New survey from Global Event Partners finds rising costs are challenging event planners
The recently released Global DMC Partners (GDP) Meetings & Events Pulse Survey, finds that budgets have tightened in 2025. GDP conducts the Meetings & Events Pulse Survey twice a year, gathering insights from event planners, meeting professionals, and MICE industry experts worldwide. Downward trending budgets and rising costs is one of the key challenges facing the industry this year.
The report data paints a clear picture: hotels and venues are seeing the most substantial hikes, with a staggering 42% of planners reporting increases of 11-20%. This trend is mirrored in food and beverage, where 35% of planners face the same level of cost surge. And the pinch doesn’t stop there. Airfare and audiovisual (A/V) costs are also climbing steeply, with nearly 20% of planners grappling with rises of 21-30%.
These escalating expenses aren’t just a minor inconvenience; they are fundamentally reshaping the approach to budget planning and resource allocation. The pressure is on to deliver impactful events while diligently controlling costs, a delicate balancing act that demands strategic and innovative solutions.
Strategies for Cost Management
Faced with these realities, the meetings community is demonstrating resilience and ingenuity. The survey reveals several popular tactics gaining traction:
Right-Sizing Attendee Numbers: Over half (51%) of planners are sometimes opting for smaller gatherings as a direct response to rising costs.
Exploring Untapped Markets: A similar percentage (52%) are venturing into second or third-tier destinations, where costs may be more manageable without sacrificing event quality.
The Power of Early Bird Planning: Early contracting remains a cornerstone of cost control, with 39% sometimes and 23% consistently securing better rates through proactive booking.
The resounding message is clear, proactive and early planning, coupled with a relentless focus on cost-efficiency, are paramount to maintaining event quality in this environment. “Due to rising overall costs, clients are reducing the number of meetings as well as the deliverables within those meetings,” said one supplier.
The Tightening Grip: Reduced Negotiation and Stricter Terms
Beyond the raw cost increases, planners are also encountering a less flexible environment. Over 80% report that higher accommodation rates are a persistent challenge. Similarly, rising A/V costs (65%) and higher-than-expected F&B costs (75%) are consistent pain points.
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Adding to the complexity are stricter contracts, increased prepayment demands, and a noticeable reduction in negotiation flexibility. A significant 12% more planners now report less room for negotiation compared to previous surveys. As one planner succinctly put it, “Costs for F&B, accommodations, and A/V have skyrocketed, with properties rarely willing to negotiate to fit within budget.” This necessitates a shift in our negotiation strategies and a more meticulous approach to contract review.
“Costs for F&B, accommodations, and A/V have skyrocketed, with properties rarely willing to negotiate to fit within budget,” said one planner who responded to the survey.
Lead Times: A Critical Factor in Cost Management
The report also sheds light on the crucial role of lead times in our planning processes. Incentive programs, with their typically longer horizons, see a significant portion (33%) planned 13-24 months in advance. In contrast, meetings and conferences often operate on tighter timelines, with 36% organized just 4-6 months out.
Many planners highlighted the challenge of shorter lead times, exacerbated by internal schedules and slow response times from hotels. While Destination Management Companies (DMCs) are often engaged on similar timelines as other suppliers, their lead times tend to be slightly shorter. 1 This underscores the importance of streamlining internal processes and fostering strong, responsive relationships with all partners.
Based on responses from 127 participants gathered between December 2024 and January 2025, the Meetings & Events Pulse Survey Report provides a current view of the industry’s landscape, trends, and outlook. Other key trends identified in the report include opinions on generational workforce trends, sustainability, DEI and the influence of AI. Click here to obtain a copy of the report.
Any thoughts, opinions, or news? Please share them with me at vince@meetingsevents.com.
Photo by Katelyn Perry For Unsplash+
