Over coffee with… David Peckinpaugh

US demand for meetings and incentive travel is strong and continues to grow, according to David Peckinpaugh, president, Maritz Travel, based in Missouri. He shares with Caroline Boey his outlook on growth drivers and the sharing economy

DavidPeckinpaugh
“I feel that education and relationships are at the core of the market. The more Asian destinations educate and build relationships with US buyers, the better the results.”

What is the current outlook on US meetings and incentive travel demand and what are key factors affecting travel locally and internationally?

The outlook for the US meetings and events industry continues to be strong. All metrics have rebounded to above what they were in 2007-2008 and we expect that this trend will continue for the next two years.

The key factors at play right now are the lack of supply, which is creating an issue with availability, and the ever-increasing rates with flat budgets. This is especially true in the US.

Internationally, the key factors playing into buying decision continue to be air lift/air fares, economic stability of the destination as well as health and safety.

How is the US presidential election impacting meetings and incentive travel demand?

A change in administration always leaves the potential for change.

The passing administration was very supportive of the travel industry as evidenced by the expansion of the visa waiver programme, improvement with TSA (Transportation Security Administration) and investments in organisations like Brand USA.

We will be diligently watching the ensuing administration’s approach and will be engaging our Meetings Mean Business Coalition accordingly.

In your view, will a Republican or Democratic win in the election be a better outcome for the meetings and incentive travel industry and why?

I don’t think party affiliation makes a difference. Rather, it will come down to each candidate’s views on the global economy and if they embrace policies that will spur growth or restrict it, including those on travel. I think both parties have, at times, demonstrated to be both a friend and a foe and it’s too early to tell where each currently falls. Stay tuned!

What can Asia expect from US meetings and incentive travel looking ahead? Which countries/cities in Asia are hot and why?

I think the APAC region will continue to experience steady growth in demand in the coming years. The investments made by governments and hotel companies have been unprecedented, and the quality and appeal of many existing and emerging destinations are on the rise.

I might be leaving out some but certainly Hong Kong, Macau, Singapore and Shanghai continue to be stars with the noted emergence of Malaysia and Vietnam.

What must suppliers and CVBs do to make Asia more competitive?

I feel that education and relationships are at the core of the market. The more Asian destinations educate and build relationships with US buyers, the better the results.

Working with airline partners to improve the travel experience and creating “edufams” for US buyers are critical steps.

Online (digital) information is also key, and should include accurate and current updates on health and safety issues.

It will also help for suppliers and CvBs to explore ways to insulate buyers from currency fluctuations and assist with tax issues, such as VAT for group organisers.

Finally, creativity is a great differentiator. The days of cut-and-paste proposals is a thing of the past and US buyers are looking for truly unique experiences for their attendees. That will put a lot of pressure on the supply chain from convention centres to hotels and DMCs.

With regard to Airbnb, Uber and other sharing economy services, what is your outlook for Asian corporate buying behaviour heading West? How should suppliers in Asia react to this development?

The impact of the shared economy on the meetings and incentives industry is minor at this time but we’d be foolish to ignore it. That’s why Experiment (a Maritz sister company) is working with Airbnb to help our clients – citywide associations primarily – with room block and history metrics.

Attendees will not only be shopping for hotels online but also for alternatives like Airbnb. This will impact hotel contracts, block performance and the financials of the events. It is important that Asian groups heading West have an awareness of this and measure the impact. Selecting the right meeting management firm, or PCO, to assist them in their event execution could be a way to avoid surprises.

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