WINNING STRATEGIES. in Destination Marketing OCTOBER 2018 A VIEW FROM MEETING PLANNERS EXECUTIVE SUMMARY

Transcription

1 OCTOBER 2018 STUDY BY Development Counsellors International EXECUTIVE SUMMARY A VIEW FROM MEETING PLANNERS WINNING STRATEGIES in Destination Marketing 1

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3 Table of Contents 04 Executive Summary* 08 Introduction and Methodology* 11 A Whole New World 15 The Trump Effect Real or Perceived 17 The Rankings: Best-in-Class Destinations Awarding the Top Destination Organizations We Can t All Be Winners: Least Favorable Destinations for Business Events 26 The Path to Purchase: From Discovery to Site Selection 29 Influencing Meeting Planner Perceptions: Leading Sources of Information 31 Hashtags, Direct Messages and Followers Oh My! 33 First (Digital) Impressions Matter 35 The Best Marketing Techniques from the Customer s Perspective 38 Meeting Face to Face Matters 41 Where Are Meeting Planners Getting Their Industry News? 43 Destination Experience Matters: The Importance of Fam Trips 44 Under the Influence: Important Factors in Site Selection 45 Identifying the Ultimate Meeting Location Decision-Makers 46 A Word About DCI (On Page 11 of Executive Summary)* 47 Appendices *Highlighted items are included in the Executive Summary. All other items are included in the full report. 3

4 Executive Summary In 2012, Development Counsellors International (DCI) set out to provide destination marketers with best practices for attracting business events from the customers of the meeting industry: meeting planners. The comprehensive study was the first of its kind when it debuted six years ago. It surveyed meeting planners in the United States and Canada responsible for planning global meetings. The results captured meeting planners perception of destinations and the most effective marketing and sales strategies for destination marketing organizations. Now in its third edition, A View from Meeting planners: Winning Strategies in Destination Marketing has evolved just as much as the meetings and incentives industry over the last six years. When the 2015 edition launched, the business events industry was continuing on a slow and steady recovery from the global financial crisis that began in With global business travel spending reaching $1.33 trillion in 2017, growing 5.8 percent from 2016, the industry has finally (although slightly) surpassed the stagnant 3-5 percent growth range it has experienced since The Global Business Travel Association forecasts that spending will increase by another 7.1 percent by the end of 2018 and then expand upward to $1.7 trillion by 2022 (GBTA; Rockport Analytics, 2018). However, the business events industry faces potential new challenges that can cause contractions to the strong growth. These hurdles include a different presidential administration in the White House, ongoing safety and security threats and a trend of inward-facing trade policies among worldwide governments. Recognizing these new challenges, this year s survey introduced new questions and targeted a specific focus group of planners. In addition to planners with international event experience, the 2018 edition includes perception of planners who organize business events in the United States. This edition introduces new discussion topics to account for safety and security at meetings and events and the impact of the U.S. political climate. 4

5 Executive Summary It also analyzes how effective digital marketing could be for destinations and suppliers looking to attract conventions, meetings and incentive programs. Key findings include the following: Most respondents (67 percent) reported that since President Trump s inauguration, the likelihood of planning events in the U.S. remains unchanged. The survey sought to uncover the Trump Effect on the meetings industry from meeting planners perspective. Respondents were asked to identify whether and how much the new administration would affect the number of events they plan within the United States. They also indicated whether the number of attendees at these events changed since the January 2017 inauguration. Only 20 percent of respondents indicated that they are less likely to explore U.S. destinations for their business events. While nearly 30 percent of respondents reported that they have seen a decline in the number of attendees at business events in the U.S., most (62 percent) have seen no discernable change in the number of attendees. Global business travel spending reached $1.33 trillion in

