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HelmsBriscoeHelmsBriscoeMeeting Industry TrendsMeeting Industry Trends

20112011

September 10, 2010

AgendaAgenda

HelmsBriscoe Overview Market Conditions Key Meeting Industry Trends Q&A

HB By the NumbersHB By the Numbers

The largest meetings procurement firm in the world Contracted >$1.1 billion in group room revenue over the past 2

years Placed over 6.5 million room nights over the past 2 years Contract over 21,000 meetings annually Annually delivers more than $1 billion in gross meeting spend

to the hospitality community Global presence with 1,150+ associates in over 35 countries Business Mix:

– 72% Corporate/Incentive– 18% Association– 10% Government/Other

Cancun ProductionCancun Production

% Revenue Per City% Revenue Per City

0.47%

57.00%

3.60%0.40%

0.48%0.64%2.70%

0.93%

14.00%

11.00%

2.60%

6.40%

Percentage Revenue Per City 2010

Cabo San Lucas

Cancun

Los Cabos

Mexico City

Nuevo Vallarta

Playa del Carmen

Puerto Jurez

Puerto Morelos

Puerto Vallarta

Rivera Nayarit

San Jose del Cabo

Solidaridad

Destination PartnerDestination Partner

Cancun is a Preferred Partner with HelmsBriscoeAs of July, 2010 – December, 2011Unique access to associatesExposure via marketing, events & educationHost of “MOMs” conference November, 2010HBs ABC in January, 2011

– January 5-7, 2011 - Gaylord National

Market ConditionsMarket Conditions

Contrary to popular belief, the global economy is in recovery

Source: Oxford Economics

Global GDP Change

GDP has rebounded around the worldGDP has rebounded around the world

4.0%3.3%

2.4%

1.4%

(0.5%)

(3.4%)(3.0%)

(2.0%)

0.5%

3.1%3.5%

4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10

Source: Oxford Economics

Global Private Consumption Change

And consumers are buying moreAnd consumers are buying more

3.1%

2.4%

1.7%

1.1%

0.4%

(0.9%)(0.5%)

0.2%

1.1%

2.2%2.4%

4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10

Source: Oxford Economics

Retail SpendingMonthly--Last Six Months—Indexed to 2007

Total retail spending now at Total retail spending now at prepre--recession levels, except in Japan and the US.recession levels, except in Japan and the US.

60

70

80

90

100

110

120

130

140Brazil Canada France Germany Japan Mexico UK US

2007 Level

Source: Oxford Economics

Business ConfidenceLast Six Months—Year-Over-Year Change

Business confidence continues to rise Business confidence continues to rise while its rate of growth has slowed considerablywhile its rate of growth has slowed considerably

0

5

10

15

20

25

30

35

40

45

50Brazil Canada France Germany Japan Mexico UK US

Global Industry RevPAR ChangeConstant USD—Year-Over-Year Change

Hotel performance is on the rise & Hotel performance is on the rise & increasing occupancy is driving recoveryincreasing occupancy is driving recovery

Source: STR Global; Smith Travel Research

(10%)

(5%)

0%

5%

10%

15%

Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10

OCC Chg ADR Chg RevPAR Chg

40%

45%

50%

55%

60%

65%

70%

75%Australasia

GreaterChina Europe

Middle East& Africa

SouthAmerica

NorthAmerica Global

Source: STR Global, Smith Travel Research

Occupancy By RegionJuly YTD—Last Four Years (2007 – 2010)

But…overall occupancy is still But…overall occupancy is still well below prewell below pre--recession levels recession levels

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%Brazil Canada China France Germany Japan Mexico UAE UK US

Source: STR Global, Smith Travel Research

Occupancy By Selected CountriesJuly YTD—Last Four Years (2007 – 2010)

Most key countries have increasing Most key countries have increasing occupancy, but most well below 2007 occupancy, but most well below 2007

US OccupancyJuly YTD

Last year’s US occupancy was Last year’s US occupancy was the lowest since the early 1970sthe lowest since the early 1970s

