2013 Volume and key trends data from a venue perspective Commissioning Sponsor Principal Sponsor Principal Sponsors Supporting Sponsors Supporting Sponsors Sponsors Associate Sponsor UK Events Market Trends Survey 2013 Report prepared for: Price £175 Prepared by: TEAM Tourism Consulting and Tony Rogers Conference & Event Services June 2013 Eventia, 5th Floor, Galbraith House, 141 Great Charles Street, Birmingham, B3 3LG E: info@eventia.org.uk W: www.eventia.org.uk PREFACE In June 2013 the Scottish Exhibition + Conference Centre in Glasgow announced that it was celebrating a 2012 brought optimism back to the meetings and events raft of new conference business from within the creative industry as companies and organisations began to grow industries, both on the back of the venue’s support for their meetings programmes again and bring back critical Creative Scotland and also the high profile launch of its business events that were put on hold during the new ‘creative’ branding. There is little doubt that, recession. The UK Events Market Trends Survey research harnessing the creative talents of the UK’s event confirms this mood of cautious optimism for the sector and agencies to the technical excellence of the UK’s venues a quiet confidence that the upward market trend noted by and support services, the potential for further growth venues will continue through 2013 and beyond. and success in this sector is huge. Undoubtedly one of the catalysts for improvements in the This year’s ‘UK Events Market Trends Survey’ is being UK business events market has been the successful staging published in the same month as the results of the UK’s of the 2012 Olympics. This has created a great opportunity first ‘Economic Impact Study’ for the meetings sector, for the UK to market our unique locations, the variety of which is using a United Nations World Tourism our venues and the genuinely warm welcome that we can Organisation methodology for its research analysis. offer visitors, visitors which should lead to enhanced success for Taken togethe together, the ttwo o reports epo ts sho should ld p provide o ide UK destinations when bidding for future international fascinating reading and, we all hope, compelling events. evidence for the vitality and dynamism of the crucially important business events sector. The Olympics also highlighted to a global audience the creative and technical excellence of the UK’s events I am delighted that Eventia has overseen the research industry, epitomised by the opening and closing survey which has generated the report on the following ceremonies for the Games. UK Trade and Investment pages. It provides an indispensable insight into the (UKTI) has identified the creative industries as one of the scope and value of the sector in the UK and deepens priority sectors for its support, strengthening the UK’s our understanding of current and emerging trends, both reputation in leading overseas markets as the international buyer and supplier, national and international. business partner of choice. This would seem to be an obvious win-win. UKTI act as ambassadors for the UK Simon Hughes events industry, using events around the world – in the Managing Partner, MCHA Ltd and Chairman of Eventia form of trade exhibitions, roadshows and forums – to attract businesses to the UK. 2 Contents Executive Summary and Conclusions 4 1. Introduction 8 2. Volume of the Events Market 15 3. Dimensions of the Events market 18 4. Expectations and Trends 29 Appendi 1 – Venue Appendix Ven e and location anal analysis sis 34 Appendix 2 – Volume calculations 37 Appendix 3 – Market insights 39 Appendix 4 – Survey sponsors 44 3 Executive Summary and Conclusions 4 Introduction Dimensions of the Events Market The United Kingdom Events Market Trends Survey Number of events • There was an average of 373 events per venue in (UKEMTS – previously the British Conference Venues Survey) seeks to: 2012 – comparable to 2011 (an average of 369 • events). Measure the key characteristics of the UK business events and conference market from a venue • with a further 23% held in unusual / multi-purpose perspective • venues. Provide the best possible estimates for volume and value aspects of the market. Event Duration This year, UKEMTS used a similar questionnaire and data collection method to previous years. • The valid 65% in 2010. • similar to previous years. In 2012 there were an estimated 1.3 million business events in the UK. This was on a par with 2010 and 2011. Delegate Rates • The average daily delegate rate achieved by venues The 2012 level of events reflects a flat trend that has for events was £43 (inc VAT). The average 24 hour / affected the business events market since the 2008 residential rate was £129. peak. • Duration varied from 1.5 days for non-residential events to 2.0 days for residential events. This was Volume of Business Events • The average event duration was 1.6 days. Most events (61%) lasted a day or less, compared to sample to this year’s survey was 224 responses. • The majority (59%) of events were held in hotels, There were an estimated 85.5 million delegates accounting for approximately 140m business event • Day delegate rates were on a par with 2010 and 2011. 