Budgeting For 2024-2025

It’s that time of the year when budgets are being finalised, and the crystal ball gazing begins. What will your business events cost in 2024? Now I’m no economist, but what the team at Motive does know is what makes an event that your team will talk about for years to come.

Globally 2024 is expected to return to pre-pandemic levels of travel, which will put pressure on the current constrained availability, as it is expected that people will increasingly want to attend events in person. In Motive’s experience over the last year, along with market reports, we see the following cost increases to be budgeted for in 2024:

• Flights +5-10%

  Global ticket prices rose dramatically post-pandemic and have stayed high ever since. While recovery is strong and demand is growing, capacity is still constrained, and aviation fuel prices are still high.

• Accommodation +7-10%

  While occupancy rates have been high, there are occupancy constraints in the market with a labour shortage and increasing energy and food costs.

• Food & Beverage +5-7%

  Like the accommodation, the venues for events are experiencing a labour shortage, while the main driver is expected to be the cost of the produce to feed your delegates.

• Add-Ons +5-7%

  With New Zealand’s annual inflation at 6%, all the associated costs for your event (transport, activities etc.) are expected to also increase.

• Exchange Rate

  This may have the largest influence on your budgeted events.  Currently the NZ Dollar is forecast to weaken and this was prevalent when we hit a low of 0.56USD in Q4 2023 and remaining at this level in 2024.

If we look at the global market (based on US costs) it’s estimated that the daily cost per attendee will grow by 3% to $174USD for a standard one-day conference (approximately $290NZD – if we use our own inflation rate this would be double $580NZD) – this obviously doesn’t take into account the differences between the US economy and NZ however. In the US, there is more competition across the board – more flight providers, more hotels, and ground suppliers and therefore more competitive rates. They have seen the events industry stabilise faster and have already had costs reduced from their peak, something we are still waiting to see trickle into our own economy. As NZ is still playing catch up to the larger, we have seen costs rise significantly, especially with flights. Some airline routes to and from NZ’s shores have still yet to return, leading to less competition and therefore higher costs.

If you need any help with your budget planning for 2024, please reach out to me and the team at Motive Events.  Feel free to call me on 021 545 417 or Simon@MotiveEvents.co.nz.