China MICE Buyers Report (Chinese Meeting Planners' Site Selection Survey) www.cibtm.com INTRODUCTION This is the first Chinese Meeting Planners Site Selection Survey. It presents the findings of a recent online survey which investigated the priorities and experiences of meeting planners based in China, in terms of the process of choosing destinations and venues for their events. The unique insights provided by this survey will be of considerable interest to all of those venues and destinations in China, Asia and globally that are increasingly targeting the market for Chinese meetings and events. The findings reveal not only the preferences of Chinese meeting planners in terms of the types of destinations and venues that they choose for their events, but also how they wish to interact with the sales and marketing professionals that are competing to host those events. The findings of the Chinese Meeting Planners Site Selection Survey complement the annual IBTM Global Meetings Industry research for China and Asia, which tracks trends in the popularity of destinations, budgets allocated, volume of events per destination and indicators on the growth of the meetings industry in China and Asia. I hope that you will enjoy reading this report and that you will be able to make use of its contents in your professional activities. Rob Davidson Senior Lecturer in Business Events University of Greenwich. R.Davidson@greenwich.ac.uk METHODOLOGY In the early summer of 2013, Chinese meeting planners on the CIBTM database were invited to participate in an online survey of 16 multiple choice questions designed to indicate their priorities and experiences when selecting destinations and venues for their events. A total of 165 responses were received from meeting planners responsible for organising events in China as well as in overseas destinations throughout Asia and globally. THE SAMPLE Almost two-thirds (65.6%) of the meeting planners who participated in the survey identified themselves as independent meeting planners, working for a range of different types of client. The next largest category (27%) classified themselves as corporate meeting planners. 5.5% were exclusively involved in planning association conferences; and only 1.8% identified themselves as planners of government meetings. FIGURE 1 Type of Meeting Planner Surveyed Corporate Meetings Planners Government Meetings Planners Independent Meetings Planners Association Meetings Planner In terms of the number of events organised per year by the meeting planners just under a tenth of the sample (9.8%) reported that they planned between 1 and 3 on average – a number typical of the association meetings sector. The fact that a high proportion of the sample, 58.3%, claimed to be organising over 10 events per year suggests that a considerable percentage of the independent meeting planners were involved in organising events in the corporate sector, where events are more frequent. FIGURE 2 On average, how many meetings or other business events do you plan each year? Answer Options Response Percent Response Count Over 10 4 to 6 7 to 10 1 to 3 58.3% 19.6% 12.3% 9.8% 95 32 20 16 Regarding the average size of meetings organised by the respondents, in terms of the number of attendees, the most frequent two responses were ‘between 51 and 100 attendees’ (29%) and ‘between 101 and 200 attendees’ (19%). This meant that just under half of all the meeting planners in the sample typically organise events for between 51 and 200 attendees. FIGURE 3 What is the average size of a typical meeting that you plan? 1.9% 1.9% 21 – 50 attendees 1.9% 51 – 100 attendees 5.6% 10.5% Less than 20 attendees 15.4% 101 – 200 attendees 201 – 500 attendees 14.8% 501 – 1000 attendees 29.0% 19.1% 1001 – 2000 attendees 2001 – 5000 attendees Over 5000 attendees The most common duration for the meetings organised was 3 days (35.9%), and this was followed by the category of 4-day meetings (17.3%). However, it is worthy of note that just over 30% of those who responded reported that the average length of the meetings they organise is 5 days or more. It is clear that these figures are higher on average than the equivalent figures for the duration of meetings in Europe and the US, where the tendency is towards shorter meetings and where one-day meetings are the largest single category in terms of length. FIGURE 4 What is the average length of a typical meeting that you plan? 3.8% 17.9% 12.2% Less than 1 day 1 day 2 days 12.8% 3 days 35.9% 17.3% 4 days 5 days Over 5 days In terms of the types of venue used for the meeting planners’ events, it can be seen from Figure 5 that hotels were by far the most commonly chosen type of venue, with 81% reporting this as their preference. Once again, this suggests that a high proportion of meeting planners in the sample were engaged in organising corporate events, for which hotels are generally the type of venue most often used. Convention centres represented the next most widely used type of venue, at 13.9% of the total. The remainder of the sample favoured universities and other types of venue for the hosting of their events. FIGURE 5 3.8% What type of venue do you most use for the meetings that you organise? 1.3% 13.9% Hotels Convention centres Universities 81.0% Other (please specify) SOURCES OF INFORMATION In order to be effective in their sales and marketing activities, suppliers need to understand which sources are most used by those seeking information on potential destinations and venues for their events. Figure 6 shows that, from the overall Response Count (the numbers of respondents choosing that option overall), the four most widely preferred sources of information on countries/cities for the hosting of the meeting planners’ events were, in order: educational trips to the destinations; destination marketing organisations’ websites; other meeting planners; and meetings industry exhibitions. These were also ranked, in the same order of importance, as the meeting planners’ four Most Important sources of information on destinations. Those sources reported by the survey sample as being of less significance as Most Important sources of information on destinations were: meeting industry magazines; telephoning destination marketing organisations, intermediaries