Ten Fearless Industry Predictions for 2010

January 6, 2010

Here are my 10 predictions for the M&E industry for the next 12 months:

10) MORE EVENTS in 2010, but a slow increase over 2009, due to strong budget restraint, combined with a corporate fear of having the media and investors view expenditures as wasteful.

9) RFPs ARE THE NEW NORM. Procurement, Finance and Third Party Planners will want to demonstrate that they have performed “due diligence,” so will request multiple suppliers bid on new projects. However, to keep the cost of vetting suppliers low, more RFPs will encompass multiple events or even multiple years. As the cost of preparing proposals can be high, smart suppliers will decline to invest in bids that they have little or no chance to win.

8) VENUES WILL RAISE RATES QUICKLY as the industry starts to improve. Mid-range venues will raise rates first, since they will see the biggest increases in business. Too many hotels and sites are operating at a loss and cannot continue to do so and survive.

7) PLANNERS WILL HAVE TO JUSTIFY HIGHER PRICES. It is going to be challenging for planners to explain to budget owners why rates are raising when we are in a recession, but venue owners and investors will demand an increased return on investment as soon as business conditions allow.

6) THE SUCCESSFUL MEASUREMENT AND ANALYSIS OF EVENT DATA will be critical to justifying future events. Although the on-site experience is still important, it is secondary to achieving business objectives. Successful planners will be those who can show how their events further client business development, solve issues or result in more favourable business relationships.

5) WHETHER AN INTERNAL OR EXTERNAL PLANNER, YOUR ABILITY TO SOLVE CLIENT ISSUES will determine how many events you run in 2010. When money is tight, expenditures that result in improved business will be approved first

4) TRUST AND RELATIONSHIPS are still important. As business moves faster, with fewer resources, planners will tend to direct business to those suppliers who are known to do a good job. Industry associations will continue to grow as suppliers seek to expand their professional relationships.

3) IF YOU DO WHAT YOU’VE ALWAYS DONE, YOU’LL GET LESS. Solid logistical management is not a guarantee of success. The suppliers who adapt will grow. Social media, complementing face-to-face meetings with virtual events, on-line rather than print documentation and the use of flexible “green” venues are not fads, but the way of the future, and successful planners have to embrace these trends.

2) BIGGER MAY BE BEST. As companies attempt to accomplish multiple objectives with limited resources, the best value (though not necessarily the lowest price) may be obtained by working with suppliers who can provide a variety of services without outsourcing.

1) THE NUMBER OF INDEPENDENT PLANNERS will shrink. Although many planners who left the corporate world established their own businesses, many of these individuals will leave the industry in 2010. Although independents are flexible and often low-priced, I predict that many clients will prefer to award important projects to solid, dependable suppliers who have successfully managed through the tough times.

Thanks for indulging me. I would be interested to hear if you agree, disagree or want to add to the list.

Posted by Les Selby, Industry Insider, on Wednesday, January 6th, 2010 at 03:27 PM

One Response to “Ten Fearless Industry Predictions for 2010”

  1. Rose Timmerman Gitzi Says:
    June 1st, 2010 at 12:13 pm

    Mr. Selby:

    Further to your Industry Inside Blog entry titled “Ten Fearless Industry Predictions for 2010″, I would like to take this opportunity to address your point #1:
    1) THE NUMBER OF INDEPENDENT PLANNERS will shrink. Although many planners who left the corporate world established their own businesses, many of these individuals will leave the industry in 2010. Although independents are flexible and often low-priced, I predict that many clients will prefer to award important projects to solid, dependable suppliers who have successfully managed through the tough times.

    As President of the Canadian Society of Professional Event Planners, I would like to bring several items to your attention. CanSPEP represents over 100 independent event planners across Canada, and despite the downturn in the economy, our membership continues to grow. While we have seen several independent planners leave the industry over the past several months, we have also seen many established independent planners grow and thrive in this environment. Running a small business is not for everyone, and your prediction that many independent planners will leave the industry singles out this group as though this group is unique. I believe you will find that MANY small event businesses (caterers, entertainers, audio visual companies etc) leaving the industry.

    Independents can be flexible however I would disagree with your statement that they are low-priced. As with any consulting-type based business, rates for services can fluctuate wildly and as in any business “you get what you pay for”. Planners who chose to price their services low, are typically those with less experience and expertise, who are eager to win a contract. Senior planners with credibility and ingenuity will demand more for their high level of competence – and rightly so.

    I am not sure who you are referring to as “solid dependable suppliers” however you seem to infer that it will be large meeting planning firms and destination management companies that will weather the economic storm. I believe that you are selling the independent event planner short. Although this economy has caused everyone to “tighten their belts”, many independent planners have come up with creative ways to ensure their longevity. We have seen groups of planners collaborate on large IMPORTANT projects, thereby supporting each other while providing a high level of skill to the client. We have also seen planners expand their business model to incorporate diversified revenue streams.

    The year ahead will continue to present challenges to all aspects of the events industry, and all professionals should encourage and support each other to ensure as many of us “manage through the tough times” as possible.

    Edited by Moderator 06/01/2010 at 12:51 p.m.

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