SMMP & INDUSTRY UPDATES Kevin Iwamoto, GLP & GTP VP Industry Strategy
Best practices to Track, manage and measure meetings & events ROI 201 enterprise executives BUSINESS SOLUTIONS GROUP
INTRODUCTION AND WELCOME Kevin Iwamoto Vice President Enterprise Strategy, StarCite • •
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25+ Industry Veteran 14 years as a Global Travel & Meetings Procurement Category Manager – Airlines, Car Rental, Corporate Card, Ground Services, Hotel & Meetings • The Walt Disney Company • Hewlett-Packard Managed a global travel category portfolio of $1.2B USD Former NBTA (now GBTA) Chairman, President & Board Member Recipient of many major industry media recognition, awards & designations
WHAT WILL WE TALK ABOUT TODAY?
/ Meeting & Industry trends and forecasts / Why are companies focusing on meetings? / Strategic Meetings Management
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What is it?
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How will it work in your organization?
/ The Melding of Procurement & Meetings
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
INDUSTRY PRESSURES:
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Data & buying fragmentation for buyers, revenue streams and distribution channel changes for suppliers
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Continued pressures on outsourcing travel and meetings
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Economy & the price of fuel
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Rapid advancement of social media and technology
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New and younger workforce and ways to transact business and communicate
TRENDS & FORECAST FOR MEETINGS & EVENTS +
RFP volume and bookings accelerating
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Shorter booking windows – planning taking place in a tighter window
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Risk Mitigation More Crucial
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Suppliers are being selective and exerting more control
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Social, Virtual & Mobile Transforming Event Management
TOP TRENDS FOR 2014
CONSOLIDATION • Continued consolidation of Business Travel and M&E spend to negotiate better deals • Increase in consolidated M&E policy for greater savings and risk mitigation/Duty of Care
SAVINGS & COMPLIANCE • Reliance on technology to manage enterprise spend • Increased focus on compliance • Executive stakeholder engagement and support – improved communications
CHALLENGE: RISING TRAVEL PRICES WORLDWIDE
AIR FARE Global airfare costs expected to rise 2-5%
Source: CWT Travel Management Institute
HOTELS
GROUND TRANSPORTATION
Hotels in key business destinations will operate at near capacity throughout 2014
Price increases look likely for ground transport throughout 2014
MEETINGS & EVENTS GROUP PROJECTIONS FOR 2014 Europe zone: N. America: +1.5% in group size +5.5% in daily attendee costs
Latin America: +4-7% daily attendee costs - 2% in group size
Source: CWT Travel Management Institute
-3% in attendee numbers
Asia Pacific: +3-5% in group size +4-5% in daily attendee costs
CHALLENGE: ANCILLARY FEES GROW
Airline Example: $43B in 2013 Fees + Carry-on bags + Checked bags + Overweight bags + Snacks + Blankets + Seat upgrades + Premium seating + Wifi
CHALLENGE: FEES GROW
Hotel Example: $2.1B+ in 2013 Fees + Early check-in + Mini-bar restocking Fitness center + In-room safe + Luggage storage + Energy surcharge + Valet parking + Porterage + Resort + Internet & phone
CHALLENGE: UNEVEN GLOBAL MEETINGS FORECAST
NORTH AMERICA +
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4% rise in avg. meeting size
6.5% hike in per-day attendee cost.
Source: CWT Travel Management Institute
EMEA - 3% decline in avg. meeting size - 6% drop in per-day attendee cost
STRATEGIC MEETINGS MANAGEMENT Strategic Meetings Management (SMM) is a disciplined approach to managing enterprise wide meeting and event activities, processes, suppliers and data.
STRATEGIC MEETINGS MANAGEMENT Using the SMMP Roadmap and Developing Business Case +
Define and articulate the problem or opportunity
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Identify and engage key stakeholders
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Match department goals to corporate values/objectives
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Use data consolidation and reports
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Include a change management strategy
End-to-end SMMP annual savings range from 10% - 25%
WHY ARE COMPANIES FOCUSING ON SMM? •
Urgent need to view enterprise spend
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Branding consistency
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Enhance meeting performance efficiencies
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Drive significant incremental savings
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Managing category spend via procurement and/or finance
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Mitigate various areas of risks
WHAT TYPES OF RISK? Mitigating Risk: Types of risks associated with meeting planning
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
STRATEGIC MEETINGS MANAGEMENT MATURES 88% of companies surveyed in NA have or are moving towards a regional / global M&E program. There is slightly less intent internationally, but still strong numbers in EMEA & APAC. Evolution of M&E consolidation over past 5 years
M&E planners/ requestors (%)
Source: CWT Travel Management Institute
STRATEGIC MEETINGS MANAGEMENT MATURES The most critical element of advancing a meetings program is deploying a standardized policy across all business units.
Top levers for improving M&E management
M&E planners/requestors Source: CWT Travel Management Institute
Source: CWT Travel Management Institute
REALITY 101: GOALS AT ODDS
THE GROWING ROLE OF PROCUREMENT Expected evolution of procurement experts’ Involvement in M&E management
Procurement is playing a broader role in meetings management-including establishing policy/guidelines, providing input into meetings technology, and other areas apart from budgeting and costs
Source: CWT Travel Management Institute ACTE Integration of Corporate Travel and Meetings Management Report
Departments that assume responsibility For Meetings Management
Finance and procurement most likely departments for integrated travel and meetings management, and as involvement grows there is an increased scrutiny over travel and spend management
MEETINGS & EVENTS: NOW A SEPARATE CATEGORY WITHIN PROCUREMENT Involvement of Procurement Department in Meetings Management
Source: BTN/Meetings & Conventions March-May 2012 survey of 213 corporate travel and meeting professionals
TODAY’S MEETINGS ECOSYSTEM
TECHNOLOGY: ENABLER TO SUCCESS
SMM CHAMPIONS: BEST PRACTICES FOR DEVELOPING SMM Explore all nine chapters of “SMM Champions: Best Practices for Developing SMM. In the ebook, top meeting and event industry’s thought leaders and practitioners share their best practices and advice on developing and growing strategic meetings management (SMM). Available at: http://www.activeevents.com/smmchamps
Best practices to Track, manage and QUESTIONS? measure meetings & events ROI 201 enterprise executives
