Prices are forecast to continue increasing as a result of further demand growth stemming from rising trends in corporate profit and air travel
Los Angeles, CA (PRWEB) April 24, 2015
Conference planning services have a buyer power score of 3.5 out of 5. This score represents a medium level of buyer negotiating power in the market. According to IBISWorld analyst Kayley Freshman-Caffrey, the primary factors impacting buyer power are low market share concentration, low price volatility, high product specialization and high switching costs.
The market for conference planning services is highly fragmented, with the top suppliers holding only a small share of the market. Low market share concentration results in intense competition, compelling suppliers to compete with each other based on price and other factors, which benefits buyers, continues Freshman-Caffrey. This type of market also provides buyers with a greater number of suppliers from which to choose, allowing them to easily find a supplier that suits their needs. Suppliers include The Freeman Companies, United Business Media PLC and Reed Exhibitions.
Additionally, price volatility in the market is low, reflecting the fact that suppliers face market pressures to keep prices low. Suppliers have experienced rising input costs and increased demand in recent years, which has prompted them to raise prices in spite of these pressures. However, in response to market conditions, suppliers have kept price changes marginal, leading to an overall favorable pricing environment for buyers. Alternatively, although many firms provide conference services, each firm has their own expertise and capabilities. As a result, no two firms will provide the exact same planning services. If one firm in particular can best satisfy a buyer's needs, the buyer will have less leverage in negotiating pricing and contracts with that firm.
It is also difficult for buyers to switch between suppliers after having already chosen one as their conference planner. If the buyer makes the switch, they will lose access to their previous supplier's network, which means they might have to re-plan portions of their event. At the same time, they will still be responsible for paying the previous supplier for the work completed. Overall, high switching costs and high product specialization reduce buyer power in the market, but the negative effects of these factors are offset by low market share concentration and low price volatility. For more information, visit IBISWorld’s Conference Planning Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of conference planning services. Conference planning services refer to services provided by agencies to plan and execute corporate meetings, conventions, trade shows and other business-related events on behalf of the entity hosting the event. Specific services provided include budget management, speaker and topic research, venue research and booking, catering requirements, event staffing and audiovisual production. This report does not cover the purchase of event management software or the planning and management of parties and events hosted by consumers.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.