5 April 2011 | Angeline Albert
Cost reduction is top of the
agenda for nearly 80 per cent (79.49 per cent) of procurement professionals in
the UK meetings and events arena, research has found.
by global meetings agency Grass Roots
found companies are particularly making better use of internal meetings space
in order to control budgets.
While cost cutting may be on the
agenda for the majority of buyers, the research found budgets are rising in a few
sectors, including financial and professional services and the automotive
industry. And despite cost saving measures, 2010 was in fact a better year than
expected for meetings spend.
However, 60 per cent of respondents
do not anticipate an increase in the number of meetings held in 2011 compared with
2010, although budgets are being “held firm” in a number of sectors.
The report, which draws on data
from more than 60 organisations and a survey of clients, reveals that the three
sectors benefiting most from bookings last year were independent hotels (up 37
per cent on 2009), non-residential training venues (up 32 per cent) and
residential training centres (up 27 per cent). It concluded the sector is far
from a return to pre-recession levels, reporting that lavish client events are
yet to return and companies remain rate-sensitive.
After large falls in meetings
rates in 2009, and a fairly static 2010, Grass Roots believes rates will start
to rise in 2011, with much of this increase driven by venues in key cities, but
levels will still be 10 to 12 per cent down on 2008.
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