Groups and Meetings 2009 Prospectus

Groups & Meetings:
Driving Success in Travel’s Most Complex Market

A PhoCusWright Special Report

Research Prospectus

January 2009

Groups & Meetings:
Driving Success in Travel’s Most Complex Market

Agenda PhoCusWright project team
Bill Carroll Senior Hotel and Lodging Analyst
1. Impetus
Douglas Quinby Senior Director, Research, and
Project Manager
2. Overview & Objectives
Diane Shuart Project Coordinator
3. Approach & Methods Lorraine Sileo Vice President, Research
Susan Steinbrink Senior Research and Corporate
4. Timeline & Deliverables
Market Analyst
5. Participation Mary Pat Sullivan Leisure Travel Analyst

2
© 2008 PhoCusWright Inc. All Rights Reserved.

Impetus

3

Why Groups & Meetings? Because…
PhoCusWright’s landmark 2006 study revealed a
$170 billion market undergoing rapid change

• Online penetration of travel spend projected to pass 40% in 2008
• Planning and booking drivers and practices vary dramatically across
different group travel segments
• Online group and meeting planning tools were proliferating
• But offline channels for planning, booking remain influential

It’s time for a reality check!

Source: PhoCusWright’s Groups and Meetings: Market Opportunity Redefined, 2006

4

Where Is the Groups and Meetings Market Today?
• Did the market reach projected growth targets?
• Has online adoption slowed?
• Who raised capital and who failed?
• What segments have embraced/not embraced online tools?
• How have social networks redefined the consumer opportunity?
What about the corporate opportunity?
• To what extent are meetings centrally managed and policy-driven?
• To what extent will the economy impact the incidence, revenues and
distribution of groups and meetings?
• What will the groups and meetings landscape look like in 2009 and
beyond?
• What trends are shaping key market segments: corporate,
association, leisure?
• How will video conferencing impact corporate meetings travel?

5

U.S. Groups & Meetings Total Travel Market &
Online Penetration Forecast (US$B)
120

95.3
100 91.7
88.6
84.9
80

?
60
39.1
36.3
40 32.8
28.6

20 41%
40%
37%
34%

0
2005 2006 2007 2008 2009 2010 2011
Travel Online
Note: Online percentage of travel products only (Air, Hotel, Rental Car, Ground, Other), NOT including meeting
space
Source: PhoCusWright Inc.

6

Influences, Planning and Booking Remain a Multi-
Source, Multi-Channel Mix, but What Is the Future?
> Social Travel
> Corporate Travel > Leisure Travel

Social media such as Facebook
With procurement at the helm Travel agents have long held
and MySpace have redefined
but meeting decision-making sway of the leisure group
the online world. The
fragmented across the market; some 55% specialize
opportunity for travel may not be
organization, most corporations in groups.* But a handful of
still don’t have a handle on entirely clear, but it is significant
online travel companies are
and palpable. What role will
meetings spend. Meetings carving out a meaningful role.
social networks play in leisure
must play a more central role in And consumers are taking on
and corporate group travel: Are
corporate travel budgets. self-planning and booking
members using these tools to
Managing vendors offers directly with destinations and
organize, plan, collaborate?
tremendous cost savings, but suppliers. This study will sort
Who are the key players and
has online purchasing finally out this segment and assess
how can travel providers
arrived? the key dynamics and trends.
leverage social media?

Mastering this maturing market now will ensure success
as technologies evolve in the future.

* Source: PhoCusWright’s Travel Agency Distribution Landscape Special Report

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Objectives & Overview

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Research Objectives
Groups and meetings market sizing
• Total market and key segments
• Travel and non-travel
• Travel segments: air, hotel, car rental, cruise, tour, ground transportation
• Non-travel: hotel meeting space and F&B for corporate meetings and events
• Channels: online / offline, direct (supplier) / intermediary
• Meeting types: corporate, association, leisure
• Impact of virtual meetings / video conferencing

Group/meeting planner and supplier dynamics
• Traveler planners (consumers):
• Demographics, behavior, influencers and preferences
• Corporate meeting and professional group planners:
• Corporate meeting planners, group travel planners / travel agents (with leisure
and/or corporate groups business)
• Profiles, priorities, influence, drivers, behavior, preferences, needs and tools
• Suppliers (of travel products, services and technologies):
• Strategies and tactics, innovations, opportunities and challenges

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Research Objectives (cont.)
This study will answer questions such as:
• What is the size of the total and online groups and meetings market by segment?
• How will groups and meetings demand change in 2009-2011?
• What role will virtual meetings play? What will be the impact across market segments and
channels?
• What current and future technologies are driving these changes?
• Will social media transform the market for leisure gatherings? If so, how?
• How is meetings spend managed in the corporation?
• Is it part of transient travel budget within each department, separate meetings line item, etc.?
• Is quot;virtualquot; meetings spend allocated to the same budget, telecom or elsewhere?
• What drives destination, product, venue and channel selection?
• What brands resonate with groups and meetings travelers? And planners?
• What elements influence purchase on the various channels (e.g., virtual tours, video, blogs, user
reviews)?
• How does groups and meeting technology square with corporate priorities?
• Who are the key players, who has survived the first wave of market entry, and who
will be the newest market entrants?

