The estimated value of cancelled business across the sector as a result of recent rail strikes is more than £337 million, according to the Meetings Industry Association's (mia) latest research.
In a survey of 126 event venues and suppliers, the association found that almost all
(94 per cent) of respondents have been negatively affected by rail strikes, resulting in an estimated £337m of cancelled business and £552m of postponed business. The results were scaled up to reflect 3,500
sector organisations.
The average organisations’ estimated value of
cancelled business due to rail strikes is just under £100k (£96,378), while the average estimated value of
postponed business is £157k.
The survey also revelaed the effect of the well-documented rise of energy costs, as more than three quarters (76 per cent) of organisations said they had increased their prices by an average of 13 per cent to mitigate increased operating costs in the last six months.
Elsewhere in the survey there was much positivity for 2023, as a third of organisations within the sector started the year with more confirmed bookings for 2023 than they did in 2019, and two thirds (66 per cent) of organisations have forecasted more revenue for the year ahead compared to 2022.
Nine out of 10 organisations (91 per cent) list sustainability as a key part of
their business strategy, with almost three quarters (73 per cent)
holding measurable sustainable targets.
Beyond financial forecasts and threats, the insight on staffing highlights the sector’s ongoing recruitment challenge as 53 per cent of organisations claim to be understaffed, almost half (47 per cent) have had to reduce their service, with almost 8 in 10 (79 per cent) currently advertising live vacancies.
Kerrin MacPhie, chief executive of the mia, said: “While the latest forecasts from within the sector give confidence that we are navigating the road to recovery well in testing times, we must remain cautious of ongoing challenges that threaten the industry’s recovery.
“The value of business cancelled due to rail strikes demonstrates just how the UK’s volatile environment can change forecasts at the flick of a switch. Optimism is winning the race just now, long may it last.”
She added: “Following plans for further rail strikes in March and April, in addition to the end of the energy support scheme, our findings are timely in enabling us to inform government departments on the state of the sector and the attention it requires. It not only supports our lobbying efforts, but our research is also serving as a powerful resource that keeps our sector on the government’s agenda, ensuring business meetings and events get the representation and recognition it needs.”
Mia vice chair Charles Sargeant, MD of Whittlebury Park, said: “2022 was to be the year that the sector bounced back better, and despite having a slow start due to government messaging, events picked up and continued to recover well throughout the year.
“It is positive to see that confirmed business appears buoyant and even surpasses 2019 levels in cases. We are continuing to see highly compressed lead times, with decision-making and planning often taking place over a matter of weeks - or even days in some instances. This is mirroring the package holiday industry, for example, whereby bookings are being made seven days in advance as opposed to seven months ahead.
“Although short lead times inevitably create challenges for the sector, we are continuing to demonstrate how flexible and adaptive we are in the face of continually evolving conditions.”
Read the full report here.
