Rising costs are being pinpointed as the leading challenge
event planners will face in 2023, says Live Group senior account manager,
Sophie Cox, and with good reason...
The current rate of inflation in the UK is
now 11.1 per cent, way over the Bank of England’s two per cent target. Our cost of living is rising at its fastest rate for over 40
years, largely because of increasing food and energy prices, and experts are
predicting it will remain at these dizzy heights for at least a few more months
and we will be in a recession until the middle of 2023.
Rising inflation doesn’t just result in lower levels of
consumer spending, it also hits businesses hard as the power of the pound is
squeezed, revenues fall, and profit margins narrow. At times like these,
businesses are forced to reduce expenses, increase prices, and lower supply
chain risk, which is why the events industry is reportedly facing
ever-increasing costs and ever-shortening quote guarantees from suppliers.
On top of that, we’re facing currency fluctuations - the
pound slid again on the forecast of recession. Covid-19 levels are still high
and according to the Zoe Health Study app, we have more than two million
current Covid-19 cases in the UK. Network Rail strikes are disrupting train
services across the country, and hotel rates and flight prices are inflated.
It’s a perfect storm.
It's not as though we’re not used to uncertainty, price fluctuations,
cancellations, eleventh-hour changes, and contingency planning into the wee
hours. There has been plenty of that over the last two and a half years.
So, what makes this different, how can we best
diffuse the impact of this period of uncertainty and its ever-moving
influences?
- Plan ahead to secure the best prices – for the
foreseeable future, it would seem that prices are only going to continue
increasing, due to staff shortages, supply chain difficulties, the war in
Ukraine, the weakened pound and supply and demand. To secure the best prices,
it really does pay to plan as far in advance as possible.
- Contingency plan – by that I don’t just mean
consider multiple date options. I mean look at every single element of your
event, from timings, duration, attendee numbers, venues, locations, suppliers,
travel, accommodation, and catering arrangements, right through to its format.
In-person may be back, but it’s worth asking – as I’m sure you already do – ‘is
there scope for your event to be hybrid or fully virtual?’ It’s important to
remember the many benefits technologies now bring when it comes to creating
more flexible, sustainable, inclusive and economical experiences for your
attendees, particularly if they are global audiences based in multiple
locations.
- Invest in your supplier relationships – if
you’re in-house and work directly with your suppliers, it’s essential that you
invest in those relationships and communicate honestly and frequently with
them. Doing so will put you in a better position to start negotiating your
supplier contracts, including asking them to guarantee today’s prices for the
duration of that contract, as well avoid potential shocks or conflict.
- You can still make sustainable choices –
prioritising cost doesn’t mean sacrificing your sustainability commitments. At
the very least you can still offset carbon emissions and we’re currently
working closely with clients to advise them on how they can set reduction
targets while keeping an eye on budgets.
- Consider working with an events agency – I know,
I know, of course, I would say that, but working with an events agency – or any
partner with extensive experience, industry knowledge, a global network of
suppliers and the purchasing power to volume buy – can help you cut costs,
maximise savings and get more for your budget, as well as open your eyes to new
and innovative solutions. At Live Group, we have amazing relationships with our
preferred suppliers that go back many, many years; relationships that we can
call on to benefit our clients, particularly during tough times like these.
