The price surge predicted by BCD Meetings and Events will be caused by strengthened demand, coupled with insufficient new stock, forcing event planners to be more creative with budgets.
The 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.
This 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.
Recommendations from the research include:
a more flexible approach, whereby second-tier destinations which often offer lower prices and better availability than larger cities are added to the mix.
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 (Europe, Middle East and Africa) 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."
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