Research

Budgets, Availability Among Top Challenges for Meeting Planners

By Gaurav Banerji Sep 16, 2024 9:30am

Global DMC Partners (GDP) has released the results of its Q3 “Meetings & Events Pulse Survey,” a report on what is driving decisions in the global meetings and events industry.

With responses collected from June 27 through August 9, the survey polled 165 meeting and event professionals, the majority of whom are based in the U.S. and Canada, with 20 percent in the U.K. and Europe. Respondents were corporate/direct planners (37 percent), agency/third-party planners (40 percent) and association and independent meeting planners (23 percent), as well as others (freelancers and suppliers).

Budgets and Costs

From 2023 to 2024, 39 percent of respondents saw budget increases, 16 percent saw decreases and 45 percent reported no change. Notably, 44 percent of U.S. and Canadian respondents experienced budget increases, compared to 27 percent in Europe. Cost increases in areas like hotels, F&B and AV are driving the need for higher budgets. With most budgets increasing by 10 to 20 percent, these adjustments most likely cover inflationary increases rather than allowing for more creative expenditures.

In addition, international (meaning outside of North America) respondents noted that 22 percent of budgets had decreased, while 51 percent stayed the same. Those from the U.S. and Canada reported that 14 percent decreased and 43 percent remained the same.

The majority of planners report that costs have increased by 10 to 30 percent on average across various categories compared to two years ago. Specifically, significant cost hikes were noted in hotels/venues, food and beverage, airfare and ground transportation. This trend highlights the growing financial pressures within the industry, impacting overall budget planning and allocation. Over 40 percent of participants indicated that they have seen an increase of between 11 and 20 percent on F&B costs compared to two years ago. Thirty-one percent report noticing the same amount of increase on ground transportation costs. A quarter of respondents are reporting they have seen an increase of 21 to 30 percent in hotels/venues, food and beverage and airfare costs.

Cost Management Strategies

Event planners have cut back on A/V costs, reduced the number of days of the program or consolidated/reduced the amount of programs per year (42 to 46 percent report doing these sometimes) and used early contracting (32 percent do most of the time) to save costs. Some respondents noted in their comments that tighter budgets boost efficiency and promote environmental awareness. They also increase virtual event revenue and encourage using more volunteers, car-share services and simpler meals.

Top Challenges

Higher costs continue to be the top challenge, and this has remained in the top spot since Q4 2022. Interestingly, the top five challenges are consistent across both U.S./Canadian and international respondents, indicating that these issues are universally felt, with no significant variations between the groups. Those include availability issues, budget management, timely approval from decision-makers and contract negotiations.

Nearly 80 percent of planners report that most of the time or all the time higher accommodation rates are a big challenge when working with hotels and venues. Over 70 percent of planners are struggling with higher-than-expected A/V costs most of the time or all the time. Forty-two percent report that availability (finding space and dates) is a common challenge most of the time. Over 66 percent of planners noted that they face higher accommodation rates most of the time, and more than 70 percent report the challenge of slow response times sometimes or most of the time.

Planning and Lead Times

Lead times for client events continue to trend on the shorter side, as 43 percent of planners report four to nine months of planning, while 9 percent have experienced lead times of three months or less. Twenty-six percent of respondents report event planning timelines of 10 to 12 months in advance, up from 15 percent in the last survey, suggesting lead times might be improving.

Diversity, Equity and Inclusion (DEI)

When asked about the incorporation of DEI and accessibility elements, 26 percent of respondents report incorporating these elements into most programs, while 18 percent are including them in every program. Aspects that are being incorporated include initiatives that cultivate collective belonging, accessible venues, inclusive programming, agendas and formats for all learning styles, as well as closed captioning and sign language.

Wellness

While only about a fifth of planners frequently include wellness into their programs, it is often prioritized in incentive programs.

Sustainability

Responses on sustainability practices reveal disparities between the U.S. and international responses regarding approaches and commitment. While 15 percent of U.S. respondents incorporate sustainability in about half of their programs, 21 percent of the international respondents report the same. Additionally, just 7 percent of organizations in the U.S. indicated that they integrate sustainability practices all the time or into every program, whereas 31 percent of their international counterparts reported the same. Sustainability measures that are incorporated include selecting program components within walking distance, locally sourced food options, reducing plastic waste, donations to local organizations, finding ways to recycle and reuse event materials, and incorporating sustainable/CSR-focused activities. Nearly 80 percent of planners find it can be challenging to incorporate sustainability into their programs due to costs.

Use of AI Tools

The adoption of AI tools in the industry continues to grow, as 48 percent of respondents report using AI tools in their day-to-day job, up from 30 percent at the end of 2023. Tools most often being used are chatbots, such as ChatGPT and CoPilot.

Source: Global DMC Partners