Meeting Industry Snapshot: Majority of Short-Term Downturn Due to Meeting Postponements, Not Cancellations / Oct 2001

Hotel Online Special Report

Meeting Industry Snapshot:
Majority of Short-Term Downturn Due to
Meeting Postponements, Not Cancellations

DALLAS -- Oct. 4, 2001-- Meeting planners and suppliers experienced an immediate negative impact due to last month's terrorist attacks in the United States, however results of an online survey conducted by Meeting Professionals International (MPI) indicate that the majority of business lost short-term is due to meeting postponements, not cancellations.

MPI is the world's largest meeting trade association for meeting planners and suppliers with 19,000 members in 64 countries. MPI asked members representing its leadership to respond to a top-line business impact survey in order to obtain the following meeting industry snapshot reflecting responses from 243 planners and suppliers.

Survey Highlights:

85 percent of all respondents expected business to be impacted over the next six months, however all signs indicate face-to-face meetings will continue to occur. In terms of total existing meeting commitments over the next six months:

Nearly 50 percent of planners responding expect meeting postponement without relocation

24 percent of planners responding made no meeting cancellations

20 percent of planners responding indicated some meetings would occur via video or teleconferencing

49 percent of planners responding expected to cancel business worth between $25,000 and $500,000

39 percent of planners responding predict up to a 20 percent decrease in unconfirmed future meeting expenditures (Q4 2001and beyond), however 24 percent expect no decrease at all

On the supplier side, over the next six months nearly half expect cancelled business totaling $100,000 or more; one-third expect deferral of major spending/investment; and 25 percent expect reduction in staff. However, in terms of total future meeting revenues (Q4 2001 and beyond), only 22 percent expect a decrease of more than 20 percent. One-third expect a 10 percent or
less decrease in business with another one-third expecting between 10 and 20 percent. And, nearly 15 percent of suppliers responding expected no change or a slight revenue increase up to 10 percent.

Regarding meeting travel over the next six months, 42 percent of all respondents expect no restrictions, with 29 percent anticipating restrictions and 24 percent uncertain. When asked about reasons for potential travel restrictions, just 19 percent of all respondents cited concerns about travel safety, with overall change in financial outlook defined as the driving factor by 40 percent of all respondents.

Results of this and future surveys conducted by MPI will be used to develop content for a high-level forum slated for MPI's Professional Education Conference-North America, Jan. 20 - 22, 2001 in Honolulu, Hawaii. There, leaders of the global meeting industry will discuss how the horrific events of Sept. 11, 2001 have effected the way meetings are being conducted around the world and MPI's role as a catalyst for industry growth and resurgence.

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Contact:
Meeting Professionals International
http://www.mpiweb.org/

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