U.S. Travel Association’s IPW 2024 was held at the Los Angeles Convention Center. Additional events were held outside in California Plaza, including photo ops with a Marilyn Monroe impersonator and branded destination engagement areas. Courtesy of U.S. Travel Association

Many of the challenges association planners face today stem from continued issues related to the travel industry, ranging from high costs of hotels and flights to obstacles for international attendees getting timely visas to the U.S. According to the 2025 Global Forecast from AMEX GBT Meetings & Events, although “inflation has started to cool, prices continue to rise on food and beverage, accommodation and hospitality labor.”

High costs for the basics can put pressure on planners regarding other aspects of the event budget and potentially impact the attendee experience. The report finds that incentive and special events will most likely be impacted by cost increases in 2025, with planners indicating they might switch a destination or lodging, or even shift to a virtual format to manage costs if needed.

Catherine Chaulet, president & CEO of Global DMC Partners, recently released her 10 key predictions for meeting and event professionals heading into 2025. Challenges include budget constraints and additional service charges, such as resort fees imposed by hotels. Chaulet says: “Planners must be especially vigilant during the contracting phase to identify and address these fees upfront. Failure to do so can lead to unexpected costs, which may strain budgets and create unnecessary complications.”

She adds that budget constraints driven by high inflation, shipping tariffs and visa delays are all impacting associations. These factors have led to reduced attendance and exhibitor participation in some cases.

One new development that can potentially help with budget planning is the recent passage by the U.S. Federal Trade Commission of a final Junk Fees Rule to ban “unfair and deceptive pricing practices” that hide total prices from consumers, such as extra fees for short-term lodging.

“People deserve to know up front what they’re being asked to pay – without worrying that they’ll later be saddled with mysterious fees that they haven’t budgeted for and can’t avoid,” FTC Chair Lina M. Khan said in a statement. “The FTC’s rule will put an end to junk fees around live-event tickets, hotels and vacation rentals, saving Americans billions of dollars and millions of hours in wasted time.”

While resort fees may become transparent, the new ruling does not ban the fees from being imposed. Like hotel prices, flight prices are persistently high. Chaulet says she doesn’t anticipate significant improvements in air travel costs or negotiation opportunities in the near future. “Contributing factors include supply chain disruptions affecting the availability of aircraft parts, airline bankruptcies and increasingly common flight route cancellations,” she says. “These challenges have tightened inventory and placed upward pressure on pricing and availability.”

Cindy Sample, director of trade show operations for
NAMM — the annual trade show for the National Association of Music Merchants — is also grappling with the effects of high prices in the travel industry. She says that, in general, businesses have eliminated the flexibility and perks that existed prior to the pandemic. “When everyone ‘reset,’ those former ways of doing business, which were often beneficial for the organizer, became a thing of the past. It’s harder now to come to an equitable solution when negotiating with buildings, hotels and the like.”

Exhibitors have been complaining about higher costs due to rising prices for booth space, booth build, labor and travel-related costs such as shipping, hotel and entertainment. “In general, we hear about the high cost of participating in trade shows and conferences, especially hotel rooms and accommodations,” Sample says.

She adds that sales are down due to the economy, with lower buyer attendance partly due to costs. “Organizations often face pressure to cut costs, which can limit travel options and the scope of events. If we can’t lower costs, then we need to make it easier and less frustrating to participate.”

In addition, Sample says that educating participants on how to make the most of the time spent at the event, and reiterating the value of participating and attending, helps draw attendees despite higher costs.

Kimsacha Williams Clarke, director, global events for Global Cynergies and a planner for associations, says post-pandemic rates seem to have increased and many planners are expecting those high hotel rates to persist. As a result, many meeting planners are increasing their cost budgets to what is being reflected in the market. “While rates may remain high,” says Clarke, “there is always the capacity for hotels to negotiate group bookings in the form of group discounts, concessions, waivers or flexibility in dates.”

Chaulet says that opportunities for negotiation with hotels are limited, especially given the prevalence of last-minute bookings. “Cost reductions are more feasible when negotiations occur well in advance, but many planners are currently unable to plan that far ahead, further reducing the likelihood of securing discounts,” she says.

U.S. Travel Association’s IPW 2024 was held at the Los Angeles Convention Center. Additional events were held outside in California Plaza, including photo ops with a Marilyn Monroe impersonator and branded destination engagement areas. Courtesy of U.S. Travel Association

But there may be a shift in the future. According to the AMEX Global Forecast, four in 10 meeting professionals (41%) report lead times are the same as 2024, while 31% report they’re getting longer, which could help in securing and negotiating with desired venues.

Considering the persistent high costs, Chaulet notes that four-star properties are gaining popularity over five-star properties for meetings. The trend is driven by a shift in attendee preferences, with many now prioritizing exploring the destination over spending time in their hotel. “As a result, they see less value in the extensive amenities of a five-star property, particularly for meeting or conference groups.”

Many associations face financial challenges as members recover from economic uncertainty, requiring more cost-efficient event strategies. Second-tier cities, regional hubs and shorter event durations are increasingly popular.

Costs can also affect the destination choice. “It’s a very competitive landscape,” Sample says. “Destinations need to differentiate themselves and tell a compelling story of why they are the better location. It’s challenging for destinations to align the convention center, hotels and businesses so it’s attractive for the organizer. They typically operate very independently, and as an organizer, you are negotiating with many entities in the city that have conflicting perspectives and goals.”

Aimee Gabel, senior vice president, events & education at the U.S. Travel Association, suggests that another significant challenge for association planners is managing changes in consumer trends. She cites the Maritz 2024 Registration Insights Report, which shows that nearly one in four attendees (22%) waits until the final week before a show to register, putting pressure on the planning process.

