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Capitalizing on this leadership position, MPI and American Express began an annual landmarkresearch study in 2003 on the business of meetings. Now in its third year, FutureWatch 2005builds on side-by-side planner and supplier comparisons from North America and Europe,reporting year-over-year trending on key economic indicators such as spending, internationaltravel, and employment. It also maintains a watchful eye on the pace of meetings managementand other signs of commoditization and consolidation and continues a call to action for strongerbuyer/seller relationships to ensure long-term success in an evolving industry.

In addition, FutureWatch 2005 looks closely at attrition due to the level of concern planners andsuppliers have expressed about this issue in previous years. The need to more quantitatively provethe value of meetings in today’s cost-conscious environment has led to a new section on howplanners and suppliers are involved in the ROI (return on investment) measurement process.

Beyond guidance for the industry as a whole, the contributions of 1,851 respondents (960 planners and 891 suppliers) to FutureWatch 2005 also serve as a reference to MPI as theorganization executes Pathways to Excellence. This strategic plan will propel members and themeetings they implement to a more strategic level, ensuring the US$102.3 billion business ofmeetings and events remains a dominant force in the global economy.

WELCOMETO FUTUREWATCH 2005

FUTUREWATCH 2005 1

here is, perhaps, no more fertile ground for insights and indicators for the future of the meetings industry than the globalmembership of Meeting Professionals International (MPI).With a nearly 50-50 ratio of more than 19,000 planner and supplier members in 60 countries, MPI is in a unique position

to leverage data points and holistically report on internal and external factors impacting the industry’s current state and future direction.

TT

SIGNIFICANT FINDINGSMultiple indicators point to sustained and expanding economic

growth for the meetings industry worldwide in 2005.

The meetings industry is expected to grow again in 2005, with increases in key areas, includingbudgets, employment, employee training, proposal activity, number of attendees per meeting orevent and expenditures per meeting or event. Additionally, international travel continues torebound, as meeting planners on all geographic fronts forecast more meetings beyond theirdomestic borders with the largest increase coming from Canadian and European planners.

Summary of

General Economic and Industry Outlook

affecting meeting planners in the formsof budget constraints, rising travel costs,consolidation and threats of commo-ditization. The “do more with less”mantra adopted by businesses duringthe economic crisis of 2002 and 2003—and shortened lead time for planningand booking meetings—has, in largepart, become standard operatingprocedure, despite economic recovery.As a result, planners feel significantpressure to justify the value of theirjobs, as suppliers must justify the valueof their products and services amidst anincreasingly competitive businessenvironment and escalating expenses.

Despite last year’s predictions of apotential swing to a market favoringsuppliers, 2005 will remain a buyer’smarket.

While most planners and suppliersdon’t expect an increase over last year’sheightened attention to price con-cessions and flexibility surroundingattrition and cancellation clauses, abouta quarter of suppliers expect to increaseconcessions. This price elasticity com-bined with disparities between expectedsupplier revenues and planner expen-ditures will increase pressure onsuppliers to gain greater market sharethrough favorable business negotiationsthat will benefit planners in 2005.

The year-over-year pace of meetingsmanagement is steadily movingahead, with more planners reportingfull implementation of standardizedpolicies and procedures than reportedin FutureWatch 2004.

Standardized meetings managementpolicies and procedures are in place orwill be within the next two years atmany organizations. About one-half ofplanner respondents have adopted orare implementing organization-widemeetings management processes,programs, tools and technology,

standardizing items such as purchasingpolicies, contract language, meetingrequest forms and reporting platforms.

Web site enhancements continue asthe focus of technology investmentamong suppliers in 2005, followed bywireless technologies; all other newtechnology investment categories willdecline.

Nearly all suppliers expect to invest inWeb site enhancements in 2005,addressing planner expectations toincrease reliance on the Internet forresearch and booking meeting venues.Suppliers also indicate a slight tech-nology investment increase in wireless.The increased use of technology willallow suppliers to work more efficientlyand accommodate increasinglycompressed lead times, however, thisputs additional pressure on face-to-facebusiness communications alreadystrained during staffing downturns.Unexpected is the marked departurefrom FutureWatch 2004 in which newinvestments rose in all technologycategories except one … in 2005, onlyWeb enhancements and wirelesstechnology will see investment gains.

