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- North America


According to MPI's Business Barometer forecast, the number of meetings in the United States and Canada will rise by 2.8 percent and 3.3 respectively, in 2013. Meeting budgets, meanwhile, will increase 1 percent and 0.1 percent respectively. This will add to the level of demand for hotel services in the US, where, according to the Advito Industry Forecast, growing demand with little increase in supply to balance it will lead to above-inflation rate increases for meetings, especially in New York and luxury destinations.


The CWT survey anticipates cost per attendee per day will increase in the 4 - 5 percent range in the US, adding that ‘ returning demand for meetings at upper- upscale and luxury properties is expected to result in price inflation of up to 5.5 percent throughout next year, directly impacting per-attendee costs’.


In particular, domestic bookings for North America remain strong. International demand for North American-based meetings is also performing well, though this could change given the declining strength of the euro over the US dollar, as well as the overall economic uncertainty throughout Europe. The combination of increased demand and tight supply will enable suppliers to continue to hold their ground when negotiating contract terms such as attrition and cancellation clauses, though organizations with centralized sourcing and contracting practices have been able to secure more favorable terms than those working with a property on an ad hoc basis.


According to the Global Research and Intelligence Network, over the next decade we will continue to see the rise of second-tier cities in the US and beyond, and with this increased competition for some of the larger first-tier cities, that will need to continue to be creative to avoid being overpriced and out strategized by these new destinations.


Risk outlook for 2013


Demand for travel is influenced by three main areas of risk: the state of the global economy, the price of oil and security. For 2013, the outlook for oil and security seems stable, but once again the state of the economy is creating some serious concerns.


According to the Advito Industry Forecast, if the worst fears of the euro collapsing or a significant slowdown in the Chinese economy have not come true by the end of 2012, steady growth in corporate business travel and meetings activity will likely resume in 2013 as corporations realize they must keep traveling to expand their businesses.


Reed Exhibitions | EIBTM Trends Watch Report 2012 30


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