IACC Meeting Room of the Future Barometer
November 2022 / iaconline.org
OFFICIAL REPORT PARTNERS
RESEARCH PARTNER DEVELOPMENT COUNSELLORS INTERNATIONAL
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Introduction and Research Scope
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The Industry’s Pace of Recovery
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Uncertain Times Ahead
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University Located Venues Outpacing the Market
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Budgets and Priority Investments
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Balance Between Live, Hybrid and Virtual Meetings
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Talent Shortages
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Report Contents
Automating Services and Operations
26
Supply Chain Issues
28
Sustainability
31
Report Summary
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About IACC
OFFICIAL REPORT PARTNERS
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2022 Meeting Room of the Future Partners & Contributors
IACC Global Project Group Neil Gardner - Division President, Conference Centers & Hotels, FLIK, US
Joe Santo, Group Vice President, Encore Global, US Alan Corlett – Chief Commercial Officer, De Vere, UK
Benjamin Abittan, Experience Leader, Chateauform’, Europe Ellen Sinclair, Vice President, Benchmark, Pyramid & Lifestyle, US Mark Cooper, CEO, IACC, Global Robyn Domber – VP Research, Development Counsellors International
Report Contributors Aran Ryan, Director, Tourism Economics
Jessie States, Vice President, Meeting Professionals International, Global Robert Gebhardt , President , Society for Hospitality & Food s ervice Management . Joe Santo, Group Vice President, Encore Global, US Sandy Albrecht, Director, Partner Marketing, Cvent Simon McMahon, Operations Director, Wyboston Lakes Resort Susan Liston, SVP, Aramark Destinations, US Ciaran Keenan, Research Analyst, Development Counsellors Int, US . Unique Venues , US Venues of Excellence, UK Danske Conference Centres, Denmark Sven sk a Moten, Sweden
Link to Meeting Room of the Future webpage
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Introduction & Research Scope
With the meetings industry continuing its path to recovery, the Meeting Room of the Future (MRoTF) initiative, conducted by IACC since 2016, provides first hand insight from global venue operators into their recovery trajectories, their investment priorities, and their responses to emerging trends. In the context of talent shortages, inflation, and the push towards net-zero sustainability goals, this research illustrates the ways in which venue opera- tors are positioning themselves for the challenges and opportunities facing the meetings and events industry. There were 98 global venue operators that took part in this research study with 59% of respondents from the Americas (US and Canada), 37% from Europe (Sweden, the UK, Denmark, Belgium, and the Netherlands), and the balance from Australia.
Australia, 4%
Europe, 37%
Americas, 59%
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Approximately 83% of respondents come from commercial, marketed venues and 17% from non-marketed, private meeting spaces. 59% of operators are from residential venues that offer lodging and the remaining are from non-residential meetings and conference spaces. 21% of respondents represent venues in academic institutions, with the rest from non-academic venues.
Non - Marketed, 17%
Marketed, 83%
Residential 59%
Non-residential. 41%
Academic, 21%
Non-academic, 79%
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The Industry’s Pace of Recovery
According to the IACC-sponsored Global Events Barometer, commissioned by the Events Industry Council and conducted by Oxford Economics, RFP activity and hotel group room nights surpassed 80% of pre-pandemic levels in Q2 2022. Similarly, the event intelligence company Knowland, in their Meetings Recovery Forecast, found that the US meetings industry outperformed previous forecasts in Q3 2022, projected to reach 73% recovery by the end of the year and surpass pre-pandemic levels in 2023. MPI’s November 2022 Meetings Outlook quarterly research reports that nearly a third of meeting professionals say their business is back to pre-pandemic levels with another third predicting that return at some point in 2023. Meanwhile, sustained positive projections for business over the next 12 months have remained above 80% for the past four quarters. Indicators tracking the recovery of the meetings industry continue to show a positive trajectory. With most countries having now lifted travel restrictions and pent-up demand for business events from the pandemic, there is much reason for optimism for business event hotels and venue operators.