24 hour / residential rates still remain slightly below 2008 and 2009 levels. days. 5 Levels of residential / non-residential business • • A quarter (28%) of event business was residential at Use of Professional Conference Organiser • Just over a third of events in 2012 were organised the event venue – this was higher than 2011 (20%). by a professional conference organiser (PCO), event A further 10% of business was estimated to be management or venue finding agency. staying in the wider destination. The remaining 63% • This was up slightly on the level of previous years. was day visiting (i.e. non-staying) business (compared to 70% in 2011). Event Size • Most events (69%) comprised 50 delegates or fewer Type of event organisation – the majority of these were for fewer than 20 • The corporate sector accounted for over half of delegates. Approximately 4% of events had more events (56%). The next most significant group was than 200 delegates. government and the public sector (23%). • Associations accounted for 21% of the market. • The average event size was 64 delegates – this compared to 80 in 2011 The 2012 figures continue to demonstrate the downturn in the levels of public sector and Origin of Event Business government business since 2009 (23% of share • compared to 28% in 2010 and 37% in 2009) – a generated from the region in which a venue is reflection of budget constraints within the public sector. The majority (64%) of event business was located. • About a third (32%) was from the rest of the UK, with a small proportion (4%) from overseas. 6 Expectations and Trends • • some investment in 2012. Investment was up on On balance, venues were indicating their business 2011 levels (when two thirds of venue had invested). performance in 2012 was up on 2011 – 51% Typically venues had invested up to £100k (55% of indicated they were up compared to 18% indicating business was down. • In general, venues were optimistic about prospects for 2013 – 53% anticipated business would be up About four-fifths of venues (78%) had undertaken venues). • The commonest area of investment was in general refurbishment / decoration, followed by ICT and presentation equipment. and 35% felt it would be about the same. • Venues were asked the extent to which they agreed or disagreed with a series of statements about their event business in 2012. They were most likely to agree with the statement that lead times for booking had got shorter. • There was, on balance, agreement in relation to other issues. So, venues were tending to reduce their rates to remain competitive (although about a quarter were not), and had seen some recovery in corporate markets but a downturn in the government and public sector. • There was also a general consensus organisers were planning more hybrid (i.e. both face-to-face and virtual) events. 7 -1 – Introduction 8 1.1 Background The UK Events Market Trends Survey (UKEMTS) has been carried out annually since 1993. It was previously • Section 4 looks at prospects for 2013, trends in the market place, and recent investment. known as the British Conference Venues Survey. In addition, Appendix 1 provides a more detailed In 2012, the UK Events Market Trends Survey breakdown of results by venue type and location. (UKEMTS) was commissioned by Eventia and was undertaken by TEAM Tourism Consulting (TEAM) and project managed by Tony Rogers Conference & Event Services. The objectives of UKEMTS are to: • M Measure the h k key characteristics h i i off the h UK business b i events and conference market from a venue perspective; • Provide the best possible estimates for volume aspects of the market. The report is divided into four sections: • Section 1 focuses on the objectives, methodology and sample of the survey • Section 2 highlights the estimated volume of the events market • Section 3 provides an overview of the characteristics of the events market from the venues’ perspective 9 1.2 Definitions and Notes to the Reader A number of definitions are used in this report. • University or other educational institution. • Unusual / multi-purpose venue – museums, An event venue is defined as: • castles, sporting venues, visitor attractions, theatres, A paid-for facility (i.e. rented, not a company’s in- civic / town halls, leisure centres etc. house meeting rooms) containing: • At least 3 meeting rooms for hire with A business event or conference within this survey is • A minimum capacity of 50 theatre-style in its largest defined as “an out of office conference, meeting or room. other business event of at least four hours’ duration involving a minimum of 10 people”. Within this report Event venues are sub-divided into five categories. events is used as a generic term covering all types of These are defined as follows: business event such as conventions, congresses, • Purpose-built Purpose built convention centre – specifically conferences, meetings, training courses, sales briefings, designed to host conferences and with a capacity of seminars, product launches, roadshows etc. over 500 delegates theatre style. Usually with a • large auditorium and supporting break-out seminar Other terms used within the survey include: and meeting rooms. • Association: trade and professional associations and Conference / training centre – venues devoted to institutions, societies (professional and voluntary), the conference or training market comprising trade unions, and educational and academic groups. specifically designed “learning spaces” with three or • Corporate: company meetings and training courses, more lecture rooms, with no room having a capacity annual general meetings, board meetings, sales of more than 500 delegates. They host residential meetings, product launches. and non-residential conferences. • Hotel. 10 • Government and public sector: events held by government departments and agencies, local authorities, the National Health Service, charities and similar public bodies. Delegates are people attending a business event. Within this report they will also include exhibitors (i.e. people staffing exhibition stands at an event). A delegate day is a measure of the number of days spent in an area by delegates. As an example, the following would all count as two delegate days: • A delegate staying for two days • Two delegates visiting for the day • A delegate visiting on two different days (but not necessarily staying). Notes to the reader: • All percentages are rounded to the nearest whole figure – sometimes figures may not therefore add up to exactly 100%. • An asterix (*) indicates a value of less than 0.5% • A dash (-) indicates no value. 