Meetings and Incentives November Updates
Rising prices are evident in all aspects of our lives and hosting meetings and events is no different. Global Business Travel Association (GBTA) reports that the cost-per-attendee for meetings and events this year is expected to be around 25% higher than in 2019, and it’s forecasted to rise an additional 7% next year, with no relief in sight until 2024. Hotel prices have already passed the 2019 levels and are expected to rise across all regions by 8.2% in 2023. In North America, food and beverage (F&B) is also experiencing a 70% per attendee increase this year.
We’ve provided a list of some of the fees most significantly impacting budgets, as well as a few which are new to the industry.
Room reset – Hotels are adding daily meeting room refresh fees for tasks which they used to do free of charge such as replacing soiled linens, clearing trash from tables, and resetting notepads and pens. These fees can easily add $10-50 per attendee for the duration of the meeting.
Outside vendors – While not completely uncommon in the industry (outside A/V vendor fees come to mind), we have recently seen fees implemented for using transportation and DMC vendors who are not the hotel’s in-house preferred provider. We also recently experienced a hotel with extra fees imposed for temporary staff for the hospitality desk. We were planning to use a local expert to provide info to attendees on dining, tours, and other activities, but the cost was now prohibitive due to the ancillary fees on top of the individual’s hourly rate.
Food and beverage costs – Most hotel contracts list the date by which food and beverage menu pricing will be guaranteed and the window is getting shorter. Securing these dates during the contracting phase will protect your event against further increases.
Service charges – Service charges are creeping up throughout the industry. Negotiating a fixed service charge percentage, particularly for meetings further in the future, will lock in this cost for your event.
At Fox, our meetings and incentives experts are prepared to walk you through cost savings options and are able to provide valuable insights on how to combat these pricing increases. Connect with us for your next event!
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