Conferencing & Banqueting Report

This report examines the UK's conferencing and banqueting sector, analyzing its size and scope, and the various factors influencing its success. It includes data on spending, number of conferences, and delegate rates, highlighting the significant economic contribution of the sector. A PESTLE analysis explores political, economic, social, technological, legal, and environmental influences. The report concludes that the UK's stable political and economic climate, coupled with its strong tourism appeal, positions it favorably within the global conferencing and banqueting market. The report uses data and statistics to support its findings and cites relevant academic sources.

CONFERENCING
AND BANQUETING

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Task 1 Understand the nature of conference and banqueting sector...............................................1
Size and scope of conference and banqueting industry in UK....................................................1
Analysis of different factors........................................................................................................3
Conclusion.......................................................................................................................................4
References........................................................................................................................................5

Introduction
Conferencing and banqueting sector is a major contributor in the economic development
of UK. The purpose of this report is to understand the operational issues which affect the success
of conference and banqueting sector. There are many factors which influence the development of
the economy. This research report provides an evaluation of the key strategic and operational
issues in the effective management of these kind of events. Pestle analysis is also carried out in
order to identify the influencing factors which can have an impact on conference and banqueting
sector in UK.
Task 1 Understand the nature of conference and banqueting sector
Size and scope of conference and banqueting industry in UK
In past few years the conference and banqueting industry in UK has witnessed
tremendous amount of growth. The size, scope and strength of the industry has increased
tremendously across the world. UK stand out to be a tough competitor in this business sector.
Most of the people around the glove travel for business purpose. They attend meetings,
exhibitions, trade fairs, conferences, corporate meeting etc (Aung and Chang, 2014). These
travellers spend enormous amount of money for availing the hospitality services. The sector
generates more than 10 billion in UK. The contribution is around 25% to the tourism industry
which is very high as compared to the other countries. UK is preferred as the best place for
corporate meetings because of its high tourism significance (Burger, 2014). The country is
enclosed with many beautiful and exotic places which are very delightful to watch for a visitor. It
stands on second position with regard to conference and banqueting.
Visitors from other countries UK residents
Trips in
Millions
Spending in
Millions
Trips in
Millions
Spending in
Millions
Business 15.4 £2,475 6.3 £3,501
Holidays 70.8 £10,355 10.8 £4,555
Visit to a
friend
41.4 £1,635 5.2 £1,941
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Other purpose 6 £610 3.2 £2,247
The above table shows that trips and spending proportion of UK residents is very high as
compared to overseas visitors in terms of business travel, holidays and other aspects. It reflects
that country has potential with regard to conferencing and banqueting. It can attract high rate of
investments from the private as well as public sector (Davis and et.al., 2012). Establishment of
hotels and resorts is giving employment opportunities to many people. Many hotels in UK have
become the popular selections for organizing business conferences. Global companies are also
preferring UK for the purpose of organizing corporate meetings.
The estimate market of conference and banqueting industry is about 18.8 billion euro.
The local communities are getting developed and the sector is acting as sources of livelihood for
them. In UK, London has been identified as the city with high number of luxury hotels (Farber,
Crichton and Snyder, 2014). These hotels are having adequate facilities for business
conferencing and banqueting. London is also having different types of cultural, heritage,
entertainment and leisure resources for the visitors. It contributes in generating adequate amount
of revenue for the sector.
Association Government Corporate All Events
Total Conferences Held 94,000 81,000 502,300 685,900
% of all Conferences 14% 12% 73% 100%
Average Number of
Delegates per Conference
83 45 38 45
Average Daily Delegate
Rate
£41 £33 £46 £44
Average Duration of
Conference
1.63 days 1.5 days 1.52 days 1.51 days
The above table shows the average statistics related to the conference and banquet sector
in UK. The figures related to conferences are very higher. The average number of delegates per
conference with regard to association is high. The average daily delegate rate is high in the
context of corporates (Ferreira and et. al. 2012). Hence this indicates that conference and
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banqueting sector is having tremendous potential. It is expected that this trend will continue in
the future also.
Analysis of different factors
There are many factors which can influence the activities within the conference and
