The success of congress tourism is dependent on a number of demand and supply side factors.
On the demand side, entities come up with a hot topic for discussion and begin making plans to hold the topic debate at specific locations where experienced people and subject matter experts are invited to exchange ideas. Supply side are the destinations where such meetings are held. Hence destination branding and marketing is an important factor and there are organizations that carry out the marketing of destinations for meeting or congress tourism.
After the Covid-19 pandemic, restarting international conferences and business meetings became crucial for economic recovery all over the world. Therefore, all the countries opened their business sectors since the hundreds and thousands of people who attend these events add to the buzz and dynamism of urban centers. This allows for the viability of a large number of hospitality market players which would not have been otherwise economically feasible.
Rapid Infrastructural and Technological Advancements are Increasing the Success Ratio of the Congress Tourism Sector
Countries are slowly realizing the importance of congress tourism and the impact it has on a country’s economic and political relations. Therefore, factors driving the congress tourism sector include the availability of conference rooms and exhibition areas, translational equipment and instruments to meet video and audio requirements, and the development of high-quality hotel spaces with prompt service. Recognizing the sector’s awareness, various organizations are forming to promote meeting destinations, thereby facilitating the growth of the congress tourism sector.
Online Booking Channels lead the Booking Channel Segmentation
Planning a business trip usually takes a lot of time and effort in terms of research and making the best possible choices. However, the existence of online travel agencies has unquestionably both sped up the procedure and offered clients access to more choices. People who book online prefer to compare travel on booking portals and hotel websites.
As per the latest findings of Future Market Insights, global congress tourism market revenue is expected to be US$ 1,055.3 Billion by the end of 2023. In the long-term, the congress tourism market is estimated to reach at around US$ 2,311.5 Billion in 2033.
Restraints of the Congress Tourism Market
Geographic Accessibility, Economical Aspects and Affordability Could be the Pull Factors of the Congress Tourism Sector
Geographic accessibility includes good transportation and convenience, as well as an economical aspect that reflects the total cost of travel and living at the destination center. Lack of the above-mentioned provisions leads to a loss in business tourists which consequently affects the congress tourism market adversely.
Poor Marketing, Faulty Equipment and Poor Infrastructure Can be a Challenge
Factors such as poor marketing of the destination places, faulty equipment and poor infrastructure are a major threat to this market. Different meetings with different themes need different type of infrastructure and facilities. The readiness in their availability and other related services determine the success of the tour, thereby impacting the congress tourism sector.
Region wise insights
Considering the global scenario, the congress tourism sector can be listed among the fast-growing tourism sectors. The number of meetings held at the respective regions call for a greater number of destinations and this figure would show which region is progressing in the congress tourism sector.
The United States shows high number of meetings conducted, followed by Germany, Spain, United Kingdom, France, Italy, Brazil, China, Netherlands and Austria. Europe is likely to witness fast growth in this sector. Spain along with other European countries reflect a tourist image, a destination that is already famous.
Working Population is the Major Driver of Congress Tourism Demand
People between the age group of 25-45 are most likely to travel overseas for business. Therefore, the congress tourism market is mainly constituted of the working class.
There will be a Surge in the Number of Packaged Travelers
Business meetings and conferences usually happen on a large scale and are spread over 2-7 days. Therefore, organizations look for hospitality players offering the best discounts for a large group of people with the maximum number of facilities.
Congress tourism has a significant impact on the hospitality industry in terms of close collaborations, the creation of business centers, convention halls, exhibition halls, and so on. Thus, business travelers account for approximately 60% of hotel occupancy rates worldwide. Congress activities have a stimulating effect on vital sectors of any country’s economy such as transportation, communications, consumer goods, and agriculture.
Key companies having a major market share are ICMS Australasia (Australia), American Meetings Inc. (USA), Congress Company (The Netherlands), DIS Congress Service A/S (Denmark), Event Dynamics (South Africa), Ana Juan Congresos (Argentina), GP Destination Management (Spain), Meeting Planners International Pte Ltd (Singapore), MP International (Singapore), Agentura Carolina (Czech Republic), and Meeting Makers (United Kingdom).
These insights are based on a report on Congress Tourism Market by Future Market Insights.