6 Beyond questions relating to the U.S. administration, the survey queried planners and decision-makers about best practices in marketing and sales. The key findings, based on the aggregate responses of 181 participants in the 2018 survey, are the following: What s keeping meeting planners awake at night? Respondents reported that they are most concerned about safety and security issues in destinations and suppliers responsiveness or lack thereof during the planning process. Decision-makers suggest that introductions to new destinations at industry trade shows, leveraging existing relationships with suppliers and referrals from colleagues are the most influential ways to initially learn about a destination. Respondents report that they largely rely on convention and visitor bureaus (CVBs) or destination marketing organizations (DMOs) as trusted sources of information. At a distant second place came destination management companies (DMCs). Meetings with destination representatives along with experience in destinations, via either business or personal travel are the top two ways that respondents form their perceptions of cities, states and countries. As a tool for both marketing and communication, social media is finally starting to follow consumer trends, and it s becoming increasingly important in the business events industry. LinkedIn is the most favorable platform, according to respondents. As was the case in 2012, IMEX America is the most attended industry event: 56 percent of respondents reported having attended the trade show within the last three years. IMEX Frankfurt and SITE events rounded out the list of most-attended events. IBTM America is noticeably absent from the list, having lost popularity since the study s 2012 edition. Meetings & Conventions, Corporate Meetings & Incentives (MeetingsNet. com) and Successful Meetings are the top three industry publications that respondents report reading most frequently. Among respondents, 95 percent consider educational trips (fams) an important factor when considering destinations. This percentage is a large increase from the 2012 research, when only 72 percent reported similar sentiment. The costs of meeting spaces and hotel rooms in destination remained the most important factor for business event planners, garnering more than 58 percent of responses, followed by ease of flight accessibility from the U.S and Canada. The top meetings and events destinations around the globe include London (Europe), Singapore (Asia and Asia-Pacific), San Diego (North America), Buenos Aires (South America), the Bahamas (Caribbean) and Dubai (the Middle East and Africa). London & Partners and NYC & Company are cited, respectively, as the top destination marketing organizations globally and domestically. 6

7 Executive Summary The least favorable destinations for international business events include Istanbul and Turkey, Mexico City and Russia. All three destinations ranked as the least favorable in Paris was also on the list in 2012, but it was not mentioned as the least favorable destination this year in any responses. Las Vegas and Detroit were the least favorable domestic business event destinations. Detroit had also appeared among the least favorable locations in the 2012 rankings. The interest in how and why decision-makers select destinations for their programs has never been higher, given the current global political and economic climate. Winning Strategies continues to offer an open window into the minds of key business events influencers, outlining their path to purchase from the destination discovery phase to site selection. Simultaneously, the study also probes how the hot topics of the moment affect influencers events. Rounding out the robust data points, Winning Strategies also provides DMOs and CVBs with insights and recommendations to augment their current marketing and sales tactics in order to increase the number and quality of their conventions, meetings and incentives. A FEW WORDS ABOUT TERMINOLOGY To ensure the report is relevant to destinations marketers and suppliers globally, the following terms are used synonymously throughout the research: Respondent(s), meeting planner(s) and decision maker(s) Business events and MICE D estination marketing organizations (DMOs), destination organizations and convention and visitor bureaus (CVBs). 7

8 Introduction and Methodology Development Counsellors International (DCI) conducted a survey of North American meeting planners with global meeting planning responsibilities in 2012, along with a second edition in 2015, to determine the customer s perspective on the most effective strategies and techniques in destination marketing for business events. This survey targeted meeting planners directly responsible for planning meetings outside of North America. This year s survey introduced new questions and targeted a specific focus group of planners. The survey was significantly more extensive, requiring respondents to spend upward of 30 minutes to answer the questions. Respondents are highly qualified decision-makers and influencers across the corporate, incentive and association segments; almost 50 percent of respondents have 20+ years of experience. This approach resulted in slightly fewer respondents than the 212 responses to the 2015 survey, with 181 responses to this year s edition. Respondents were contacted by , inviting them to participate in an online survey during a four-week period in June and July In return for their participation, respondents received their choice of either a $10 Starbucks gift card or a $10 Amazon gift card. Appendix A includes a copy of the questionnaire and invitation. It is important to note that this survey is a study of perceptions. A perception is an attitude, belief or impression and not necessarily a reflection of reality. Meeting planners have certain identifiable opinions and beliefs about doing business throughout the world. Some of these perceptions may be accurate, and some may be genuine misperceptions. However, there is always room for suppliers to improve and fine-tune their offerings, key sales messages and marketing and sales techniques in order to help close the gap between perceptions and reality. A perception is an attitude, belief or impression and not necessarily a reflection of reality. 8

