Event planners and vendors are feeling bullish as they work through the recovery from the economic downturn. A survey of BizBash readers meant to take the temperature of the industry reveals that event pros are cautiously optimistic about their prospects, as many see event and budget levels on the rise.
Asked to describe the economic state of the industry, 77 percent of respondents chose bullish responses.
While 41 percent picked the answer “We’re just starting to recover,” 32 percent were slightly more optimistic, choosing “We’re through the worst of it, and we have settled into a new normal.” While four percent picked the sunny “We’re fully recovered and back to normal,” 23 percent chose more negative responses: “We’re still in the thick of the downturn” (20 percent) and “It’s going to get worse before it gets better” (four percent).
Planners and vendors responded similarly, although in-house corporate and nonprofit planners were the most positive-thinking group by just a few percentage points—a possible sign of things to come, as in-house planners know about event spending first.
The survey also asked readers to describe the economic effects on the industry now as compared to a year ago. Among the comments: “I think we’re heading back to healthy…there is a ‘new normal.’” “The sky isn’t falling but people are still cautious.” “Companies are [willing] to find more money if the promise of a bigger splash can be quantified—but it really has to be a sure thing…people are willing to invest more in social media and technology components.” “Budgets are tight and people are looking for value and the best price, but at least they are going to contract in many cases and not just canceling events.”
Budgets
Event spending appears to be rising, with 41 percent of readers saying their budgets this month are up from September 2009 levels. Meanwhile 28 percent said their budgets are flat, and 31 percent reported smaller budgets. As for how many dollars are being spent, 32 percent of readers reported one- to 15-percent increases, with a lucky nine percent seeing hikes larger than 15 percent.
What’s on the Books
Asked to compare the number of events and meetings in the works for the fourth quarter of 2010 compared to that quarter in 2009, almost half reported having more to do: 35 percent reported being up slightly (as much as 15 percent up), while 13 percent said they’re up more than 15 percent. A quarter of readers were down from this time last year, and 27 percent reported being flat.
It’s still early to measure one of the annual gages of event industry economics—the corporate holiday party. While 42 percent of in-house planners said their organization would have a staff gathering this year, 35 percent said it was still a maybe.
So how are planners and vendors dealing with the lingering economic troubles? More than a third said they’re haggling over prices more now than a year ago, while just more than half said they’re negotiating about as much as last year. Just 10 percent reported haggling less.
Industry Jobs
While budgets and events might be coming back, jobs aren’t: 55 percent of planners (both in-house and external) reported that the staffing level of their department or firm is flat as compared to a year ago. A quarter is down, and 20 percent is up.
Vendors told a similar story, but suggested more movement: About a third of readers say their staffing level is flat, with a third up and a third down.
Still, industry folks feel OK about their long-term job prospects. More than half said they’re “cautiously optimistic,” and more than a quarter said they’re “very optimistic.” Seventeen percent are “a little worried,” and a mere two percent are “terrified.”
More on the Bright Side
And how’s this for optimism: When venue and vendor employees were asked how their company is doing compared to the rest of the industry, 43 percent felt they’re on par with others, 45 percent felt they’re doing better than most, and only 12 percent felt they’re doing worse than most.
That, of course, seems impossible or at least unlikely, although perhaps you could consider the sample—maybe BizBash readers tend to do better than average?
Methodology
The survey was conducted online from September 13 to 23. BizBash shared a link to the survey with email newsletter subscribers and Twitter followers of @BizBash_News. The data here represents responses from 1,023 people who identified themselves as event planners (who work in-house, on their own, or at firms) or owners or employees of venues or industry vendors.
The included responses break down almost equally into three categories: in-house planners, external planners, and employees or owners of venues and vendors. (More specifically, 17 percent work on events in-house for a company; 19 percent work in-house for an association or nonprofit; 31 percent own or work for an event planning firm, PR firm, or production company; 13 percent own or work for a venue; and 20 percent own or work for an event vendor such as a caterer, design firm, or rental company.)