Source: PWC; Smith Travel Research

50%

55%

60%

65%

70%

75%

70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10

US Industry Rooms SoldLast Three Months Ending July YTD

The US has sold about the same The US has sold about the same number of rooms as it did prior to the recessionnumber of rooms as it did prior to the recession

Source: STR Global

258

270

263 262266

274

280 281285

281

261

285

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Mill

ions

Global Industry Average Rate ChangeConstant USD

After declining for a record 17After declining for a record 17--monthsmonthsaverage rates are beginning to riseaverage rates are beginning to rise

Source: STR Global

(5.8%)

(2.3%) (2.0%)

(0.5%)

0.5%

2.7%3.5%

Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10

$0

$50

$100

$150

$200

$250

$300

$350Brazil Canada China France Germany Japan Mexico UAE UK US

Source: STR Global, Smith Travel Research

Average Rate By Selected CountriesJuly YTD—Last Four Years (2007 – 2010)

Average rates Average rates are still depressed in most countriesare still depressed in most countries

Source: Smith Travel Research

Global Industry Performance By Industry SegmentsLast Three Months Ending July 2010

(5%) 0% 5% 10% 15% 20%

Economy

Midscale Without

Midscale With

Upscale

Upper Upscale

Luxury

OCC ADR

Over the last three months, nearly all Over the last three months, nearly all segments posted gains in average rate segments posted gains in average rate

15.5%

9.8%

10.6%

7.4%

6.5%

4.6%

Source: Smith Travel Research

Global Industry Occupancy By Industry SegmentsLast Three Months Ending July 2010

60.3%

65.6%

62.9%

69.2%

71.0%

65.4%

Economy

Midscale Without

Midscale With

Upscale

Upper Upscale

Luxury

Occupancy has been strong across most Occupancy has been strong across most segments, especially over the past three monthssegments, especially over the past three months

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

J-09

F-09

M-09

A-09

M-09

J-09

J-09

A-09

S-09

O-09

N-09

D-09

D-09

J-10

F-10

M-10

A-10

M-10

J-10

J-10

A-10

Group Transient

US Upper Tier Demand Change By Consumer Segment28-Day Moving Average

The growth in demand is the result of The growth in demand is the result of increasing transient and group businessincreasing transient and group business

Source: Smith Travel Research

(20%)

(15%)

(10%)

(5%)

0%

5%

10%

J-09

F-09

M-09

A-09

M-09

J-09

J-09

A-09

S-09

O-09

N-09

D-09

D-09

J-10

F-10

M-10

A-10

M-10

J-10

J-10

A-10

Group Transient

US Upper Tier Average Rate Change By Consumer Segment28-Day Moving Average

Average rate is now rising Average rate is now rising for both group and transientfor both group and transient

Source: Smith Travel Research

Source: Smith Travel Research

Occupancy By Selected MarketsLast Three Months Ending July 2010

30% 40% 50% 60% 70% 80% 90% 100%

LondonNew York

SingaporeSan Fran

SydneyHong Kong

BostonWashington

RomeShanghai

TorontoBerlinTokyo

ChicagoLos Angeles

MontrealSao Paulo

DubaiMiami

BeijingOrlandoAtlanta

Mexico CityHouston

The last three months have seen The last three months have seen many key cities at near sellmany key cities at near sell--out levelsout levels

Source: Smith Travel Research

Average Rate Change By Selected MarketsLast Three Months Ending July 2010

(10%) (5%) 0% 5% 10% 15% 20% 25% 30% 35%

ShanghaiHong Kong

SingaporeNew York

LondonBerlin

MontrealSao Paulo

TorontoMexico City

TokyoBeijing

SydneySan Fran

Los AngelesWashington

MiamiBoston

RomeChicagoOrlando

HoustonAtlantaDubai

In the last three months, nearly In the last three months, nearly all key cities had an increase in ADRall key cities had an increase in ADR

Outlook Outlook

The road ahead is still likely to be rough

Global and US leading indicators Global and US leading indicators have flattened or declined have flattened or declined -- soft patch aheadsoft patch ahead

80

90

100

110

120

130

140

Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10

Global US

Economic Leading Indicators

Source: Global data from Organization for Economic Cooperation and Development (OECD); US data from Economic Cycle Research Institute (ECRI)

