Uncertain Times Ahead
There are, however, some factors raising uncertainty over this recovery. High levels of inflation have led some to speculate that businesses may tighten their budgets for corporate travel or alter their travel patterns. Year-on-year inflation for airline fares stood at 43% in September 2022, compared to 8% for all items, while 60% of respondents to Encore Global’s Planner Pulse Survey published in October 2022 said they are spending more on food and beverage.
Robert Gebhardt, President of Society for Hospitality and Foodservice Management, remains unsure which of the following scenarios for companies who run meetings may play out in the coming year and remains vigilant; 1. They stop investing in real estate ($$$) for amenity space and look to the outside to host more events. This gives them greater flexibility with capital dollars and also helps control Operating Expenditure cost on their books. 2. They pull back on some of their external events and try to leverage space they have. This approach supports the growing need to connect their resources to the company culture and purpose.
3. They pause large scale events, based on individual business pressures.
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