Event management company Maximilllion’s Tom Costello shares some tips on keeping your bills low when planning an event in a cost of living crisis:
Although the events industry has been through a painful hiatus, forced by the pandemic, the value of the events industry to a country’s economy should not be underestimated.
It is certainly a significant contributor to the UK economy in particular, with a recent report by the Department of Culture, Media and Sport estimating that the industry generates £84bn (US$95.1bn) every year, with conferences and business events generating over £18bn in direct spend annually. However, any event, such as this year’s cancelled Bonfire Night celebrations in Manchester, can succumb to budget pressures.
Like so many other industries, the events industry has faced tough times financially. The pandemic followed by a cost-of-living crisis has been a big blow to the industry. Inflation has been deeply damaging to the trade, with a comprehensive report by the German Federal Association of Events Management finding that on average, event organisers in 2022 require a 45% bigger budget compared to their needs in 2019. Smaller events are hit even harder, requiring a 49% bigger budget, their budget costs having almost doubled since 2019.
This study also incorporates data from the European Industry Survey, which also found that these rising costs are due to a number of factors such as the cost of raw materials and transport increasing, enhanced hygiene procedures increasing costs, staff capacity costs and supply chain disruption.
Post-pandemic, the live event season has shortened from 12 months to just between six and eight, resulting in a huge loss of profits for the industry. Conversely, the demand for live events has risen sharply as people return to normal life post-pandemic, however the high demand in a shorter period means fewer event organisers can benefit.
Due to the significant reduction in demand for events due to the coronavirus pandemic, Dr James Morgan conducted a global survey of 675 participants from 59 countries to understand what the events industry will look like in a post-Covid-19 era. It also considers the global economic contraction predicted by the International Monetary Fund and the Organisation for Economic Cooperation and Development over the rest of the year.
Dr Morgan found that nearly 40% of all of those surveyed implied that the business they are involved in may not exist within its current form within the next 6-12 months and urged that alterations to the realignment of the costs are imperative in order to stay afloat.
Maximillion.co.uk is an expert in the events industry, having been organising events for their clients since 1989, and a spokesperson said: “The events industry has been hit hard by both the pandemic and the current cost-of-living crisis. However, there are several ways event organisers can keep within their budget during these challenging times. For a start, embracing digital alternatives can be a great way for organisers to save costs. Replacing paper tickets for digital ones, as well as embracing virtual or hybrid events can be a game-changer for your budget.
“Virtual events can significantly cut down production costs, while hybrid events can even boost your profits by adding a virtual option to an event for an even bigger audience. Speaker costs are also lower for virtual events. Sponsorships can also play a big role in generating revenue for your event. Other ways to cut down costs include embracing ‘green catering’ by reducing the amount of meat and fish provided at an event, reducing complimentary alcoholic drinks, as well as aiming for a venue that is powered by cleaner energy such as solar power.”
Photo courtesy of Manchester Council