Not surprisingly, travel intentions Not surprisingly, travel intentions also appear to be slowingalso appear to be slowing

42%

44%

46%

48%

50%

52%

54%

56%

58%

Nov-08 Feb-09 May-09 Aug-09 Nov-09 Feb-10 Jun-10

Business Leisure

US Travel IntentionsDiffusion Index, 4-Week Moving Average

Source: US Travel Association

Source: Oxford Economics

GDP ChangeAnnual Percentage Change

Economic growth is expected Economic growth is expected to strengthen in 2011 and 2012to strengthen in 2011 and 2012

0%

2%

4%

6%

8%

10%

12%Australia Canada China France Germany Japan Mexico UK US

2010 2011 2012

SummarySummary

Occupancy levels remain weak around the world but improving

ADR is beginning to recover Continued volatility of airline industry A more difficult second half of the year may be in store

• A 1 in 4 chance of a US double-dip recession• Odds are greater for another European recession

Solid overall long-term economic and industry recovery Stronger 2011 Much stronger 2012

Key Meeting Industry Key Meeting Industry TrendsTrends

General General Industry TrendsIndustry Trends Shorter meeting length of stay Shorter booking windows Increase of multi-year contracts Larger cities stealing share from smaller cities Aggressive destinations “buying” conventions

International “Subventions”

Growth of 3rd Parties – The Big Three = $2 billion+ meeting spend Greening of meetings – impacting buying decisions Corporate social responsibility – impacting buying decisions Technology resources and access

Prevalence of social technology use at meetings Streaming video Internet access

Corporate &Corporate &Incentive Segment TrendsIncentive Segment Trends

Shift to Strategic Meeting Management/Procurement Maxvantage = Amex + Maritz Experient HelmsBriscoe Industry focus on SMM – NBTA, PCMA, MPI

Shorter booking windows Smaller incentive meetings with less “flash” More individual incentives vs. group “AIG” affect still alive but waning Focus on ROI/ROO/ROM Security is a BIG issue

Association Segment Trends Declining Membership

- Lack of Growth- Decreased Retention- Impact of “generationals”

Reduced Attendance at Meetings Focus on bottom line Reduced sponsorship Declining exhibitor attendance

Redesign of exhibition formats- Shorter/smaller shows- Appointment driven- Hosted buyer model

Increased outsourcing of core services Security is an issue

Tradeshow TrendsTradeshow Trends2010 Exhibitor Trends Survey – Champion Exh. Scvs. 81 percent of exhibitors sending fewer staff to trade shows,

reducing the number of events as well as downsizing booth space

Exhibitors are adopting and seeking new engagement points from show organizers including year round promotion, virtual events, and online tools for attendees

While impact of the recession has been far reaching, exhibitors remain committed to trade shows, and are planning to increase trade show investments when the economy recovers

www.championexpo.com

Tradeshow TrendsTradeshow Trends Niche shows and hosted buyer/appointment driven shows

on the rise i.e.: Connect (Association) Rejuvenate (Religious) TEAMS (Sports)

New shows AIBTM – June, 2011 Baltimore IMEX AM – October, 2011 Las Vegas

IT&ME – future in doubt NBTA – more group & procurement focus (SMM) MPI – tradeshows in flux Increase in co-locations i.e.

PCMA & AIBTM MPI & IMEX AM

Meeting Planners Meeting Planners Intention Survey Intention Survey –– June June

There is a net increase in the number of off-site meetings planners' expect to book in 2010 and 2011 versus 2009

There is a net increase in expected attendance at off-site meetings in 2010 and 2011 versus 2009

Professional meeting planners are less concerned about the negative publicity associated with hosting meetings in upscale properties/destinations, although there is still a palpable level of concern about booking resorts and cruise ships.

Potential Potential Intl. DestinationsIntl. Destinations

Meeting Planners Meeting Planners Intention Survey Intention Survey

www.pcma.org/Resources/Research/MeetingPlannersIntentionsSurvey.htm

Q & A

David Peckinpaughdpeckinpaugh@helmsbriscoe.com

858-385-2710

Thank you