such as venue-finding agencies; and the social media. However, all of these scored relatively highly as Second Most Important and Third Most Important sources, suggesting that they are considered useful as supporting sources of information. FIGURE 6 Which sources do you use to find information on destinations for your meetings? Most important Educational trips (familiarisation trips) to destinations Destination Marketing Organisations (Convention Bureaus / Tourist Organisations) websites Other meeting planners (Face-to-face / email / telephone dialogue) Meetings industry exhibitions Meetings industry magazines Telephoning Destination Marketing Organisations directly Intermediaries such as venue-finding agencies Social media Third most important Response Count 71 Second most important 29 16 116 53 47 14 114 43 55 10 108 40 21 27 49 43 36 17 26 22 106 90 85 9 8 32 29 35 37 76 74 LEAD TIMES The survey also investigated ‘lead-times’ – the period between the time of booking the venue and the date of the actual event – to determine how far in advance the Chinese meeting planners were booking venues, and to what extent average lead-times were, in their experience, becoming longer or shorter. The responses to the first question are shown in Figure 7. The most common response, from almost half of the sample, was that venues were being booked between 1 month and 3 months ahead, on average; and a quarter of respondents opted for the next largest category, lead-times of between 3 months and 6 months. These figures are consistent with the likely dominance of corporate meetings, for this sample. Only 2% of the sample claimed to be booking venues more than 1 year ahead – in all probability for the events organised by the association meeting planners in the sample. FIGURE 7 On average, how long in advance of your meetings do you book the venue? Response Percent Between 1 month and 3 months ahead Between 3 months and 6 months ahead Between 1 week and 1 month ahead Between 6 months and 1 year ahead Less than 1 week ahead Between 1 year and 2 years ahead More than 2 years ahead 42.7% 24.7% 18.7% 10.0% 2.0% 2.0% 0.0% In terms of the changes in lead-times perceived by the meeting planners, 50.0% of them reported that they were experiencing lead times getting shorter; 32.7% reported that they were getting longer; and 17.3% thought that they were staying the same. The fact that the most common response of planners was that lead-times appeared to becoming shorter is significant. Shorter lead-times can be a consequence of the slowing of the economy that China is currently experiencing, as companies wait longer before deciding whether or not to hold their events, safe in the knowledge that venues will be available – and at more attractive rates – if they wait until closer to the time of the actual event before booking. Conversely, lengthening lead-times, as for example currently being experienced in the buoyant North American economy, can be an indication of business confidence and the emergence of a sellers’ market. FIGURE 8 What change do you see happening in the period between booking the venue and the date of the actual meeting (lead times)? 32.7% Getting shorter 50.0% Getting longer Staying the same 17.3% DESTINATION AND VENUE PREFERENCES Several questions in the survey were designed to explore the planners’ preferences in terms of what makes destinations and venues attractive to them and how they wish to interact with suppliers’ marketing and sales professionals. Figure 9 shows the planners’ priorities regarding destinations. FIGURE 9 When choosing a DESTINATION for your meetings, which of the following features are the most important for you? Features Rating Average Climate Economic stability Visa requirements Financial support (or in-kind support) from the destination The professionalism of local meetings industry & hospitality industry staff Match to business interests Match to topics to be discussed Easy access Safety and security Price Attractiveness for tourism (interesting things to do and see) 8.48 7.96 7.54 7.10 7.08 6.38 5.99 4.22 4.22 3.77 3.25 It is somewhat surprising to note the emphasis placed upon the actual climate of destinations, and any future research on this topic should investigate this issue further, to determine exactly why the weather of any country or city assumes this level of importance for Chinese meeting planners – particularly as ‘attractiveness for tourism’ was not ranked highly as a feature. One likely explanation to be considered is the presence of incentive trips among the business events organised by those in this sample. In the case of incentive travel, it is logical that climate is a key consideration in the choice of destination. Less surprising is the importance placed on financial issues, both in the sense of economic stability (the second most important feature) and the possibility of destinations being able to offer financial or in-kind support to meeting planners. As might have been expected for a country such as China whose nationals require visas to visit many overseas destinations, the visa requirements of host countries were considered to be of major importance in the destination selection process. This feature was followed in level of importance by the professionalism of local meetings industry and hospitality industry staff. Figure 10 indicates the planners’ preferences in terms of the features they seek when choosing venues for their events. It is interesting to note that only ‘proximity to airport and public transportation’ is considered to be more important than ‘fast internet’. This echoes the results of surveys undertaken in other world regions that have highlighted the vital importance of venues being able to offer fast and reliable connectivity for attendees. While ‘price’ is clearly a consideration for planners, it is clear from the table below that Chinese meeting planners give priority to quality of facilities and services over cost. FIGURE 10 When choosing a VENUE for your meetings, which of the following features are the most important for you? Features Rating Average Proximity to airport and public transportation Fast internet for your attendees Quality of the food and beverage Quality of the service provided by venue operations