The demand for face-to-face meetings in the U.K. is expected to decline in 2024 due to increasing financial pressures, recent research has suggested.
Around half of all businesses in the U.K. will have held at least one meeting in an offsite location by the end of this year, research by consumer insights specialists BVA BDRC has revealed in its Business Opinion Omnibus.
Based on a study of 1,200 participants, the study said that 47% of business leaders said their organizations would be using external facilities by the end of this year, with an additional 15% undecided about it.
According to the study, the outlook for 2024 looks weak as fewer businesses plan on conducting events. Only 27% of businesses said they were likely to hold fewer offsite events next year, while 16% of the respondents said they were likely to hold more and 48% expected almost the same amount.
Around 54% of businesses with a negative outlook said they would cut down on the number of events due to weaker anticipated financial performance in 2024.
On the other hand, 28% of the respondents expected to spend more on external facilities compared to 22% who plan to spend less. This is partly driven by an expectation of a price hike rather than an increased volume of events, creating the opportunity for better profits at venues.
MEETING VENUES
Hotels and similar meeting venues emerged as the category with the broadest market penetration. About two-thirds (64%) of the respondents said they had used, or would use, such venues.
Almost half (49%) would have used meeting rooms in shared or serviced offices, while 9% have or would use “other” types of venues, like museums, stadiums, cinemas or galleries.
Supporting the usage of external meeting venues was the notion, held by 48% of those conducting events, that bringing people together is beneficial for their businesses. One in four businesses said external venues made a better impression and that while they may have had the space in their own premises, other services or facilities offered by offsite venues were required.
Drawing attention to the debate around value in external events, Louise Tawadrous, client services director and head of BVA BDRC’s VenueVerdict said, “Nearly a quarter (24%) of the businesses who said they were likely to reduce spend next year told us it is because they don’t consider spending on external venues to deliver good return on investment, representing nearly 12% of the businesses who have used (or will use) external venues in 2023.”
The VenueVerdict Event Planner Feedback saw “terrific recovery” in the average level of performance this year relative to 2022, but it still remains marginally lower than pre-COVID levels, Tawadrous said, adding that this should be addressed as it could be a factor.
“Understandably, the focus has been elsewhere while teams have been rebuilding and getting back up to strength, but if these figures hold true next year, it strongly suggests that the value of offsite meetings needs better reinforcing, and the best way to do that is to deliver epic events that leave people wanting more, not less.”