February 27, 2023 by Lisa Block
Event organizers are feeling the pinch as industry suppliers, venues and transportation companies rebound from the pandemic. Travel costs are rising due to strong demand (led by the leisure sector). Following are considerations gathered from industry media, meetings market surveys and anecdotal reports from Velvet Chainsaw Consulting clients.
A January 2023 blog post by Cvent identified expense increases as a top concern for event organizers. “Rising inflation, combined with high demand and increased event costs, will mean organizations will need to increase their event spending. The need to control costs will also place greater emphasis on proving event ROI.”
A 2022 CWT report estimated the cost-per-attendee for meetings and events to be “25% higher than in 2019, with this set to rise by another 7% in 2023.”
According to the 2023 Global Meetings and Events Forecast, American Express Meetings & Events survey, overall meeting spend is expected to be up 7.4% in group hotel rates, with a 7.8% increase in group air rates, in North America.
The October 2022 Dashboard (Survey) from the Professional Convention Management Association’s Convene: “What do you believe will have the biggest impact on your events-related business in 2023? The largest percentage of planners — nearly 3 out of 10 — said travel and budget policy restrictions, followed by inflation and supply-chain issues (27 percent).”
A quarterly survey of 200 meeting professionals by GDP shows higher costs are the #1 challenge for planners. 88% report that budgets have increased due to inflation/higher costs and this percentage has increased from 68% in Q2 2022.
These cost increases are impacting your ability to produce effective events. Planners should have back-up to present to leadership to help explain the price hikes you face.
What event-related cost increases are hitting your organization the hardest? What solutions have you employed to help ease the expense management burden?
Filed Under: Business Model
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