The Future of Conferences

The conference industry, like all industries in a global downturn, has some tough issues to face. If the recent results of the British Association of Conference Destinations (BACD) is indeed a crucial barometer for what is true of the industry all over the world, the conference sector will have to change gears or re-invent itself.

The BCAD’s 2008 British Conference Venues Survey reveals vital insights into the current state of the industry from a supply-side perspective. The survey based on data supplied by a record number of 446 venues across the UK, shows that the UK conference market experienced a revenue downturn in the period from 2005 to 2007 and registered an estimated value of £8billion compared to £9.8billion in the three-year period before.

• There was significant reduction in the average number of conferences per venue

• A slight shift away from residential conferences in favor of the one day conferencing or what we call as non-overnight conferences. This has critical economic impact as residential conferences account for almost two-thirds of overall venue income.

• 30 per cent of venues noted a shortening of lead times in recent years, with many venues commenting that this was now becoming the norm. Eleven per cent reported greater pressure on client budgets

• The survey also revealed an increased level of interest and awareness of CSR and environmental issues, a higher demand for Fairtrade and organic catering, and an increasing demand to meet special dietary requirements.

• The 2008 report confirms a trend noted in the 2007 survey, which highlighted the importance of public sector and association conferences. These now account for 52 per cent of all meetings and conferences, compared to 48 per cent for the corporate sector.

• The dominance of city venues continues. The huge investment in infrastructure and facilities enjoyed by most city destinations over the past couple of decades is reaping benefits in the business events market.

We believe that face-to-face meetings at traditional conferences as we know it here to stay but must necessarily evolve with the times. There are insights from this survey that gives the industry players an informed view  of how to best manage change, and indeed, even capitalize on current trends.

E.Factor Conference 10th September, New York “New Economy: Do or Die”

We are living in challenging times! We are technically in a recession, or recovering from it, depending on whether you see the glass as half full or half empty. As always, we can hole up or find hidden opportunities to turn an adversity into something positive.

Kevin Kelly’s brilliant essay on New Rules for the New Economy has this to say:

“As power flows away from the center, the competitive advantage belongs to those who learn how to embrace decentralized points of control.”

“As fortunes are made by training machines to be ever more efficient, there is yet far greater wealth to be had by unleashing the inefficient discovery and creation of new opportunities!”

Step up into the future of enterprise !

A number of different paths seem to be converging again, paths that have traveled separately – although always connected – for some years. Many eyes are shifting again to the “new generation entrepreneurs.” By new generation, we do not necessarily refer to a reflection of age. New generation entrepreneurs in a downturn can also be those whose spark of vision, daring spirit and sense of adventure lead them to open up their own shop rather then spend more time working for their employer.

Politicians, economists, financial institutions and many other individuals and organizations are suddenly all-ears to the latest buzz among small business owners. News in both mainstream and online media report on the percentages of new businesses that are started and other valuable statistics that creates an environment in which being part of this “New Generation Entrepreneurs” can actually open you up to exciting opportunities.

Emerging markets, globalization, convergence of technologies and industries, and ubiquitous connectivity, all these have changed many aspects of business. They have also changed the nature of consumers. We have consumers who are informed, networked, active and global. At the same time these events have changed the nature of companies. Today firms can fragment their value chain in ways that they could not have done before. Not just the physical products, but the intellectual part of my company – the business processes, management processes, including research and development, engineering – all that can be fragmented. Businesses today, is not restricted to one geographic location, various aspects of its operations can be located and managed from anywhere. 

Economic experts believe small businesses will help the world to a more positive economic plateau again as they go in for the much needed rebound and come forward to create new wealth !

Now for the questions — how do you manage to start out in this environment, or expand your business in different geographic regions? Where CAN you find funding? How can you leverage new technologies, media and marketing? All of these topics are part of the E.Factor half-day conference in New York on the 10th September – Titled: “New Economy: Do or Die” – this is one afternoon you should mark in your diaries. The sessions are topbilled by Fred Seibert of NextNewNetworks, Tom De Bruyne of BoonDoogle, and Robert C. Raciti of GE Commercial Finance. Howard Greenstein of Harbrooke Group, a social media strategist and evangelist will be the moderator.

An Evolving Global Industry

The conference industry is said to be one that is maturing rapidly yet ironically, is quite an “immature industry”. Why is this so? Relatively speaking, it is a very young industry — barely 50 years of history as an established one in Europe and North America, and even younger in most of the rest of the world. To a great extent, its so called immaturity as industry  is due  to an apparent lack of reliable statistics and regular research to provide a base of intelligence and information on trends and on the size of the value the conference industry.

Through the decades, it is also quite apparent that governments have not taken the conference industry seriously as a major benefactor of national economies precisely because it has been impossible to demonstrate clearly the economic impact that conferences can have. This is quite unfair considering the benefits of the industry in energizing local economies throughout the world:

Exciting destinations!

Great profitability

Conferences cater to the “high quality high cost “and therefore, “high yield ” end of the market. A 2001 study of conference visitors to the UK show how conference visitors from overseas spend an average of three times more than any other visitor for all categories in the country. The greater spending power of business tourists means increased economic benefit for the host destination and a greater return on its investments in infrastructure and marketing.

All year round activity

Conferences place throughout the year with peaks in spring and autumn. Many smaller conferences and meetings are also held during winter months. The all year round nature of conferences also leads to the creation of permanent jobs, as opposed to the seasonal temporary jobs oferred in other tourism or leisure industries.

New opportunities for collaboration!

Future inward investments

One of the ways a conference adds value to a locale is by giving delegates a pleasant, positive experience of the destination. this means showing them the most attractive scenic parts of the destination. When this has been undertaken, so many delegates do return as leisure visitors, bringing their partners and families for a holiday or short break. A business visitor who leaves with good impression of the conference destination becomes some sort of an ambassador for that place, these are often influential people whose opinions of the destination will be instrumental in a destination’s image building.

Green tourism

Little negative impact to the environment than mass leisure travels for instance. Conferences are concerned with smaller numbers at much “higher spend”. Conference delegates travel together as a group making it possible to educate them about the community and increasing the likelihood of their revisit or considering to stay an extra day in other spots of same destination.

Given all these, we at Conference Bay are happy to do our part towards making the conference industry a more energized, dynamic industry. To start with, we want you to come away with opportunities as it relates to this vibrant industry, whether you are a delegate, a conference organizer, speaker or sponsor. We are working and running our beat to keep you attuned to recent trends in this important global industry and the conditions in which they are taking shape. We shall provide statistics and valuable information such as sweeping changes that have occurred in the last so many years.

How is the conference industry evolving in today’s information era? What are the trends of increasing demand at events around the world? How is the conference industry growing alongside tourism industry? How is technology shaping the future of the conference industry?  All these and more as we assess various aspects of the conference industry and how it will drive into the future.