The cost of costs
With costs rising for suppliers , this increase in price is likely to result in a change in pricing , whether suppliers absorb the increase or pass it on to clients en masse remains to be seen .
Duncan Reid , CEO and co-founder , Reset Connect , said : “ I think cost increases are definitely going to be passed on to organisers , but it ’ s not just an energy price problem . It actually has a knock-on effect into everything . Which means organisers are having to choose between cost and quality , which often leads to them having to make decisions based on what they can or can ’ t afford anymore .”
Should organisers be passed on these costs then , many delegates and organisers will have to curb their expectations when it comes to
what amenities can be provided on-site , Reid used the example of refreshment quality as something that is likely to be on the chopping block , due to inflationary costs and energy usage .
He did , however , say events would still take place as we enter Q4 , Reid said : “ Because the energy prices haven ’ t gone up that much that actually makes the event unaffordable . It just means that some of the good bits that delegates are used to and look forward to at the event , have got to be cut .”
The solution
I asked the pair if there was a solution , or at least positive steps , that the industry could take to blunt the impact of rising costs on the sector .
Sargeant spoke about how all suppliers are facing the same challenge and that , therefore , organisers would need to be realistic about what could be provided at an event with new cost constraints . He said : “ Because of my link with the Meetings Industry Association , I have spoken to other operators and realised that I ’ m not the only person in this position and that all operators are going to be facing these challenges .
“ When you look at the market impact , I am concerned about the industry , we ’ re facing huge inflationary costs and there is price sensitivity in the market , both for leisure and business customers . Therefore , we ’ ve got to be sensible about what the year and year increases look like .”
Reid , on the other hand , called for dramatic changes in pricing models to make organisers more conscious of what they consume and how much they are paying for it . He spoke against the day delegate rate model , saying it did not encourage organisers to monitor their specific usage , across energy , food waste and other factors .
Reid instead advocated for the conference industry to look to exhibitions and expos for pricing models , he said : “ If you look at the expo market , when you ’ re organising an event , you buy the venue , then you buy the electricity separately , then you buy the food separately and so on . Which means you ’ re conscious of exactly how much electricity or food or any of those additional services that you use .”
Whilst the situation may be bleak , it ’ s clear that there are steps we as an industry can take to be more aware of what we use , as well as be more transparent in our challenges to allow for more productive working relationships . CN www . conference-news . co . uk