The appetite for face-to-face meetings may wane next year under growing financial pressures, according to the
latest research by consumer insights specialists BVA BDRC.
The company’s Business Opinion Omnibus also reported that nearly half of all UK businesses will have held at least one meeting in an offsite location by the end of this year.
The study of 1,200 respondents found that 47 per cent of
all business leaders said their company would be using external facilities by
the end of the year, with a further 15 per cent undecided.
Hotels and similar meeting venues remained the category
with the broadest market penetration, with nearly two thirds (64 per cent)
saying they had used, or would use, these types of venue. Nearly half (49 per
cent) would have used meeting rooms in shared or serviced offices, and just
under one in 10 (9 per cent) have or would use “other” types of venues (such as
museums, galleries, stadia or cinemas).
Underpinning this usage of external venues was the
belief, held by 48 per cent of those holding events, that getting people
together was good for business. One in four businesses also said that
external venues made a better impression, and that although they may have had
physical space on their own premises, other facilities or services such as
in-house catering, found only offsite were required.
The outlook for next year was less positive, with 27 per
cent of businesses saying they were likely to hold fewer offsite events next
year, compared with just 16 per cent saying they’d be likely to hold more and
the balance (48 per cent) expecting roughly the same amount. Over half
(54 per cent) of the businesses with a negative outlook said the reason for
reducing the number of events was weaker anticipated financial performance next
year, hardly surprising given the general economic ‘mood music’ over recent
months.
In contrast, 28 per cent were expecting to spend more on
external facilities versus 22 per cent expecting to spend less, partially
fuelled by an expectation of increased prices, rather than increased volume of
events, creating the potential for stronger profits at venues.
Louise Tawadrous, client services director and
head of BVA BDRC’s VenueVerdict programme, drew attention to the value debate
around external venues. She said: “Nearly a quarter (24 per cent)
of the businesses who said they were likely to reduce spend next year told us
it is because they don’t consider spending on external venues to deliver good
return on investment, representing nearly 12 per cent of the businesses who
have used (or will use) external venues in 2023.
“Our VenueVerdict Event Planner Feedback data has seen
terrific recovery in the average level of performance this year compared with
2022, but it still remains slightly below pre-pandemic levels and that is
something that we feel needs addressing as it is likely to be playing some part
in this.”
“Understandably focus has been elsewhere while teams have
been rebuilding and getting back up to strength,” Tawadrous continued, “but if
these figures hold true next year it strongly suggests that the value of
offsite meetings needs better reinforcing, and the best way to do that is to
deliver epic events that leave people wanting more, not less.”