Commoditization ranks second only tobudget concerns as the operationaltrend expected to have the greatestimpact on planners and suppliers in2005; attrition drops substantially.

An increasing number of planners andsuppliers agree that commoditizationconcerns within the meetings industrywill be on the rise again in 2005. Astechnology offers more opportunities forautomation and the industry employsmore standardized meetings manage-ment, the risk that the function becomesreduced to a purchasing decision basedon cost grows. Meanwhile, in a signi-ficant turn, attrition concerns amongsuppliers and planners plummeted,signaling positive outcomes fromcorrective action on both sides of thebusiness.

While all parties forecast growth, thegap has widened between projectedsupplier revenue targets and meetingplanner expenditures in 2005.

Hoping to capitalize on positiveeconomic trends, suppliers continued a track record of eagerness, projectinghigher revenue gains than the positive,yet more restrained, spending projectionsof meeting planners. The resulting 8percent disparity vs. a 7 percent disparityin 2003 and 2004, respectively signals acontinued buyer’s market as suppliersbattle to steal market share and maketheir revenue goals.

For the second consecutive year,recovering corporate budgets reflectimproved overall corporate health; yet, budgets for consultants andindependent planners still dominatethe marketplace.

Corporate meeting-related expenditurescontinued to recover from budget cutsand downsizing in 2002, growing at a steady pace. While a sign of enterpriseimprovement across the board,companies are not walking away fromexternal meeting planning resources. In fact, 2005 budget forecasts for inde-pendent and consultant plannersoutpace corporate budgets by almostdouble, indicating a continued move tooutsourcing as an ongoing strategy.Another sign of positive economicrecovery comes with a healthy three-fold increase in associations/societyplanner budgets in 2005.

Major external forces such as theeconomy and world security continueto weigh heavily on the business ofmeetings and the people that plan andsupport them, presenting significantprofessional challenges for plannersand suppliers alike.

External factors, largely out of thecontrol of the meetings industry, areimpacting the way planners andsuppliers do business. Leading the way,the global economy and security are

SIGNIFICANT FINDINGSSummary of

Planner/Supplier Dynamics

both aspire to establish a partnerrelationship, the limited communicationson meeting success measures underscoresa breakdown in this process.

In addition to desiring greater sharing ofROI measures, most suppliers wantplanners to offer more honest disclosureof budgets, more comprehensive com-munications and more detailed RFPs.They also want to improve their rela-tionships with planners by understandingmore about their business and respondingto inquiries faster, which hinge on an open

flow of communication. The vast majorityof planners would like to work withsuppliers as partners rather than as vendors.In addition, planners want increasedflexibility in attrition/cancellation clausesand quicker turnarounds on requests.

Suppliers and planners, well intentionedand committed to working together tomake the industry thrive, will continue toface challenges to their business relation-ship without greater communication.

Despite increased pressure to provethe value of meetings, suppliers arenot being involved in ROI or othercritical measurement processes.

Most planners say they measure thereturn of meeting investments frequently,but the majority of suppliers are seldomor never asked to help build systems orprocesses for measuring meeting return.Suppliers are not receiving feedback onmeeting ROI, with less than one-thirdmentioning that planners consistentlyshare meeting success measures. While

FUTUREWATCH 2005

Expecting more growth in 2005, meeting planner and supplier average spendingand revenue projections increased by 2 and 3 percent respectively from 2004.Meeting planners forecasted a 5 percent budget increase vs. 3 percent in 2004.Meanwhile, suppliers project revenues to increase by 13 percent compared to 10 percent last year, creating an 8 percent differential for 2005. Interestingly,however, when looking at the three-year trend, planners’ budgets increased a total of 6 percent and suppliers tracked at a 7 percent increase overall.

