Upward trajectory for UK business events

The Business of Events, an independent Think Tank for the events sector, recently published the “Events Economy Tracker Q4 – October to December 2023”, a leading source of data for benchmarking, market analytics and performance insights for the UK meetings and exhibitions industry.

In Q4 2023, the UK conference and meetings industry continued its upward growth, reaching its highest number of events held in November. Usually, December experiences a fall in business activity, as corporate events are mainly in the first two weeks of the month. Forward bookings also tapered off in December, pointing towards shorter lead times despite a slight rise in Q4.

November 2023 set a new record with 31 confirmed events across UK venues, predominantly comprising meetings followed by larger conferences. This pattern mirrors that of 2022, with meetings consistently outnumbering conferences by more than two to one throughout the year.

Mark Taylor, chief executive, QEII Centre “Our experience reinforces this upward trend; 2023 was our third best trading year, generating 15.6% higher revenue than 2022. In fact, September was the highest revenue generating month in our history. Catering and AV are thriving, and 2024 is expected to be our best trading year ever by circa 7%”.

Revenue per delegate

Revenue per delegate, encompassing venue hire charges, F&B, and other expenses such as AV hire, totaled £109.50 (US$140.30) in Q4, a slight increase from Q3 but lower than Q2's peak at £137.85.

This stabilisation could mean that costs are leveling off. The annual average revenue per delegate for 2023 was £117.57, a 12.19% rise from 2022. Inflation, particularly in food costs, remains a big contributor to this rise.

Lead times

Lead times for event bookings lengthened in Q4 2023, with conferences and meetings averaging 95 days compared to 72 days in Q3. Short lead times persist as a broader industry trend, though still longer than pre-pandemic levels. Venues have acknowledged that they don’t expect to see the increase as a change in trends, but rather an anomaly. Short lead time persist as a challenge for the sector.

Danielle Bounds, sales director, ICC Wales "I don't think we can read too much into the slight increase in lead times for Q4 in 2023 and our experience here at ICC Wales is that short-lead times and even last-minute event bookings remain a deep concern for the industry. At the start of last year, we would have hoped that by now, lead times may returned to something like pre-pandemic levels but this is far from the reality."

Number of delegates

The average delegate attendance in Q4 2023 was 69, up from 36 in Q3, resulting in a yearly average of 59 delegates per event. This figure reflects a 37% decrease from 2022, indicating a trend toward smaller events despite a higher revenue per delegate. This reduction in delegate numbers suggests event planners are balancing increased costs by hosting fewer attendees. Overall, while challenges like inflation persist, the industry continues to adapt, evidenced by shifting booking patterns and attendee sizes.

Peter Heath, MD, Venue Performance, said: “Q4 saw a return to a more familiar delegate size across UK venues after the summer dip seen in Q3. However, it is clear that numbers tracked much lower in 2023 than in 2022, which you have to say is likely a result of the increase in event costs. Organisers still want to run events, but they may not be able to budget for the rise in prices.”