The latest GBTA Global Business Travel Forecast predicts that 2025 will see a moderation in prices, with smaller increases compared to previous years. In the meetings and events sector, however, the price per attendee is expected to rise by 4.3% in 2025, significantly outpacing the 0.6% increase in air travel and the 1.9% rise in hotel costs. Continued recovery and growing demand for larger, more complex events can explain, only in part, the M&E anomaly.
The meetings and events industry encompasses a diverse range of sub-sectors, including foodservice, lodging, meetings and conventions centres, technology, audiovisual services, attractions, entertainment and transportation. Given its interconnectedness with various other industries, fluctuations in the economic cycle can significantly impact its outcomes. Furthermore, societal changes can significantly influence the sector, especially in a highly globalized industry where bookings are made months or even years in advance. In such a dynamic environment, the ability to quickly adapt is crucial.
Adjusting behaviors at the individual event level and making strategic decisions at the program level can help reduce meetings and events expenditure. Here are four effective ways to control your budget in 2025.
Advance Planning
As the saying goes, time is money, and this holds true when planning an event. Planning ahead allows CWT to secure better deals with vendors, venues, and suppliers. Many providers offer discounts for early bookings, which can significantly reduce costs. In addition, early planning provides more time to compare competitive prices and increases the chances of securing preferred vendors and suppliers at expected rates.
Last-minute bookings often result in limited availability, leading to more expensive alternatives, such as expedited shipping, higher labor costs, or premium rates. Furthermore, advance planning enables a more accurate headcount of attendees, helping to avoid over or under-ordering supplies like food, materials, or seating. Both scenarios can lead to wasted resources and unnecessary costs.
Consolidating travel and meeting expenditures
While various factors and individual corporate decisions often prevent travel and meetings from being grouped together, companies can still strengthen their negotiating position and secure better rates and terms. The key advantage lies in volume; the higher the volume, the more favorable the conditions.
When corporate negotiations aren’t feasible, CWT offers exclusive agreements with hotels and venues to benefit its clients. Additionally, tracking travel and meeting expenses together makes it easier to identify overlapping costs and eliminate redundancies, ensuring that resources are allocated more efficiently.
This streamlined approach also provides greater visibility into spending patterns, enabling more strategic decision-making when selecting vendors and locations. Ultimately, consolidating these expenditures allows organizations to reduce administrative overhead, take advantage of group rates, and ensure their budgets are used as effectively as possible.
Using the right technology
Utilizing event management software can streamline planning processes, enhance efficiency, and provide valuable data analytics to monitor and control expenses effectively. Recent research from Event Industry News reveals that the most widely used AI technologies in the events industry are focused on event content creation, audience engagement, and operational automation. The latter aims to boost productivity. Not long ago, teams were bogged down by lengthy Excel files detailing attendees' itineraries. Today, a range of technologies can store all relevant data and updates, significantly reducing the time spent on tasks that once took days.
We, as an industry, have made significant progress from the days of manual processes. Corporations that invest in the right technology or partner with CWT stand to gain substantial benefits. By maximizing technology use, organizations can reduce the need for high-touch interactions. For example, automating tasks like room allocation or pairing attendees for shared rooms can save considerable time that would otherwise be spent manually managing these details.
Choosing second-tier cities
Second-tier cities can often be the ideal destination for organizing events, offering a perfect balance of affordability, accessibility, and unique local experiences. Compared to first-tier cities, which are known for their high venue costs, expensive accommodations, and overall pricey logistics, second-tier cities typically offer significant cost savings without sacrificing quality.
Hotel prices and event venue rates in second-tier cities are often 30-50% lower than in major global hubs such as London or New York, allowing event planners to stretch their budgets further. These cities also feature modern infrastructure, excellent transportation networks, and a variety of venues that can cater to both large-scale and more intimate events.
Additionally, the local culture and generally less crowded environment can provide a refreshing atmosphere, offering attendees a break from the hustle and bustle of more touristic destinations. For organizations looking to host a memorable, cost-effective event, second-tier cities present an attractive alternative, providing great value without compromising the overall experience.