9 Introduction and Methodology Who Is the Customer? Respondents to the survey represent a diverse and experienced cross-section of meeting planners; 90 percent have more than five years of experience in the meetings and conventions planning and decision-making process, and 47 percent have more than 20 years of experience. When respondents were asked about the types of business events that they organize or plan, they had the option to choose more than one event. The most respondents (69 percent) report planning corporate board meetings or other C-suite meetings, followed by associations annual conferences and conventions (65 percent) and incentive programs (58 percent). Number of Years of Industry Experience 10% 14% 16% 14% 47% LESS THAN FIVE YEARS FIVE TO 10 YEARS 11 TO 15 YEARS 16 TO 20 YEARS MORE THAN 20 YEARS Types of Events Planned Board meetings/c-suite meetings (corporate) 69% Annual conferences/conventions (associations) 65% Incentive programs (corporate) Sales meetings (corporate) Meeting & incentive blended programs (corporate) 58% 58% 57% 33% Regional chapter meetings (associations) 28% Technical conferences (associations) 23% Subcommittee meetings (associations) Other 13% 9

10 Introduction and Methodology One-third of respondents report planning flagship events of fewer than 300 people. Approximately 43 percent of respondents are planning flagship events of more than 500 people, and 12 percent report planning events of 3,000 people or more. Average Size of Flagship Event LESS THAN % % % % 1,001-3,000 12% 3, % Almost 50% of respondents have more than 20+ years of experience. 10

11 A Word about DCI Development Counsellors International (DCI) is the expert in how North American travelers and business executives select destinations. We partner with destinations to increase visitor arrivals, disperse visitors, augment daily spend and increase business investment. Our agency was established in New York City in Today, DCI employs 60 place marketers from our offices in New York (our headquarters), Denver, Los Angeles and Canada (Toronto and Montreal). Our tailored approach raises a destination s brand awareness and capabilities as a business events location while providing highly qualified lead generation in the U.S. and Canada. We achieve this goal through a deep understanding of your target audience a niche segment that includes incentive planners, third-party agencies, corporate executives, association executives and association management companies and the overall sales process of converting an RFP into a confirmed event. Our areas of expertise include: Tourism research Public relations Consumer marketing Travel trade marketing and representation Business event marketing and sales representation Digital influencer management Digital marketing Digital paid advertising Destination brand consulting Every day, we implement programs that drive visitor arrivals, visitor spending and investment. This impact helps create and support job growth and improve residents quality of life in the communities where we work. In addition to Winning Strategies in Destination Marketing, DCI has conducted its Winning Strategies in Economic Development Marketing survey every three years ( ). This survey of corporate executives with site selection responsibilities identifies the customer s perspective on the most effective strategies and techniques in economic development marketing. Interested in learning more? We d love to explore how we might assist your destination marketing organization or convention bureau. Karyl Leigh Barnes, President karyl.barnes@aboutdci.com Daniella Middleton, Vice President daniella.middleton@aboutdci.com 11

12 Interested in learning more? We d love to explore how we might assist your destination marketing organization/convention bureau. Karyl Leigh Barnes President T E karyl.barnes@aboutdci.com Daniella Middleton Vice President T E daniella.middleton@aboutdci.com NEW YORK 215 Park Avenue South 14th Floor New York, NY (212) DENVER th Street, Suite 200 Denver, CO (303) LOS ANGELES 8560 West Sunset Boulevard Suite 426 Los Angeles, CA (323) TORONTO 1 Adelaide Street East Suite 3001 Toronto, ON M5C 2V9 (647)