Leading Meeting Professionals

Professional Convention Management Association

March 2013

Convene's 22nd Annual Meetings Market Survey

By Michelle Russell, Editor in Chief

8 percent in 2011 survey

PROJECTED 2013 CONVENTION/MEETING BUDGET VS. 2012 CONVENTION/MEETING BUDGET













Eleven percent expected their convention/meeting budget to decrease in 2013 (compared to 16 percent who projected budget cuts in 2012), while 73 percent expected no change (compared to 65 percent in last year's survey). Sixteen percent expected to work with a bigger budget this year (compared to 19 percent last year).

Average change: +1.5 percent compared to +0.6 percent in 2011 survey

2012 OVERALL ANNUAL BUDGET

7% Less than $250,000

9% $250,000 - $499,999

6% $500,000 - $999,999

15% $1 million - $2.4 million

15% $2.5 million - $4.9 million

12% $5 million - $9.9 million

11% $10 million - $15 million

25% More than $15 million

More than one-third (36 percent) of respondents indicated that their organization's total annual 2012 budget was $10 million or more, and close to half (47 percent) reported that it was $5 million or more.

Average: $6.9 million compared to $6.8 million in 2011 survey

OUTSOURCING MEETING-RELATED SERVICES

65% Registration

57% Housing

30% Event-supply rentals

22% Trade-show management

12% Marketing/promotion

11% Event marketing

11% Party planning

9% Speaker selection

7% List acquisition

Respondents outsourced a variety of meeting-related services; they were most likely to outsource registration (at 65 percent, a big jump from the 35 percent of respondents who outsourced registration in our 2011 survey); housing (57 percent compared to last year's 46 percent); and event-supply rentals (30 percent compared to last year's 61 percent).

ORGANIZATION INCOME

Respondents indicated that, on average, 38 percent of their organization's revenue was derived from dues and 10 percent from sales. Thirty-four percent came from conventions, exhibits, and meetings — a 5-percent jump from last year's survey.

Not surprisingly, corporate planners indicated that, on average, the bulk of their revenue (63 percent) was derived from sales.

OFFERING CITYWIDE HOUSING

47% Third-party housing service

38% Convention bureau housing service

17% In-house (do it yourself)

6% Other

The preferred methods for handling citywide housing: using a third-party housing service (47 percent compared to 29 percent in last year's survey) and in-house management (38 percent compared to 41 percent reported in last year's survey). Seventeen percent used convention bureau housing in 2012, similar to last year's survey results.

ECONOMIC VALUE TO HOST DESTINATIONS













Two-fifths of respondents (40 percent, the same as in last year's survey) reported that the economic value of their largest meeting to the host destination in 2012 was less than $1 million, while 29 percent — compared to 25 percent in last year's survey — reported the value at $5 million or more.

In terms of the total economic value to host destinations of all of the meetings they held in 2012, 29 percent said it was at least $10 million, while 73 percent estimated that all their meetings brought an economic benefit of $1 million or more to their host destinations. Association planners reported that their meetings in total benefited host destinations the most — an average of nearly $9 million, compared to $8.4 million for corporate planners and $7.8 million for independent planners.

Average: $3.8 million compared to $3.4 million in last year's survey

EXPOSITIONS

ATTENDANCE

26% Fewer than 500

13% 500 - 999

21% 1,000 - 2,499

11% 2,500 - 4,999

13% 5,000 - 9,999

8% 10,000 - 24,999

8% 25,000 or more

Two-fifths of respondents (39 percent) indicated that the attendance at their largest convention/meeting/exposition in 2012 was fewer than 1,000, while 61 percent held a meeting attended by 1,000 or more participants.

Average: 5,442 compared to 4,164 in 2011 survey

SQUARE FOOTAGE OF LARGEST EXPOSITION

Respondents reported that, on average, their largest exposition had approximately 124,336 net square feet, up from an average of 107,321 net square feet reported in last year's survey.


