Meetings in 2025: Predictions for the Future of Our Industry

Dan Berger

@danberger | #WEC16

Audience-Presenter Agreement

● Leave at any time. ⏳

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● Steal everything.

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@danberger | #WEC16

I am a participant.

I am a planner.

I am a supplier.

4,000 customers

100 countries

3 languages

Over 1.5 billion sq. ft. of event space

Over 1 million events created

Over 100 million attendees impacted

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I am a participant.

I am a planner.

I am a believer.

I am a supplier.

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2025

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Last year, I shared 10 trends...

6. Everything is a function space for meetings and events.

7. Every industry is consolidating.

8. Traditional education is losing significance, moving online, and becoming free.

9. Business models are changing due to increased competition.

10. Technology is seamlessly integrating into our lives.

1. Time is the most valuable resource in business.

2. Events are becoming a strategic marketing product.

3. Software is eating the world.

4. We’re transitioning from bureaucratic hierarchies to technology-driven networks.

5. The sharing economy is not slowing down.

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1. Start by considering the global economy.

2. Dive into the U.S. economy.

3. Discuss the current trends in the hospitality industry.

4. What will hospitality look like in the future?

5. What might events look like?

6. Review current internet trends.

7. The new computing platform(s).

This year, I will go bigger.

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The Global Economy

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The Middle Class is Rising

● The size of the global middle class will increase from 1.8 billion people in 2009 to 3.2 billion by 2020.

● It will be 4.9 billion by 2030.

● The bulk of this growth will come from Asia.

● By 2030 Asia will represent 66% of the global middle class population and 59% of middle class consumption, compared to 28% and 23%, respectively in 2009.

@danberger | #WEC16Source: http://www.un.org/en/development/desa/policy/wesp/wesp_current/2016wesp_ch1_en.pdf

As the economies of the developing world grow domestically and contribute to the global economy, so will the middle class.

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“The developing world’s emerging middle class is a critical economic and social actor because of its potential as an engine of growth.”

- Mario Pezzini

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The U.S. Economy

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The Future Economic State of the U.S.

YEAR Economy

2008 Last recession

2018 Next projected recession

2019 Expansion

2025 Projected end of an expansion

● From 1945 to 2001, and 10 cycles, recessions lasted an average 10 months and expansions an average of 57 months.

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“A recession has occurred in the U.S. about every five years, on average, since the end of WWII; and it has been seven years since the last one — we are overdue.”

- Michael Pento

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The Hospitality Industry

Notable industry acquisitions in the last ~24 months

Source: various.

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● At least 865 hotels, with 103,230 rooms, are currently under construction and scheduled to open in the US in 2016.

● The global hotel industry revenue is predicted to reach $550 billion US dollars in 2016. The industry revenue was $457 billion US dollars in 2011.

● All key hotel metrics grew from ‘14 to ‘15 and again from ‘15 to ‘16. They are expected to continue to grow through ‘17.

Trends in Hotels

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Source: http://www.usatoday.com/story/travel/hotels/2016/01/10/new-hotels-new-york-houston/78422660/

The 1.5% uptick in rooms opening this year is still below the long-term annual average of 1.9%.

Building activity has dramatically increased, with 21% more rooms under construction than a year ago

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● Consolidation is happening in every step of the hospitality supply chain.

● Purchasing power and supply is becoming more centralized.

● Pricing competitiveness may suffer.

● Similar direction the airline industry has taken.

What does all of this consolidation mean?

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“We expect to see more consolidation among operators and real estate owners alike, whether portfolio transactions or public-to-private trades.”

- JLL 2016 Global Hotel Investment Outlook

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Internet Trends

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● There are 7.4 billion humans on Earth; 3 billion are now online.

● In 2016, 51.8% of travelers who book trips via digital means will do so using a mobile device.

Growth in Online Activity

@danberger | #WEC16Source: Mary Meeker, Kleiner Perkins Internet Trends 2016

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Computing

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● Every 10-15 years major new cycles reshape the computing landscape, bringing in a new product era.

A new computing era is upon us

● Each era has a gestation phase and a growth phase.● We will grow from three to eight billion connected humans,

adding five billion new consumers into the global economy

Source: Dixon, Chris. “What’s Next in Computing?” published: 2/21/2016

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As computers increase in power and shrink in size, a new class of machines has emerged roughly every ten years.

Source: “The chips are down for Moore’s law.” Nature. Published: 2/9/2016

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So what is the next computing platform(s)?

● Cars

● Drones

● Internet of Things

● Wearables

● Virtual Reality

● Augmented Reality

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“We are on the cusp of not one but multiple new eras. The explosion of new devices, and developments in software, especially artificial intelligence, will make them [smart, useful, and ubiquitous.”

- Chris Dixon

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Piecing it all together...

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The “Golden Age of Travel” will continue.

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The hospitality industry will be more profitable than ever.

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A governing body for the meetings industry will emerge.

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The Annual Meeting will become endangered.

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More event professionals will report to CEOs

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More events, with bigger budgets.

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We won’t be able to tell the difference between real and virtual events.

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The room block will play second fiddle to economic impact.

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Robots will setup and tear down rooms.

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Complex productions will be easier to organize.

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AI will make events better for everyone.

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Second tier cities will become premier destinations.

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But what if it’s all just a simulation?

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Dan Bergerdan@socialtables.com

twitter: @danbergersnapchat: danjbeger

THANK YOU.

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