 |
News > Casino News Archive > ov 2004 > Economic Impact on Hotel and Airline Industry Significant |
8 Nov 2004
October and November months combine to bring in nearly $8 billion
in revenue to the hotel, convention airline and food/beverage
industries. To manage this spike in business during the fourth
quarter, many associations are bringing on outside meeting
professionals. "This is a busy time of the year for us, as our
annual meeting is always in late October. With this meeting, along
with the other 11 meetings we conduct a year, it"s a challenge to
keep up with it all, even with volunteered time from our board
members. So, several years ago we brought in an association
management company (AMC) to manage the annual conference, from
start to finish. Now the AMC assists with our board meeting
logistics, educational seminars and other meetings," said Joe
Cattaneo, president of the Glass Packaging Institute. The M&C
Report (www.meetings-conventions.com) noted that the planning
timeframe is up 5 percent, with start to finish now averaging two
years per event. Coupled with an average of 14 meetings a year for
a typical association, association staff resources can be stretched
thin, as almost half (48 percent) do not have full time staff
devoted to meeting planning, according to the American Society of
Association Executives (ASAE). Meeting planning companies and
association management companies are the professional service firms
most associations are retaining to ease their meetings workload.
"Since AMCs already provide a wide range of association services,
ranging from accounting to strategic planning, they are
well-positioned to offer association clients a specialized service
such as meeting planning," said Dee Ann Walker, chair of the
AMCinstitute. Association management companies also bring valuable
relationships to the table with hotels, airlines and other
suppliers to the meetings industry. AMCs alone book over $1 billion
annually in hotel and convention services, according to a study
conducted by the AMCinstitute. With the increased volume of hotel
rooms follows an increase in airline traffic, as ASAE has noted
that 20 percent of the airline industry revenues are generated by
meetings and conventions. From a budgetary standpoint, hotels and
food/beverage services represent the top spend category, at 61
percent of total meeting budgets for associations. ASAE confirmed
the impact of associations on the hospitality industry, with data
showing that over one-third of hotel revenue comes from
conventions, expos, meetings and incentive travel. The emphasis on
meetings management has a distinct financial advantage to
associations as well. According to Convene magazine"s 12th Annual
Meetings Market Survey, on average, 34 percent of an association"s
revenue comes from conventions, meetings and exhibits. Walker
noted, "The increased demand in the meeting arena, along with the
desire of associations to make the most efficient use of human
resources, has helped the AMC industry grow 33 percent in the last
eight years. Associations see AMCs as ready-made resources to
manage an increasingly aggressive lineup of conventions, board
meetings, training and educational seminars and
professional/technical meetings." The trend is expected to
continue, since 94 percent of meeting planners surveyed in the
report noted that they plan to have the same or larger budgets in
the coming year. With non-profit organizations (including trade
associations and professional societies) representing 9 percent of
the Gross Domestic Product (GDP) the economic impact of these
budgets will be felt across the business environment. MEETINGS
AT-A-GLANCE Source: Meetings & Conventions magazine"s 2004
Meetings Market Report) Top Meetings Months for associations: The
4th Quarter represents the most popular timeframe for meetings,
with October and November alone at 28 percent of meetings. Volume
and Dollars Trends: The number of meetings is up 12% over the last
two years. Corporations and associations (through in house staff or
external firms such as association management companies and
independent meeting planners): Spent over $28 billion on these
meetings. Corporations and associations almost split the
distribution of this $28 billion, with corporate meetings
accounting for 52% and associations 48%. Held over 1 million
meetings combined in 2003. For the most part did not see a decrease
in their budgets. Over 80 percent worked budgets that equaled or
exceeded 2001 spend levels. Looking ahead: 94 percent of
association meeting planners forecast same or increased budgets as
of year-end 2004. Meeting planners (including in-house, independent
meeting planners and association management companies) manage 14 to
17 meetings a year on average. Association Management Companies
alone plan an average of 34 meetings per AMC. Top Spend Category:
56% of the corporate meeting budget was spent on Hotels and Food
& Beverage while associations delegated 61% of their budgets to
this area. More Facts About Meeting Planners and Association
Management Companies: 1,945,144 room nights at hotels are booked
annually by Association Management CompaniesRelated News:
|
|