In addition to measuring projected percentage change in year-over-year budgets,FutureWatch 2005 also sought to quantify spending among planners by askingthem to provide actual budget figures for 2005. European planners are the mostaggressive in their projections, expecting budget increases of 6.5 percent from 2004,while U.S. planners come in on the lower end at 4.7 percent. Canadian plannersrest squarely in the middle, projecting budget growth of 5 percent. Suppliers in theUnited States, Canada and Europe project strong positive revenue growth rates aswell from meetings/events in 2005 at 14, 13 and 11 percent, respectively … allhigher than the 10 percent growth rate projected last year.

Beyond forecasted increases for meetings industry revenue and spending,additional signs of further recovery come in the form of increases in employmentand training budgets for the second year in a row. Employment is expected toincrease in planner and supplier organizations by an average of 4 percent, andtraining budgets are expected to increase by an average of 7 percent for plannersand 9 percent for suppliers.

Suppliers

Planners

Suppliers and Planners:Estimated budget/revenue

change 2003 - 20053%2004

-1%2003

5%2005

10%2004

6%2003

13%2005

100

A Sustained Market Recovery

Slight gains expected in other notable meetings industry indicators.

Suppliers and Planners:Projected employment and training

budget increases 2004 vs. 2005

100

5%7%Training

2004

2005

3%4%Employment

2004

2005

9%9%Training

2004

2005

4%4%Employment

2004

2005

Suppliers:

Planners:

Suppliers and Planners:Average percentage changes permeeting or event 2004 vs. 2005

100

-2%-1%Length

2004

2005

1%2%

2004

2005

5%6%Number of attendees

2004

2005

-4%-3%Length

2004

2005

-2%3%Expenditure

per attendee

Expenditureper attendee

2004

2005

1%4%Number of attendees

2004

2005

Suppliers:

Planners:

Facts andFIGURES

FUTUREWATCH 2005 3

FutureWatch 2005 points to a second year in a sustained growth of internationalmeetings and business travel. U.S. planners project 23 percent of all 2005 meetings—up 1 percent from 2004—will be held outside domestic borders, with Europe andCanada cited as the top destinations at 6 and 5 percent, respectively.

European meeting planners are projecting the biggest jump in international bookings,with an increase from 17 percent in 2004 to 28 percent in 2005. While the UnitedStates remains the top destination at 8 percent, Asia made an impressive comeback at7 percent, up from 4 percent in 2004. Canadian planners also forecast an increase inthe likelihood to meet outside of the country from 23 percent in 2004 to 29 percent in 2005. The United States is the lead locale, expected to get 13 percentof all Canadian meetings, 2 percent more than was projected in 2004. Venue choicesof U.S., Canada and Europe planners are projected to remain relatively constant.

U.S. Planners: Projected Meetings in Various Geographical Locations

2004

2003

2005 77% 5% 6% 3% 2% 3% 4%78% 5% 7% 2% 1% 3% 5%89% 3% 4% 1% 1% 1% 1%

Central America

South AmericaEurope Asia OtherCanadaU.S.

Canadian Planners: Projected Meetings in Various Geographical Locations

2004

2003

2005 13% 71% 4% 3% 3% 2% 4%11% 77% 3% 4% 0% 0% 6%8% 89% 2% 1% 0% 0% 0%

Central America

South AmericaEurope Asia OtherCanadaU.S.

European Planners: Projected Meetings in Various Geographical Locations

2004

2003

2005 8% 3% 72% 3% 3% 7% 4%9% 1% 83% 1% 2% 4% 0%6% 1% 82% 0% 1% 6% 4%

Central America

South AmericaEurope Asia OtherCanadaU.S.

