The Big Picture: Global Industry

Status and Prospects:

North American Perspective2012

AMSTERDAM

General Economy

1. Consumer confidence showing improvement

2. Unemployment rates falling slightly or stable

3. Housing prices and starts trending upward

4. Some concerns about inflation, interest rates

5. Recovery is somewhat regional

Business Travel Trends

2012 predicted to show some improvement

Demand for meetings and conventions projected to increase

• More meetings

• More attendees

• Incentive programs growing again

Business Travel Trends – cont’d

• Negligible growth for tradeshows– Number of exhibitors, number of attendees, revenues

slightly down; net square foot utilization slightly up

• Insurance, financial, consulting, high tech, healthcare and education expected to rebound

• Companies hiring: meetings geared to training

• Formal emphasis on communicating value of meetings

Meeting Characteristics:

• Planners remain: rate conscious – spending will decrease or remain flat; value focused

• Budgets take precedence• Profit and engagement tactics are new

measures: open, audience led meetings; access to business opportunities

• Some return to recreation and entertainment as part of experience: we can have some fun again

• Hybrid meetings increasing• Increased use of technology

Meeting Characteristics-cont’d

• Planners want: Price flexibility Opportunities to negotiate Shorter lead times Better customer service Better communication lines Added value: free wireless, green meetings consultancy, more services

US Snapshot

• Increased federal emphasis on improving competitive position for tourism

Brand USA

Increased federal funding

Addressing visa issue

Value of meetings still in dispute: mandated federal reductions

GSA a setback

Highly competitive environment

Mexican Snapshot

• Government supportive

• Continued investment in infrastructure

• Business travel a critical component of economic development strategy

• Is coping with destination image issues

Latin American Snapshot

• Limited infrastructure

• Private investment leading the way

• Economic growth leading to corporate and exhibition business

Canadian Snapshot

• Relative economic stability

• Corporate travel improving

• Continued product development, US economy and travel patterns present challenges

• Federal government support low for marketing, some assistance with infrastructure

Conclusion

Supply still over strips demand: competitive environment

“A Buyer’s Market”Operational profit/loss goals increasingly difficultBalancing economic impact measures with bottom

line realitiesTravel costs: air, hotelAccess issuesCompeting government priorities: communicating

value

Marcia Lyons Amsterdam, 2012