Published on May 5, 2009
Groups & Meetings: Driving Success in Travel’s Most Complex Market A PhoCusWright Special Report Research Prospectus January 2009
Groups & Meetings: Driving Success in Travel’s Most Complex Market Agenda PhoCusWright project team Bill Carroll Senior Hotel and Lodging Analyst 1. Impetus Douglas Quinby Senior Director, Research, and Project Manager 2. Overview & Objectives Diane Shuart Project Coordinator 3. Approach & Methods Lorraine Sileo Vice President, Research Susan Steinbrink Senior Research and Corporate 4. Timeline & Deliverables Market Analyst 5. Participation Mary Pat Sullivan Leisure Travel Analyst 2 © 2008 PhoCusWright Inc. All Rights Reserved.
Impetus 3 © 2008 PhoCusWright Inc. All Rights Reserved.
Why Groups & Meetings? Because… PhoCusWright’s landmark 2006 study revealed a $170 billion market undergoing rapid change • Online penetration of travel spend projected to pass 40% in 2008 • Planning and booking drivers and practices vary dramatically across different group travel segments • Online group and meeting planning tools were proliferating • But offline channels for planning, booking remain influential It’s time for a reality check! Source: PhoCusWright’s Groups and Meetings: Market Opportunity Redefined, 2006 4 © 2008 PhoCusWright Inc. All Rights Reserved.
Where Is the Groups and Meetings Market Today? • Did the market reach projected growth targets? • Has online adoption slowed? • Who raised capital and who failed? • What segments have embraced/not embraced online tools? • How have social networks redefined the consumer opportunity? What about the corporate opportunity? • To what extent are meetings centrally managed and policy-driven? • To what extent will the economy impact the incidence, revenues and distribution of groups and meetings? • What will the groups and meetings landscape look like in 2009 and beyond? • What trends are shaping key market segments: corporate, association, leisure? • How will video conferencing impact corporate meetings travel? 5 © 2008 PhoCusWright Inc. All Rights Reserved.
U.S. Groups & Meetings Total Travel Market & Online Penetration Forecast (US$B) 120 95.3 100 91.7 88.6 84.9 80 ? 60 39.1 36.3 40 32.8 28.6 20 41% 40% 37% 34% 0 2005 2006 2007 2008 2009 2010 2011 Travel Online Note: Online percentage of travel products only (Air, Hotel, Rental Car, Ground, Other), NOT including meeting space Source: PhoCusWright Inc. 6 © 2008 PhoCusWright Inc. All Rights Reserved.
Influences, Planning and Booking Remain a Multi- Source, Multi-Channel Mix, but What Is the Future? > Social Travel > Corporate Travel > Leisure Travel Social media such as Facebook With procurement at the helm Travel agents have long held and MySpace have redefined but meeting decision-making sway of the leisure group the online world. The fragmented across the market; some 55% specialize opportunity for travel may not be organization, most corporations in groups.* But a handful of still don’t have a handle on entirely clear, but it is significant online travel companies are and palpable. What role will meetings spend. Meetings carving out a meaningful role. social networks play in leisure must play a more central role in And consumers are taking on and corporate group travel: Are corporate travel budgets. self-planning and booking members using these tools to Managing vendors offers directly with destinations and organize, plan, collaborate? tremendous cost savings, but suppliers. This study will sort Who are the key players and has online purchasing finally out this segment and assess how can travel providers arrived? the key dynamics and trends. leverage social media? Mastering this maturing market now will ensure success as technologies evolve in the future. * Source: PhoCusWright’s Travel Agency Distribution Landscape Special Report 7 © 2008 PhoCusWright Inc. All Rights Reserved.
Objectives & Overview 8 © 2008 PhoCusWright Inc. All Rights Reserved.
Research Objectives Groups and meetings market sizing • Total market and key segments • Travel and non-travel • Travel segments: air, hotel, car rental, cruise, tour, ground transportation • Non-travel: hotel meeting space and F&B for corporate meetings and events • Channels: online / offline, direct (supplier) / intermediary • Meeting types: corporate, association, leisure • Impact of virtual meetings / video conferencing Group/meeting planner and supplier dynamics • Traveler planners (consumers): • Demographics, behavior, influencers and preferences • Corporate meeting and professional group planners: • Corporate meeting planners, group travel planners / travel agents (with leisure and/or corporate groups business) • Profiles, priorities, influence, drivers, behavior, preferences, needs and tools • Suppliers (of travel products, services and technologies): • Strategies and tactics, innovations, opportunities and challenges 9 © 2008 PhoCusWright Inc. All Rights Reserved.