U.S. Planners:Projected Venue Usage

2004

2003

2005

15%13%13%Airport and suburban hotels

11%11%9%Restaurants, country clubsand unique venues

10%11%9%Conference centersand universities

9%11%7%Convention centers

32%30%35%City hotels

25%24%27%Resort hotels

Canadian Planners:Projected Venue Usage

2004

2003

2005

11%16%9%Airport and suburban hotels

9%12%9%Restaurants, country clubsand unique venues

9%9%8%Conference centersand universities

12%11%12%Convention centers

45%39%50%City hotels

15%14%12%Resort hotels

European Planners:Projected Venue Usage

2004

2003

2005

8%8%4%Airport and suburban hotels

14%14%10%Restaurants, country clubsand unique venues

19%18%16% Conference centersand universities

17%15%19%Convention centers

30%32%35%City hotels

12%13%16%Resorts hotels

International Travel Sustains Growth

Facts andFIGURES

FUTUREWATCH 2005

Corporate planner respondents paint a positive picture of rebounding budgetstopping an estimated $7.1 million average in 2005 vs. a 2004 average of $5.3 million. Independent, multimanagement and planner consultants expecteven higher budgets foretelling a stronger hold on the industry with averagebudgets expected to reach $11.8 million in 2005 from $6.1 million last year.Apparently, the growth in corporate planner budgets is having little, if any,impact on the money being spent with independent planners, indicating thatthe outsourcing model will potentially remain viable and active even upon fullmarket recovery. And association, society and non-profit planners come out thebig budget winners, with average estimated budgets growing to $4.8 millionafter holding steady at $1.4 million in 2003 and 2004 … indicating a return tomembership in professional society and non-profit organizations as professionaldevelopment purse strings loosen.

As one of the hottest meetings industry issues in past years, the topicof attrition was more deeply analyzed in FutureWatch 2005.A surprising decrease in attrition concerns by suppliers and plannersindicates how powerful their partnerships can be when they attack anissue together to find resolutions favorable to both. Approximately41 percent of planner respondents think attrition will be only aminor problem in 2005, and 17 percent predicted it will not be aproblem at all. Only 10 percent identified attrition as a significantproblem in the coming year.

In a related question, the proportion of respondents indicatingattrition clauses as the operational trend with the greatest impact on

meetings declined from 31 to 17percent among planners and from

21 to 13 percent amongsuppliers. Top strategiesidentified by planners forreducing attrition arecombining conference event

registration with housingreservations, creatingattendee incentivesand ensuringpublished Internet

rates are greater than roomblock rates.

Planners and suppliers agree about expectedchanges in price concessions and degrees offlexibility in attrition and cancellation clausesby suppliers. Twenty-five percent of suppliersand 24 percent of planners expect these toincrease while 18 percent of suppliers and 25 percent of planners expect a decrease.Slightly over half of suppliers and plannersexpect them to remain as flexible as last year… again suggesting that a new businessenvironment might well be here to stay.

While budgets continue to be the leadingoperational trend expected to impact themeetings business in 2005, there continues to be increasing concern about commo-ditization, a trend first observed inFutureWatch 2003. Eighteen percent ofplanners and suppliers project thatcommoditization will have the greatestimpact on meetings in 2005, increasing by13 percent for planners and 5 percent forsuppliers.

Other factors that suggest furthercommoditization potential include theexpanded use of Internet technology byplanners, investment in Internet technologyby suppliers and the implementation ofstandardized meeting practices.

Planners:Estimated Budgets By Category 2003-2005

University/government/medical/other

20042003 2005

Corporate/company

Consultant/independentplanner/multimanagement

Association/society/non-profit

$4,059,235 $7,143,191$5,296,329

$4,379,485 $11,782,429$6,128,952

$1,336,366 $4,843.088$1,328,770

$637,098 $1,875,942$1,264,922

ers:E ill be

a 5 as2004

SignificantNot a problem

Minor

Moderate

10%

41%

17%

32%

Planners:Extent attrition will be

an issue in 2005 as opposed to 2004

SignificantNot a problem

Minor

Moderate

10%

41%

17%

32%

Outsourcing Here to Stay?

