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Upward Pressure on Costs a Challenge for Planners, reports MPI


Rising costs in air travel, f&b and catering, and accommodation will have an impact on event budgets in 2015, reports Meetings Professionals International (MPI) in the latest edition of its quarterly Meetings Outlook Report.

Respondents to the survey said air/travel (89%), f&b/catering (87%) and room rates (84%) are the expenses they expect to increase the most. MPI’s research shows that air travel costs will climb five percent, f&b/catering charges will rise four percent and room rates will go up 3.9 percent.

The impact of the rising costs is compounded by shorter lead times for event planning versus the need to book services earlier on the supplier side to ensure availability.

In terms of event budgets, MPI reports projected growth rates of 3.2% in the United States and 3.6% in the European Union. The anticipated overall budget growth is expected to be 1.7%.

Not surprisingly, practical business outcomes continue to be the focus of most meetings. The research shows that training , educational events and sales meetings top the list of event types for 2015.

  • Training: More – 68%; same – 24%; less – 8%
  • Educational Events:┬áMore – 63%; same – 30%; less – 7%
  • Sales Meetings:┬áMore – 62%; same – 28%; less – 11%
  • VIP Clients: More – 57%; same – 34%; less – 9%
  • Special Events: More – 52%; same – 34%; less – 15%
  • Incentive Meetings: More – 48%; same – 32%; less – 20%
  • Annual Conventions: More – 46%; same – 44%; less – 10%
  • Management Events: More – 45%; same – 50%; less – 5%
  • Trade Shows: More – 41%; same – 42%; less – 17%
  • Board Meetings: More – 36%; same -61%; less – 4%
  • Symposiums: More – 35%; same – 54%; less – 11%

 



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