It's no secret: rising costs and inflation are key challenges facing event teams globally.
But the good news is that event planners and hoteliers are finding creative ways to combat these challenges.
In September, we held our in-person Community Conversations seminar in London to hear how event teams, hoteliers and agencies are being impacted by the current economic uncertainty - and the strategies they're implementing to navigate it.
Here are some of the key takeaways and tips from the seminar.
1. There’s a real desire to return to in-person events
Unsurprisingly, there has been a real hunger to return to in-person after two years of virtual events. Several event planners reported that this demand for in-person events has meant that their organisations are currently willing to spend more on this event type.
But there was a consensus among attendees that teams may see cuts to their budgets in 2023, once the novelty of returning to in-person events wears off and the fears of a recession crystallise.
Tip: Be clear on your goals, objectives and KPIs when planning your return to in-person events. This will help you track the performance and report on the ROI of your event.
2. Rising venue costs are a key challenge
With in-person events back and here to stay, rising venue sourcing costs have become a challenge for event teams.
For example, a consequence of the ongoing energy crisis is that venues often can’t commit to prices far in advance. As a result, event teams face difficulties when it comes to estimating and budgeting their venue costs.
Additionally, soaring venue costs make it difficult to find suitable venues in larger cities like London. The good news is that event organisers are finding creative solutions to this problem — such as moving their events to alternative, less expensive locations.
Tip: If you’re looking to reduce venue costs, be open to hosting your event(s) in alternative locations. Consider using venue sourcing tools to find venues that match your requirements.
3. Businesses must find ways to attract talent
Staff shortages are affecting event teams and venues alike — and it's a global issue.
Part of this phenomenon can be attributed to the pandemic, during which mass layoffs led to many people leaving the industry altogether. The emergence of virtual and hybrid event formats has also contributed to a skills shortage, as these event types require different skill sets from traditional in-person events.
The result: event teams need to handle increasing workloads, and venues are struggling to make good on their commitments.
So, what can be done?
Many attendees noted the need to make the industry more attractive to candidates. As one person commented, “Staff shortages are mainly in entry-level roles which are already less well paid. These days, people have more choice and they’re choosing to work where they can get paid more.”
Another said: “As an industry, we need to take accountability. We need to be flexible to attract new talent.”
Tip: Candidates today aren’t only seeking higher salaries – they want greater flexibility, good company culture and the potential for career growth. As an organisation, there's a lot you can do: consider what benefits you can offer candidates, whether that’s flexible working, job growth plans and development opportunities.
4. Preparing for the unexpected is more important than ever
We all know the saying: if you fail to plan, you’re planning to fail.
But if the last few years have taught us anything, it's this: there are some things that we simply can't plan for. From extreme weather to mass strikes and travel disruption, event teams have had to navigate a wave of unforeseen events this year alone.
Fortunately, there are ways to mitigate such events.
Tip: Response from attendees was unanimous — good communication is critical. For venues and agencies, it's better to let your clients know if your business is short of staff, so they can find workarounds. And in the event of a crisis, you must ensure that clients can get through directly to the right people.
Other strategies included:
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Make contingency plans: While external crises are often out of your control, venues and hotels can take the lead in planning ahead. For example, you can coordinate with clients pre-event by putting together risk documents that outline contingency plans if certain events happen.
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Consider alternative solutions: Anticipate unexpected events ahead of time by having alternative solutions written into your contracts. For example, you could have a virtual event alternative as a backup in case your in-person event is unexpectedly derailed.
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Find compromises where possible: Sometimes all you can do is to try and find a middle ground. For example, venues can offer credits if an event has had to be postponed or cancelled. When train strikes were announced ahead of our own Cvent CONNECT Europe conference, we offered impacted attendees alternative transport options, such as Uber credits. Being flexible not only helps to build good relationships but also increases the likelihood of clients coming back.
5. Event technology can help fill in the gaps
One of the biggest learnings from the seminar was how event technology can mitigate the impact of many of the current challenges facing the industry.
Just some of the ways you can use event technology include:
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Extending your team: Event technology can automate manual processes and free up your team's time to work on more complex and creative tasks. Tasks like registration, badging and check-in can all be done through an event management platform.
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Simplifying venue sourcing: Technology can make venue sourcing easier. For example, the Cvent Supplier Network is a tool that lets you source venues for all your meetings and events and send multiple RFPs simultaneously – with 300,000 venues listed globally.
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Facilitating communication: When a crisis hits, you’ll want to make sure that registrants to your events are made aware of any changes. When it comes to keeping your attendees up to date with the latest news, email and social media communications, as well as posting updates on your event website and through notifications on your event app, should be your first points of call.
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Increasing operational efficiency: For venues and hotels, event tech can alleviate the pressure of staff shortages by automating responses to the majority of RFPs, speeding up response times. Technology can also help teams work more efficiently by standardising workflows and processes, which allows you to focus on building a great event experience.
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Gaining visibility across all of your events: Event tech gives you visibility into all of your events and attendee data so that you can make more informed decisions. You can also use technology to track your budget and spending, so you can measure the financial impact of postponing or cancelling your event.
Tip: Identifying the gaps in your current team, processes or event strategy will give you greater insight into how and where technology can help fill in the gaps.
Many ways to navigate the economic uncertainty
Rising costs, talent shortages and unforeseen events are all key topics for event teams and venues at the moment.
While these challenges are unlikely to go away any time soon, it’s heartening to see that event teams and venues remain optimistic and are finding effective ways to work through these issues.
At the core, successfully navigating the economic uncertainty we face means having a clear meeting and events strategy that is aligned with your overall business goals and objectives. Additionally, it’s more important than ever to ensure that your organisation is attractive to potential candidates and, where possible, bridge any gaps with technology.
To learn more about the current trends facing the event industry, check out our recent Cvent CONNECT Europe conference session, Salaries, Rising Costs & The Great Resignation: Macroeconomic Impacts on Your Events.
