MICE industry to grow 8% in 2020 despite predictions of economic doom & gloom

CWT’s MICE focused wing, CWT M&E, has revealed that the USD840 billion industry is all set for an 8% spike in growth during 2020. The news comes 2020 Future Trends Report, published today, and arrives despite the current global geopolitical situation, and predictions of economic slow-down and recession.

The report notes the protracted trade war between the US and China is creating general uncertainty in the global business community heading into 2020. Adding to the anxiety is the future of Brexit and its cascading impact on the European Union. Over in Asia, the protests in Hong Kong that started in June have put businesses on alert, as continued unrest in the city is bound to impact demand across the region. Growing concern over the impact of climate change is also increasingly clouding business sentiment.

 Kurt Ekert, president and CEO at CWT, said: “The need for live events is becoming more relevant than ever before,” Ekert said, with up to 30% of marketing budgets expected to be spent on live events in 2020. “Face-to-face meetings are critical to establishing connections between brands and their customers, and employees and their companies, especially during times of uncertainty.

Knowing how to manage risks globally while putting together an authentic and measurable experience for all participants will be key for success in this space in the coming year and beyond.”

Digital evolution

The Future Trends Report identifies key developments in the industry in 2020, including digitalization, with event websites being created at a rapid pace—up 52% year-over-year—as more customers utilize these sites to drive increased engagement. Mobile devices are also adding new functionality with apps that go beyond setting travel itineraries to allowing organizers to create a higher degree of personalization for attendees.

CWT M&E estimates the number of event apps created since 2017 has jumped 83%, while the percentage of attendees downloading apps rose from 50% in 2017 to 74% year-to-date in 2019.

Demographics

This emphasis on digitalisation is being driven by the changing demographics as millennials are poised to become the biggest group of business travellers globally from 2024 onwards. Right at their heels are the so-called centennials (born 1996 onwards), the first group that can claim to be digital natives as they have never known a world without the internet, smartphones and apps.

“Not content to merely ‘attend’ events”

“This younger group of travellers is all about experience, authenticity and participation,” said Derek Sharp, senior vice president and managing director of CWT Meetings & Events. “Not content to merely ‘attend’ events, millennials and centennials use technology to actively ‘participate’ in the experience — pre-event, during the event, and post-event. Organizers are responding with innovations that put a premium on the ability to personalize experiences, coupled with ways of measuring the resulting engagement.”

Authenticity

When it comes to experiential events, including incentive travels, the report shows a move towards experiences that feel authentic, where travellers can immerse themselves in a destination like locals and not as high-end tourists. Hand-in-hand with this trend is the growing attraction of off the beaten track destinations versus the usual tier one cities.

This has raised some safety and security issues with 42% of travellers subjected to pre-travel risk assessments as part of the travel approval process, a 5% increase year-over-year.

Socially and environmentally responsible incentives also rank high for 2020, fueled by this next generation of participants who view climate change as an increasingly pressing issue, according to CWT M&E’s findings. These sustainable initiatives include replanting trees and other efforts to care for the environment — and leave a lasting legacy long after an event concludes.

Global Programmes

As global meetings and events programs become more centralized, new technologies in the form of artificial intelligence and bots are transforming how these programs are managed across multiple regions and markets. Organizations are taking advantage of these innovative tools to derive more visibility and real-time data and feedback.

As technology shrinks timelines and response times, the result is a streamlined process that ultimately leads to better adoption and a changing mindset around meetings.