Cost per attendee

Costs per attendee are expected to rise next year even as growth in aviation and hotels begins to stabilize, according to a new GBTA report.

The cost per person to host a meeting or event actually fell by 3% last year, is expected to increase by 4.3% this year, and is expected to increase by another 4.5% in 2025. The average daily cost per attendee will grow from $162 this year to $169 in 2025, according to the recently released 2025 Global Business Travel Forecast from business travel and meetings company CWT and the Global Business Travel Association (GBTA).

Despite rising food and hotel room costs, cost per attendee will increase from 2022 to 2023 as meeting and event organizers shift to holding smaller, more business-focused meetings at more affordable venues and destinations Year-on-year decline. Through 2024 and looking forward to 2025, these costs are expected to rise as the business travel industry continues to recover, increased demand for larger and more complex live events, and an increase in the number and scope of incentive events. The report recommends that host organizations develop a 12-month plan and consolidate travel and conference spending to enhance their negotiating leverage.

The good news is that while meeting and event-related costs—from airfare and hotels to ground transportation, audiovisuals, and catering—are not expected to decline anytime soon, growth will slow significantly through at least the remainder of 2024 and into 2025.

“While travel costs have fluctuated significantly over the past few years, our latest data suggests a period of relative stability is on the horizon,” said Patrick Andersen, CWT president and CEO. “By 2024 and 2025 , companies are expected to usher in a more predictable pricing environment, allowing for better budget planning and cost management. However, attention to geopolitical factors, inflationary pressures and ESG issues remain critical. ”

Here’s a snapshot of the report’s forecasts for some key conference elements:

Air ticket price: For domestic flights, costs are expected to rise just 0.5%, from an average of $810 in 2024 to $814 in 2025. This relative stability can be attributed, at least in part, to excess capacity as a result of continued weakness in the leisure travel market.

hotel: Average daily home prices for commercial-focused properties will rise 3.4% in 2024, to $184, and are expected to be somewhat flat next year, with an expected increase of just 1.6%, or an average of $187. This is due at least in part to continued weakness in the leisure travel segment, which, as the report notes, “means there is an increased focus on transient business travelers and groups as demand for group travel remains stable”.

The report also makes several recommendations on how conference and event organizers can help defray expected increases in cost per attendee, including:

• Consider smaller cities with less demand.
• Make your site selection and reservations early.
• Consolidate spending on meetings, events, and other business travel to gain leverage based on travel spend categories organization-wide.

The report also recommends changing the view of meetings from an expense to an investment in employee engagement and retention, especially for Gen Z attendees.

Download the full report on the CWT website.

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