In Q4 2023, the meetings industry continued
its upward trajectory, with the highest number of events held in
November, according to the latest Events Economy Tracker Report by The Business
of Events.
Revenue Per Delegate
Revenue per delegate, encompassing venue hire charges, food
and beverage, and other expenses like audio-visual hire, reached £109.50 in Q4,
a slight increase from Q3 but notably lower than Q2's peak at £137.85.
This stabilisation hints at sustained business levels as
costs plateau. The annual average Revenue Per Delegate for 2023 was £117.57,
marking a 12.19 per cent rise from 2022. Inflation, particularly in food costs,
remains a significant contributor to this increase.
Mark Taylor, chief executive fo the QEII Centre said, “Our
experience reinforces this upward trend; 2023 was our third best trading year,
generating 15.6 per cent higher revenue than 2022. In fact, September was the
highest revenue-generating month in our history. Catering and AV are thriving,
and 2024 is expected to be our best trading year ever by circa 7 per cent.”
Lead Times
Lead times for event bookings lengthened in Q4 2023, with
conferences and meetings averaging 95 days compared to 72 days in Q3.
Short lead times persist as a broader industry trend, though
still longer than pre-pandemic levels. Venues have acknowledged that they don’t
expect to see the increase as a change in trends, but rather an anomaly. Short
lead time persists as a challenge for the sector.
Danielle Bounds, sales director at ICC Wales said we should
be reading too much into the slight increase in lead times for Q4 in 2023. “Our
experience here at ICC Wales is that short-lead times and even last-minute
event bookings remain a deep concern for the industry. At the start of last
year, we would have hoped that by now, lead times may return to something like
pre-pandemic levels, but this is far from the reality".
Number of Delegates
The average delegate attendance in Q4 2023 was 69, up from
36 in Q3, resulting in a yearly average of 59 delegates per event.
This figure reflects a 37 per cent decrease from 2022,
indicating a trend toward smaller events despite a higher revenue per delegate.
This reduction in delegate numbers suggests event planners are balancing
increased costs by hosting fewer attendees. Overall, while challenges like
inflation persist, the industry continues to adapt, evidenced by shifting
booking patterns and attendee sizes.
A free copy of the Q4 2023 report can be downloaded
here.
