Almost two thirds (64 per cent) of organisations have increased
their prices this year to combat rising costs, according to the Meetings Industry
Association (MIA).
Surveying 109 event venues, suppliers, agents and
destinations, the association’s latest Insight report reveals that almost nine in
10 (89 per cent) organisations have seen their costs increase this year by an average
of 12 per cent. By comparison, organisations have only increased their prices by an
average 7 per cent.
In response to price increases, almost a third
(32 per cent) have had to delay investing further in their business, while more than a
quarter (26 per cent) have been forced to reduce their workforce, putting more pressure
on employees to maintain standards with fewer people. This is particularly
notable in light of findings from the MIA’s People survey earlier this year,
which revealed that 92 per cent of employees experiencing stress or burnout identified
high workloads as the primary cause.
As organisations battle cost increases, almost half (46 per cent)
state they are down on their revenue forecasts for 2025, with only two thirds
(66 per cent) confident that they’ll meet their 2025 revenue target.
Providing a snapshot of current demand across the sector,
the findings reveal the average lead time for bookings at 12 weeks, with almost
two-thirds (65 per cent) of respondents reporting slightly shorter lead times compared
to a year ago. At the same time, four in 10 (40 per cent) state that client budgets have
decreased, highlighting ongoing financial pressures across the UK.
Elsewhere, the report also reveals how sustainability has
slipped down the priority list in 2025, with just 22 per cent saying credentials are
frequently requested in RFPs. Though 62 per cent measure and report on their
environmental performance, only 37 per cent do so regularly. Almost half (49 per cent) cited
carbon measurement and reporting as the most challenging sustainability measure
to implement, highlighting a clear gap between ambition and implementation.
MIA chief executive, Shonali Devereaux, said: “With booking
trends, client expectations and economic pressures evolving rapidly,
understanding how the sector is performing is proving invaluable in keeping
organisations informed, assured and agile.
“While many organisations remain confident in meeting their
revenue targets, rising costs continue to shift the goalposts for profitability
and the sustainability of our industry. In response, almost two thirds have
increased their prices and over a quarter have had to reduce their workforce.
This isn’t just a financial concern but demonstrates the wider economic ripple
effect on areas such as employment and investment when our industry is under
strain.
“Alongside our People survey from earlier this year, our
Insights highlight that the sector is at a critical juncture. Rising costs and
economic pressures are placing significant strain on businesses, and something
has to give. As an industry, we now have an opportunity to decide how we
respond, balancing the priorities of people, profit and planet, embracing
innovation, being digitally curious, operating with openness and authenticity,
and adopting strategies that strengthen resilience.”
“These insights come at a particularly significant time, as
we await the measures set out in the upcoming autumn budget and continue our
two-way discussions with the Department for Business and Trade to lobby
sector-specific initiatives.”
The full MIA Insights report can be downloaded here: https://mia-uk.org/Insight-Surveys