Jessie States, Vice President, Meeting Professionals International has a vie w on the place of recovery “Despite fears of a recession, meeting professionals in most sectors are predicting that business will resume a new, highly positive normal in the coming year. The challenges to this will remain filling open roles, supply chain recovery, cost increases, short-term bookings and, conversely, last- minute registration.”
Cvent’s Meetings Industry Pulse Survey from October 2022 indicates that demand for new events remains high and meeting planners remain optimistic.
Most have made a full recovery in their meetings volume, albeit with attendance levels remaining below pre-pandemic norms.
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Uncertain Times Ahead
There are, however, some factors raising uncertainty over this recovery. High levels of inflation have led some to speculate that businesses may tighten their budgets for corporate travel or alter their travel patterns. Year-on-year inflation for airline fares stood at 43% in September 2022, compared to 8% for all items, while 60% of respondents to Encore Global’s Planner Pulse Survey published in October 2022 said they are spending more on food and beverage.
Robert Gebhardt, President of Society for Hospitality and Foodservice Management, remains unsure which of the following scenarios for companies who run meetings may play out in the coming year and remains vigilant; 1. They stop investing in real estate ($$$) for amenity space and look to the outside to host more events. This gives them greater flexibility with capital dollars and also helps control Operating Expenditure cost on their books. 2. They pull back on some of their external events and try to leverage space they have. This approach supports the growing need to connect their resources to the company culture and purpose.
3. They pause large scale events, based on individual business pressures.
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Encore Global Planner Pulse October 2022
The impact of rising costs on bookings is uncertain. In Cvent’s most recent findings, 86% of meeting planners said rising costs were having a material impact on their operations, which is up slightly from August. Further, corporate card and expense platform Ramp found that budgets for future business trips were almost 24% lower in June 2022 than the previous year. In contrast, Encore Global’s Planner Pulse Survey for Q3 found approximately three in five Meeting Planners expect their budgets to increase in 2023 and a third expect them to remain flat. In addition, the August 2022 edition of the Meetings & Events Pulse Survey conducted by Global DMC Partners (GDP), found that meeting and incentive budgets are not likely to decrease for most organisations and their clients. Only 13% of meeting professionals surveyed saw meetings budgets decrease between 2021 and 2022, with most (52%) increasing over this period.
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Jessie States, Vice President, Meeting Professionals International observes “There remains a disconnect, too, among planners who claim some degree of price gouging from the supply side in order to recoup losses, while vendors and service providers cite higher costs and wages that mean margins remain largely the same. Communication among partners will be critical to bridging this gap in understanding, as relationships and trust rebuild in the new era of meetings and events.”
Three in five did, however, suggest rising airfare costs are affecting the destinations for their events, leading them to consider locations closer to home.
Despite this uncertainty, the respondents of IACC’s latest Meeting Room of the Future survey indicate that they are continuing to see a recovery in events volume levels. While 84% were seeing less than half of their pre-pandemic event levels in 2021, two thirds have recovered to above half of 2019 volume and one third has surpassed an 80% recovery.
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Approximately half of respondents expect to recover to at least 70% of their pre-pandemic meetings volume levels in 2022
Figure 1: Projected 2022 meetings/business event volume levels compared to 2019
0-10%
2%
11-20%
3%
6%
21-30%
10%
31-40%
11%
41-50%
7%
51-60%
10%
61-70%
16%
71-80%
81-90%
10%
10%
91-100%
13%
Over 100%
Levels of recovery differ by the operating model of the venue, with marketed venues likely to have shown a higher recovery in volume levels than non-marketed private venues. Approximately 40% of marketed venues report booking volumes at more than 80% of their 2019 volume, while 15% have surpassed pre-pandemic levels. In comparison, none of the non-marketed venues expect to reach above an 80% recovery in events volume this year.
