Event budgets aren't keeping up with costs, says MPI

Planners need to 'get strategic' to adapt to a seller's market, according to MPI's latest Meetings Outlook report.

Event budgets aren't keeping up with costs, says MPI
Event budgets aren't keeping up with costs, says MPI

The report, generated from surveys of MPI members, shows that projected budget spend has been increasing for the past three quarters, however most of the anticipated increases are within the 1-5% range – not enough to match cost increases.

Its author, Elaine Pofeldt, suggests an emerging seller's market for hotels is making the lives of planners more complicated.

"Meeting professionals must now flex planning muscles they haven’t used in years to take into account venues and flights that are fuller than they have been since the recession. That reality is putting pressure on planners and organisations to start working on events early or risk getting closed out," she says.

Julie Powers, CMP (MPI Orange County Chapter), a manager of global accounts at meeting procurement and site selection agency HelmsBriscoe, said she expects to see a seller’s market thrive for at least two years. "The hotels are filling up, not just with meetings but with business and leisure travel.

"As a planner you have to make your programme as attractive as possible. Right now, hotels are looking at the programmes and how best they work within the hotel itself and how each area of the hotel will get a piece of the pie."

Overall, the report showed business conditions are becoming increasingly stable with corporate meetings and events expected to see the most positive business this year.

The report's findings are based on a survey of MPI's global members. Click here to view the full MPI report.

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