Washington, D.C. – Global DMC Partners (GDP) has released the results of its Q3 2024 Meetings & Events Pulse Survey, a report on what is currently driving decisions in the global meetings and events industry. With 165 responses collected from June 27 through August 9, the report covers topics including meetings and incentives budgets, cost management strategies, lead times, Diversity, Equity and Inclusion (DEI) integration, sustainability practices and industry adoption of AI tools. The survey polled meeting and event professionals, the majority of whom are based in the U.S. and Canada, with 20 percent in the U.K. and Europe. Respondents were divided between corporate/direct planners (37 percent), agency/third-party planners (40 percent) and association and independent meeting planners (23 percent), as well as others (freelancers and suppliers).
Key insights included:
- Budget Disparities Worldwide – International planners may experience greater budget challenges, with only 27 percent reporting budget increases compared to 44 percent of U.S. and Canadian planners.
- Budget Increases Are Not Enough – Among those with budget increases this year, 57 percent saw a 10 to 20 percent rise, which in many cases does not even cover inflationary increases, reducing purchasing power for planners and leaves no additional budget for creative or experiential program elements.
- Continued Rising Costs – Higher costs remain the top challenge for planners, holding the top spot since Q4 2022.
- Hotels, F&B, and A/V – When it comes to working with hotels and venues, higher accommodation, F&B and A/V costs are top challenges for planners, with nearly 80 percent struggling with accommodation rates and over 70 percent facing higher A/V costs most or all of the time.
- AI Adoption – AI adoption within the MICE industry has increased substantially since the last survey at the end of 2023/early 2024. Thirty percent of planners in the last survey reported using it in their day-to-day lives, and now nearly half of planners say they use it frequently. ChatGPT and Microsoft CoPilot are the most widely adopted.
Budgets & Costs
From 2023 to 2024, 39 percent of respondents saw budget increases, 16 percent saw decreases, and 45 percent reported no change. Notably, 44 percent of U.S. and Canadian respondents experienced budget increases, compared to 27 percent internationally. Cost increases in areas like hotels, F&B, and AV are driving the need for higher budgets. With most budgets increasing by only ten to 20 percent, these adjustments merely cover inflationary increases rather than allowing for more creative expenditures.
“Many of our clients are reporting having serious conversations with their end-clients, CFOs, or Finance Departments regarding increasing budgets in order to deliver the same types of programs as in previous years,” said Global DMC Partners President and CEO Catherine Chaulet. “There has been an increase across the industry in meeting costs (hotel, F&B, AV, decor, etc.), and all budgets have had to increase to accommodate, so we recognize that it’s an ongoing challenge we will all need to address in creative new ways.”
There were disparities between U.S./Canadian and international respondents, as 44 percent of the former reported program budgets increased from 2023 to 2024, while only 27 percent of the latter reported the same. International respondents noted that 22 percent of budgets had decreased, while 51 percent stayed the same. Those from the U.S. and Canada reported that 14 percent decreased and 43 percent remained the same.
Rising Costs
The majority of planners report that costs have increased by 10 to 30 percent on average across various categories compared to two years ago. Specifically, significant cost hikes were noted in hotels/venues, food & beverage, airfare, and ground transportation. This trend highlights the growing financial pressures within the industry, impacting overall budget planning and allocation. Over 40 percent of participants indicated that they have seen an increase of between 11 and 20 percent on F&B costs compared to two years ago. Thirty-one percent report noticing the same amount of increase on ground transportation costs. A quarter of respondents are reporting they have seen an increase of 21 to 30 percent in Hotels/Venues, Food & Beverage, and Airfare costs.
Cost Management Strategies
Event planners have cut back on A/V costs, reduced the number of days of the program, or consolidated/reduced the amount of programs per year (42-46 percent report doing these sometimes) and used early contracting (32 percent do most of the time) to save costs. Some respondents noted in their comments that tighter budgets boost efficiency and promote environmental awareness. They also increase virtual event revenue and encourage using more volunteers, car-share services, and simpler meals.
Top Challenges
Higher costs continue to be the top challenge, and this has remained in the top spot since Q4 2022. Interestingly, the top five challenges are consistent across both U.S./Canadian and international respondents, indicating that these issues are universally felt, with no significant variations between the groups. Those include availability issues, budget management, timely approval from decision-makers, and contract negotiations.
Top Challenges – Hotels & Venues
Nearly 80 percent of planners report that most of the time or all the time higher accommodation rates are a big challenge when working with hotels and venues. Over 70 percent of planners are struggling with higher-than-expected A/V costs most of the time or all the time. Forty-two percent report that availability (finding space and dates) is a common challenge most of the time. Over 66 percent of planners noted that they face higher accommodation rates most of the time, and more than 70 percent report the challenge of slow response times sometimes or most of the time.
Planning and Lead Times
Lead times for client events continue to trend on the shorter side, as 43 percent of planners report four to nine months of planning, while nine percent have experienced lead times of three months or less. Twenty-six percent of respondents report event planning timelines of 10 to 12 months in advance, up from 15 percent in the last survey, suggesting lead times might be improving.
DEI
When asked about the incorporation of DEI and accessibility elements, twenty-six percent of respondents report incorporating elements into most programs, while 18 percent are including them in every program. Aspects that are being incorporated include initiatives that cultivate collective belonging, accessible venues, inclusive programming, agendas, and formats for all learning styles, closed captioning and sign language.
Wellness
While only about a fifth of planners frequently include wellness into their programs, it is often prioritized in incentive programs.
Sustainability
Responses on sustainability practices reveal disparities between the U.S. and international responses regarding approaches and commitment. While 15 percent of U.S. respondents incorporate sustainability in about half of their programs, twenty-one percent of the international respondents report the same. Additionally, just seven percent of organizations in the U.S. indicated that they integrate sustainability practices all the time or into every program, whereas 31 percent of their international counterparts reported the same. Sustainability measures that are incorporated include selecting program components within walking distance, locally sourced food options, reducing plastic waste, donations to local organizations, finding ways to recycle and reuse event materials, and incorporating sustainable/CSR-focused activities. Nearly 80 percent of planners find it can be challenging to incorporate sustainability into their programs due to costs.
Use of AI Tools
The adoption of AI tools in the industry continues to grow, as 48 percent of respondents report using AI tools in their day-to-day job, up from 30 percent at the end of 2023. Tools most often being used are Chatbots, like ChatGPT and CoPilot.
The article Rising costs and AI adoption shape global meetings industry in 2024 first appeared in TravelDailyNews International.
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