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Figure 2: Projected 2022 volume levels compared to 2019 by operating model
Marketed
Non-Marketed
5%
0-20%
7%
14%
21-40%
29%
16%
41-60%
29%
25%
61-80%
36%
25%
81-100%
15%
Over 100%
This said, recovery in revenue levels varies among marketed venues. While 28% are generating more revenue than they did before the pandemic, one in five remain at or below a 60% recovery. Marketed venues in Europe are generally showing a stronger recovery than those from the Americas, both in terms of event volume and revenue. Two in five respondents from Europe are on course to surpass pre-pandemic revenue this year, compared to 19% for the Americas. Meanwhile, 58% of North American venues are projected to generate less than 80% of their pre-pandemic revenue this year, compared to 40% for Europe.
Figure 3: Projected 2022 revenue levels compared to 2019
Europe
Americas
Global
0-20%
2%
5%
2%
21-40%
4%
16%
41-60%
19%
10 %
31%
35%
61-80%
25%
20%
81-100%
23%
20%
22%
15%
101-120%
30%
2%
121-140%
4%
4%
141-160%
10 %
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Figure 4: Projected 2022 volume levels compared to 2019
Americas
Europe
0-20%
8%
3%
21-40%
16%
10%
21%
41-60%
6%
61-80%
24%
29%
81-100%
24%
29%
Over 100%
6%
23%
Similarly, most European marketed venues have recovered to over 80% of pre-pandemic volume levels and almost a quarter have surpassed them. In contrast, less than a third of marketed venues from the Americas have recovered 80% of their 2019 volume, and only 8% have surpassed pre-pandemic levels.
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Residential meeting venues are recovering faster than non-residential venues. This is especially apparent in Europe, where approximately a quarter of residential venues have already surpassed pre-pandemic volume levels, compared to 9% in the Americas. This trend aligns with the findings of Encore Global in their Q3 Planner Pulse Survey, where 57% of in-person events are anticipated to be in hotels over the next 12 months, up from 49% from the Q1 and Q2 surveys.
Figure 5: Projected 2022 volume levels compared to 2019 by residential/non-residential
Non-residential
Residential
2%
0-10%
3%
11-20%
4%
3%
21-30%
2%
12%
31-40%
13%
6%
7%
41-50%
18%
51-60%
6%
9%
7%
61-70%
15%
71-80%
15%
18%
81-90%
13%
6%
91-100%
13%
6%
19%
Over 100%
3%
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University Located Venues Outpacing the Market
Meeting spaces in universities are generally showing a stronger recovery in volume levels, with half reporting event volumes of at least 80% of 2019 levels, compared to 29% of non-academic venues. This said, a marginally higher share of non-academic venues (13%) report surpassing pre-pandemic volume compared to academic venues (11%).
Figure 6: Projected 2022 volume levels compared to 2019 by academic/non-academic
Non-academic
Academic
0-20%
6% 6%
6%
21-40%
19%
11%
41-60%
20%
61-80%
28%
26%
39%
81-100%
16%
11%
Over 100%
13%
Looking forward, the majority (70%) of venues expect to reach or surpass 2019 volume levels no later than 2023. Supporting this trend, Knowland’s Meetings Recovery Forecast projects meeting levels to recover to 106% of pre-pandemic levels in 2023 and 129% in 2024. European venues are particularly optimistic, with more than a third expecting to fully recover in 2022, and only 6% expecting their recovery trajectory to extend to 2024 or beyond. In comparison, only 16% of venues in the Americas expect to recover completely in 2022, while 44% are expecting a long-haul recovery period extending to 2024 or beyond.
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Figure 7: Year expected to make a full recovery in meetings volume
Americas
Global
Europe
2%
2021
4%
21%
2022
12%
38%
46%
2023
40%
55%
27%
42%
2024
3%
1%
2025
3%
1%
Beyond 2026
2%
Commercial marketed venues are again more optimistic in their outlook, with 72% expecting to make a full recovery by no later than next year, compared to 62% of non-marketed venues. No non-marketed venues have seen, or expect to see, a full recovery in meetings volume in 2022.