11 1.3 Methodology and Approach The UKEMTS questionnaire has remained comparable proactive in the events market. The total supply of since 2004 (although there have been some minor potential venues exceeds this number but the revisions to individual questions). venues outside the Eventia database can be regarded as ‘secondary’ venues. These are likely to UKEMTS is a self-completion survey with venues have meeting facilities but are not particularly pro- contacted through a variety of mechanisms – e.g. via active in the market place and likely to attract a conference desks / bureaux, relevant industry small number of predominantly local events. Survey organisations and direct mailings to venues. results will reflect the performance of ‘primary ‘ venues. Because UKEMTS is a self-completion survey, it is • difficult to control responses and the sample. There are Sample size. The annual sample sizes are relatively small, particularly in some categories of data, and three potential sources of error that should be noted. therefore h f subject bj to potentially i ll significant i ifi margins i off error. This has been partly addressed by analysis of • An unrepresentative sample. The sample may the data on a three year moving average for certain not necessarily reflect the venue universe (i.e. the supply of UK event venues) and this could create a bias with certain categories of venue over- (or under-) represented. This is partly addressed by weighting the data (see below). There may also be a bias in the types of venues responding - i.e. more proactive venues complete the survey. Eventia’s database of venues comprises about 3500 venues across the UK – this can be regarded as a reasonable categories (see below). • Respondent estimation. Some of the questions may not necessarily be in a format that responds to a venue’s recording methods or may relate to data that a venue does not routinely collect. As such, in some cases venues will have made estimates in response to particular questions – the accuracy of such estimates may vary and this is difficult to address systematically. number of ‘primary’ venues – i.e. venues that are 12 1.4 Sample Characteristics Survey sample 2010 2011 2012 Hotel 153 129 110 Unusual / multi-purpose venue 102 96 52 Academic 38 21 23 Conference / training centre 47 34 27 Purpose built convention centre 18 10 12 360 290 224 The table summarises the sample of valid respondents for the last three years of the survey in terms of type of venue and region*. The overall sample size was 224 venues. Venue Type Total * NB this excludes venues where the number of conferences exceeds 2000. These have been excluded from this, and previous UKEMTS surveys, to avoid their extreme impact on the results. 13 The data in the survey has been weighted by venue events held at a venue in order to ensure that data type to reflect more accurately the venue universe (i.e. reflects event averages and not venue averages. As all venues in the UK). The following table outlines the an example, if the sample contained two venues, with estimate of the sample universe that has been used as one hosting 10 events at an average day rate of £10, the basis for weighting, and the survey sample. As the and one hosting 1000 events at an average rate of £50, table shows, while the sample broadly mirrors venue the average rate would be £49.60 (the event average) supply, certain venues are under-represented in the not £30 (the venue average). sample (e.g. hotels) and others are over-represented Data relating to venue type and location (see Appendix (e.g. purpose built centres). 1) are based on a three year average – calculated from data from the calendar years 2010, 2011 and 2012. Venue supply and sample Venue Type % Venue Universe* % sample Hotel 51 49 Unusual / multi-purpose venue 33 23 Academic 6 10 Conference / training centre 9 12 Purpose built convention centre 2 5 Thi has This h been b undertaken d k to h help l iincrease robustness b in areas where samples are sometimes relatively small. This data is not weighted. * Source: Eventia database of event venues. Data relating to rates has been weighted by location (based on region) of venue. The analysis has also been weighted by the number of 14 -2 – Volume of the Events Market 15 2.1 Volume of Business Events In 2012 there were an estimated 1.3m business This is on a par with 2010 and 2011 levels and reflects events at UK venues. This is based on an estimated a flat trend that has affected the business events 3500 primary venues in the UK (Source: Eventia’s market since the 2008 peak. database of venues1). UK Business Event Market No. of events (m) 1.37 1.32 1.30 1.31 1.29 1.20 2007 2008 2009 2010 2011 2012 1. Eventia’s database of venues comprises about 3500 venues across the UK. The total supply of potential venues exceeds this number but the venues outside the Eventia database can be regarded as ‘secondary’ venues . These are likely to have meeting facilities but are not particularly pro-active in the market place and likely to attract a small number of predominantly local events . To base an estimate of overall volume on this wider supply would probably result in an over-estimation of total demand. 