10

This research will enable
partners to prioritize their
investments across channels and
segments to meet consumer and
planner demand – and anticipate
key trends

11

Research Overview: Markets and Key Players
PhoCusWright will size the market and likely growth trends
for the following key players:
Suppliers Online Companies
Large properties rely heavily on group events, while Online travel intermediaries have the potential to support
medium- and smaller-size properties support and group bookings of air, hotel and other destination services,
even foster small group business for family, reunion, and they possess the mass market reach and marketing
alumni and other leisure or business activities. budgets to support the effort. Social media sites and portals
Transportation to and from these events are an aggregate demand and generate leads.
important but untapped revenue stream for car rental
Representative Targets:
companies, tour operators and other suppliers.
Online travel agencies, group travel planning sites, self-
Representative Targets: booking tool providers, portals, social media / community
Hotels, Airlines, Car Rental, Ground, Tour Operators sites, media sites

Event Management / Solutions Providers
Online meeting and event planning, procurement and management companies facilitate the organization of
larger meetings for planners. They provide a group interface with property PMSs, RMSs and reservation
systems to enhance group management at the property level or even across multiple properties for major area-
wide events. Such systems give event planners more control over information distribution, event registration
and hotel bookings.

Representative Targets:
Large event planners, TMCs, DMO/CVBs, technology providers, hospitality systems and software, virtual
meetings technology providers

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Key Market Segments
PhoCusWright will assess key market segments
to identify distinct trends and opportunities:
• Leisure Gatherings
• A small group organizing travel and event services for leisure purposes
• Planned directly by the travelers or via a professional planner or travel agent
• Examples: weddings, family (or other) reunions, sporting events, religious and other
themed travel
• Services: transportation, accommodation, meeting and event services, F&B
• Small Corporate Meetings
• A small group using hotel services for business purposes
• Example: small business meetings with fewer than 50 guests
• Services: transportation, accommodation, meeting and event services, F&B
• Large Meetings
• A large event from 50 to thousands of guests and attendees
• Examples: large company meeting, incentive travel, large associations, etc.
• Services: transportation, accommodations, meeting and event space, F&B.

13

Research Overview: Key Components
Travelers and Decision-Makers

Traveler Planners Professional Group Corporate Meeting
(consumers) Planners Planners
• Profile and preferences • Profiles
• Demographics and
• Research and booking • Destination and venue
preferences
• Shopping and buying influences and behavior selection/ decision making
• Key differences across process
influences and behavior
• Role of procurement
leisure and corporate
• Channel selection by product
• Types of corporate meetings
planners
category and type of event
• Booking method by product • Use of virtual meetings
• Valued tools and features
category • Adoption of online booking
• Types of social gatherings
• Role of groups and meetings
• Impact of social media tools
sites in travel value chain • Management of transient
• Role of brands
• Valued tools and features travel and groups and
• Types of social gatherings meeting spend
• Role of brands

14

Research Overview: Key Components
Travel suppliers and technology companies

Event Management
Suppliers Online Companies
Companies/Solutions
Providers
• Meetings and events
• Groups and meetings sales • Groups and Meetings market
planning tools
by product segment: share by segment:
• Buyer and seller networks
• • Online travel agencies
Hotel & Lodging
• • Hotel lead generation
Car rental companies • Event planning sites
• Tour operators • Registration/hotel bookings • The role of influencers:
• Cruise lines
• PMS/RMS interface • Search portals
• Airlines
• Meetings • Media sites
• Ground transportation
• Social networks
procurement/eRFPs
• By travel segment
• Revenue and channel • New Market entrants
• Leisure/Unmanaged business
• Lessons learned
• Corporate management
• By Channel (online/offline) • Video conferencing
• Technology investments
• Strategies and trends
• The role of partners and
intermediaries

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Research Benefits
1. Understand the Driving Dynamics of Group Travel Decision-Makers:
Travelers, Professional Group Planners, Corporate Meeting Planners
and Associations
• Understand how leisure travelers and travel agents plan and book events
 Identify their preferences, drivers and behaviors
• Profile corporate event and meeting planners
 Identify their priorities, drivers, practices and needs
• Gain critical insight for honing – or righting – your products, services and
messaging to meet their wants and needs now