Figure 8: Year expected to make a full recovery in meetings volume by operating model
Non-marketed
Marketed
2021
3%
2022
25%
44%
2023
62%
25%
2024
38%
2025
1%
Beyond 2026
1%
Almost four in five marketed venues also expect revenue levels to reach or surpass pre-pandemic levels by no later than next year. European venues are again the most optimistic, with almost half expecting to fully recovery in 2022, and very few expecting it to extend beyond 2023. In comparison, more venues in the Americas expect to recover to pre-pandemic revenue levels by 2024 or beyond than in 2022.
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Figure 9: Year expected to make a full recovery in revenue
Americas
Europe
Global
2022
35%
28%
45%
2023
44%
40%
50%
50%
2024
17%
24%
5%
2025
2%
4%
Beyond 2026
2%
4%
A higher proportion of venues that offer lodging (31%) have already made a full recovery in volume levels, or are on course to a full recovery by the end of 2022, than non-residential venues (12%). This said, most non-residential venues still expect to make a full recovery by 2023.
Figure 10: Year expected to make a full recovery in meetings volume by residential/non-residential
Residential
Non-residential
2%
2021
3%
29%
2022
9 %
45%
2023
48%
24%
2024
10 %
33%
3%
2025
3%
Beyond 2026
Residential venues were also more likely to have seen a faster recovery in revenue levels, with 45% on track to reach or surpass their 2019 revenue in 2022. Most non-residential venues still project to make a full recovery by no later than 2023, although 7% expect it to take until 2024 and a further 7% expect it to extend beyond 2026.
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Figure 11: Year expected to make a full recovery in revenue by residential/non-residential
Residential
Non-residential
2022
45%
13%
2023
36%
60%
2024
18%
13%
2025
7%
Beyond 2026
7%
Neil Gardner, Division President, Conference Centers and Hotels, FLIK Hospitality Group , comments “It’s encouraging to see the increased optimism with many facilities expecting to return to Pre-Covid levels in 2023. But what’s more, I’m genuinely excited to see that 45% of Residential properties are anticipating an even sooner recovery…this year!”
Budgets and Priority Investments
With many looking to take the final step towards full recovery and best prepare themselves to support the meetings industry of the future, 84% of venues are planning to invest in their technological capabilities. Since the last MRoTF survey in the spring, the percentage of venues planning to invest in conference and meeting room spaces has increased from 65% to 70%. Public spaces were the next highest priority. Planned areas of investment are broadly comparable across the regions, although more North American venues (50%) have plans to invest in dining spaces than in Europe (41%), while European venues are more likely to invest in guest rooms (48% compared to 41% in the Americas).
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Figure 12: Planned areas of investment within the next 18 months
Technology
84%
Conference & Meeting Room Spaces
70%
Public Spaces
54%
Dining Spaces
46%
Guest Rooms
41%
Recreational & Activity Spaces
40%
Outdoor Spaces (meeting or dining)
38%
Individual Workspace Areas for Attendees
25%
Some venues remain, however, restricted in their investments due to reduced budgets. A quarter of respondents said their improvements budget is lower than it was in 2019, 35% said it is the same, and 40% now have a higher budget than pre-pandemic. While in the previous edition of MRoTF, venue operators in Europe were more likely to report an increase in their improvements budget (48%) compared to venue operators in the Americas (35%), both regions have now levelled out at 41%. Respondents from Europe (28%) were slightly more likely to have a lower improvements budget compared to 2019 than those from the Americas (24%).
Figure 13: Improvements budget compared to 2019
-100%
1%
-75%
6%
-50%
5%
-25%
13%
The Same
35%
25%
20%
9%
50%
75%
6%
100%
3%
Over 100%
3%
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Looking at improvement budgets by venue type, a larger share (50%) of respondents from private, non-marketed venues reported a higher budget compared to 2019 than marketed, commercial venues (38%). Non-residential venues were slightly more likely to have either a lower or higher budget than in 2019 when compared to residential venues, while academic venues were more likely to have seen an increase in their budgets than non-academic venues.
