As instability grows, the value of face-to-face engagement is gaining recognition in the C-suite. Photo Credit: Adobe Stock/olga_demina (AI generated)
While geopolitical shifts are impacting business events and incentive travel, companies are recognising the value meetings can bring. In these uncertain times, it’s also vital for planners to be flexible and transparent to reassure clients and mitigate cancellations.
These were some of the key messages from a recent SITE discussion looking at how to navigate current geopolitical issues, namely those emerging from the US, such as increased tariffs and changes to immigration policy, alongside rising costs.
Panellists taking part in the discussion included Site CEO, Annette Gregg, Michael Dominguez, president and CEO of Associated Luxury Hotels International (ALHI), Jerry Cito, executive vice president at New York City Tourism and Conventions and Christine Erickson, senior vice president, global supplier relations and partner network at BCD Meetings and Events.
Related: What does it take for MICE to thrive in an uncertain world?
It’s wait and see for now
The business events sector appears to be adopting a ‘wait and see’ attitude, with panellists agreeing that it is too early to assess any potential impacts from geopolitical shifts.
“Business still needs to get done – and in uncertain times, some companies are doubling down on hosting events, believing that getting in front of their people provides the best possible reassurance,” said ALHI’s Dominguez. “It’s also important to segment different parts of the industry – anything touching government right now is very much uncertain. It’s not a boycott of meetings – we don’t know if we have the funding. I’m also concerned about the lack of international travel.”
BCD M&E’s Erickson noted that the agency has not yet experienced any cancellations for meetings and events.
“We just don’t know yet what the impact could be for the M&E sector,” she said. “We’re quite confident, but we are staying very, very close to our customers. Things can change very quickly and we are hearing a lot of ‘wait and see’. Just this week, we started to hear from our life science and our manufacturing customers that they're beginning to realise what the impacts of the tariffs are going to be on their business.”
Erickson added that the events industry is used to dealing with cost containment initiatives and therefore will be well prepared to handle impacts as things become more clear. And while she noted a decline in interest in travelling to the USA at this point in time, this was likely linked to the visa situation rather than the recent tariff announcements.
“What's more important is that we arm our teams to really understand where the flexibility is and isn't, what is in the contract, and how they can help manage the customer through that to mitigate the risk and stay on task,” said Erickson. “We can't go too far on flexibility because we're all running businesses. But [it’s about] keeping everybody educated and informed and communicating.”
Related: How are event planners coping amid tariff woes
More recognition for events
With mega sporting events such as the World Cup coming to the US in 2026, the panel outlined how this would have a positive effect on wait times for visas. They also discussed how companies now have a better understanding of the value that events can bring and are therefore less inclined to reduce these as opposed to previous years.
“We've done a better job of getting to the C-suites and making sure that folks realize the value of events, and that they're not making decisions to cut a business event or business travel as the first thing [to go] when things get a little gray,” said Cito. “Often, it's not about cancelling a trip or an event; it's adjusting the spend once travellers or business events professionals get into a destination and planning ahead of time around that.”
Gregg noted that people are also doubling up on meetings to build culture, opening up whole incentive programmes beyond the top sales performers, for example.
“It’s top culture culture winners too; it's extended room nights for all of us, which is a good message,” she said.