Budgets are a key challenge for the events industry

One of the key challenges faced by those planning events this year is the correlation between the size of their budgets and the increase in the volume of events they are expected to plan.

That’s according to research undertaken by Conference & Incentive Travel, which found that although 55 per cent of event planners were expected to increase the number of events in 2011, 73 per cent found their events budget had stayed the same or been decreased for the coming year.

This basically means event planners are expected to do more for less; however the news that the demand for events has increased is promising for the industry as a whole.

One events specialist, Nicola Handley, said: “People are still cautious but quietly confident,” referring to her many clients who have an increased demand for events.

Furthermore, event manager Vicki Haxton said she had been tasked with creating “more meetings to reach a wider audience, with the same budget.”

Event planners typically have a budget of around £946,000 for the year’s events. This usually covers catering, costs of the event venues, decoration and logistics; and on average allows planners to hold 103 events each calendar year.

Another potential reason for the increase in demand could be that more companies are having to incentivise their staff, as the likelihood of key talent being poached has seen an upsurge in recent months. One insurance expert, Keelan Westall, commented on the situation.

“Rewarding staff and clients is high on the agenda with the depression that has followed the recession.”

The news came shortly after The Blackpool Gazette reported that events throughout the Blackpool area would remain intact through 2011, despite public spending cuts. If the trend continues throughout other UK councils, this could mean more positive news for the industry.