Almost two-thirds (64%) of organisations have increased their prices this year to combat rising costs, according to the Meetings Industry Association (MIA).
Surveying 109 event
venues, suppliers, agents and destinations, the association’s latest Insight
report reveals that almost 9 in 10 (89%) organisations have seen their costs
increase this year by an average of 12%. By comparison, organisations have only
increased their prices by an average 7%.
In response to
combating price increases, almost a third (32%) have had to delay investing
further in their business, while over a quarter (26%) have been forced to
reduce their workforce, putting more pressure on employees to maintain
standards with fewer people. This is particularly notable in light of findings
from the MIA’s People survey earlier this year, which revealed that 92% of
employees experiencing stress or burnout identified high workloads as the
primary cause.
As organisations
battle cost increases, almost half (46%) state they are down on their revenue
forecasts for 2025, with only two-thirds (66%) confident that they’ll meet
their 2025 revenue target.
Providing a snapshot
of current demand across the sector, the findings reveal the average lead time
for bookings at 12 weeks, with almost two-thirds (65%) of respondents reporting
slightly shorter lead times compared to a year ago. At the same time, 4 in 10
(40%) state that client budgets have decreased, highlighting ongoing financial
pressures across the UK.
Elsewhere, the report
also reveals how sustainability has slipped down the priority list in 2025,
with just 22% saying credentials are frequently requested in RFPs. Though, 62%
measure and report on their environmental performance, only 37% do so
regularly. Almost half (49%) cited carbon measurement and reporting as the most
challenging sustainability measure to implement, highlighting a clear gap
between ambition and implementation.
MIA chief executive,
Shonali Devereaux, said: “With booking trends, client expectations and economic
pressures evolving rapidly, understanding how the sector is performing is
proving invaluable in keeping organisations informed, assured and agile.
“While many
organisations remain confident in meeting their revenue targets, rising costs
continue to shift the goalposts for profitability and the sustainability of our
industry. In response, almost two-thirds have increased their prices and over a
quarter have had to reduce their workforce. This isn’t just a financial concern
but demonstrates the wider economic ripple effect on areas such as employment
and investment when our industry is under strain.
“Alongside our People
survey from earlier this year, our Insights highlight that the sector is at a
critical juncture. Rising costs and economic pressures are placing significant
strain on businesses, and something has to give. As an industry, we now have an
opportunity to decide how we respond, balancing the priorities of People,
Profit and Planet, embracing innovation, being digitally curious, operating
with openness and authenticity, and adopting strategies that strengthen
resilience.”
“These insights come
at a particularly significant time, as we await the measures set out in the
upcoming Autumn Budget and continue our two-way discussions with the Department
for Business and Trade to lobby sector-specific initiatives.” -TradeArabia News Service