2. Dive Deep into Online Dynamics and Technology Trends
• Understand the current state and prospects of online planning and booking and
future prospects
• Identify gaps inhibiting growth and opportunities for overcoming obstacles
• Learn how these trends are evolving across different group market segments

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Research Benefits
3. Event Management Trends & Technology
• Identify key development and future innovation in groups and meetings
management technology and best practices

4. Understand Supplier Needs & Challenges
• Identify the key needs and challenges of suppliers to hone your offerings and
strengthen your supplier relationships

17

Approach & Methods

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Project Plan of Attack: Three Pronged Approach
A tight blend of surveys, executive interviews and third-
party data analysis to deliver a 360° view of the groups
and meetings opportunity
1) Current and future capabilities, strategies,
partnerships
Events
Management/ In-depth interviews
Solutions
Providers
2) Demand-side influence, drivers and
behavior
Groups and Travel Travelers: quantitative survey (1200)
Planners
Meetings Corporate meeting planners: qualitative
(Consumers survey (200)
Opportunity
and Agents) Travel agents with groups business:
qualitative survey (400)

3) Supplier-side dynamics: strategies, tactics,
Travel
priorities, challenges
Suppliers and
Online In-depth interviews with select companies
Companies Targeted questions in surveys (item 2 above)

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Research Elements Detail
Traveler Planner (Consumer) Survey
• Online survey of U.S. travelers who have planned group travel
• Approx. Target: 1,200 total respondents
• Quantitative survey; online panel company

Professional Planner Survey
• Online survey of U.S. group planners and travel agents (leisure and corporate)
• Qualitative survey; 400 respondents; media partners, list sources to be identified

Corporate Meetings Planner Survey
• Online survey of U.S. corporate meetings planners
• Qualitative survey; 200 respondents; media partners and list sources to be identified

Suppliers / Providers / Associations: In-depth Interviews
• Senior executives covering the G&M category for travel suppliers, distributors, online
players, technology providers and associations
• Target: 40
• Company list to be developed in consultation with research partners; interviews conducted
by senior PhoCusWright analysts

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Timing & Deliverables

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Our Proposed Approach
Project Timeline
• Phase one (6 weeks) Starts approximately XXXX
Meet with partners to understand key goals and desired outcomes. Partners will assist in a
collaborative effort to shape interview goals and key findings.
• Phase two (10 weeks) Starts approximately XXXX
Field surveys and conduct interviews.
• Phase three (12 weeks) Starts approximately XXX
Conduct analysis, create deliverables. Present to partners/sponsors.

Month1 Month 2 Month 3 Month 4 Month 6 Month 7
Month 5
PHASE 1
PHASE 2
Kick-off Calls
Phone PHASE 3
Interviews
Survey
Conduct
Surveys and
Begin
Development
Client
Interviews
And Compile
Presentations
Complete
Establishment Analyze
Surveys
Of Goals Develop Client
Launch
Deliverable

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Deliverables
• Findings, analysis and recommendations delivered as an in-depth
PowerPoint presentation
• Analyst presentation via private two-hour Webinar, customized based
on each partner’s key points of interest and success factors as noted
at beginning of study
• Input into the consumer survey in an interactive process (for initial
sponsors)
• Access to tabulated survey results from consumer survey. Note:
customized data tabulations may be available for an additional fee
• Branding and publicity rights
• Participants also receive a PDF copy of a summary report that can be
shared internally, with clients and partners. This report will be
produced as an additional output from the study (anticipated
publication date: first quarter 2010)

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Workshop Participation at The PhoCusWright
Conference, November 18, 2009
Available to the first five add-on purchasing sponsors
Showcase your knowledge and thought leadership in the Groups and Meetings space to a
highly targeted audience and reap valuable benefits including:

• Two (2) conference tickets good for the full four day event. (a $6,000+ value)
• Co-Marketing by PhoCusWright which includes listing in all schedules, both printed
and on Web sites. Other marketing ideas will be jointly developed to maximize
exposure for all participating sponsors by utilizing Sponsor's and PhoCusWright's
existing databases.
• Workshop to take place in a private conference room in the event property meeting
rooms can accommodate up to 200 attendees. Room assignment, furniture and room
set-up will be based on the number of registrants for each session.
• A complete AV package will be provided for each session
• Sponsor featured in the conference program (the “Playbill”) containing conference and
attendee listing details.
• Sponsor press kits distributed to the Press in attendance.
• Sponsor logo on the event Web site with a link to sponsor’s URL.

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Research Contribution

Entire Study: US$20,000
Corporate/Leisure Only: US$15,000
Add-on for Workshop
Participation: US$10,000

25

Groups and Meetings 2009 Prospectus

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