Grass Roots report predicts static venue rates

A Grass Roots product story

Edited by the Marketingweek Marketplace editorial team Feb 2, 2010

The Meetings, Events and Communications division of Grass Roots has launched the fourth edition of its Meetings Industry Report.

The report offers insights into the current and future picture of the UK meetings industry with highlights from a European and global perspective.

It includes in-depth case studies and contributions from more than 20 clients and also pulls together data from more than 140 industry associations, trade bodies and commercial companies as well as Grass Roots' own client survey.

Grass Roots does not see rates dropping in 2010, but believes they will remain static with some markets experiencing a marginal price fall.

Findings from the report how there are signs of growth in the meetings market, forecasting an upturn in events - particularly in the last quarter of 2010.

However, this figure will be 25 per cent down on the industry peak of 2008.

'The consensus among clients is that budgets, while unlikely to rise greatly in 2010, will not be cut any further and a number of the events that were cancelled in 2009 will now take place in 2010,' said Nick Bender, head of global events at Grass Roots.

The report sees evidence that the recession has driven an increase in teleconferencing as companies cancel meetings to save money, but that in 2010 corporates will start to look at the impact on sales of not holding meetings.

The report findings firmly suggest face-to-face is still the proven means of building business and remains the preferred choice of communication.

Bender said: 'Agents and venues will have to target their clients carefully in 2010.

'In 2009, they turned to government business but given the stark warnings about reigning in public spending this sector may not prove as reliable this year,' he added.

Des McLaughlin, managing director, venue procurement at Grass Roots, said: 'Globalisation and regionalisation of meetings programmes will continue to gather pace, the evidence shows increasing numbers of global RFPs being issued for full event outsourcing.

'The most popular solutions currently are 'glocal' - global in strategy and local in delivery.

'Traditional agencies will have to adapt if they are going to survive this decade,' he added.