Cost vs sustainability: Which is more important in choosing venues?

Event planners are increasingly viewing sustainability as a standard requirement rather than a key decision factor when choosing destinations or venues, with cost and value for money taking precedence amid rising event costs and inflationary pressures.

According to the latest International Planner Sentiment Report 2024, published by The Business of Events think tank, cost considerations now dominate the decision-making process for event buyers across the UK, Europe, and North America.

M&C Asia spoke to planners from the US, UK, and Asia to explore these trends in greater depth.

High costs, standards in sustainability

“Rising costs and high inflation, especially in areas like food and beverage and production, are increasing concerns,” said Timothy Glanzer, chief elevation officer at US-based Elevated Meeting Solutions. “You need to use your partners and relationships to navigate through this issue – have hard conversations and look at all angles to cut costs but still have an amazing event experience. When you detail each cost and its benefits, you can still massage pricing and get results.”

Despite these challenges, Glanzer notes that sustainability remains an expanding priority in the US, both on the supplier and client sides. He sees sustainability as not just a key factor but a significant value-add.

“I’m seeing a true focus on sustainability – how we can minimise the negative footprint on our planet but still produce an amazing rewarding event experience,” he says. “Leadership and shareholders are expecting their teams to produce sustainable events as many companies have their own in-house policies and protocols that they need to maintain ‘on the road’. On the supplier side they are expanding and advancing their sustainability approach, celebrating and showcasing it to attract new business and maintain current long-term relationships with key accounts.”

Also based in the US, Shauna Whitehead, VP of sales administration at BCD Meetings & Events, says that while sustainability isn’t any less of a decision factor, it’s also not a driving force for venue selection.

“Certainly, customers expect some level of standards around sustainability from most venues, however as certifications and levels of interpretation/compliance to sustainability efforts are not normalised across industry bodies, it’s hard to evaluate the impact and effort across suppliers,” she says. “Given inflation and the rising cost of living, cost is still a major factor in decision making.”

She adds that there is definitely some level of expectation in North America for venues to be more sustainable at events – from having water fill stations/reusable water bottles, to more sustainable menu choices, food waste initiatives and local community connections; these are some of the sustainable efforts she says planners have come to almost expect.

Taking a realistic view

Matt Edgcumbe, CEO at UK-based Powwow events, says that sustainability is established as a key decision factor but there is a growing realisation of what is actually and practically achievable from a planner’s point of view.

“All of our clients have reviewed their events and fundamentally changed processes to reduce, reuse and recycle,” he says. “We have also seen an evolution of sustainable practice to take into account the wider impact of an event and with it, to make a conscious decision to select destinations, venues and suppliers that actively support local supply chains, charitable projects and local employment/apprenticeships, to try and create a positive impact/legacy on a local community from an event.”

Edgcumbe adds that there is a sense of ‘what else should we be doing’. This is where, he says, the swapping of ideas and best practice should become more common to ensure everyone is working as best they can, to reduce their collective events’ environmental impact.

For Agatha Brendon Lee, director of sales & head of MICE team at Jane DMC Korea, sustainability remains a significant factor, although it might not be as prominently discussed as before.

“Many clients now expect venues and destinations to have sustainable practices in place as a given, so it’s often considered a standard rather than an added value,” she says. “We are indeed seeing increased costs and budget pressures due to higher inflation. To manage this while still meeting client expectations, we focus on prioritising essential elements that enhance the event experience, negotiating better rates with suppliers, and exploring alternative solutions that offer value without compromising quality.”