Figure 14: Improvements budget compared to 2019 by venue type
Less than 2019
The same
More than 2019
Marketed
35%
26%
38%
62%
50%
33%
17%
Non-Marketed
Residential
39%
20%
41%
Non-residential
32%
26%
42%
Academic
27%
47%
27%
Non-Academic
25%
25%
35%
38%
37%
38%
Neil Gardner, Division President, Conference Centers and Hotels, FLIK Hospitality Group , comments “There remains measured concern around inflation and how it will impact property improvements. With 32% of venues in the Americas (52% in Europe) expecting volume level to be equal to or greater than 81% of Pre-Covid levels, it’s important to maintain momentum and keep our facilities current and appealing to the consumer.”
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Balance Between Live, Hybrid & Virtual Meetings
The nexus between in-person, hybrid and virtual meetings is constantly evolving and can be difficult to navigate for planners and venues alike.
While the pandemic highlighted some benefits of virtual access such as reduced costs or increased connectivity across larger distances, former IACC research found that the benefits of human interaction and the technological challenges of offering hybrid events were leading many planners and constituents to increasingly favour in-person events. In the previous edition of Meeting Room of the Future, we asked respondents what percentage of their 2022 events they expected to offer virtual access in comparison to 2021. Respondents then indicated a decline in the percentage of their meetings that offered virtual access and a return to meetings weighted more towards in-person interactions. 30% of venue operators reported that 90% or more of their live meetings and events offered virtual access in 2021 but fell to 19% when projecting for 2022. Asking the same question six months later, this trend has continued with only 9% of respondents now offering virtual access at 90% or more of their events. Further, a higher proportion of venues are offering very little to no hybrid events, with 28% of respondents stating that 0-10% of their meetings would offer virtual access in 2022, up from 15% in the Spring.
Figure 15: Projected percentage of live meetings that will offer virtual access in 2022
Autumn Projection
Spring Projection
0-10%
15%
28%
11-20%
14%
16%
21-30%
6%
13%
31-40%
9%
10%
41-50%
8%
4% 4%
51-60%
11%
61-70%
6%
3%
71-80%
8%
4%
81-90%
11%
4%
91-100%
19%
9%
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However, IACC’s findings indicate that hybrid events remain more popular in the Americas than Europe, with 41% of respondents from the US and Canada suggesting that at least half of their events offered virtual access, compared to 13% for Europe. Meanwhile, almost half of respondents from Europe said 0 to 10% of their events have offered virtual access in 2022, and 72% said 20% or less of their events were hybrid.
Figure 16: Projected percentage of live meetings that will offer virtual access by region
Europe
Americas
17%
0-10%
48%
9%
11-20%
24%
17%
21-30%
3%
11%
31-40%
7%
4%
41-50%
3%
11%
51-60%
10%
61-70%
4%
71-80%
7%
81-90%
7%
13%
91-100%
3%
As such, it is unsurprising that a higher proportion of venues from the Americas (35% compared to 21% for Europe) said they had made major investments in technology for clients requiring virtual participation in the past nine months.
Figure 17: Investments in technology for virtual participation in events in the past nine months
Major investment
A little investment
No investment
55%
15%
Global
30%
Americas
35%
50%
15%
21%
62%
17%
Europe
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When asked about changes they had seen in the adoption of hybrid meetings in the last six months, the most selected shift was hybrid being added at the last moment to accommodate remote speakers. This was more common in the Americas (73%) than in Europe (48%). Similarly, the need for hybrid to be added at the last moment due to travel issues for attendees was almost twice as common for North American venues (60%) than for European venues (31%).