Attrition Resolution

2005 Operational Trends With The Greatest Impact On Meetings

4%5%

13%18%

21%13%

60%58%

11%5%

5%18%

Organizationalbudget changes

Cancellation andattrition clauses

Airline ticketing/schedulingpolicy changes

Commoditizationof planning

Airline ticketing/schedulingpolicy changes 2004

2005

2004

2005

2004

2005

2004

2005

2004

2005

Commoditizationof planning 2004

2005

31%17%Cancellation and

attrition clauses 2004

2005

51%53%Organizational

budget changes 2004

2005Planners:

Planners and Suppliers:

Suppliers:

604020

Operational TrendsImpacting Meetings

FUTUREWATCH 2005 5

Facts andFIGURES

Web and Wireless Take the Lead

The Internet continues to be a primary technology focus for planners and suppliers.In 2005, meeting planners expect to use the Internet 21 percent more to research and4 percent more to book meeting venues. These numbers reflect a slight increase inthe use of the Web for research and a slight decline in booking over 2004.

On the supplier front, 85 percent of respondents plan to invest in Web site enhancements and 67 percent in wireless technologies.Surprisingly, these are the only two categories of technology expectedto grow in 2005 as opposed to 2004, when investments were expected togrow or stay the same in every category except teleconferencing. Despitethe retrenchment in technology investments, more than half of the suppliers responding expect to make some investment in new audio/videoequipment, guest room technologies, online booking/planning systems and customer relationship management technologies this year.

Suppliers:New Technology Investments

Web site enhancement 81% 83% 85% Wireless technologies 48% 66% 67% Guest room technologies 55% 65% 56% New A/V equipment 55% 62% 58%Online booking/planning systems for meeting planners 54% 59% 52% Customer relationship management technologies 50% 59% 51% Registration technologies 40% 47% 45% Online travel and housing systems for bookings 48% 47% 42% Teleconferencing 35% 29% 28% Audience/attendee response tools 25% 28% 26% Virtual meetings/shows 24% 24% 20%

200520042003

FutureWatch 2004 undertook an industry-first measurement of the pace ofstandardized meetings management,asking planners to indicate the degree towhich their organizations are imple-menting standards and practices in areassuch as contract language, registrationtools, meeting request forms, reportingand reconciliation platforms. This year’sstudy provides a year-over-year analysis.

According to findings, implementationand consideration of organization-widemeetings management practices willsteadily climb in 2005. Fifty-sevenpercent of planner respondents have fullyimplemented or plan to implementorganization-wide purchasing policies;54 percent have or will standardize

Degree Of Implementation

Planners:Meetings Management Policies And Procedures

Areas OfStandardization

23%

2004 2005

20% 2% 3% 21% 20% 9% 13% 2% 3% 1% 1% 42% 40%

21% 18% 4% 3% 25% 25% 11% 13% 1% 2% 1% 1% 37% 39%

30% 25% 4% 4% 24% 23% 5% 8% 3% 3% 0% 1% 34% 38%

28% 22% 2% 2% 24% 28% 12% 11% 4% 3% 1% 1% 29% 33%

Meetings Management Under Way

purchasing channels, 50 percent havepreferred supplier programs, and 48percent have or will have a technologybase established. The percentage oforgnizations that have completed fullimplementation has grown in three ofthe four meetings management cate-gories since 2004 while the percentage ofthose not considering areas of standard-ization has decreased.

Meanwhile, suppliers indicate they arenot conforming to standardizedpurchasing policies at the levels they didin 2004. Only 37 percent of suppliers areconforming to planners’ standardizedpurchasing policies a majority of thetime, down from 44 percent last year.And just 13 percent of supplier

respondents say they are required to be apreferred vendor more than 50 percent ofthe time, down 1 percent from 2004.Seventy percent say the requirementoccurs less than 25 percent of the time.

The seeming disparity between plannersand suppliers on the pace of meetingsmanagement indicates that planners areimplementing internal policies andprocedures that are not being clearlycommunicated or reflected in their directrelationships with suppliers.