Research Objectives (cont.) This study will answer questions such as: • What is the size of the total and online groups and meetings market by segment? • How will groups and meetings demand change in 2009-2011? • What role will virtual meetings play? What will be the impact across market segments and channels? • What current and future technologies are driving these changes? • Will social media transform the market for leisure gatherings? If so, how? • How is meetings spend managed in the corporation? • Is it part of transient travel budget within each department, separate meetings line item, etc.? • Is quot;virtualquot; meetings spend allocated to the same budget, telecom or elsewhere? • What drives destination, product, venue and channel selection? • What brands resonate with groups and meetings travelers? And planners? • What elements influence purchase on the various channels (e.g., virtual tours, video, blogs, user reviews)? • How does groups and meeting technology square with corporate priorities? • Who are the key players, who has survived the first wave of market entry, and who will be the newest market entrants? 10 © 2008 PhoCusWright Inc. All Rights Reserved.
This research will enable partners to prioritize their investments across channels and segments to meet consumer and planner demand – and anticipate key trends 11 © 2008 PhoCusWright Inc. All Rights Reserved.
Research Overview: Markets and Key Players PhoCusWright will size the market and likely growth trends for the following key players: Suppliers Online Companies Large properties rely heavily on group events, while Online travel intermediaries have the potential to support medium- and smaller-size properties support and group bookings of air, hotel and other destination services, even foster small group business for family, reunion, and they possess the mass market reach and marketing alumni and other leisure or business activities. budgets to support the effort. Social media sites and portals Transportation to and from these events are an aggregate demand and generate leads. important but untapped revenue stream for car rental Representative Targets: companies, tour operators and other suppliers. Online travel agencies, group travel planning sites, self- Representative Targets: booking tool providers, portals, social media / community Hotels, Airlines, Car Rental, Ground, Tour Operators sites, media sites Event Management / Solutions Providers Online meeting and event planning, procurement and management companies facilitate the organization of larger meetings for planners. They provide a group interface with property PMSs, RMSs and reservation systems to enhance group management at the property level or even across multiple properties for major area- wide events. Such systems give event planners more control over information distribution, event registration and hotel bookings. Representative Targets: Large event planners, TMCs, DMO/CVBs, technology providers, hospitality systems and software, virtual meetings technology providers 12 © 2008 PhoCusWright Inc. All Rights Reserved.
Key Market Segments PhoCusWright will assess key market segments to identify distinct trends and opportunities: • Leisure Gatherings • A small group organizing travel and event services for leisure purposes • Planned directly by the travelers or via a professional planner or travel agent • Examples: weddings, family (or other) reunions, sporting events, religious and other themed travel • Services: transportation, accommodation, meeting and event services, F&B • Small Corporate Meetings • A small group using hotel services for business purposes • Example: small business meetings with fewer than 50 guests • Services: transportation, accommodation, meeting and event services, F&B • Large Meetings • A large event from 50 to thousands of guests and attendees • Examples: large company meeting, incentive travel, large associations, etc. • Services: transportation, accommodations, meeting and event space, F&B. 13 © 2008 PhoCusWright Inc. All Rights Reserved.
Research Overview: Key Components Travelers and Decision-Makers Traveler Planners Professional Group Corporate Meeting (consumers) Planners Planners • Profile and preferences • Profiles • Demographics and • Research and booking • Destination and venue preferences • Shopping and buying influences and behavior selection/ decision making • Key differences across process influences and behavior • Role of procurement leisure and corporate • Channel selection by product • Types of corporate meetings planners category and type of event • Booking method by product • Use of virtual meetings • Valued tools and features category • Adoption of online booking • Types of social gatherings • Role of groups and meetings • Impact of social media tools sites in travel value chain • Management of transient • Role of brands • Valued tools and features travel and groups and • Types of social gatherings meeting spend • Role of brands 14 © 2008 PhoCusWright Inc. All Rights Reserved.
Research Overview: Key Components Travel suppliers and technology companies Event Management Suppliers Online Companies Companies/Solutions Providers • Meetings and events • Groups and meetings sales • Groups and Meetings market planning tools by product segment: share by segment: • Buyer and seller networks • • Online travel agencies Hotel & Lodging • • Hotel lead generation Car rental companies • Event planning sites • Tour operators • Registration/hotel bookings • The role of influencers: • Cruise lines • PMS/RMS interface • Search portals • Airlines • Meetings • Media sites • Ground transportation • Social networks procurement/eRFPs • By travel segment • Revenue and channel • New Market entrants • Leisure/Unmanaged business • Lessons learned • Corporate management • By Channel (online/offline) • Video conferencing • Technology investments • Strategies and trends • The role of partners and intermediaries 15 © 2008 PhoCusWright Inc. All Rights Reserved.
Research Benefits 1. Understand the Driving Dynamics of Group Travel Decision-Makers: Travelers, Professional Group Planners, Corporate Meeting Planners and Associations • Understand how leisure travelers and travel agents plan and book events Identify their preferences, drivers and behaviors • Profile corporate event and meeting planners Identify their priorities, drivers, practices and needs • Gain critical insight for honing – or righting – your products, services and messaging to meet their wants and needs now 2. Dive Deep into Online Dynamics and Technology Trends • Understand the current state and prospects of online planning and booking and future prospects • Identify gaps inhibiting growth and opportunities for overcoming obstacles • Learn how these trends are evolving across different group market segments 16 © 2008 PhoCusWright Inc. All Rights Reserved.
