Trends and Ethics in Event Planning and Convention Industries

Overview of Event Management

Event management is a professional field that involves strategic planning, analysis, risk assessment, marketing, budgeting, cash flow planning, event development, and other related activities (Van Der Wagen, 2011). Planned events generally fall into four categories: celebrations, education, promotions, and commemorations (The Entrepreneur, 2011). Examples of celebrations include fairs, parades, weddings, reunions, birthdays, anniversaries, passing bar examinations, and first Holy Communions. Educational events include conferences, conventions, meetings, and graduations. Promotional events include product launches, political rallies, and fashion shows. Commemorations include memorial and civic events. These categories represent only a sample of the many business-related, social, and other types of events that exist.

Event planners handle a wide range of tasks. These include research; event design; site or location selection; arranging food, décor, and entertainment; coordinating transportation to and from the venue; preparing and sending invitations; arranging accommodations for attendees; coordinating event personnel; hiring staff for the event; supervising the site; and evaluating the event's overall success (The Entrepreneur, 2011).

Industry Trends in North America and Europe

The economy is the primary driver of industry trends. Event planners in the United States and Europe give significant consideration to the cost of meetings and incentive travel (Hard, 2011). Increased travel and hotel costs are the major contributing factors in this cautious stance, according to the 2007 Industry Trends and Market Share Report by the Exhibition for the Incentive Business Travel and Meetings (EIBTM). The report studied supply and demand conditions in business events and offered perspectives on current and probable trends in the industry. It also described the industry as maturing and identified international destinations as potential new locations for event planners to consider. The report listed current event industry trends in North America and Europe based on the most recent industry data available at the time.

The top five trends in North America were: a supplier's market, hotels, convention centers, tougher budget challenges, and incentive travel. The top five in Europe were: a supplier's market, convention services, local or regional government subsidies for convention business, and the top ten European cities and eight countries for international events (Hard, 2011).

Persistent and increasing demand for air travel, hotel accommodation, and transportation in the United States raises competition for a limited number of properties (Hard, 2011). This, in turn, intensifies budget management challenges for event and meeting planners. The American Express Business Travel reported that hotel occupancy growth was slow in 2006, but hotels and resorts have been raising their rates since 2005. This trend was expected to continue, with rate increases moderating only slightly. U.S. planners were projected to prefer convention centers as a means of controlling expenses. Nearly every major municipality in the country had built, expanded, or improved convention facilities during the preceding decade. As a consequence, the number of suppliers also multiplied, making competition among them a key consideration for event planners selecting meeting destinations.

U.S. event planners also faced more serious budget challenges. MPI data for 2006 showed that 46% of meeting planners expected meetings to increase the following year, yet 52% did not expect a corresponding budget increase. The Incentive Federation reported in 2006 an industry expenditure of $46.1 billion on merchandise and travel. The average budget at that time was $164,000, with 3.6 trips annually and 157 attendees per event (Hard, 2011).

The European situation was similarly characterized as a supplier's market, with higher occupancy rates but limited supply growth, leading to hotel rate increases of 3 to 6% (Hard, 2011). Airfare was projected to rise by 1 to 3%, depending on destination and fare class. Europe was also positioned to become a buyer's market for convention services. As in the United States, local and regional government subsidies for convention business were on the rise (Hard, 2011).

Economic Impact on Event Planning

The price of nearly everything in the event industry is driven at some point in the supply chain by the cost of fuel (Dosh, 2008). Airline tickets, food and beverages, and related items were rising faster than planners could adjust. Hotels, destination management companies, transportation providers, and suppliers generally were all affected by oil price increases. Industry leaders indicated that fares might increase by another 20%. Every one-cent increase in the price of oil costs consumers approximately an extra $1 billion per year. Smith Travel Research, however, reported a leveling off of hotel rate increases due to reduced leisure demand and a weakening of corporate travel (Dosh, 2008).

High fuel costs also indirectly affect food and beverage costs (Dosh, 2008). Transportation expenses rise for the shipping of food items. Farmers diverting land to grow crops intended for ethanol production were also raising their prices. Planners attempted to address food price increases by paring down menus, pre-determining the number of servers per meal, and choosing a complete meeting package (CMP) or obtaining a discount by opting for the day's menu. To reduce transportation expenses, some event planners scheduled fewer pick-up locations and negotiated fuel surcharge formulas tied to oil prices. They also negotiated for ancillary charges or free value-adds, flexible attrition fees, later cut-off dates with suppliers, and room upgrades at hotels (Dosh, 2008).

Conclusion

Event planners today operate in an environment shaped by mounting economic pressures and heightened ethical expectations. Navigating rising costs requires creative negotiation and strategic planning, while maintaining professional integrity demands a clear personal and corporate code of ethics. The trends identified in North American and European markets — from increased hotel rates and fuel surcharges to expanding supplier competition and government subsidies — underscore the complexity of the profession. At the same time, the ethical challenges inherent in client relationships, vendor dealings, and competitive practices make it clear that professional standards are not optional. Success in event management depends as much on moral judgment as on logistical expertise.

References

Allen, J. (2004). Events and ethics. Special Events. Penton Media, Inc.

The Entrepreneur. (2011). Event planning (Chapter 1). The Entrepreneur Media, Inc.

Hard, B. (2011). Business event industry trends in the U.S. and in Europe. About.com: The New York Times Company.

Van Der Wagen, L. (2011). Event management strategy and planning program. Cambridge International College.

Dosh, K. (2008). The impact of rising fuel costs on event planning. Special Events.