Sandra Eyre, director of business development, the Meetings Industry Association (mia) assesses the sector’s plans to strengthen UK Government’s engagement with business meetings and events operators in 2023.
As we approach the end of 2023, it’s important that we recognise our recent positions, the challenges we’ve overcome and are overcoming, as well as any shifts in our forecasts for the future.
Operating within a diverse sector which features a wide range of inspiring venues, suppliers and agents alike, performance will of course vary from business to business.
Nevertheless, utilising our Insight Reports which have been issued throughout the year, we’re able to identify developments – both positive and negative – and assess the current state of the sector.
In a year that commenced with almost all (94%) organisations negatively impacted by rail strikes, costing the sector over £337m in cancelled business, we are pleased to be seeing the year out with some positive movements.
Staffing
The sector’s recruitment challenge has been well-documented, presenting direct consequences to organisations. Back in January, almost half (47%) of organisations reported having to reduce their service due to staff shortages.
Today, while staffing remains a challenge, event organisations are adapting their operations and enhancing their recruitment packages to mitigate these consequences. In January, almost eight in 10 organisations (79%) had staff vacancies and more than half (53%) highlighted staff shortages. During our most recent research conducted in October, six in 10 (61%) currently have staff vacancies, while almost half (49%) are still reporting staff shortages.
Recognising the threat of a depleted workforce and these staff shortages, we launched our Student Membership in June this year to inspire the next generation of talent and provide a platform to fulfil work experience opportunities in the sector. Over a third (36%) of organisations currently employ an apprentice, a statistic that we will be monitoring closely in 2024 as we look to present opportunities to those wanting to start a career in events.
Enquiries
Between May and October alone we’ve seen significant developments with enquiry trends, as demand for business meetings and events continues its recovery. Today, organisations are reporting a 42% average conversion rate on event enquiries, up from 34.5% reported in May.
Venues are also reporting an increase in lead times for events, which has risen from an average of 10.5 weeks in May, to 15.2 weeks today, providing venues with much-welcome time to manage event spaces and staffing requirements.
While the average value of an event enquiry has increased for almost half (49%) of venues compared to 12 months ago, (sitting at £30,927), venues mustn’t forget the value and potential of the meetings market. Listening to organisers, we’re seeing a strong appetite for meetings which can be booked at shorter notice, presenting the opportunity for an ‘Instant Book’ market to evolve in the year ahead.
We are therefore expecting to see an increase in shorter-notice meeting enquiries in 2024, allowing meeting planners to directly book one-day meetings online, typically for 20 delegates or less and with standard catering and AV.
While this would present new revenue generating opportunities for venues who are able to adapt with increased flexibility, just over one in 10 (12%) venues currently offer this option – a proportion we forecast to increase over the next 12 months.
Looking to the future
Our research throughout the year has presented many reasons for optimism, however as all event professionals know and as this year’s rail strikes have demonstrated, we can never guarantee what’s around the corner.
Next year will present new considerations once more, with the pending introduction of Martyn’s Law just one example of how venues are constantly evolving and adapting to new needs and requirements. With over a third (37%) of organisations not yet prepared for this, this is where we will continue to seek clarity from government and provide guidance on the developing responsibilities of the sector.
Utilising our findings throughout the year, we’ve reinforced our strong relationship with government, which has included positive meetings with Tourism Minister Sir John Whittingdale, where we’ve actively raised the sector’s position and our calls for specific support.
These invaluable findings, commended by the Department for Media, Culture and Sport, are only possible with the engagement of the sector. As we continue to develop these insights, we’re working hard to bridge the gap between our members and government in 2024 so that we can continue to demonstrate why meetings matter.
For us as the industry’s association, not only is it important that we understand the state of the sector, but also the evolving roles and needs of the various stakeholders within it. Recognising this, we’ve developed dedicated peer-groups designed to facilitate and encourage much-needed conversations on increasingly pertinent topics, expanding upon our industry insights.
These groups will provide a platform for like-minded professionals to engage and explore innovative ways of approaching opportunities and challenges within the sector, not just for event organisations, but for event professionals. This includes groups devoted towards large venues, academic venues, hotel groups, student membership, LGBTQ+, sustainability, destinations, Instant Book, stadia and more in the pipeline. Spanning every corner of events, we are confident in creating a platform that allows us to address challenges and present opportunities as efficiently as possible, utilising collaboration to ensure that we as a sector are better equipped to adapt and thrive.