16 2.2 Overall Volume of the Business Event Market In 2012, there were an estimated 85.5 million Estimated volume of the business event market delegates accounting for approximately 140m Nonstaying delegate days. Staying – Staying destination residential Total Delegates (m) 54.1 7.4 24.0 85.5 Delegate days (m) 80.1 10.9 48.4 139.4 Delegates (%) 63 9 28 100 Delegate days (%) 57 8 35 100 Non-staying business accounted for the majority of delegates (63%) and delegate days (57%). The estimated volume of the events markets was below the estimated 2011 level (103 million Share (% of market) delegates). This was primarily explained by a decrease in the reported average size of events (see section 3 3.7). 7) 17 -3– Dimensions of the Events Market 18 3.1 Number of Events per Venue There were an estimated 373 business events per significant, proportion of venues (9%) were hosting venue in 2012 – this was on a par with the last three more than 1000 events a year. years but below the 2008 peak. No. of events per venue (% of all venues) Average number of events per venue (2008-12) 2012 2011 2010 2009 373 9% 12% 11% 13% 13% 10% 11% 15% 13% 17% 16% 18% 19% 32% 31% 29% 2010 2011 2012 12% 369 371 20% 379 2008 391 The most common number of events achieved by venues was 100 or fewer – 29% of venues achieved this in 2012 (see chart to the right). A small, but No of events per venue 1 to 100 101 to 200 201 to 400 401 – 600 601- 1000 1000+ Figures for all venues are based on weighted data (2012 Sample=233) 19 Average number of events per venue (by venue type ) Conference and training centres (528 events), and academic (438 events) hosted higher than average numbers of events. Purpose built and unusual / Conference / training 528 multi-purpose venues tended to host the least number of events (an average of 205 and 224 events respectively). Academic 438 Hotels 416 ll venues All Unusual / multi-purpose Purpose built 373 224 205 Venue type figures are based on 3 yr average (2010-12). 20 The following chart provides an overview of the Just under two thirds of events take place in hotels relative share of the number of events by different – this reflects both the large number of hotel venues venue types. (they represent 51% of venues) and also their Share of events market by venue type higher than average numbers of events per venue. (% of events) Unusual / multi-purpose venues are the next most Purpose built 1% important grouping, accounting for 23% of event market share, compared to an estimated 33% of the supply of venues. Conference / training 12% Hotel 59% Purpose built convention centres account for only b 1% off the h market k iin terms off volume l off about events. They are, however, more significant in Academic 5% terms of share of overall number of delegate days. Unusual / multipurpose 23% 21 3.2 Event Duration The majority of events (61%) lasted 4 hours to a day and Event Duration a quarter (25%) lasted two days. The overall average (% of events by event type) Average = 1.5 days Average = 2.0 days 2% 3% 6% Average = 1.6 days length of an event was 1.6 days. 4% 3% Non-residential events (i.e. an event that did not involve 5% 4% 8% an overnight stay at the venue, although in some 12% 17% instances could involve a stay in the destination) lasted on average 1.5 days with around 71% lasting 4 hours to a 25% 45% day. Residential events (i.e. an event that involved a stay at the venue) en e) lasted on a average e age 2 2.0 0 da days. s The most common length for residential events was two days (45% of 71% 61% 33% events), and a third lasted 4 hours to a day. These figures are consistent with the results from the previous years - see below. Non residential Residential 4 hours to a day 2 days 3 days 4 days 5 or more days Average event duration (days) All events 2.0 2.0 2.0 2010 2011 1.4 1.5 1.5 1.5 1.6 1.6 2012 Non residential Residential All 22 3.3 Delegate Rates Achieved delegate rates (inc VAT) – 2012 Day delegate rates were on a par with 2011. 24 hour/residential basis Day rates (% of all venues) Less than £20 £21 – 30 25 £31- 40 36 £41 – 50 13 £51 – 75 12 Over £75 8 Average daily achieved event rate (inc VAT)* below 2008 and 2009 levels. (% of all venues) 5 Less than £75 £76 – 100 £101 – 125 £126 – 150 £150 – 200 £200+ 24 hour / residential rates still remain slightly 1 5 Average Delegate Rates (£) £138 £140 17 £134 £129 £120 23 32 14 Average 24 hour / £43 residential achieved event rate (inc £129 £46 £46 £42 £41 £43 2008 2009 2010 2011 2012 VAT)* * Data is weighted by region (not venue type) – see section 1.4. To avoid skewing averages, outlying values (over £75 for day rates and £200 for 24 hour rates) have been removed. Day 24 hour Achieved day / non-residential delegate rates tended to be in the £31-£40 (36%) range although the The average rate for the hire for the main average was £43. room of a venue was £627 per day but this The most common achieved 24 hour / residential rate was £150 to £200 (32%). varied enormously from £65 to over £8000. However, the overall average event rate was £129. 23 3.4 Levels of Residential and Non-residential Business The following chart highlights the proportions of event As the chart highlights, about 63% of event business that involved an overnight stay in the business was undertaken on a non-staying basis destination (but not at the event venue itself), an (i.e. with no stay either at venue or in destination). overnight stay at the event venue, or no overnight stay. In terms of event business that was overnight, delegates tended to stay at the venue in question – Levels of residential and nonresidential business (% of business) about three quarters of overnight event business stayed at the venue. 11% 11% 11% 10% 21% 20% 69% 70% 2010 2011 9% The relative level of residential business was up on 20% 69% 2008 26% 63% 2009 Not overnight 28% 2011. 