Research Benefits 3. Event Management Trends & Technology • Identify key development and future innovation in groups and meetings management technology and best practices 4. Understand Supplier Needs & Challenges • Identify the key needs and challenges of suppliers to hone your offerings and strengthen your supplier relationships 17 © 2008 PhoCusWright Inc. All Rights Reserved.
Approach & Methods 18 © 2008 PhoCusWright Inc. All Rights Reserved.
Project Plan of Attack: Three Pronged Approach A tight blend of surveys, executive interviews and third- party data analysis to deliver a 360° view of the groups and meetings opportunity 1) Current and future capabilities, strategies, partnerships Events Management/ In-depth interviews Solutions Providers 2) Demand-side influence, drivers and behavior Groups and Travel Travelers: quantitative survey (1200) Planners Meetings Corporate meeting planners: qualitative (Consumers survey (200) Opportunity and Agents) Travel agents with groups business: qualitative survey (400) 3) Supplier-side dynamics: strategies, tactics, Travel priorities, challenges Suppliers and Online In-depth interviews with select companies Companies Targeted questions in surveys (item 2 above) 19 © 2008 PhoCusWright Inc. All Rights Reserved.
Research Elements Detail Traveler Planner (Consumer) Survey • Online survey of U.S. travelers who have planned group travel • Approx. Target: 1,200 total respondents • Quantitative survey; online panel company Professional Planner Survey • Online survey of U.S. group planners and travel agents (leisure and corporate) • Qualitative survey; 400 respondents; media partners, list sources to be identified Corporate Meetings Planner Survey • Online survey of U.S. corporate meetings planners • Qualitative survey; 200 respondents; media partners and list sources to be identified Suppliers / Providers / Associations: In-depth Interviews • Senior executives covering the G&M category for travel suppliers, distributors, online players, technology providers and associations • Target: 40 • Company list to be developed in consultation with research partners; interviews conducted by senior PhoCusWright analysts 20 © 2008 PhoCusWright Inc. All Rights Reserved.
Timing & Deliverables 21 © 2008 PhoCusWright Inc. All Rights Reserved.
Our Proposed Approach Project Timeline • Phase one (6 weeks) Starts approximately XXXX Meet with partners to understand key goals and desired outcomes. Partners will assist in a collaborative effort to shape interview goals and key findings. • Phase two (10 weeks) Starts approximately XXXX Field surveys and conduct interviews. • Phase three (12 weeks) Starts approximately XXX Conduct analysis, create deliverables. Present to partners/sponsors. Month1 Month 2 Month 3 Month 4 Month 6 Month 7 Month 5 PHASE 1 PHASE 2 Kick-off Calls Phone PHASE 3 Interviews Survey Conduct Surveys and Begin Development Client Interviews And Compile Presentations Complete Establishment Analyze Surveys Of Goals Develop Client Launch Deliverable 22 © 2008 PhoCusWright Inc. All Rights Reserved.
Deliverables • Findings, analysis and recommendations delivered as an in-depth PowerPoint presentation • Analyst presentation via private two-hour Webinar, customized based on each partner’s key points of interest and success factors as noted at beginning of study • Input into the consumer survey in an interactive process (for initial sponsors) • Access to tabulated survey results from consumer survey. Note: customized data tabulations may be available for an additional fee • Branding and publicity rights • Participants also receive a PDF copy of a summary report that can be shared internally, with clients and partners. This report will be produced as an additional output from the study (anticipated publication date: first quarter 2010) 23 © 2008 PhoCusWright Inc. All Rights Reserved.
Workshop Participation at The PhoCusWright Conference, November 18, 2009 Available to the first five add-on purchasing sponsors Showcase your knowledge and thought leadership in the Groups and Meetings space to a highly targeted audience and reap valuable benefits including: • Two (2) conference tickets good for the full four day event. (a $6,000+ value) • Co-Marketing by PhoCusWright which includes listing in all schedules, both printed and on Web sites. Other marketing ideas will be jointly developed to maximize exposure for all participating sponsors by utilizing Sponsor's and PhoCusWright's existing databases. • Workshop to take place in a private conference room in the event property meeting rooms can accommodate up to 200 attendees. Room assignment, furniture and room set-up will be based on the number of registrants for each session. • A complete AV package will be provided for each session • Sponsor featured in the conference program (the “Playbill”) containing conference and attendee listing details. • Sponsor press kits distributed to the Press in attendance. • Sponsor logo on the event Web site with a link to sponsor’s URL. 24 © 2008 PhoCusWright Inc. All Rights Reserved.
Research Contribution Entire Study: US$20,000 Corporate/Leisure Only: US$15,000 Add-on for Workshop Participation: US$10,000 25 © 2008 PhoCusWright Inc. All Rights Reserved.
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