“Conference guests expect that a hybrid meeting option is available immediately, just like a flip chart is a part of a regular conference room.” Operator from a marketed venue, Sweden
“In general, planners are less inclined to do hybrid meetings and in-person attendance has dramatically increased. In fact, most groups are adding live participants and rooms to their blocks. We do still have last minute changes, mostly for presenters.” Operator from a marketed venue, USA
Figure 18: Changes to hybrid meetings in the last six months
Europe
Americas
Global
Move from two-way interaction to simple event streaming
30%
29%
34%
Hybird being added at the last moment to accommodate remote speakers
65%
73%
48%
Hybird being added at the last moment due to travel issues for attendees
50%
60%
31%
No changes
13%
6%
24%
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Talent Shortages
While talent shortages are affecting much of the global economy, the hospitality industry has been particularly affected and the availability of talent is undoubtedly one of the greater challenges currently facing the meetings industry. The job opening rate for the leisure and hospitality industry was above 9% in September 2022, the highest of any major industry group and, according to Cvent’s Meetings Industry Pulse Survey, concern among meeting planners over hotel staffing is increasing. Meanwhile, the resignation rate for the leisure and hospitality industry is almost double the national rate.
Figure 19: Job Openings Rate
This said, respondents to the MRoTF study earlier this year painted a relatively optimistic picture regarding staff shortages, with more than half expecting to return to pre-pandemic staffing levels by the end of 2022. Skip forward to October 2022 and opinion is more divided. While less (36%) anticipate making a full recovery by the end of this year if they have not already, most foresee returning to pre-pandemic levels by no later than 2023, in line with the overall outlook for the meetings industry. However, an increasing share of venue operators are less optimistic, with twice as many respondents anticipating the talent shortages will extend beyond next year than in the previous survey, and nearly one in five feeling that staffing levels will never fully recover.
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According to MPI’s November 2022 Meetings Outlook report more than half of industry professionals say they are having trouble filling the roles they have, and that number has been consistent over the last four quarters. Add to that the 40% of meeting professionals who are increasing full-time employment, and the employment crisis presents itself more clearly.
Figure 20: Projected time of returning to pre-pandemic staff levels
Mid-2022/Already
Late-2022
2023
Never
After 2023
Spring Projection
40%
4%
15%
27%
14%
Autumn Projection
31%
5%
27%
17%
19%
Ellen Sinclair, Vice President, Benchmark, Pyramid Luxury & Lifestyle, comments: “Given the current uncertainty, organizations recog- nize the need to revisit strategies and reengage their staff teams to ensure a solid foundation to stabilize our economy, both of which require bringing teams together to build for the future. Forward-facing organizations are utilizing the productive experiences provided at IACC certified event and meeting venues – experiences that engage and inspire teams and clients alike in supporting their organizations’ success.”
A higher proportion (41%) of European venue operators reported having already returned to pre-pandemic staffing levels than in the Americas (23%).
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Figure 21: Projected time of returning to pre-pandemic staff levels by region
Already returned to pre-pandemic levels
Late 2022
2023
After 2023
Never
Americas
28%
23%
7%
21%
21%
Europe
41%
3%
21%
14%
21%
For further insight into talent profiles in the meetings industry, we asked venue operators what percentage of their staff were part-time or temporary prior to the pandemic compared to this year, and their forecast for the future. Overall, respondents forecast that their level of part-time staff would return to pre-pandemic norms by next year. However, this changes significantly when comparing across the different regions. Respondents from the Americas said they have, on average, seen a fall in their levels of part-time staff, which they forecast will remain so in 2023. In contrast, European respondents reported a small rise in their share of part-time staff, predicting it will increase further in 2023.
Respondents anticipate that their percentage of temporary staff will broadly remain the same as pre-pandemic.
Figure 22: Percentage of staff who are part-time
2019
2022 (estimate)
2023 (forcast)
22%
Global
20%
22%
21%
Americas
17%
18 %
25%
Europe
26%
29%
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When asked to what level staff shortages will limit their meetings service or amenities in the following quarters, most responents said not at all, particularly by the start of next year.