63% 2012 Overnight at venue Overnight in the destination 24 3.5 Type of Event Organisation The following chart summarises the ratio of all events The corporate sector accounted for over half of organised by different types of organisation (see events. The next most significant group was section 1.2 for appropriate definitions). government and the public sector (23%). Associations accounted for 21% of the market. Type of event organisation (% of events) The 2012 figures continue to demonstrate the downturn in the levels of public sector and 36% 28% 23% 23% 37% government business since 2009 (23% of share compared to 28% in 2010 and 37% in 2009) – a reflection of budget constraints within the public 20% 21% 57% 56% 2011 2012 21% 17% 16% 47% 47% 51% 2008 2009 2010 Corporate Association sector. Public / govt. 25 3.6 Professional Conference Organisers (PCOs) and Event Agencies The following chart summarises the ratio of all events Approximately a third of events in 2012 were organised by intermediary organisations. organised by a professional conference organiser (PCO) or event management agency. Use of PCOs and Event Agencies (% of events) 2012 2011 2010 2009 2008 This was up slightly on the level of previous years. 35% 30% 29% 30% 27% 26 3.7 Event Size The following chart summarises the ratio of all events Most events (69%) were of 50 delegates or fewer – organised by different types of organisation (see the majority of these were for fewer than 20 section 1.2 for appropriate definitions). delegates. Event size (% of events) This was an increase on 2011 (62%) Approximately 4% of events had more than 200 2010 2011 2012 10 – 20 delegates* 40 37 40 21 – 50 delegates 27 25 29 51 – 100 delegates 16 18 16 101 – 200 delegates 11 13 10 201 – 500 delegates 5 6 4 501 – 1000 delegates 1 1 0 1001 – 2000 delegates 0 0 0 Over 2000 delegates 0 0 0 Average event size 76 80 65 delegates. The average event size was 65 delegates. This was somewhat below previous years. * For 2010, the category was 8-20 delegates. This was changed in 2011 to bring UKEMTS in line with more widely definition of a business event. 27 3.8 Origin of Event Business As the chart highlights, about two-thirds of event About a third came from the rest of the UK, with a business (64%) was generated from the region in small proportion (4%) coming from overseas. which a venue is located. Origin of event business (% of events) 3% 4% 4% 4% 31% 25% 28% 32% 70% 68% 64% 2010 2011 2012 65% 2009 Regional Rest of UK Overseas 28 -4 – Expectations and Trends 29 4.1 Business performance in 2012 A small majority of venues indicated their business . performance in 2012 was up on 2011 – 51% indicated they were up compared to 18% that indicated business was down. This was more positive than the previous year when only 36% of venues indicated their performance was up. Business performance in 2012, compared to 2011 (% of venues) Down 18% Up 51% About the same 31% 30 4.2 Expectations for 2013 On balance, venues were optimistic that business Venues were more optimistic than the previous year would be better in 2013 than in 2012. when 43% felt business would be up in 2012 (compared to 53% for 2013). Expectations for business in 2013 (% of venues) Down 12% Up 53% About the same 35% 31 4.3 Trends Venues were asked the extent to which they agreed or There was, on balance, agreement in relation to other disagreed with a series of statements about their event issues. So, venues were tending to reduce their rates business in 2012. to remain competitive (although about a quarter were not), and had seen some recovery in corporate markets Venues were most likely to agree with the statement but a downturn in the government and public sector. that lead times for bookings had got shorter. There was a general consensus that organisers were planning more hybrid (i.e. both face-to-face and virtual) events. Trends in the business events market Average rating (5= tend to agree) We reduced rates to remain competitive Corporate markets recovered in 2012 We experienced significant downturn in govt / public sector 5% 21% 3% 5% Organisers are planning 2% more hybrid events 19% 25% 19% 21% 21% 16% Lead times for bookings 3% 3% 7% have got shorter 39% 42% 38% 3.4 17% 48% 41% 3% 15% 36% 49% 4% 3.2 3.4 3.2 4.3 32 4.4 Capital Investment Capital Investment Unusual / multi-purpose venues were the lowest spenders (% of venues) in 2012 – 86% had invested £100k or less. Purpose built 10% 9% 11% 14% centres and academic venues had invested the most – 27% and 25% respectively had invested over £0.5m in 2012. Hotels and conference / training centres had typically invested up to £100k (62% and 44% respectively). £500k + The commonest area of investment was in general 46% £100k to £500k 55% refurbishment / decoration, followed by ICT and presentation equipment. Up to £100,000 Areas of capital investment None 33% 22% 2011 2012 About four-fifths of venues (78%) had undertaken General refurbishment / decoration 92% ICT / presentation equipment 36% Additional or new meeting spaces 14% Additional or new exhibition space 2% some investment in 2012. Investment was up on 2011 levels (when two thirds of venues had invested). Typically venues had invested up to £100k (55%). Other 24% 33 - Appendix 1 – Venue and Location Analysis 34 VENUE ANALYSIS – 3 year average (2010/12) All venues* Hotels Unusual /multi purpose venues Academic Conference / Purpose built convention training centres centres Number of venues in sample (total over three years) 224 392 250 82 108 40 Average number of events 373 416 224 438 528 205 9 8 15 8 11 52 Overnight at venue (%) 28 28 2 20 26 2 Not overnight (%) 63 64 83 72 63 47 43 36 37 34 28 44 129 132 75 87 136 Average duration – all events 