FUTUREWATCH 2005

Measuring Meeting ROI

Last year, FutureWatch 2004 provided a first-ever forum for planners and suppliers todescribe business interaction and highlightareas to optimize their working interactionsand business success. Suppliers said thatplanners could help by focusing on betterand more complete communication, morelead time and flexibility, honesty regardingbudgets and expectations, detailedinformation regarding needs, teamwork andmore allowance for creativity. Plannerssimilarly indicated they needed moreefficient communications from suppliers,quicker response to requests, betterunderstanding of lead time and flexibilityrestraints, more team work, continuation ofcompetitive pricing and taking time to learnabout planners’ needs and work flows.

Building on this, FutureWatch 2005measured these common themes toestablish year-over-year trending. The resultsindicate that most planners and suppliersstill have room for improvement when itcomes to improving relationships andmeeting each others’ expectations during thebusiness cycle.

Sixty-seven percent of planner respondents always or frequently measure the returns on theirmeeting investments. To get a better understanding of how they measure those returns, theywere asked about tools used to determine success. Eighty-one percent of respondentsindicated that post-event attendee surveys are the most frequent ways planners measure ROI.Meeting budget and revenue reports and client feedback followed at 73 percent and 68 percent, respectively. This indicates that planners still predominantly rely on tactical eventmeasures rather than those that underscore the broader strategic impact of meetings on theirorganizations’ business goals and objectives.

Suppliers are not highly involved in helping develop return on investment measurementtools or models for the industry. In fact, 68 percent of supplier respondents indicatedplanners seldom or never ask for help in building or enhancing systems or processes formeasuring meeting ROI.

Forty-four percent of planners say they always or frequently share meeting performancemeasures with suppliers, and 29 percent of suppliers always or frequently receive meetingperformance measures from planners. This disparity indicates planners and suppliers aretypically not communicating with each other about ROI performance measurement results.In fact, suppliers do not appear to know when planners are measuring results and vice versa.The research indicates that 38 percent of suppliers think their planner partners measure ROI,compared to the 67 percent of planners who claim they do, in fact, measure ROI.

of suppliers are comforming to planners’ standardized purchasingpolicies a majority of the time.

of suppliers say they are required to be a preferred vendor more than 50 percent of the time.

13%

37%

of suppliers say the requirementoccurs less than 25 percent of the time.

70%

Planners:Use of Measurement

of ROI Tools

7%Other

20%Organization’ssales reports

23%Onsite audience

response systems

68%Client feedback

73%Meeting budget

and revenue reports

81%Post-event

attendee surveys

Communication Challenges Commitment to Partnering

FUTUREWATCH 2005 7

When asked in a write-in question, what, if anything, they did to aid the other in thebusiness process, just 18 percent of planners and 11 percent of suppliers indicated theycommunicated more over the past year, and 12 percent of planners and 4 percent ofsuppliers responded that they tried to work as partners. There was little or no significantincrease in improving business relationships in any other area.

In 2005, however, suppliers and partnersexpress an equal and overwhelming desire towork as partners. Seventy-one percent ofsuppliers and planners identified this as aworking objective for 2005. When supplierswere asked how planners could work betterwith them, they asked for more honestdisclosure of budgets, more leadtime/flexibility, more comprehensivecommunication and more detailed RFPs.When planners were asked how supplierscould work better with them, more flexibility,faster response to requests and inquiries andmore detailed, transparent quotes led the list.Thirty percent also cited better Web sites astools they would like suppliers to deliver.

One-half of planners intend to improve theirrelationships with suppliers by submittingmore thorough and detailed RFPs. Inaddition, a segment of planners will allowsuppliers more creativity, give honest, fulldisclosure of budgets, increase RFP leadtime/flexibility and learn more about theirbusiness. Most suppliers intend to improvetheir relationships with planners byunderstanding/learning more about theirbusinesses and responding to requests/

inquires faster. In addition, a large segment of suppliers will use e-mail more and providemore detailed proposals.

All of these improvements are based upon free exchange of information. Without strongcommunications, planners and suppliers cannot establish the value necessary to stemfurther commoditization and may, in fact, sabotage efforts to strengthen the relationshipsneeded to ensure the long-term viability of the meetings industry.

