Ask the expert: what can event organisers do about rising inflation?

Rising costs are being pinpointed as the leading challenge event planners will face in 2023, says Live Group senior account manager, Sophie Cox, and with good reason...

The current rate of inflation in the UK is now 11.1 per cent, way over the Bank of England’s two per cent target. Our cost of living is rising at its fastest rate for over 40 years, largely because of increasing food and energy prices, and experts are predicting it will remain at these dizzy heights for at least a few more months and we will be in a recession until the middle of 2023.

Rising inflation doesn’t just result in lower levels of consumer spending, it also hits businesses hard as the power of the pound is squeezed, revenues fall, and profit margins narrow. At times like these, businesses are forced to reduce expenses, increase prices, and lower supply chain risk, which is why the events industry is reportedly facing ever-increasing costs and ever-shortening quote guarantees from suppliers.

On top of that, we’re facing currency fluctuations - the pound slid again on the forecast of recession. Covid-19 levels are still high and according to the Zoe Health Study app, we have more than two million current Covid-19 cases in the UK. Network Rail strikes are disrupting train services across the country, and hotel rates and flight prices are inflated.

It’s a perfect storm.

It's not as though we’re not used to uncertainty, price fluctuations, cancellations, eleventh-hour changes, and contingency planning into the wee hours. There has been plenty of that over the last two and a half years.

So, what makes this different, how can we best diffuse the impact of this period of uncertainty and its ever-moving influences?

Plan ahead to secure the best prices – for the foreseeable future, it would seem that prices are only going to continue increasing, due to staff shortages, supply chain difficulties, the war in Ukraine, the weakened pound and supply and demand. To secure the best prices, it really does pay to plan as far in advance as possible.

Contingency plan – by that I don’t just mean consider multiple date options. I mean look at every single element of your event, from timings, duration, attendee numbers, venues, locations, suppliers, travel, accommodation, and catering arrangements, right through to its format. In-person may be back, but it’s worth asking – as I’m sure you already do – ‘is there scope for your event to be hybrid or fully virtual?’ It’s important to remember the many benefits technologies now bring when it comes to creating more flexible, sustainable, inclusive and economical experiences for your attendees, particularly if they are global audiences based in multiple locations.

Invest in your supplier relationships – if you’re in-house and work directly with your suppliers, it’s essential that you invest in those relationships and communicate honestly and frequently with them. Doing so will put you in a better position to start negotiating your supplier contracts, including asking them to guarantee today’s prices for the duration of that contract, as well avoid potential shocks or conflict.

You can still make sustainable choices – prioritising cost doesn’t mean sacrificing your sustainability commitments. At the very least you can still offset carbon emissions and we’re currently working closely with clients to advise them on how they can set reduction targets while keeping an eye on budgets.

Consider working with an events agency – I know, I know, of course, I would say that, but working with an events agency – or any partner with extensive experience, industry knowledge, a global network of suppliers and the purchasing power to volume buy – can help you cut costs, maximise savings and get more for your budget, as well as open your eyes to new and innovative solutions. At Live Group, we have amazing relationships with our preferred suppliers that go back many, many years; relationships that we can call on to benefit our clients, particularly during tough times like these.

Source: mitmagazine.co.uk