1.6 1.6 1.2 1.5 1.7 1.7 Average duration – non-residential 1.5 1.5 1.2 1.3 1.4 1.7 Average duration – residential 2.0 1.9 1.6 2.4 2.3 0.0 56 63 45 25 46 42 21 17 25 41 21 36 Govt/public sector (%) 23 20 30 34 33 22 Average size (all events) 65 55 135 86 62 418 Regional (%) 64 67 79 66 58 46 UK (%) 32 29 19 29 28 44 4 4 2 5 14 10 Residential /non-residential events Overnight in the destination (%) Delegate rates (inc VAT) Average day rates (£ inc VAT) Average staying rates (£ inc VAT) Duration (days) Type of event organisation Corporate / for profit organisations (%) Association (%) Origin of event business Overseas (%) * Based on 2012 data only 35 LOCATION ANALYSIS – 3 year average (2010/12) All venues* South of England Central England North of England Celtic nations Number of venues in sample (total over three years) 224 248 182 298 94 Average number of events 373 392 473 325 354 9 13 10 9 13 Overnight at venue (%) 28 21 36 18 13 Not overnight (%) 63 66 54 73 75 43 45 40 34 45 129 125 132 123 127 Average duration – all events 1.6 1.6 1.7 1.5 1.4 Average duration – non-residential 1.5 1.5 1.4 1.4 1.3 Average duration – residential 2.0 2.0 2.2 2.0 2.0 56 58 48 49 51 21 21 21 24 23 Govt/public sector (%) 23 22 31 26 26 Average size (all events) 65 95 69 75 91 Regional (%) 64 65 51 72 80 UK (%) 32 27 44 26 16 4 7 5 2 4 Residential /non-residential events Overnight in the destination (%) Delegate rates (inc VAT) Average day rates (£ inc VAT) Average staying rates (£ inc VAT) Duration (days) Type of event organisation Corporate / for profit organisations (%) Association (%) Origin of event business Overseas (%) * Based on 2012 data only 36 - Appendix 2 – Volume calculations 37 The diagram (below) highlights the calculations behind the volume estimates (see section 2.2). The data in this calculation is drawn from this survey. Total events x % sector types (association etc.) = Events by sector x Event size = No. of delegates x % delegate type (day, residential etc) = No. of delegates (by type) x Average length of stay = Delegate days 38 - Appendix 3 – Market Insights 39 Academic Venues At Well Met Conferencing, all of our venues are equipped If you want to know what the biggest change to the with state of the art AV and advanced digital solutions meetings and events industry has been in the last 15 such as free, superfast wifi, as well as innovative solutions years, the answer is simple: technology. for digital engagement, such as twitter feed projections, live streaming and crowd sourcing. Technology has changed every aspect of what we do: from the spaces we provide, to the ways in which Of course, it’s not just technology which gives academic meetings take place, to the delegate expectations about venues an edge: it is also access to world-leading interactivity and IT support. It’s daunting , filling the research, prominent academics and experts. We are able pages of industry magazines. It is also an area where to offer this access to expertise directly to clients through academic venues have an inbuilt advantage: our students. our ‘Find an Expert’ service, an easily searchable online database of our academics, lecturers and public speakers. As the primary purpose of our venues is to create the best With over 63% of delegates saying that relevant content possible environment for learning, we’re constantly contributes to a successful event and one of the main looking to invest and improve our provision. Our students reasons conferences are cancelled is a lack of delegates, come with high expectations, particularly since they will we feel that this is a really important service. be paying fees to attend university. They are highly literate in their use of technology. Our ability to provide It is becoming more important than ever that academic the facilities they expect – from high-speed WiFi to fully venues make the most of the institutions within which equipped seminar rooms – is critical to our ability to they are housed, and if it is perhaps true that the sector attract students to our university and to deliver an as a whole has been slow to highlight these advantages in excellent teaching environment. the past, it is something which we must now really start to shout about. Universities tend to be large institutions, so the cost of installing and upgrading AV systems is spread more Kate Davis, Head of Business Development, Campus & widely. This means that academic venues are able to offer Residential Services, Leeds Metropolitan University. public and private sector businesses access to up-to-date www.wellmetconferencing.com equipment at a very competitive price. 40 Unusual / Unique Venues According to the UK Economic Impact Study, 20% of UK meeting venues are classed as unusual, unique or special. With venues ranging from restaurants, castles, churches, historical monuments and theme parks, an increasing Hand in hand with continued budget restrictions comes public perception. As long as venues are able to offer imaginative added value options, unique venues will still be hired for meetings and events with the aim of inspiring and creating memorable experiences for delegates. number of venues are being converted into event spaces to offer original and imaginative options to MICE buyers. Breakfast rolls on arrival, complimentary syndicate room hire and free wi-fi no longer cut it in today’s market in More than ever there is a need to tick a long list of boxes when organising events in terms of achieving value for money, demonstrating sustainability, embracing technology, and delivering creative, interactive and terms of added value. Offering guided tours, attraction tickets and exclusive rollercoaster ride hire adds much more value to a proposal