staff Flexibility of meeting space Speed of response of venue sales staff Price 1.95 1.77 1.71 1.70 1.66 1.61 1.52 Going beyond the issue of the tangible and intangible features of destinations and venues that most matter to Chinese planners, the survey also explored the ways in which those planners wished to interact with sales and marketing professionals attempting to win their business. Figures 11 and 12 provide guidance on this issue. FIGURE 11 In your dealings with VENUES sales staff, what annoys you most? Rating Average They don’t answer my calls quickly enough They want to charge extra for things like Audio-Visual / Parking / Security that should be included in the overall price They contact me over and over again, even after I tell them I’m not interested in their venue 2.15 They are inflexible about food and beverage options 1.82 They talk at me too much instead of listening and asking me questions about my meeting 1.63 They are inflexible in negotiations about price They do not tell me about changes in the venue that will affect the quality of my meeting (for example, noise and disruption due to building works) Staff turnover – changes of personnel, meaning that I have to deal with new members of staff who know little or nothing about my meeting 1.61 1.90 1.88 1.53 1.51 FIGURE 12 In your dealings with DESTINATIONS marketing staff, what annoys you most? Rating Average They don’t answer my calls quickly enough 2.01 They contact me over and over again, even after I tell them I’m not interested in their destination 1.84 Staff turnover – changes of personnel, meaning that I have to deal with new members of staff who know little or nothing about my meeting They talk at me too much, instead of listening and asking me questions about my meeting 1.70 They do not have enough knowledge of the destination they are marketing 1.59 They do not give me information on the full range of venues and hotels in their destination 1.57 1.67 It can be seen that most of the top-ranked sources of annoyance for the meeting planners were examples of behaviour that waste their most importance resource, time. In the case of both venue sales staff and destinations marketing staff, the principal source of annoyance for Chinese meeting planners is the slow response time when they call with requests for information. Similarly, the practice of repeatedly contacting meeting planners, even when they have made it clear that they are not interested, was ranked as being among the three most annoying habits, in the case of both venue sales staff and destination marketing staff. In terms of the meeting planners’ frustrations with the behaviour of venue sales staff, these timewasting habits were followed by what they considered to be inflexibility on the part of venues when negotiating elements affecting the price of using their facilities. It would appear that although, as stated above, price is not the over-riding factor taken into account by planners when hiring venues, they are nevertheless exasperated by being charged for services such as audio-visual, parking and security that they think should be included in the basic price. Venues being generally unyielding in negotiations on price was identified as a major annoyance. It is interesting to note that a common bugbear of meeting planners everywhere – suppliers’ staff turnover – was highlighted as a more serious problem in the case of destination marketing staff than in the case of venues. Given the high importance of destination marketing organisations as sources of information for Chinese meeting planners, as seen in Figure 6, it may be that those planners feel more acutely inconvenienced when their DMO contacts change jobs. Regarding the supply of venues and the quality of venues available to the meeting planners, the responses shown in Figure 13 indicate a moderately high level of satisfaction on both counts, but room for improvement in terms of both quantity and quality. FIGURE 13 In general, how satisfied are you with the quality and quantity of venues available to you, for your meetings? Quality Quantity Very satisfied 19 13 Quite satisfied 106 100 Quite dissatisfied 14 20 Very dissatisfied 0 0 Similarly, the data in the table below suggests that the meeting planners faced little difficulty in finding information on destinations for their meetings in China, but a greater level of difficulty in getting information on venues in their own country. FIGURE 14 In general, how easy it is for you to get useful information on destinations and venues for your meetings in CHINA? To get information on destinations To get information on venues Very easy 36 30 Quite easy 98 93 Quite difficult 8 17 Very difficult 0 1 On the other hand, it is clear from the results in Figure 15 that the planners were experiencing much greater difficulty in finding out about destinations and venues in other countries. While this result may be unsurprising, it nevertheless sends an important signal to destinations and venues outside China that they must work harder to make communication with the Chinese market easier. FIGURE 15 In general, how easy it is for you to get useful information on destinations and venues for your meetings in OTHER countries (not China) ? To get information on destinations To get information on venues Very easy 18 10 Quite easy 74 64 Quite difficult 50 57 Very difficult 0 9 Finally, the survey asked respondents about how they preferred to receive information about destinations and venues for their meetings. Figure 16 shows that email is by far the preferred channel of communication for these Chinese meeting planners, with the next most-favoured means of communication, personal visits, a long way behind. Interestingly – and in contrast with surveys conducted in Europe – no planner indicated a preference for receiving marketing information via the social media. FIGURE 16 How do you prefer to be contacted by people who want to give you information about venue? Response Percent 65.7% By email 12.6% By a personal visit in your office 7.7% By appointment at an exhibition for the meetings industry 5.6% By telephone 5.6% By mail 1.4% I prefer not to be contacted directly 1.4% Other 0.0% Through the social media their destination or Response Count 94 18 11 8 8 2 2 0