Figure 23: Expected level that staff shortages will impact meetings services or amenities
A little
Substantially
None
73%
6%
21%
Q3 2022
71%
22%
8%
Q4 2022
Q1 2023
18%
77%
5%
However, experienced talent may be more difficult to find with respondents saying that they had higher levels of staff with less than a year’s experience compared to the previous survey in spring, 2022. While in both surveys an equal 36% of respondents had 10% or less staff with less than a year’s experience, in Q1, 78% of respondents fell under 30% or less compared to 53% in Q3. Meanwhile, 29% of respondents now have over half of their workforce with less than a year’s experience, compared to 17% in the previous survey.
Figure 24: Percentage of staff with less than a year’s experience
Q1 2022
Q3 2022
0-10%
36% 36%
11-20%
21%
14%
21-30%
21%
3%
31-40%
10%
6%
41-50%
8%
5%
51-60%
9%
8%
61-70%
3%
1%
71-80%
9%
81-90%
6%
3%
91-100%
1%
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Automating Services & Operation
To address issues with staff shortages, some venues may consider automating parts of their services or operations. We asked respondents if they had automated or had plans to automate their back of house/operations or front of house/guest services. The majority of respondents do not currently intend to automate either, however a marginally higher share said they plan to automate their back of house. These results were also broadly comparable across the different regions, although venues in Europe are more likely to have automated or plan to automate back of house (38%) than in the Americas (23%).
Figure 25: Plans for automation
Automation added
No Plans to Automate
Plan to Automate
Back of House / Operations
70%
18%
12%
Front of House / Guest Services
16% 12%
73%
Supply Chain Issues
As well as talent shortages, supply chain disruptions have also dominated many of the headlines related to the global events industry this year. However, when asked to what level respondents anticipate limiting their meeting services or amenities due to supply chain issues, the vast majority said not at all, particularly as we move into next year.
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Figure 26: Expected level that supply chain issues will limit meetings services or amenities
A little
Substantially
None
1%
74%
23%
Q3 2022
Q4 2022
1%
76%
22%
Q1 2023
1%
78%
19%
A higher percentage of respondents from the Americas expect to limit their meeting services or amenities due to supply chain issues, although this is expected to reduce as we move into 2023. In contrast, while fewer respondents from Europe expect to be affected, this level increases slightly moving into the end of the year. Most expect these effects to be minor, however, with the percentage expecting to be substantially affected remaining at 2% for each quarter for the Americas and 0% for Europe.
Figure 27: Percentage that expect supply chain issues to limit meetings services or amenities.
Americas
Europe
32%
Q3 2022
14%
27%
Q4 2022
17%
23%
Q1 2023
17%
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Sustainability With the effects of the pandemic seemingly easing for the global meetings industry, venues can redivert their attention to more long-term challenges for the future, much of which is related to Environmental Social and Governance (ESG). Encore Global’s Planner Pulse Survey for Q3 asked meeting planners to rank different ESG attributes in level of importance when selecting a venue, finding DEI (69%) to be ranked by the most as important, followed by the local legislation being aligned with organisational values (65%), environmental sustainability (62%), then social responsibility (58%). This is also reflected on the side of the venues, with higher proportions saying they are receiving increased requests from clients to state their environmental and sustainability policies than their social responsibility credentials. IACC created a template of questions for meeting planners to add to their RFP’s. The aim is to help meeting planners craft Requests for Proposals to venues that can assess them based on their social and environmental credentials. A copy of the questions template can be downloaded here.
Mark Cooper, CEO of IACC, comments “if meeting professionals ask venues to specify what social responsibility schemes and promises they have in place, it will highlight the importance to invest further in this critical transformation of live events.”
Figure 28: Percentage of respondents receiving increased requests from clients for ESG policies.
Americas
Global
Europe
Social responsibility credentials
36%
20%
59%
Environmental/sustainability credentials
46%
33%
66%
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ESG policies appear to be of much higher priority for event planners in Europe than in the Americas, with European venues almost three times more likely to receive requests for their social responsibility credentials and twice as likely for their environmental policies. The same is true for requests for carbon measurements, with 21% of European respondents receiving noticeable requests from clients to provide the carbon footprint to run meetings at their venues, compared to 6% in the Americas. There is a significant gap between the percentage of European venues receiving requests to provide carbon measurements (21%) and the amount that have the means to do so (10%).
