The $175 billion corporate meetings industry is taking a serious blow as companies of all sizes scramble to cut costs by reducing the number of conferences they hold.

With fewer big meetings in distant cities, companies save millions on airlines tickets, bookings, hotel rooms and a range of associated expenses. It’s not surprise that it is currently set neatly in their sites as they struggle to cut down costs.

While it seems an ideal and relatively nonintrusive way to save millions in expenditures per year, the sudden cut backs are creating a very real crises in the service industries that relied on them.

“I’ve been in this business 40 years and I’ve never seen anything like this before,” said Kevin Maguire, president of the National Business Travel Association.

“I call it the DDE for ‘devastating domino effect’,” said Maguire. It is having an impact from cab drivers and florists to restaurants and street vendors.”

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