Brexit / General Election; what does it mean for the UK conference and events industry ?
First off, the fears of doom when Brexit was first placed on the metaphorical table have proved to be misplaced, at least so far. Average Daily Delegate Rates (DDR) rose 3% from January to July, compared to the same period in 2018, according to the mia.
Looking forward things are less clear, first the good (ish) news.
- Over the last 6 months the pound has fallen by 6% against the euro. UK venues are now 6% cheaper than they were a few months ago. Put another way a £80.00 DDR has fallen by £5 when purchased by a euro buyer!.
Now for the bad news, there’s quite a lot:
- The UK economy shrank in the second quarter of 2019, the first contraction for 7 yeas. (see https://tradingeconomics.com/united-kingdom/gdp-growth). In nutshell less business means less events business. This is compounded as in times of purse tightening one of the first budgets to be cut is the events budget.
- Inflation is expected to rise sharply from the 3rd quarter of 2019 (see https://www.statista.com/statistics/306720/inflation-rate-forecast-consumer-price-index-cpi-united-kingdom-uk/)
- Our industry is likely to be particularly badly hit by both of these factors, we are particularly exposed to wage inflation see https://www.cavendishvenues.co.uk/?p=25859
- History shows us that a general election leads to a massive slowdown in events in the weeks and months leading up to the event i.e. in the General Election of June 2017 we at Cavendish Venues saw revenue in June 17 down by 28% compared to the previous June.
In conclusion, scary times. However if you need a venue using a cost effective efficient venues is perhaps more important than ever. Cavendish Conference venues with its 5 venues across Central London is the leading conference and training rooms operator in this space. Operating for 25+ years, functional & sustainable conference venues plus auditorium (s), get in touch and put us to the test.
At Cavendish Venues we are committed to exceeding your expectations, and with over 93% repeat business we know we're doing something right!