Suppliers:Desired Business Practices from Planners in 2005

Work together as a partner 71%67%More honest disclosure of budgets56%More lead time/flexibility49% More comprehensive communication45% More detailed requests for proposals29%More allowance for creativity8%Other

Planners:Desired Business Practices from Suppliers in 2005

Flexibility 85%71%Work together as a partner58%Faster responses to requests/inquiries42% More detailed, transparent quotes35% Learn/better understand my business33%Use e-mail more30%Better Web site26%Softer sales and marketing approach

6%Other

Planners:Desired Business Practices from Suppliers in 2005

Flexibility 85%71%Work together as a partner58%Faster responses to requests/inquiries42% More detailed, transparent quotes35% Learn/better understand my business33%Use e-mail more30%Better Web site26%Softer sales and marketing approach

6%Other

Suppliers:Planned Approaches to Improve

Relationships WithPlanners in 2005

36%More transparent

and detailed proposals

61%More rapid response to

requests and inquiries

45%Increase use of

e-mail vs. phone/fax

71%Understand/learn more

about planners’ businesses

14%Softer sales and

marketing approaches

Planners:Planned Approaches to Improve

Relationships WithSuppliers in 2005

36%Increase RFP/executionlead time and flexibility

42%Allow suppliers more creativity

41%Honest, full disclosure

of budgets

50%Submit more thorough

and detailed RFPs

18%Automate RFP and/or

contract process

34%Learn more about suppliers’ business

Facts andFIGURES

Communication Challenges Commitment to Partnering (cont.)

With both sides of the businesscommitted to bettering therelationship, the time to act on thatcommitment is now.

The health of the meetings industry mirrors that of business and the economy in general.Increased meetings, particularly those requiring

international travel, are fuel for a worldwideeconomic engine and are signs of continued

steady growth in the meetings industry in 2005 and its supporting effect on a stabilizing, recoveringworld economy.

FUTUREWATCH 2005

KEY TAKEAWAYS

At the same time, with external factorsweighing heavily on the industry,planners and suppliers must prove moreflexible and adaptable than ever bycontinuing to improve workingrelationships. The meetings industry hasexperienced a shake out, and while thebusiness is picking up and budgets areexpanding, the industry is not returningto doing business in the same way. Theefficiencies companies were forced tocreate in a tight economic market arelikely to remain in place, positioningcompanies for greater growth as themarketplace rebounds.

Predictions that 2004 would evolve intomore of a seller’s market have nottranspired. Despite growing plannerbudgets, sellers remain challenged togrow market share, continuing to makeprice concessions in order to winbusiness. 2005 will continue to be abuyer’s market, with sellers needing toprovide added value through speed andflexibility.

Technology and standardized meetingsmanagement practices have becomestandard operating procedure for manyorganizations, making consolidation andcommoditization concerns long-termrealities for meeting professionals.Meeting professionals must understand

and embrace how procurement officersare impacting meetings management,become fluent in the language ofbusiness, articulate the strategic value ofmeetings and adopt more sophisticatedskills, tools and metrics to ensurerelevancy and positive impact to theirorganizations.

While planners recognize the importanceof measuring meetings, they are not yeteffectively measuring them against

strategic corporate business objectives.There exists significant opportunity forplanners and suppliers to pursue a moreconcerted, proactive partnership. Whathas happened with the issue of attrition isa testament to the power that plannersand suppliers have when they engage in afocused effort to address an industrychallenge. Cited as a major concern in thepast two FutureWatch studies, attrition hasbeen largely mitigated, according to thisyear’s study.

The effort put forth on both sides to identifyand implement solutions for attrition is amodel for moving forward on critical issuessuch as proving the ROI of meetings throughcreating and implementing ROImeasurement tools and committing tobetter, more frequent communication. Asplanners work to get seats at the executivetable, they should not hesitate to call ontheir suppliers to help make their case. Byfully understanding meeting details and the corporate objectives planners are working

toward, suppliers can offer more effectiveand efficient solutions.

