UK’s The Business of Events (TBOE) think tank has published the results of its Events Economy Tracker for Q3 2023 which reflect a summer dip in July and August, while September stood out with a significant surge in confirmed events, marking the highest level in recent years. Cause for concern were forward bookings, which exhibited signs of softening.
Despite August traditionally being a quieter month, it outperformed its 2022 counterpart, according to the Tracker results, perhaps indicating the ongoing resilience of the sector. Challenges persist, primarily concerning staffing and supplier availability, aggravated by a backdrop of economic uncertainty and political volatility.
Event types
Meetings dominated the event landscape in Q3, with the number of conferences more than doubling. Additionally, a noteworthy uptick in Christmas party and banqueting bookings was evident. Time to party after the long years of Covid?
Revenue per delegate
A crucial metric, revenue per delegate, witnessed a drop of 21.6% in Q3 2023, primarily attributed to venues reducing rates during the traditionally quieter months of July and August. The yearly average for 2023 is £119.60, tracking 5.3% lower than the same period in 2022 despite significant inflation persisting.
Lead times
Lead times for event bookings in Q3 2023 remained largely stable, with short lead times continuing to be a prevalent trend. The lead time for conferences and meetings was 72 days on average, reflecting a slight decrease from Q2 but an increase from Q1.
Number of delegates
The average number of delegates attending events in Q3 2023 was 36, a decline from 65 in Q2. This aligns with the broader trend in 2023, where the average number of delegates is tracking 40% lower than 2022. Despite this decrease, the drop to 36 should be contextualised as typical for the quieter months of July and August, where smaller events are customary.
As the UK events sector grapples with inflationary pressures and evolving attendee dynamics, adapting to the changing landscape while maintaining quality and profitability remains a paramount challenge.
Data for the Tracker is supplied by Venue Performance, drawing ion nsights from a sample of 250 venues from across the UK.
Martin Fullard, director, news and content, TBOE, said: “Q3 is characterised by two of the quieter months throughout the course of the year – July and August – therefore it is to be expected that event sizes will generally be smaller and venues reduce their prices to get people through the door. This accounts for a drop in the revenue per delegate.
“However, the graph shows that September saw more confirmed events than any other month over the last few years, but forward bookings appear to be slowing.
“The industry is still grappling with the challenges surrounding inflation and high operating costs, for which there seems no end in sight. These conditions very much appear to be the norm and we can’t see that changing any time soon. One thing remains clear, despite these challenges, people still value face-to-face events. Venues will therefore be hoping for a strong Christmas season in Q4.”
Peter Heath, managing director, Venue Performance: added “Bookings are easing, an expected outcome post-pandemic rush. The backdrop of economic uncertainty and political volatility contributes to a slight dip – more like undulating hills of unrest than a precipitous drop, reflecting a cautious but manageable scenario.”
