The newly released CWT-GBTA Global Business Travel Forecast for 2025 points to the stark realities facing the meetings industry when it comes to budgets. The average daily cost per attendee is expected to increase to $162 by 2024, an increase of 4.5% from 2023, and to approximately $169 by 2025, an increase of 4.3% from 2023.
That’s a huge jump from 2021, when the average cost was just $88.
What is the reason for these increases? Organizers are getting more creative and not just putting on the same shows. Innovation requires more time, energy and money.
Many conferences and events are expected to contain hybrid elements, which will require investment in digital technology and the development of multi-platform content. In addition, organizations with ESG requirements are looking for suppliers that can provide data on carbon emissions, energy use and food waste, as well as tactical approaches to reducing emissions. This requires a higher price.
On the supplier side, staff shortages, rising wages and rising food and beverage costs have contributed to price increases. “This comes at a time of increased scrutiny of meetings and events budgets,” the report said.
The report calls on planners to become more strategic and recommends that companies take a holistic approach to meetings, aggregating data from the meetings and temporary travel departments and using this spend to get better deals with suppliers.
holistic approach
It also recommends that meeting organizers share responsibility for savings targets, giving them more “skin in the game”.
Heidi Daniels, senior director of global M&E consulting at CWT Meetings & Events, recommends planners work with peers in the corporate travel department to develop annual strategic plans. “It is critical for meeting and event program owners to be involved in strategy development, not only to advance their programs but also to align with their peers in the travel program.”
Such outreach can also be extended to other stakeholders, such as those responsible for sustainability and corporate risk, “to provide insight into initiatives across the organization,” the report said.
The report concludes that companies need to view meeting spending as an investment, not just an expense. “Currently, this is the exception rather than the rule. This is changing as people realize that M&E has reached a new higher benchmark and all costs must be justified.
5 ways to reduce costs
In addition to these strategies, Daniels recommends planners take the following actions to combat rising costs:
- Flexibility in choosing your destination – Second- and third-tier cities can provide cost advantages.
- Consider the cost and convenience of air travel – Venues in second-tier cities may offer lower prices, but may also cost more and take more time to get people to their destination.
- Plan ahead – Leading delivery time is one of the most critical factors in securing preferred location and competitive pricing.
- Share data with suppliers – Reliable data supports competitive negotiations.
- proactive – Planners must be willing to move quickly to preferred suppliers as prices change. Waiting for three-year RFPs is a thing of the past.
