Event costs expected to exceed budgets in 2015

Rising event budgets set to fall short of increasing costs

18 November 2014
A report into the outlook of the European events industry in 2015 found that meeting professionals will have to 'dig deep into their bag of tricks' in order to stay on budget as costs increase at a faster rate.

Despite 55% of EU respondents expecting budget increases, costs will increase more than revised budgets for 2015, with air travel costs increasing by 5%, food and beverage costs increasing by 4%, guest room’s costs increasing by 3.9%, A/V costs increasing by 3.1%, and meeting room costs increasing by 2.5%. Overall budgets by contrast, will grow just 1.7%. More alarmingly, 14% of EU respondents also predicted their budgets would decrease while 32% predicted no change. 

The report overall found the areas of most concern to meeting professionals in relation to rising costs were air travel (89%), catering (87%) and room rates (84%).

Despite concern, the report offered a positive hypothesis to the expected price hikes, fuelled in part by economic growth which is leading to a resurgence of meetings. Moreover optimism in the EU, hard hit by a protracted economic downturn, is growing. EU meeting professionals equally anticipate larger amounts of business in the near future and better attendance at both live and virtual events.

The report suggested that training; educational events and sales meetings will top the list of event types in 2015. Overall the meetings and events business in Europe is anticipated to grow by 3.6% during 2015.
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