and can put the unusual venue offering way ahead of many other traditional venues. inventive event ideas. Cost savings can be made by utilising the backdrops and With these current trends in mind, unusual venues can respond very positively. By being able to offer original added value options and provide backdrops that stimulate imaginative and creative event ideas, unusual venues still stand above the crowd in today’s market. existing themes on site. A venue like the Alton Towers Resort can not only offer dedicated conference space but also has the option to hire out many other areas of the resort. This can range from indoor BBQs in the water park, drinks receptions in its SEALIFE centre or even exclusive theme park hire for several thousand people. All too often unusual venues are thrown into a venue proposal as a ‘wild card’ amongst more traditional hotel and conference venues. Unusual venues have the advantage of being able to provide inspiring backdrops, create a real wow factor and are able to deliver a unique and different experience to enable a higher level of delegate attendance and engagement. To respond to trends in today’s market, unusual venues need to pull together creative and imaginative venue proposals to shout out about their uniqueness and differentiate themselves in a highly competitive market. Ellie Jones, Business Development Manager – Alton Towers Resort (www.altontowers.com/conferences-and41 events) Conference and Training Centres larger groups at a significant advantage. Conference Centres of Excellence is the only marketing consortium for specialist quality venues in the UK, and counts some of the UK’s leading venues amongst its members. Its strengths lie in being at the forefront of venue marketing, being innovative and forward thinking, and the consortium’s board is made up of venue owners and general managers who all have an excellent insight into the current market and what the future might hold. Short lead-in times are the norm as there is currently plenty of availability and over-supply in the market place - this shows no sign of improving outside of London. Reports from Germany, Austria and Switzerland show a completely different picture: it’s been suggested that they are almost back to pre-2008 levels of demand; there has not been the same level of venue development there as there has in the UK, so supply has remained flat over the past 5 years. It should come, therefore, as no surprise that, as a marketing organisation, we are continually looking to grow our membership, in both the residential and nonresidential venue sectors, and adapt to the constantly changing economic conditions. It’s our view that customers are becoming confused by the myriad of new venues opening and our research shows that they are seeking safety in branded spaces and look to Customers in the UK are prepared to risk space not being available rather than signing contracts and risking cancellation charges, with the exception of Association clients who continue to book well in advance of their annual conference to secure the best space available, fix prices at current levels and benefit from extended marketing time to promote the event. organisations that can supply a quality product they know they can trust at the right price with a wide geographical spread. We are seeing small but steady month-on-month improvements in the corporate training market shorter more frequent courses that cause the least Fierce competition and slow growth means venues disruption to office work patterns are most common. must continually innovate to win new customers, therefore the sharing of best practice and new ideas in a peer-to-peer environment puts those who are part of Anthony Lishman, Executive Director, Conference Centres of Excellence. www.cceonline.co.uk 42 Purpose-built Convention Centres association. Integrated social media through websites Choosing a venue for any meeting or event is seen as or blogs is now seen by associations as a key way of being paramount to its success. That said, choosing a engaging with their members - creating hashtags for convention centre for a major event means so much events now enables organisers to measure the reach of more. In Liverpool we are seeing the trend towards their event content which helps to support the decision-making based on the destination appeal in increasing need to monitor meeting outcomes and ROI addition to the venue, as it is considered a ‘given’ that, against business goals. if we are talking to a client, we can accommodate the event and all of its requirements beyond the venue Multi-year deals continue to give best value to an itself. Working together with Liverpool Convention association client, who can book many years in Bureau, at ACC Liverpool we talk to clients about every advance. They don’t just want the rental price: they aspect of their event, giving them a one-stop shop and need to justify a multi-year agreement on the total single point of contact for every need, something event cost, including catering, production and bedroom association clients want in particular. costs. This gives them clarity on the real cost saving. WiFi has been a very prominent news item across the ‘Advantage by ACC Liverpool’ has been created to offer global meetings and events industry resulting in many real support to organisers. It focuses on event growth, venues offering it free of charge, a great move, but ‘free’ managing risk, destination support and delegate comes in many shapes and sizes resulting in further welcome, the key factors in any event. ACC Liverpool debate as to what free WiFi actually is, as there are has been offering this level of service for many years as many issues to consider. Technological