away from the meeting with real actionable steps they can take back to their organization and implement immediately,” Hall says.
Leaving a social footprint
Today’s attendees want authentic experiences beyond the meeting space. “They want to engage with the community and experience the destination,” Hall says.
States agrees, noting the boom in bleisure travel. “More people are utilizing meetings and events as a means of having an experience in a new place,” States says. “People who may not be able to afford to go on a vacation are utilizing some of these business events to have a leisure experience. So, events designed with that in mind are much more attractive to people than those not incorporating the destination into their experience.”
More than 60 percent of our survey respondents say they incorporate the local community and culture into their events, mainly through entertainment (72 percent), followed by historical attractions (53 percent), and arts and crafts (47 percent). Tied at 47 percent is incorporating the local community through volunteer opportunities. No longer
an added bonus, most clients and attendees expect CSR projects to be part of the agenda, offering the chance not only to immerse in
a destination, but also to contribute to the social good.
“People want to know what kind of positive footprint they are leaving on a community,” States says. “As such, organizers are seeking to increase the positive social footprint the event leaves behind.”
Reducing the carbon footprint
With keen environmental awareness, many attendees are looking for eco-friendly events. “When they are supporting an organization while also trying to make a positive impact on the environment—or less of a negative impact on the environment—it makes attendees feel good when their personal goals can align with the event’s goals,” Bowman says. “There is a problem of waste, especially with the trade show business, and many attendees want to see organizations tackle that problem and be more socially responsible.”
ConventionSouth’s survey results bear that out. Fewer than 10 percent of respondents say environmental friendliness is not important when planning live events, while nearly 40 percent say it is important or very important.
The sharper focus on sustainability and environmental, social, and governance (ESG) goals by planners and organizations is altering meeting partners practices. “Sustainability and ESG goals are tied to businesses, and that means the procurement process is being looked at more heavily than in the past,” States says.
Attendees expect hotels to be environmentally responsible, Rogers says. “There is definitely a renewed interest in going green,” he notes. “Pre-pandemic, there was a movement towards it. But at that time back in 2019, people would list it as important that their hotel is practicing sustainable procedures, but it wasn’t near the top of the list. It didn’t come close to price and location. Now, we’re seeing a dramatic change to consumers saying it’s an important factor in picking a hotel.”
Properties are stepping up to the plate, Mogelonsky says, reducing plastic waste and instituting other eco-friendly initiatives. “You’re seeing more properties swap plastic water bottles with recycled ones and remove single-use plastics,” he says.
Mogelonsky expects these efforts to expand. “I do think it will start to ramp up in terms of the expectations for energy conservation at host hotels,” he says. “As more and more companies start to embody sustainability at the core-value level, that means they will have to review and ensure that all of their partners, including host convention halls or host conference center hotels, align with those core values.”
Planners can reduce environmental damage and save money by changing F&B habits. “For example, organizers are looking at portion control, local sourcing, and other things that could reduce the environmental footprint,” States says. “We’ve all been to an event where you are given a huge plate, and everyone usually feels they need to fill it. It may be as simple as using smaller plates to reduce the impact of that meal. Less waste means there is less that needs to be composted.”
Mitigating risks
Nearly 35 percent of ConventionSouth survey respondents say dealing with stricter contract terms is among their biggest challenges. “I think the pandemic is the primary leader in some of those strict clauses,” Hall says. “From the venue side, they are concerned about cancellations, tightening up language in what is allowed for a cancellation, as well as tightening attrition clauses in contracts.”
Adding to the difficulty is attendees taking longer to commit to a meeting or event, creating apprehension for planners and clients. “The decision window is much shorter for attendees now, as they are making last-minute bookings, which creates additional challenges for meeting planners with complexities in room blocks, so that weighs in,” Hall says. “So, both sides—hotels and planners—are incorporating risk-mitigation factors at a much greater level than they were pre-pandemic. It’s creating some additional challenges and additional contracting structures.”
Growing trends
Evolving apps and other event tech continue to play an increased role in the industry. Beyond those technologies, the proliferation of AI tools is expected to continue, helping planners do more in less time, reduce workload stress, and save money.
“An increased number of organizations and planners themselves utilize AI in the event planning process, with everything from creating or responding to RFPs, creating job descriptions for contractors, designing the actual event, and creating and writing session descriptions,” States says. “We’re starting to see meeting professionals utilize AI in all of these areas to create efficiencies on the job.”
The wellness trend also is expanding beyond physical health. As work-life balance has become increasingly important to workers, companies are placing more emphasis on employees’ overall well-being to attract and retain top talent. That movement has spread into the event space.
“When organizations are bringing employees on site, they are much more focused on all areas of wellness and incorporating those into the design of meeting and event experiences,” States says. “Physical health remains important, but there’s now an additional focus on those other elements that are just as important. The focus is more on how they can help individuals be a more holistically well person.”
That means rounding out physical activities and healthy food options with opportunities for mental, emotional, occupational, and financial well-being, such as offering financial counseling at events.
“That includes ensuring there is downtime in the agenda and opportunities for people to socialize and get to know one another in more specific and facilitated ways,” States says. “It also includes ensuring people have the resources they need for their own personal emotional health.”
