Global Business Sense

From the 16th century itself, both Europe and U.S worked closely for developing the business. Both countries had benefits out of each other. Even now, the impact of one of the countries economy affects the other. There are lots of concerns which impact the trade between these countries. The business which operates between these countries will definitely require setting up events. The cost involved in setting up the events between these countries is of main concern to the planners.

The major factor which influences this event planning is the increase in the cost for air travel and accommodation especially for the people in U.S. EIBTM is a report on industry trends and market share which was released during 2007. This report accepted the fact that rise in the air travel and hotel had a considerable impact on the business trends in U.S and Europe.

This report also stated that the industry is growing and becoming intelligent that the event destinations can be planned outside of these countries so that the cost involved can be reduced. Rob Davidson, a senior analyst of market trends in U.S observed 12 moths business economy in U.S and provided a summary of his observations. Some of those are listed here:

1. With increase in the business and population, the increase in demand for travel and accommodation also increased. This can’t be avoided. So, this is now a big challenge for many companies in U.S for managing their budgets for meetings and events.

1. The negotiation leverage of the hotels in U.S are very strong that the prices will never fall back. The increasing trend will continue and no check could be made for this moderate rise.

1. Convention centers can be looked as better option for the planners to control the cost. Many major government organized buildings and facilities are well maintained and enhanced well. So, business people in U.S can look for such convention centers rather than spending a large amount of money in the private sectors.

1. Budget planning was made tougher. The number of business meetings kept on increasing and for every year the number of meetings to be held rose by 50%. But, none of the business people allocated the same budget amount to cope up with rising number of meetings.

1. The incentive federation of U.S stated that 46.l billion dollars was spent on the travel and accommodation and around half of this amount was contributed by the business meetings in U.S. 164,00 dollars was the average budget where the annual trip of each business is 3.6 with the number of attendees as 160. U.S topped the rank list for the number of international business meetings held every year.

The European market trend is also very similar to U.S trend. The occupancy rate was as high as U.S and the rate of increase of faculties sector is also same as U.S. U.S market is called as the suppliers market and the European market is called as suppliers market. This clearly depicts that the market trends between U.S and Europe are very close and follows the same pattern.