• March 4, 2025

Tight budgets & rising costs continue to challenge planners in 2025

Tight budgets & rising costs continue to challenge planners in 2025

Tight budgets & rising costs continue to challenge planners in 2025 900 600 micebook.

Global meeting and event budgets are tightening in 2025 as costs continue to rise, according to the latest research by Global DMC Partners.

The Q4 2024 Meetings & Events Pulse Survey, a report on what is currently driving decisions in the global meetings and events industry, is based on 127 survey responses collected in December and January.

Nearly 50 percent of planners reported budgets staying the same from 2024 to 2025, with only 25 percent seeing increases, as compared to nearly 40 percent reporting increases in the last survey. Despite even tighter budgets, end-client expectations for quality and deliverables continue to rise.

At the same time, event planners are still facing notable increases in hotels/venues, F&B, airfare, and A/V costs, adding further pressure to budgets.

Top Challenges

Higher costs continue to be the top challenge for both U.S./Canadian and International respondents, showing a shared focus on managing expenses. While timely approval from decision-makers ranks second across both groups, budget management is a higher priority internationally, whereas finding availability takes precedence in the U.S./Canada. Despite slight differences in ranking, the key challenges remain consistent across regions.

Cost Management Strategies

Some event planners are managing rising costs by trying a variety of strategies. A few of the more popular tactics include reducing attendee numbers and exploring second or third-tier markets (more than half of respondents reported sometimes using these options). Other tactics include building in more leisure time, reusing decor and materials across multiple events, and reducing the number of days in a program. Early contracting also remains crucial to saving. Overall, respondents emphasised the need for proactive, early planning and cost efficiency while maintaining event quality.

“In addition to our quarterly survey, we have been gathering feedback on industry trends from our highly valued Customer Advisory Board,” said Global DMC Partners President and CEO Catherine Chaulet.

“While many of the themes overlap, we’ve also found that despite facing budget restraints, planners are still expected to deliver tailored and top-notch, immersive and flexible attendee experiences. Sustainability is no longer optional and there is a demand for wellness-focused event formats, healthier, locally sourced food options, and stress-reducing experiences. Tightening budgets is causing more vendor scrutiny, and planners are insisting on no surprise costs or hidden fees.”

Destination Selection

The most important criteria for recommending and selecting destinations is price (accommodation, F&B, taxes), closely followed by the costs of attendee travel and flight availability. The least important criteria include exchange rate, language and destination sustainability.

Planning & Lead Times

Incentive programs tend to have longer lead times, with 33 percent of respondents planning 13-24 months in advance, whereas meetings and conferences are often planned on shorter timelines, with 36 percent being organised just 4-6 months ahead. Many respondents highlighted the challenge of shorter lead times, with factors such as internal schedules and slow hotel response times impacting planning timelines.

Although planners reach out to DMCs on similar timelines as destinations, hotels, and venues, lead times for DMCs tend to be slightly shorter. Planners are generally contacting DMCs 7-9 months ahead, with some even reaching out just 2-3 months in advance. Timelines vary based on when program details are finalized, with some reaching out as early as 2+ years and others as soon as briefs are received.

DEI, Sustainability & Wellness 

DEI, sustainability, and wellness continue to be priorities in event planning for many – 33 percent of respondents report incorporating DEI & Accessibility into most of their programs, while 25 percent report rarely incorporating these elements.

In terms of sustainability efforts, 50 percent of respondents say they incorporate sustainability into at least half of their programs. As it relates to wellness, 55 percent incorporate components in less than half of their programs.

Rapid Growth of AI Adoption 

AI use in event planning grew from 48 percent to 57 percent, with chatbots (87 percent) leading the way, followed by grammar checkers (51 percent) and translation tools (30 percent).

 

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