Megatrends
A Tour de Four Forces
A Tour de Four Forces
A panel of experts discusses the four major trends reshaping the meetings industry
According to Peter Yesawich, chairman & CEO of Yesawich, Pepperdine, Brown & Russell (YPB&R), whose agency has been tracking lifestyle trends that impact travel for more than 15 years, there are four "mega- trends" reshaping the meetings industry: technology, shifting social values, high consumer expectations, and changing demographics.
These megatrends served as the springboard for a panel discussion, which Yesawich moderated, at PCMA's 2007 Annual Meeting in Toronto. He was joined by Roger Dow, president and CEO of the Travel Industry Association, Michelle McKenzie, president and CEO of the Canadian Tourism Commission (CTC), and Stevan Porter, president and CEO of InterContinental Hotels.
Technology
According to Yesawich, the Internet is "the single greatest force that has revolutionized the industry." Two-thirds of all business travelers regularly consult the Internet to plan business trips, and 56 percent of all travel is booked over the Internet. According to Dow, price shopping and the use of blogs and other Internet voice outlets have allowed people to purchase on referral versus traditional ad buys. Porter said that with more technology tools available to planners, hotels must differentiate by brand and by each individual hotel, but "we still cannot lose the importance of face-to-face sales time with the customer." Likewise, McKenzie said the CTC has tailored a research tool for planners to set the commission apart and allow them ease of data/information. But it's "the power of relationships that still closes the sale."
Shifting Social Values
From 1994 to 2000, making money was of the utmost importance to most Americans. "We had an incredible roaring economy," Yesawich said. This all changed when Wall Street started to melt down during the second quarter of 2000 and after Sept. 11. "People started focusing inwardly. Making money was no longer a priority. Spending quality time with family and loved ones was," said Yesawich. The number of parents who bring their children on business trips, including meetings, continues to rise.
New Consumerism
Consumers are increasingly more demanding, Yesawich said. "Consumers have decided they will take control of the transaction. Today, there is a quid pro quo in most consumer transactions. The attitude is if you want my business, you have to give me something in return." The panelists pointed to the Frequent Flier Program, which was followed by loyalty programs in other industries, as giving rise to this expectation.
Nine out of 10 adults believe you can find anything on sale versus the retail price; six out of 10 adults say marketers do not respect them; and four out of 10 say they will not buy a product if they do not like the company. They can blog it, boycott it, and not buy it.
Changing Demographics
"Every nine seconds someone turns 50 years of age in America," Yesawich said. That translates into four million more '50 somethings' this year. And as people age, they pursue their No. 1 leisure pastime: travel. Plus, they have more discretionary income." Other signposts of shifting demographics:
- Americans are more affluent - 15 percent of households make more than $100,000 per year ‰ In 2006, 28 percent of the population had a bachelor's degree versus 20 percent in 1990
- 58 percent of graduates this year will be female ‰ there are more single than married households
- Millenials (those born after Gen X, between 1980 and 2000) entering the workforce are tech savvy, adventurous, and not brand loyal.
For Dow, this last demographic presents the biggest opportunity and challenge for 2007: How do you change meetings and events to attract Millenials and incorporate their interests? How do you facilitate networking among the different age groups?
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