Global DMC Partners Results and Key Findings of Q3

BE Industry Faces Ongoing Cost Challenges and the Need for Larger Budget Increases

Global DMC Partners, GDP, the largest global network of independent destination management companies, DMCs, and specialised event service providers, 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 meeting and incentive 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, most based in the US and Canada, with 20 per cent in the UK and Europe. Respondents were divided between corporate/direct planners (37 per cent), agency/third-party planners (40 per cent), association and independent meeting planners (23 per cent), with the ‘other’ category (freelancers/suppliers) approaching 0 per cent.

Key insights

• Budget disparities worldwide  International planners may experience greater budget challenges, with only 27 per cent reporting budget increases compared to 44 per cent of US and Canadian planners.
• Budget increases are not enough  Among those with budget increases this year, 57 per cent saw a 10–20 per cent 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, food and beverage, and A/V costs are top challenges for planners. Nearly 80 per cent struggle with accommodation rates, and over 70 per cent face higher A/V costs most or all of the time.
• AI adoption The business events industry has increased AI adoption substantially since the last survey at the end of 2023/early 2024. Thirty per cent of planners in the last survey reported using AI in their day-to-day lives, and now nearly half of planners say they use it frequently.

Budgets and Costs  From 2023 to 2024, 39 per cent of respondents saw budget increases, while 16 per cent saw decreases, and 45 per cent reported no change. Cost increases in areas like hotels, F&B, and AV are driving the need for higher budgets. With most budgets increasing by only 10–20 per cent, 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 to deliver the same programs as in previous years,” says Global DMC Partners President and CEO Catherine Chaulet. “There has been an increase across the industry in meeting costs (hotel, F&B, AV, decor, etcetera), and all budgets have had to increase to accommodate, so we recognise that it’s an ongoing challenge we will all need to address in creative new ways.”

There were disparities between US/Canadian and international respondents, as 44 per cent of the former reported program budgets increased from 2023 to 2024, while only 27 per cent of the latter reported the same. International respondents noted that 22 per cent of budgets had decreased, while 51 per cent stayed the same. Those from the US and Canada reported that 14 per cent decreased and 43 per cent remained the same.

Rising costs  Most planners report that costs have increased 10–30 per cent on average across various categories compared to two years ago. Specifically, significant cost hikes were noted in hotels/venues, food and beverage, airfare, and ground transportation. This trend highlights the growing financial pressures within the industry, impacting overall budget planning and allocation. Over 40 per cent of participants indicated that they have seen an increase of 11–20 per cent on F&B costs compared to two years ago. Thirty-one per cent report noticing the same increase in ground transportation costs. A quarter of respondents report an increase of 21–30 per cent in hotels/venues, food and 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 number of programs per year (42–46 per cent report making these types of adjustments at times) and used early contracting to save costs (32 per cent do this most of the time). Some respondents commented 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 remain the top challenge, which has remained in the top spot since Q4 2022. Interestingly, the top five challenges are consistent across US/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 and venues  Nearly 80 per cent of planners report that higher accommodation rates are a big challenge when working with hotels and venues most of the time or all the time. Over 70 per cent of planners are struggling with higher-than-expected A/V costs most of the time or all the time. Forty-two per cent report that availability (finding space and dates) is a common challenge most of the time. Over 66 per cent of planners noted that they face higher accommodation rates most of the time, and more than 70 per cent 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 per cent of planners report 4–9 months of planning, while nine per cent have experienced lead times of three months or less. Twenty-six per cent of respondents report event planning timelines of 10–12 months in advance, up from 15 per cent in the last survey, suggesting lead times might be improving.

Diversity, equity and inclusion, DEI  When asked about the incorporation of DEI and accessibility elements, 26 per cent of respondents reported incorporating elements into most programs, while 18 per cent included them in every program. Aspects 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 prioritised in incentive programs.

Sustainability  Responses on sustainability practices reveal disparities between the US and international responses regarding approaches and commitment. While 15 per cent of US respondents incorporate sustainability in about half of their programs, 21 per cent of the global respondents report the same. Additionally, just seven per cent of organisations in the US indicated that they integrate sustainability practices all the time or into every program, whereas 31 per cent of their international counterparts reported the same. Sustainability measures include selecting program components within walking distance, locally sourced food options, reducing plastic waste, donations to local organisations, finding ways to recycle and reuse event materials, and incorporating sustainable/CSR-focused activities. Nearly 80 per cent of planners find integrating sustainability into their programs challenging due to costs.

Use of AI tools  The adoption of AI tools in the industry continues to grow, as 48 per cent of respondents report using AI tools in their day-to-day jobs, up from 30 per cent at the end of 2023. The tools most often being used are chatbots, like ChatGPT and Copilot.

Global DMC Partners (GDP) is the largest worldwide network of independent destination management companies (DMCs) and specialised event service providers. Leveraging its exclusive partnerships, GDP provides a one-stop global solution for total event success in more than 500 destinations worldwide. An experienced, on-the-ground international sales team centralises meeting professionals’ event needs, from local DMC services to health and safety protocols, staffing, event technology, gifting, speakers and production. www.globaldmcpartners.com