Budget dilemma is event planners’ biggest challenge

cost

What is your biggest cost-related challenge?

The dramatic increase in the cost of self-driving after the pandemic – described by planners as “astronomical”, “ridiculous” and “unreasonable” – has left planners feeling trapped, with little flexibility to use external supplies due to exclusive agreements business. Planners have expressed frustration that venues and hotels are cutting services while raising fees, leading to growing feelings of unfairness and dissatisfaction.

References to “hidden fees,” “resort surcharges,” and “significant drops in service” suggest planners were blindsided and frustrated with the service providers they relied on. Planners say they often discover hidden or unexpected expenses after budgets are finalized, leaving them scrambling to pay for them.

Inflation is a pervasive problem that compounds planners’ dilemma. Costs are rising faster than revenue or registration fees, leading to a sense of helplessness.

The common theme of “budgets go down, expenses go up” reflects planners’ dilemma between sticking to tight budgets and meeting attendee’s high expectations.

Labor costs, particularly union labor and in-house AV contracts, are considered too high, and a lack of flexibility to negotiate better prices can lead to dissatisfaction. In addition, labor costs continue to rise without corresponding improvements in service, leaving planners feeling like they are paying more for less.

Planners are under intense pressure to meet the high expectations of clients and attendees, even as costs rise and budgets stay the same. There is concern that they will not be able to deliver the quality of experience that attendees expect, reflected in recurring phrases like “maintain the wow factor” and “attendees expect more.”

Planners are carefully examining every aspect of the event, from number of sessions to printed materials, and making thoughtful decisions to streamline the event without making too many compromises. They are cutting expenses, such as no longer offering all-day coffee, and scaling back the size of receptions, dinners and other social events to save costs while trying to retain the core value of the event.

Their response shows their resourcefulness in choosing cheaper venues and reducing décor, and reflects that they have accepted requests to scale back staff, transport and accommodation.