For additional tools and informationregarding strategic meetings managementpractices and return on investment, visit theMPI Global Corporate Circle of ExcellenceWeb site at www.gccoe.mpiweb.org.

What has happened with the issue of attritionis a testament to the power that planners andsuppliers have when they engage in a focusedeffort to address an industry challenge.

FUTUREWATCH 2005 9

FutureWatch is an annual research study, now in its third year, commissioned by Dallas-basedMeeting Professionals International (MPI) in partnership with American Express. Conducted in lateOctober 2004, FutureWatch 2005 surveyed MPI members, the world’s best collective of professionalmeeting planners and suppliers, to identify and comment on global meetings industry trends andindicators for 2005 and beyond. MPI commissioned an independent firm, Syndics Research, to conductan online survey and perform statistical and qualitative analysis of the findings.

Methodology: MPI sent a series of three e-mailinvitations to 16,503 members worldwideannouncing the study and requesting participation.All responses were received anonymously. Memberrespondents were asked to provide a range ofinformation regarding their organizational roles,projected business, organizational and operationalchallenges, use of technology, implementation ofstandardized purchasing policies and procedures, ROImeasurement, attrition issues and more for 2005.

Participation: The survey garnered 1,851 responses(11 percent total response rate of those invited toparticipate), of which 52 percent (960) were fromMPI planners and 48 percent (891) were from MPIsuppliers. Overall, participation represented 11percent of MPI planner members and 9 percent ofMPI supplier members, which was slightly more than19,000 at the time the survey was executed.

Suppliers:Organizational Responsibility

3%Operations or financial director,supervisor or manager

20%Member of a salesand/or marketing team

15%Owner/CEO/President

55%Sales or marketing director,supervisor or manager

2%Operations orfinancial executive

5%Other

Planners:Organizational Responsibility

9%Professional planner staffor executive

26%Internal planning executive

20%Independent planners

37%Internal planning staff

5%Other

3%Owner/CEO/President

Suppliers:Response Rate

U.S.

Europe

Canada10%

79%

11%

Planners:Response Rate

U.S.

Europe

Canada 8%

82%

10%

Meeting Professionals InternationalGlobal Headquarters3030 LBJ Freeway, Suite 1700Dallas, TX 75244-5903 USAtel 972.702.3000fax 972.702.3089

In Europe15, route de GrundhofL-6315 BeaufortGrand-Duchy of Luxembourgtel +352-2687.6141fax +352-2687.6343

In Canada6519-B Mississauga RoadMississauga, Ontario L5N 1A6Canadatel 905.286.4807fax 905.567.7191

www.mpiweb.org

PublisherColin Rorrie Jr., Ph.D., CAE

Editorial and Design SupportAllison Ellis, Vice President of Marketing and CommunicationsJoe Welch, Syndics Research CorporationKelly Schulz, Director of CommunicationsShannon Couzens, Couzens CommunicationsStacy Clark, Marketing ManagerJeff Daigle, Assistant Art DirectorGary Rockwood, Graphic Designer

Publications StaffJohn Delavan, Director of Publications/Editor in ChiefBlair Potter, Managing EditorJason Hensel, Associate EditorAngela Chiarello, Associate EditorMichael Pinchera, Assistant EditorKirsten Rockwood, Publications Coordinator

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FutureWatch 2005 is an official supplement to the January 2005issue of The Meeting Professional, the official publication ofMeeting Professionals International, a professional association ofmeeting planners and suppliers. Members receive The MeetingProfessional as a membership benefit paid for by membershipdues; $50 of membership is allotted to The Meeting Professionaland is nondeductible there from. Nonmembers may subscribe tothe publication for $99 annually ($129 international). Forsubscription information, deletions and address updates, call (972) 702-3035 or e-mail publications@mpiweb.org. File addresschanges with the U.S. Postal Service online atwww.moversguide.com.

Copyright 2005, Meeting Professionals International, All Rights Reserved.

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