Events Economy Tracker Q3 2023: Revenue Per Delegate sees summer drop and September surges

Revenue Per Delegate for meetings and events drops 21% as venues reduce rates in quiet summer season

• September saw the highest number of confirmed events

• Lead times shorten slightly

• Delegate sizes drop to 36 in line with expectation during quiet summer season

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Q3 2023 experienced a typical summer dip in July and August, yet September stood out with a significant surge in confirmed events, marking the highest level in recent years. Notably, forward bookings exhibited signs of softening, presenting a nuanced picture of the industry’s trajectory.

Despite August traditionally being a quieter month, it outperformed its 2022 counterpart, emphasising the resilience of the sector. Challenges persist, primarily concerning staffing and supplier availability, aggravated by a backdrop of economic uncertainty and political volatility.

Event Types
Meetings dominated the event landscape in Q3, more than doubling the number of conferences. This trend mirrors the pattern observed in 2022. Additionally, a noteworthy uptick in Christmas party and banqueting bookings was evident, hinting at evolving preferences and considerations among event organisers.

Revenue Per Delegate
A crucial metric, Revenue Per Delegate witnessed a drop of 21.6% in Q3 2023, primarily attributed to venues reducing rates during the traditionally quieter months of July and August. The yearly average for 2023 is £119.60, tracking 5.3% lower than the same period in 2022. Despite this decline, inflation remains a persistent challenge, notably impacting energy and food costs.

Lead Times
Lead times for event bookings in Q3 2023 remained largely stable, with short lead times continuing to be a prevalent trend. The lead time for conferences and meetings was 72 days on average, reflecting a slight decrease from Q2 but an increase from Q1.

Number of Delegates
The average number of delegates attending events in Q3 2023 was 36, a decline from 65 in Q2. This aligns with the broader trend in 2023, where the average number of delegates is tracking 40% lower than 2022. Despite this decrease, the drop to 36 should be contextualised as typical for the quieter months of July and August, where smaller events are customary.

As the events sector grapples with inflationary pressures and evolving attendee dynamics, adapting to the changing landscape while maintaining quality and profitability remains a paramount challenge.

Data supplied by Venue Performance, drawing insights from a sample of 250 venues from across the UK.

Martin Fullard, Director, News & Content, The Business of Events, said: “Q3 is characterised by two of the quieter months throughout the course of the year – July and August – therefore it is to be expected that event sizes will generally be smaller and venues reduce their prices to get people through the door. This accounts for a drop in the revenue per delegate.

“However, the graph shows that September saw more confirmed events than any other month over the last few years, but forward bookings appear to be slowing.

“The industry is still grappling with the challenges surrounding inflation and high operating costs, for which there seems no end in sight. These conditions very much appear to be the norm and we can’t see that changing any time soon. One thing remains clear, despite these challenges, people still value face-to-face events. Venues will therefore be hoping for a strong Christmas season in Q4.”

Peter Heath, Managing Director, Venue Performance: “Bookings are easing, an expected outcome post-pandemic rush. The backdrop of economic uncertainty and political volatility contributes to a slight dip—more like undulating hills of unrest than a precipitous drop, reflecting a cautious but manageable scenario.

“Q3’s Revenue Per Delegate for conferences and meetings hit £108, marking a sharp 21.6% drop from Q2, driven by venue rate reductions in July and August. Despite the dip, 2023’s yearly average is £119.60, tracking 5.3% lower than 2022. Inflation persists, particularly impacting energy and food costs, revealing ongoing sector challenges.”