Martha Donato, North American regional director at UFI, says: “We’ve observed a decrease in room block pressure compared to last year during our planning process, and our ongoing RFP evaluations have yielded favorable venue offers. However, a notable exception lies in attrition allowances. Where we previously encountered rates ranging from 80-85%, we now are facing contracts with higher demands of 90-95%. Concurrently, attendee registrations are occurring at later stages, posing heightened concerns for planners.”

Travel Requirements

Aside from costs, there are obstacles in travel planning for attendees, including those who need visas to attend events in the U.S. Obtaining visas can be time-consuming and complicated, potentially deterring international attendees. Long waits and stringent security checks at borders can also cause delays and inconvenience for travelers.

According to Gabel, about 45% of all visitors to the U.S. are from countries that require a visa to enter the country, and many of these global business travelers are experiencing excessively long waits for a visitor visa. The wait time now is “more than 200 days on average for foreign visitors to get a U.S. visitor visa in our top source markets,” she says, although that is down from more than 400 days earlier in 2024.

“U.S. Travel estimates the U.S. risks losing 39 million visitors and $150 billion in spending over the next 10 years due to excessive visitor visa wait times,” Gabel says. “Simple improvements to the State Department’s administration of the visa application process could significantly improve the outlook for inbound international travel — which is on track to remain below pre-pandemic levels until at least 2026 if improvements are not made.”

She continues: “These lengthy waits create a self-imposed barrier on attendees to international meetings, conferences and trade show events held in the U.S. The government must commit to establishing a reasonable wait time – U.S. Travel is urging visa processing in 30 days or less – to increase our competitiveness and support association goals.”

Gabel notes that legislation to lower visa waits has been introduced in the U.S. Senate. The bipartisan Visa Processing Improvement Act (S.2632), led by Senators Amy Klobuchar (D-MN) and Jerry Moran (R-KS), would allow the State Department to waive in-person interviews for previous visa holders who have cleared security checks, previously visited the United States and left on time. “We continue to work to advance this critical legislation.”

There has been progress. According to a statement from U.S. Secretary of State Antony Blinken, in fiscal year 2024, the U.S. issued 11.5 million visas, breaking all previous records. Of these, 8.5 million were visitor visas, which marks a 10% increase over the previous year. “Wait times to get visas are down by nearly 60% since the acute phase of the pandemic, which made it so difficult for our embassies and consulates around the world to issue visas. Today, the median wait time is under 60 days for a first-time-visitor visa interview,” says Blinken.

According to Blinken, the aim is to add 1 million visa appointments in fiscal year 2025, on top of the record number of appointments from 2024.

Aside from issues for foreign attendees, associations are evaluating venues and destinations with a focus on local crime rates and political stability, as well as the accessibility to health care and emergency services in certain locations. Many planners are partnering with DMCs to assess and mitigate local risks.

Clarke says there are cities/destinations that are off limits. “Some locations are too remote and make it difficult for many global delegates to attend,” she says. “Additionally, association planners will avoid destinations experiencing conflict and geopolitical instability.”

Donato, who is also the founder and president of
MAD Event Management, says: “As planners, we’ve developed ‘plan B’ scenarios to mitigate travel risks.” For the 2024 UFI European Conference in Zurich, the organization incorporated two additional travel days into the schedule to safeguard against potential disruptions. “These extra hotel nights were factored into the overall meeting budget. Additionally, flight costs from the U.S. to Europe increased significantly this past summer compared to last year. To stay within budget, we had to get creative with our flight schedules and use miles strategically.”

Donato also says that extreme weather conditions will lead to more frequent show cancellations and postponements. They will also impact travel and show attendance.

One positive effect of climate change is that expanding seasonality is opening regions once considered off-season and turning them into viable year-round destinations, according to Chaulet. As an example, Boston is now milder, making February and March less risky for planning events. She says: “Expanded seasonality helps planners avoid peak pricing while still offering desirable experiences.”

Sustainability Requirements

There is increasing pressure from stakeholders to implement environmentally friendly travel and event solutions. Air travel and other transportation methods contribute to greenhouse gas emissions, prompting the need for sustainable practices.

Associations are under increasing pressure to meet sustainability goals that align with member and sponsor expectations. Sustainability efforts also provide a competitive edge for associations promoting their events as “green” and responsible. Part of the strategy is choosing sustainable venues and eco-friendly transportation and minimizing waste, as well as offering virtual meeting options to reduce carbon footprint.

Donato says that climate-related reporting standards are being introduced, including the Net Zero Carbon Events industry initiative to address climate change, with a goal of attaining a net zero carbon footprint in the events industry by 2050. “More and more businesses are prioritizing their investments to match emission targets,” she says. “The Net Zero Carbon Events initiative delivers good practices and evolving industry standards, but our industry will need to speed up and go beyond the ‘low-hanging fruit’ if we want to remain in control over how our industry responds to this very real threat.”

ROI

While global factors such as inflation may lead some businesses to tighten travel and events budgets, meetings and events are still seen as critical for growth, networking and innovation.

Gabel notes that 77% of consumers say their trust in a brand increased following an interaction with that brand at a live event, according to the 2023 Freeman Trust Report.

Clarke says that with evolving attendee expectations, there’s also a demand for ROI. “As a result, attendees and exhibitors are assessing the costs against the tangible benefits of participating in in-person events, which may lead to the prioritizing of only high-value events.”

Those decisions to participate can be influenced by the travel experience. Sample notes the importance of smooth travel. “We are providing as much value as possible. Bringing people together is still important, where fun takes place and business gets done. We have to make it easier than ever and streamline the encounters to create an unforgettable experience.”  | AC&F |