Strategic Meetings Management & Industry Updates. Kevin Iwamoto, GLP & GTP Vice President of Industry Strategy May 13, 2014

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1 Strategic Meetings Management & Industry Updates Kevin Iwamoto, GLP & GTP Vice President of Industry Strategy May 13, 2014

2 WHAT WILL WE TALK ABOUT TODAY? / Meeting & Industry trends and forecasts / Why are companies focusing on meetings? / Strategic Meetings Management What is it? Current state & challenges SMM Maturity Index / The Intersection of Procurement & Meetings / The future of SMM

3 THE MEETINGS INDUSTRY: A BIG INDIRECT SPEND CATEGORY 48% of corporate T&E and meeting pros say their firms procurement departments are involved in meeting management. Corporate Meetings & Event industry was approximately $360 billion in 2010 Meetings represent 9% of the average organization s total budget 36% of companies have strategic meetings management programs in the US. 1-Business Travel News, the "2012 Strategic Meetings Management Study," 2 - CWT Travel Management Institute 2010, 3 - Strategic Meetings Management: A Handbook of Emerging Strategies for the Next Generation of Meetings and Events Management, Aberdeen Group 2012, 4-1-Business Travel News, the "2012 Strategic Meetings Management Study All content within is property of Lanyon and is not to be reproduced without permission

4 INDUSTRY PRESSURES: + Data & buying fragmentation for buyers, revenue streams and distribution channel changes for suppliers + Continued pressures on outsourcing travel and meetings + Economy & the price of fuel + Rapid advancement of social media and technology + New and younger workforce and ways to transact business and communicate All content within is property of Lanyon and is not to be reproduced without permission

5 TRENDS & FORECAST FOR MEETINGS & EVENTS + RFP volume and bookings accelerating + Shorter booking windows planning taking place in a tighter window + Risk Mitigation More Crucial + Suppliers are being selective and exerting more control + Social, Virtual & Mobile Transforming Event Management + Companies reducing multiple point solution suppliers in favor of enterprise solutions & integrations All content within is property of Lanyon and is not to be reproduced without permission

6 INTEGRATE WITH YOUR SYSTEMS All content within is property of Lanyon and is not to be reproduced without permission

7 CHALLENGE: RISING TRAVEL PRICES WORLDWIDE AIR FARE HOTELS GROUND TRANSPORTATION Hotels in key Global airfare business Price increases costs expected destinations look likely for to rise 2-5% will operate at ground transport near capacity throughout 2014 throughout 2014 All content within is property of Lanyon and is not to be reproduced without permission

8 MEETINGS & EVENTS GROUP PROJECTIONS FOR 2014 N. America: +1.5% in group size +5.5% in daily attendee costs Europe zone: -3% in attendee numbers Asia Pacific: +3-5% in group size +4-5% in daily attendee costs Latin America: +4-7% daily attendee costs - 2% in group size All content within is property of Lanyon and is not to be reproduced without permission

9 What is Strategic Meetings Management? Strategic Meetings Management (SMM) is a disciplined approach to managing enterprise wide meeting and event activities, processes, suppliers and data in order to achieve measurable business objectives aligned with the organizations strategic goals / vision, and deliver value in the form of quantitative savings, risk mitigation, and service quality. Joint MPI & GBTA definition 2009

10 State of SMM 2013 GBTA Whitepaper 52% corporations have a SMM program in place or are developing one Most of these respondents felt their company s SMMP s have benefited their organizations, enabling them to: Increase their control over cost savings (76%) Streamline meetings and event processes (76%) Better allocate resources and savings (67%) 41% believe a program will be implemented by their company within the next three years

11 WHAT KEY CHALLENGES CIRCUMVENT SMM? Decentralization - Multiple touch points and fiefdoms Lack of executive sponsorship & endorsement Change management both process and cultural Lack of an internal owner and what department should own it Lack of budget and funding Lack of full understanding of SMM as a savings category Emotional sense of ownership All content within is property of Lanyon and is not to be reproduced without permission

12 Securing Alignment SMM becomes a part of the fabric of your corporate services/structure SMM wins are also business wins Improved policy enforcement and In times of crisis, the value of events is demonstrable with data Varied stakeholders will support program s value proposition and will be vested in success Meetings/events will be respected alongside marketing and sales as key drivers of business success Protection of brand reputation

13 Without Alignment Stand alone projects are easier to cut Program may be seen as nice to have but not necessary Enforcement of policies will be minimal Chances of duplication of efforts is high Uncoordinated work may lead to dilution of leverage and increased risk

14 GBTA SMM Index Maturity Levels

15 A Technology Component View Business Intelligence Global Integrations Global Integrations Various 1 Random Attendee Management Source: GBTA Model with StarCite Market Research Meeting Request erfp erfp erfp erfp Attendee Management Budgeting Budgeting Budgeting Meeting Request Attendee Management Best Practices Spend Management Meeting Request Attendee Management Best Practices Spend Management Meeting Request Attendee Management Discovery Emergent Operative Excelling Mastering All content within is property of Lanyon and is not to be reproduced without permission

16 Let s get ready to rumble... MYTH BUSTING TIME!

17 Travel Drive business to preferred partners repeatedly Travel is travel even for meetings Provide rolled up data/reporting Lack of meetings industry knowledge

18 Meetings Unique/creative meetings Subjectivity is rewarded High level of ownership May not have been previously engaged in enterprise solutions Legacy success

19 Procurement Standardize/homogenize Reduce risk/cost Meetings as a commodity Lack of travel and meetings industry knowledge Lack of procuring service categories

20 Reality 101: Goals at Odds Travel HOW DO WE BRIDGE THE GAP AND WORK TOGETHER Procurement TOWARD COMMON STRATEGIC GOALS? Meetings

21 Shared Objectives, The Intersection Meeting Effectiveness Savings/cost avoidance Risk mitigation Traveler satisfaction Data aggregation/visibility Contracting rigor Branding alignment Other?

22 THE FUTURE OF STRATEGIC MEETINGS MANAGEMENT A peek into the future

23 Our crystal ball... Increase in... Supplier acceptance of process/strategies User friendly interface and processes Expense reporting solutions/integrations Meeting registration moves from data gathering to... Facilitation of approval ROI/ROO measurement Entry point for services Sourcing moves from hotel focused... All suppliers across the life of a meeting Increased synergies between corporation, 3 rd parties and end suppliers Technology moves from parts & pieces... Integrations are easy End to end functionality to support the life of each meeting

24 Asked and answered Q&A

25 Explore all nine chapters of SMM Champions: Best Practices for Developing SMM. In the e-book, top meeting and event industry s thought leaders and practitioners share their best practices and advice on developing and growing strategic meetings management (SMM). *Features contribution from Kevin Iwamoto of Lanyon Available at: