Why Your 2019 Event Budget Won’t Cut It In 2022
The world’s current state of affairs can certainly make you feel like that moment in the movie “Jaws” when they realize they are up against something bigger than they have ever seen before. With inflation rising, supply chain challenges continuing, travel costs increasing, and salaries ballooning for top talent, things are getting more expensive on all fronts. When it comes to live, in-person events, we are seeing a 20% increase across the board and we are cautioning our clients to plan for that increase; even before layering in the cost of hybrid technology, more facilitated community building, and flying in a now remotely dispersed workforce. Kennedy Events is armed from the beginning with a new-reality budget to make sure there are no surprises around the corner.
You’re Going to Need a Bigger Budget
Across the board, companies can no longer absorb all the cost pressures arising from more expensive transportation, labor shortages, and rising commodity and global prices. The unforeseen, trickle-down effect will hit all budgets as everything becomes more expensive from venues to catering costs as these hard-hit businesses also look to rebuild after losing two years of revenue. Between inflation and ongoing supply chain issues, one thing is certain: 2022 is going to cost you.
Travel as a New Line Item
The return to live, in-person events does not necessarily mean a return to the office. For many companies, work has shifted completely remote and employees have utilized this newfound freedom to relocate across the country. For internal events, this means a new line item for travel in your event budget to fly your people to the designated event location as well as encompassing everything from lodging to transportation to meals. Keep in mind that you may also be facing costs to transport hired hands and event experts to your event location to ensure all goes as planned.
Health and Safety Measures as a Contingency Line Item
As COVID-19 gathering restrictions ease up, in-person event planning is on the rise. Despite decreasing case numbers, the world is still in the midst of a global pandemic and your planners will need to continue to allocate funds for health and safety measures.
A good rule of thumb to consider—similar to benchmarking a contingency line item—is allocating 5-10% of your total production budget to account for including COVID safety measures. Producers will use this percentage as a base minimum when putting together any event budget now, throughout the end of the year, and into the future as health and safety remain a top priority for clients, staff, and attendees.
The Hybrid Approach
Looking into the months ahead, in-person events are poised for a comeback, but with a caveat. The industry is trending towards a refreshed format with added accessibility through hybrid events. Highly-produced virtual elements, live-streaming, and a virtual addition to your in-person gathering will require some elements to be distinct and specifically catered to your live audience while others are aimed toward your virtual attendees. Consider the two experiences to be apples and oranges; keeping in mind that there will likely be an added cost of full-service production, technical production, and A/V equipment in addition to your live event elements like venue and catering.
Looking to Produce a Live Event?
Nothing feels worse than the sticker shock of a bill whose total you were not anticipating. The reality of events in 2022 and beyond is that the price has gone up and layering in the new line items and budget factors will be unavoidable. Kennedy Events is armed from the beginning with a new-reality budget to make sure there are no surprises around the corner. Schedule some time with us today to build an event that fits your budget.
PAIGE BUCK
Paige Buck is the co-owner of Kennedy Events, a large-scale event management company based in San Francisco, Los Angeles, and New York City. Our team creates stress-free conferences and events with a positive impact, which allows our clients to resonate with their audience. Kennedy Events specializes in producing flawless product launches, award ceremonies, fundraisers, and multi-day conferences while keeping our eye on retention and engagement goals.
About Kennedy Events
Kennedy Events began with one goal in mind—to produce high-level corporate events with just as much strategy as style. Maggie founded the company in 2000, found her match in Paige, and in 2011 the two became official partners. Since then, these two resourceful and brilliant creatives have pooled their strengths to build one one of the most the most sought after corporate event companies in San Francisco, New York, and Los Angeles.
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