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Buyers advised to “think more creatively” in 2018 by BCD Meetings & Events – Insufficient supply pushes up rates

Buyers advised to “think more creatively” in 2018 by BCD Meetings & Events – Insufficient supply pushes up rates

By Aaron Field

BCD Meetings & Events is advising buyers to think more creatively with their budgets, as research conducted in conjunction with sister company Advito predicts that strengthened demand, coupled with insufficient new stock, will cause prices in the EMEA region to rise by at least 3% to 5% in 2018.

06.10.2017

Buyers advised to “think more creatively” in 2018 by BCD Meetings & Events – Insufficient supply pushes up rates

While the incentives market remains subdued in the region, demand for meetings in Europe has continued to grow over the past two years, driven by a surge in events for both internal and external audiences, as companies seek to save time and cut costs.

However, this rise in demand has coincided with the dual shock of political instability in Turkey and Russia and fewer new hotels offering meeting and event space. As a result of static supply and increased demand, prices grew by 3% and 5% in 2017 with the same rate rise forecasted for 2018.
For many buyers, budgets have not increased at the same level, therefore BCD Meetings & Events is recommending a more flexible approach, whereby second-tier destinations which often offer lower prices and better availability than larger cities are added to the mix.

Additional recommendations include negotiating meetings with hotels where a preferred relationship for transient travellers is already in place, alongside locking in repeat business with individual hotels and chains to achieve better rates.

Nigel Cooper, Managing Director BCD Meetings and Events EMEA said: “Our research reveals a positive outlook for the EMEA region, with the market continuing to strengthen after two years of solid growth. However, buyers are going to have to think more creatively when it comes to securing the best deal as supply is not keeping up with this demand.

“For example, when identifying second tier destinations to hold meetings and events, buyers may find themselves in a position where they will need to use more than one hotel to accommodate all of their attendees. Additionally, as more companies seek to integrate meetings and events with their corporate travel programmes, there will be additional opportunities to leverage preferred relationships with hotel chains in order to secure better rates.”

Download a copy of the BCD Meetings & Events “What’s Trending” report here.