The Big Picture: Global Industry Status and Prospects: North American Perspective

1. 2012 The Big Picture: Global Industry Status and Prospects: North American Perspective AMSTERDAM

2. General Economy • Consumer confidence showing improvement • Unemployment rates falling slightly or stable • Housing prices and starts trending upward • Some concerns about inflation, interest rates • Recovery is somewhat regional

3. Business Travel Trends 2012 predicted to show some improvement Demand for meetings and conventions projected to increase • More meetings • More attendees • Incentive programs growing again

4. Business Travel Trends – cont’d • Negligible growth for tradeshows • Number of exhibitors, number of attendees, revenues slightly down; net square foot utilization slightly up • Insurance, financial, consulting, high tech, healthcare and education expected to rebound • Companies hiring: meetings geared to training • Formal emphasis on communicating value of meetings

5. Meeting Characteristics: • Planners remain: rate conscious – spending will decrease or remain flat; value focused • Budgets take precedence • Profit and engagement tactics are new measures: open, audience led meetings; access to business opportunities • Some return to recreation and entertainment as part of experience: we can have some fun again • Hybrid meetings increasing • Increased use of technology

6. Meeting Characteristics-cont’d • Planners want: Price flexibility Opportunities to negotiate Shorter lead times Better customer service Better communication lines Added value: free wireless, green meetings consultancy, more services

7. US Snapshot • Increased federal emphasis on improving competitive position for tourism Brand USA Increased federal funding Addressing visa issue Value of meetings still in dispute: mandated federal reductions GSA a setback Highly competitive environment

8. Mexican Snapshot • Government supportive • Continued investment in infrastructure • Business travel a critical component of economic development strategy • Is coping with destination image issues

9. Latin American Snapshot • Limited infrastructure • Private investment leading the way • Economic growth leading to corporate and exhibition business

10. Canadian Snapshot • Relative economic stability • Corporate travel improving • Continued product development, US economy and travel patterns present challenges • Federal government support low for marketing, some assistance with infrastructure

11. Conclusion Supply still over strips demand: competitive environment “A Buyer’s Market” Operational profit/loss goals increasingly difficult Balancing economic impact measures with bottom line realities Travel costs: air, hotel Access issues Competing government priorities: communicating value

12. Marcia Lyons Amsterdam, 2012