While a majority of destination management companies expect revenues to increase in 2007, many don’t expect to see a rise in profits, according to Global Event Partners’ annual survey of its worldwide consortium of more than 70 DMCs.
More than 90 percent of respondents believe that revenues from corporate events will increase or stay the same in 2007 compared to 2006. However, roughly half say that profits will be “squeezed” as corporate meeting planner clients demand a greater return on investment and more service and attention for their dollar. This will make the job of themore time-intensive and potentially less profitable, according to the report. Short lead times and shifting program requirements; budget constraints and procurement requirements; and difficulty of finding, training, and retaining qualified staff to maintain high service levels are cited as key challenges that could pressure profits.
The survey also asked GEP members about hot destinations for corporate meetings next year. London and the U.K. led the way, cited by one-third of respondents as a “most desired destination.” Other hotspots include France, Italy, Orlando, Scottsdale/Phoenix, Las Vegas, China, Latin America, Mexico, the South Pacific, and Dubai.
Finally, expectations are split between U.S. and international DMCs on the topic of “big events,” defined as corporate events with more than 200 participants. More than 90 percent of U.S.-based DMCs expect big events to increase in 2007, while just half of DMCs outside the U.S. expect an increase in big events.