The Eastside Rooms: Cost of Living Impact Survey

Sub-Title:
Associations Increased Salaries while Organisers Saw Event Costs Rise in 2023!
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28th Oct, 2024
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The Eastside Rooms, a leading modern venue in the heart of Birmingham, surveyed 125 event professionals from around the world in October 2023 to identify the challenges and changes they face due to the current economic context.

This survey on the impact of the cost of living revealed that 83% of organisers have seen an increase in event costs over the last year, with 45% describing it as significant. When broken down, associations/non-profits are feeling the influence most significantly, with 88% of them registering an increase, compared to 73% of companies. According to the study, 37% of associations and 30% of organising companies have also increased the salaries of their professionals and teams.

Specifically:

  • 28% of non-profits (NPOs) increased staff salaries, while a further 9% increased freelance/consultant fees;
  • 25% of companies increased staff salaries, while another 5% increased freelance/consultant fees.

In fact, the two different sides of the industry are trying to mitigate the financial challenges in various ways. Associations/NPOs and companies have had to look for different strategies to balance the budget, from cutting back on catering and audio-visuals to increasing registration fees. 48% of organisers increased registration fees in 2023, while 51% of associations/NPOs reduced catering expenses in an effort to combat economic challenges and price increases. This compares to just 25% of companies, who see the biggest opportunity to make savings in reducing delegate numbers – 28%.

However, along with the impact on organisers, the research also explored differences observed in professionals’ behaviour. The report showed that 24% of organisers are offering flexible working arrangements to meet the needs of their teams. Another stark difference between the two sides of the market is changes in AV/ production costs, where 35% of associations/NPOs are reducing spending compared to just 20% of corporates.

During the survey, participants were asked what type of organisation they worked for – these were combined into two groups as follows: 80 associations/NPOs, 40 corporates and five industry suppliers. HQ spoke to Leanne Bladen, Director of Sales and Marketing at The Eastside Rooms, about these new client and organiser trends and their current needs:


How are the rising costs of events affecting their quality and scale? Are organisers cutting costs at the moment or finding innovative ways to maintain standards?

Associations/NPOs are reducing catering costs at their events, twice as much as corporates who see here a great opportunity to make savings by reducing the number of delegates. Another notable difference between the two sides of the market is the changes in production/AV costs, where both sides are reducing spending. This denotes two priority options for shortterm cost containment. Another point where we see a significant change between associations in this survey is the amount charged for registration, with again an increase almost twice as high as companies. It should be noted that 23% of associations/NPOs are increasing registration fees by more than 10%. One area where the two sectors align is event frequency, with both associations/NPOs (29%) and companies (25%) reducing the frequency with which they hold meetings and conferences. This may be circumstantial or continue throughout this year until economic stabilisation. However, it will be a reality that will accompany the life of many associations during this first half of the year, I believe.

"It is clear the industry continues to evolve through the current economic challenges faced by both associations/NPOs and corporates. Staff are the lifeblood of our industry, so it is a real positive that they are, on the whole, being looked after."


Do you think technology is playing a role in helping organisations manage costs more effectively in the face of these challenges?

I am noticing that most conferences are now investing in technology, such as apps to help with delegate registration and data gathering, such as dietary requirements, selection of their breakout sessions, etc. This then helps the organisers understand catering and space requirements. Once these are established, they can save money by making the best choices based on the needs of the delegates, rather than using guesswork. Such information also helps organisers understand delegate arrival times, allowing them to understand catering requirements at an incredibly detailed level.
 

Based on the survey results, what advice would you give to event professionals facing these economic challenges?

Just to try and be as organised as possible, which can be difficult as delegates are registering later and later for events, often due to cost restraints in their own businesses. It’s always best to contract for as close to the true delegate number as organisers believe are attending but to keep the lines of communication open with the venue. Often, we find organisers contract for perhaps 100 people less than are due to arrive, as registration is slow, but in the last week, they call up and increase numbers. This can be very difficult for a venue to manage due to stock ordering deadlines. Therefore, if an organiser truly does feel numbers could increase last minute, it’s sensible not to contract the highest number but to instead keep talking to the venue to avoid a last-minute shock – or even worse, inability to source enough ingredients!
 

Are there any plans to continue this survey in the future, with a larger sample size or extended reach in the UK, Europe and other global regions to gain a more comprehensive understanding of the ongoing economic impact?

Yes, we intend to run the survey again after a year to be able to measure the change amongst the responses and see what difference 12 months makes. The survey was already global, with 69% of the respondents from the UK, 19% from Europe and the remaining 12% from the rest of the world. However, we hope to grow these numbers as the survey matures.

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