2012 ATTENDANCE VS. 2011 ATTENDANCE

2012 ATTENDANCE VS. 2011 ATTENDANCE













More than two-fifths of respondents (42 percent) reported that attendance at their largest 2012 meeting increased compared to 2011. In last year's survey, 38 percent reported an increase in attendance at their 2011 event compared to 2010. Fifteen percent reported a decrease in attendance at their 2012 event compared to 2011 — compared to 21 percent who reported a drop in their 2011 attendance compared to 2010.

Average change: +3.7 percent compared to +1.9 percent in 2011 survey

PROJECTED 2013 ATTENDANCE VS. 2012 ATTENDANCE



 









The majority of respondents (52 percent) expected 2013 attendance to remain the same, while 36 percent expected it to increase, similar to last year's results.

Average change: +2 percent compared to +2.6 percent in last year's survey

TOTAL ROOM PICKUP

Close to half of respondents (44 percent) indicated that the total room pickup (all hotels) for their largest meeting was 2,500 or more. The average room pickup was 3,608.

PERCENTAGE OF ROOMS PICKED UP BY ORGANIZATION

54% 90% or more

30% 80% - 89%

5% 70% - 79%

2% 60% - 69%

<1% 50% - 59%

9% Less than 50%

More than half (54 percent) reported that their organization picked up at least 90 percent of the room block for their largest meeting.

Average: 84 percent, up from 80 percent last year

LOCATION OF EXHIBITIONS

Respondents were more likely to hold exhibitions in convention centers (66 percent) than in hotels (42 percent).

NUMBER OF EXHIBITORS

30% Fewer than 50

17% 50 - 99

24% 100 - 249

16% 250 - 499

13% 500 or more

More than half of respondents (53 percent, up from 51 percent in last year's survey) indicated that they had at least 100 exhibitors at their largest show in 2012.

Average: 184 compared to 168 in last year's survey

2012 EXHIBITORS VS. 2011 EXHIBITORS

34% Increased

13% Decreased

53% No change

More than half (53 percent) of respondents reported that the number of exhibitors at their largest show remained the same in 2012, while 34 percent said it increased and just 13 percent said it decreased. In last year's survey, 26 percent said they had more exhibitors, while 20 percent reported a drop in the number of exhibitors.

Average change: +2.5 percent compared to +0.5 in last year's survey

PROJECTED 2013 EXHIBITORS VS. 2012 EXHIBITORS

22% Expect to increase


6% Expect to decrease

72% Expect to remain the same

Close to three-quarters of respondents (72 percent) expected the number of 2013 exhibitors to remain the same. The remaining respondents were much more likely to expect an increase (22 percent) than a decrease (6 percent).

Average change: +2.2 percent compared to +0.3 in last year's survey

REVENUE

47% Registration

27% Exhibit sales

18% Sponsorship/grants

3% Advertising sales

5% Other

Association and independent meeting professionals reported that, on average, 47 percent of the revenue from their largest 2012 event came from registration, while 27 percent came from exhibit sales and 18 percent came from sponsorships and grants. The distribution of revenue sources is similar to last year.

EXPENSES

15% Audiovisual

9% Decorator/labor

1% Destination management

33% Food-and-beverage

1% Insurance

7% Marketing/promotion

6% Registration/housing

2% Security

6% Space rental

7% Speakers and entertainment

8% Staff travel and accommodations

Respondents reported that, on average, food-and-beverage remained their single largest expense, accounting for 33 percent of their costs at their largest 2012 event. Seventy-one percent said that they'd been asked to cut F&B expenses from their 2013 meetings, followed by requested cuts to audiovisual costs (35 percent); speakers/programming (18 percent); rooms/housing and shuttle service (17 percent each); and meeting rooms (12 percent).

Small Meetings

NUMBER In 2012, respondents held an average of approximately 21 meetings with under 50 attendees, six meetings with between 50 and 99 attendees, four meetings with between 100 and

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