“Q2 2023 paints a picture of growth and challenges,” says UK industry Think Tank

The UK’s events landscape for Q2 2023 paints a picture of “growth and challenges”, according to UK’s The Business of Events’ (TBOE) Event Economy Tracker Q2 2023. This is shown by a 22% increase in the revenue per delegate for conferences and meetings, reaching £137.85 (US$174.64) from the previous quarter’s £112.95. This surge has propelled the average revenue per delegate to £125.40 in the first half of the year, surpassing the prior annual averages of £108.96 in 2021 and £104.78 in 2022. The quarterly average for Q2 the previous year (2022) stood at £113.23, highlighting “the steep ascent in prices”. Other key findings include: The return of events Q2 showcased a surge in confirmed events, outpacing the previous quarter. While forward bookings remained stable, showing a minor decline in June, the quarter as a whole “exhibited strength”, notwithstanding a marginal dip in the peak compared to Q1. June’s confirmed events closely mirrored the zenith of November 2022 and matched March’s figures, emphasising the recurring pattern of the third month proving the strongest. Attributed to pent-up demand following pandemic-related restrictions, the robust trend in in-person events endures in Q2 2023. Even as inflation impacts various sectors, businesses continue to prioritise face-to-face interactions. Industry challenges However, the report also found that the industry grapples with maintaining quality service due to high event volumes. While UK inflation slightly eased to 7.9% in June, it has not translated to reduced event costs. Energy price hikes have particularly affected the sector, amplifying cost pressures for commercial venues that lacked the same level of government support as individuals. Amidst this backdrop, the average lead time for conferences and meetings in Q2 2023 increased to 80 days from Q1’s 64 days. Though only a fractional rise from Q2 2022’s 77 days, this underlines the departure from the pre-pandemic trend observed in 2019 and short lead times remain. Furthermore, the average number of delegates per event has continued to slide and sat at 65 in Q2 2023, down from Q1’s 74. The year’s average to date is notably lower compared to 2022’s average of 93 delegates per event, reflecting a 25% drop. This underlines the shift towards smaller events despite their increased frequency. This will also contribute to higher prices as venues compensate for smaller events. As the events sector grapples with inflationary pressures and changing attendee dynamics, adapting to the evolving landscape while maintaining quality and profitability remains a paramount challenge. Martin Fullard, director, news and content at DT, the agency which manages the TBOE Think Tank, said: “Q2 paints a mixed picture. It has demonstrated a strong appetite for in-person events remains, and despite the Easter Break and an additional [UK] Bank Holiday in May, forward bookings and actual events taking place remained strong. “However, there remain challenges that cannot be ignored. Inflation in June sat at 7.9% and as a result we’ve seen a notable increase in revenue per delegate, some 22%. This has been impacted further by the fact that there has been a clear reduction in the number of delegates at events, by some 25% on 2022’s average. This means venues may not be earning as much from their spaces. While more events are taking place this is an increased pressure on resource.” Data was supplied by Venue Performance, from a sample of 400 venues.