banqueting industry. PESTLE analysis has been done to identify the influences:
 Political – In UK there is a regulatory framework for this business sector. These
conferences ad business meetings requires fulfilment of political regulations in order to
take place (McGarrity, 2009). However the political environment of UK is very stable.
Factors such as visa processes, arrival procedures, immigration process etc are having a
high impact on the conferencing and banqueting sector. Companies are required to take
appropriate permission before holding any business meeting. However the UK
government is friendly and encourage such things on very wide level (Rogers, 2013).
 Economical – Economic factors such as recession, inflation, crisis etc also has an
influence on the sector. Inflation may lead to increase in the prices of all the hospitality
services. While on the other side in the situation of crisis, the demand for these services
reduces (Shone, 2013). In the present context, the GDP growth rate of UK is showing a
good performance. The purchasing power of hotel clients such as customers, business
firms etc have increased. However the situation of 2008 crisis can be expected at any
time.
 Social – This factor includes aspects such as culture, demands, preferences, attitude etc.
The purchase decisions of the customers are influenced from their culture and
perceptions. The hotels and resorts providing conference and banqueting services are
required to focus on the requirements of their corporate clients (Litteljohn, 2004). The
clients would like to select a place which has good accommodation, food, transportation,
luxury, comfort and many other things. More customized packages can be designed and
the services can be made more effectual.
 Technological - Technology also affects the conference and banqueting sector. The
corporate clients of the hotels and resorts also have different types of technological
requirements (Acton, 2012). These requirements are to be met by the hotels. Further in
the present context for the purpose of marketing, technology is being used in every field.
The hospitality organizations will need to adopt marketing tools such as social media,
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mobile apps, PPC advertising etc for the purpose of attracting the customers. Continuous
innovation with regard to technology is essential in order to attain competitive edges
(Albaladejo-Pina and Díaz-Delfa, 2009).
 Legal – The legal structure of UK influence the activities of hospitality firms in
organizing these events and conferences. The government provides good local support so
that more tourism can be encouraged in the country (Anheiser, 2011). There are certain
taxes which are charged on the services such as entertainment, service tax etc.
Government has to make sure that there are no problems to the incoming visitors in UK.
 Environmental – The industry is also affected by environmental factors such as natural
calamities, global warming, weather forecasts etc. For instance 2006 Tsunami disaster in
Asia placed a very high impact on the businesses of hospitality companies. Majority of
the hotels and resorts even lost their existence from the world (Cazcarro, Hoekstra and
Chóliz, 2014). Hence these types of things influence the minds of the visitors. It also
affects the sales and profitability of the companies.
Conclusion
From the above study it can be concluded that UK has earned a positive reputation in
terms of services like conferencing and banqueting. The sector generates more than 10 billion in
UK and the contribution is around 25% to the tourism industry which is very high as compared
to the other countries. London is the city with high number of luxury hotels and they are having
adequate facilities for business conferencing and banqueting. The political and economic
conditions in UK are very stable and this is the reason the conferencing and banqueting sector is
contributing greatly towards the economy.
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References
Acton, Q. A., 2012. Issues in Hospitality, Travel, and Tourism: 2011 Edition. ScholarlyEditions.
Albaladejo-Pina, I. P. and Díaz-Delfa, M. T., 2009. Tourist preferences for rural house stays:
Evidence from discrete choice modelling in Spain. Tourism Management. 30(6). pp. 805-
811.
Anheiser, H., 2011. Cultures and Globalization: Heritage, Memory and Identity. SAGE
Aung, M. M. and Chang, Y. S., 2014. Traceability in a food supply chain: Safety and quality
perspectives. Food control. 39 .pp.172-184.
Burger, J., 2014. Food safety-a shared responsibility: processing. The Dairy Mail. 21(5). pp.104-
107.
Cazcarro, I., Hoekstra, A. Y. and Chóliz, J. S., 2014. The water footprint of tourism in
Spain. Tourism management. 40. pp. 90-101.
Davis, B. and et.al., 2012. Food and Beverage Management. 5th ed. Abingdon. Routledge
Farber, J., Crichton, J. and Snyder, O. P., 2014. An Introduction to Retail Food Safety. In Retail
Food Safety. Springer New York. pp. 1-2.
Ferreira, R. R. and et. al. 2012. Food and beverage levels during the 2008-2010 economic
downturn in clubs. International Journal of Contemporary Hospitality Management.
24(4). pp.614 – 627.
Litteljohn, D., 2004. What makes hotel values in the UK a hedonic valuation model.
International Journal of Contemporary Hospitality Management. 16(3). pp.175 – 181.
McGarrity, J., 2009. Supply shocks and menu costs. Humanomics. 25(4). pp.268 – 273.
Rogers, T., 2013. Conferences and Conventions: A Global Industry. Routledge
Shone, A., 2009. The Business of Conferences. Routledge.
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