Neil Gardner, Division President, Conference Centers and Hotels, FLIK Hospitality Group, comments “We are seeing more clients stressing the importance of sustainable and ecolog- ically “smart” meetings. This will be in the form of reduced waste and energy consumption as well as an emphasis on efficient space management.”
Jessie States, Vice President, Meeting Professionals International, comments “While 41% of meeting professionals say they wouldn’t be willing to pay more for sustainable events, nearly 60% said they would, according to MPI’s August 2022 Meetings Outlook. Most are willing to spend up to 5% (42%) or 6%-10% (12%) more for sustainable options.”
Figure 29: Carbon Measurement Requests
Americas
Global
Europe
Receiving notable carbon measurements requests
11%
6%
21%
Currently able to provide carbon measurements
9%
6%
10%
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This regional difference is a continuity from previous MRoTF findings and supported by GDP’s Meetings & Events Pulse Survey from Q2, where 60% of international meeting planners said sustainability goals were a driving factor in choosing a destination for upcoming programs, compared to 25% in the US and Canada. Further, 32% of international planners required vendors, suppliers and venues to have a certification of sustainability, compared to only 11% in the US and Canada.
While client-side demand for environmental initiatives may not be as high, venues in the Americas are more likely to be able to donate unused food to local community outreach programs and have food waste tracking processes.
Figure 30: Social responsibility programmes
Americas
Global
Europe
78%
The ability to manage food waste
74%
83%
The ability to donate unused food to local community outreach programs
43%
49%
38%
One form of food waste tracking process
57%
63%
55%
96%
Meeting spaces to accommodate attendees with disabilities
95%
97%
A Diversity, Equity and Indusivity Policy
91% 91%
90%
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Report Summary
The meeting industry is on its final stretch towards full recovery, with a full recovery projected for most venues by next year.
This trajectory is, however, uneven across different variables. European venue operators are generally reporting a stronger recovery than those in the Americas. Marketed, residential and academic venues are also seeing meetings returning at a faster rate than their counterparts.
As client expectations, preferences and behaviours shift, venues are prioritising investment in their technological capabilities. They are also upgrading their conference and meeting spaces, as a return to in-person events becomes increasingly preferred.
Some venues remain limited in their investments, however, with improvement budgets yet to return to their pre-pandemic levels. These venues could face challenges if they are unable to effectively compete in such a fast-moving industry. Another challenge facing venue operators is meeting the rising client expectations regarding environmental and social responsibility policies, which are likely to become increasingly scrutinised in the coming years. About IACC Founded in 1981, IACC is dedicated to representing the best meeting venues globally and is, by definition, the future of the meetings industry realised. The association brings together the brightest, most innovative minds from around the globe. IACC elevates the meeting experience by creating a unique point of entry that is inclusive of the best-in-class meeting venues internationally. IACC membership is a symbol of meeting excellence and exceptional connections amongst the best in the meeting industry. This exclusiveness makes IACC’s members part of an elite group representing the most innovative, forward-thinking and results-driven meeting venues globally. All members meet a set of stringent Quality Standards and agree to a Code of Ethics. IACC includes over 400 member conference venues from Australia, Hong Kong, Japan, New Zealand, Philippines, Belgium, Denmark, England, France, Germany, Hungary, Italy, Netherlands, Scotland, Spain, Sweden, Switzerland, Ukraine, Wales, Canada and the United States.
The IACC Mission Statement: "To bring together the brightest industry minds to promote the best meeting venues, which deliver exceptional meeting experiences. There are meetings... And then there are IACC Meetings".
The IACC Vision: “IACC is a global community of passionate people and organisations delivering innovative and exceptional meeting experiences.
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