advancements we work increasingly closer with our clients. This new now bring virtual clients to an event as live streaming is initiative, combined with ‘At Your Service’, an initiative being used more to engage with potential members, that offers everything and anything a client will need grow the reach of the event and create a new revenue under one roof, provides clients with the sought after stream. This trend is also extending the life of an event, one-stop shop. as content captured can be purchased on-demand via Kerrin McPhie, Director of Sales, ACC Liverpool. the web, bringing a sustainable source of revenue to an www.accliverpool.com 43 - Appendix 4 – Survey Sponsors Commissioning Sponsor Eventia Principal Sponsor Eventbrite Sponsors Accor Hotels ACC Liverpool Supporting Sponsors Conference Centres of Excellence Event Assured Glasgow City Marketing Bureau 44 What we do: • raise the importance and profile of the events medium as a key component in the marketing and communications mix; Eventia is recognised as the official trade body of the • act as a conduit for the exchange of ideas and events and live marketing industry providing leadership expertise in events through training, education and and representation on important issues to Government, events; regulators and the corporate community. The • act as a centre of excellence providing commentary, association was created in January 2006, following the guidance and advice on all legal and other regulatory merger between two complementary trade issues affecting members' businesses; associations: the Corporate Events Association (CEA) • act as a point of contact for corporate event and the Incentive Travel & Meetings Association planners seeking impartial guidance on supplier (ITMA). The British Association of Conference selection; Destinations (BACD) was subsumed into Eventia from • January 2009. provide id a fforum ffor the h exchange h off non-competitive ii information; • act as a central representative body to put the views Eventia promotes the highest standards of of the events industry to government departments professionalism and best practice in the industry. All and agencies, Parliament, the European members of the association adhere to a Code of Commission, and other relevant organisations; Practice which governs the spirit and method of all • commercial activities and conduct of business. offer networking events and introductions between Event Organiser and Partner members; Our Vision - To be recognised as the authoritative • recognise excellence through Awards programmes; voice for the events industry • share & uphold standards and best practice. Our Mission - To lead a growing, well respected and professional events industry www.eventia.org.uk Our Proposition - To promote and support the Follow Eventia on twitter: @Eventia interests of the events industry. 45 Principal Sponsor Eventbrite Eventbrite is an online ticketing company that empowers event organisers to plan, promote and sell out any event. Eventbrite has sold over 100 million tickets globally. Trade and consumer events, conferences, festivals, sport races …Thousands of UK events use www.eventbrite.co.uk to create an online presence for Social media is a powerful driver of ticket sales. Via a seamless integration of social media platforms within the Eventbrite interface, Eventbrite enables event organisers to tap into this additional distribution channel to sell more tickets, faster, by turning attendees into promoters, at no cost. their event, sell tickets or gather registrations. Eventbrite enables bl eventt organisers i tto k know more about b t th their i audience, monitor the ROI of marketing activities and manage the entry flow on the day of the event using the Eventbrite Entry Management app. Eventbrite’s Eventbrite s experienced Account Management and 24/7 Customer Support teams offer support throughout the organisation of your event, and ensure you make the most of all the available tools, so your event is a total success. Traffic from mobile phones is increasing fast, Eventbrite’s mobile app enables event attendees to www.eventbrite.co.uk discover events while on the go, buy tickets, access information about events they are attending and keep all their tickets in one place. 46 Sponsors ACC Liverpool Accor Hotels ACC Liverpool, home to BT Convention Centre and Echo Accor Hotels boasts an extensive brand portfolio from Arena, is a spectacular world class venue located on the luxury to budget, with brands such as the deluxe Sofitel banks of the River Mersey in Liverpool. hotels, the upscale Pullman hotels, the unique M Gallery collection and the mid-market hotels of Novotel and In 2015, ACC Liverpool will open the doors to Exhibition Mercure. Accor offers its customers and partners the Centre Liverpool. At an investment of £40m, Exhibition know-how and expertise acquired over 45 years, which Centre Liverpool will consist of 8,100m2 of space which make it the world's leading hotel operator. It is constantly will be sub-divisible into three interlinked pillar-free developing its worldwide network across 90 countries, with exhibition hibiti h halls, ll each h2 2,700m² 700 ² in i size i which hi h can be b used d some exciting new openings planned for 2013/14 and separately or in combination. beyond. Singapore, Dubai and Frankfurt are just some of the exciting locations currently in development. ACC Liverpool is proud to support the UK Events Market Trends Survey (UKEMTS) www.accorhotels.com/meetings www.accliverpool.com 47 Supporting Sponsors Conference Centres of Excellence: www.cceonline.co.uk Event Assured: www.event-assured.com Glasgow City Marketing Bureau: http://conventions.seeglasgow.com/ 48