Blog Post

Event Budgeting

Rachel Williams • 11 March 2019

HOW TO REDUCE YOUR VENUE HIRE COSTS

One of the most important tasks when planning any event is Budgeting. According to various industry reports over the past decade, one of the top challenge for event planners is managing budget. Keeping costs as low as possible and making sure you don’t spend more than you are going to earn in revenue is a critical part of event management. Even if your event is not necessarily to make profit, you still need to keep costs within budget.

Whether you are an experienced event organiser or new to event planning, finding an affordable venue which meets your event requirements can be a daunting task. Now, it’s really all about negotiation. You can reduce your venue hire costs by asking your chosen venue for a reduction in price. But, before you dive into negotiations, you need to understand what the venue offering and the different venue hire rates available. Here are the most common types;

1. PACKAGED DEALS
Like an all-inclusive vacation package deal, event venues may offer an all-inclusive rate when you enquire about booking an event space. For one flat price or day rate per person, the venue provides you with most of the key elements you need for your event including the hire of the conference, meeting or training room, food & beverages, audio-visual equipment, etc.
Benefits: With a package rate, you won’t get shocked by hidden costs and you can plan your event budget more accurately. Total hire costs simply varies according to the total number of attendees you confirm with the venue.
Beware: Whilst an all-inclusive package rate is convenient and makes planning and controlling your budget a lot easier, it is important that you are clear about what is included in the package and that it is the right one for your event. Asking for items not included in your package could come at a premium, swallowing up any savings you thought you could have made from choosing a packaged deal.

2. DRY HIRE
This simply means when you only hire out the room, no food, no drink, and in some cases no audio-visual equipment. You get a blank space.
Benefits: Ideal if you want to dress or brand the space for a special event or you are fortunate to have a massive team of event suppliers who can provide extra features such as design, lighting, catering, etc
Beware: whilst this may seem like a cost-effective option to you initially, costs can quickly rack up if you later decide to add those items to your booking requirements.

3. SEPARATE ROOM HIRE RATES PLUS EXTRAS
This is similar to a ‘build your own’ travel package and many conference and event venues offer this as a cost effective option to clients who need the flexibility to be able to add or remove extras such as catering, audio-visual equipment, etc. The room hire rates are also offered on hourly, daily, weekday or weekend rates.

Remember to ask venues that you are considering about each and every item you will need. If you opt for a packaged deal, clarify what is included and what isn’t. When you request additional items at the last minute, ensure that you account for any additional fees in your event budget.

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With in-person events temporarily suspended due to lockdown and restrictions, events moved online and virtual events became the primary event hosting model in 2020. The discovery of vaccines have been a game changer and we are all hopeful that in-person events will return soon. Here in the UK, the government announced a roadmap out of lockdown which could see the gradual reopening of hospitality venues and the return of in-person events this summer. This is subject to a review of data against the government’s four tests . The roadmap shows some large and controlled events of up to 1,000 people or 50% of capacity including conferences and sports events being allowed to open from the 17th of May . In addition, legal limits on social contacts and live events could be removed from the 21st of June . Whilst the biggest vaccination programme is now underway across the globe, countries are adopting different strategies and they are at different stages in their battle against coronavirus. You can see how different countries are tracking and handling the pandemic here - COVID-19 around the world . This has an impact on how soon international events will return. Thankfully, virtual events continue to provide event organisers with unlimited global potential. Virtual events can be just as effective as in-person event. They are similar to in-person events, the difference is that they are hosted over the internet rather than a single location or venue where attendees are physically present. If you are still wondering whether to make the leap from in-person events to virtual, we have outlined below five key benefits of running your events online. 1. Cost-efficient Without the need for extras associated with in-person events, example – accommodation, travel, catering, logistics and transporting materials to event venues, the cost of hosting and attending virtual events could be considerably lower. 2. Flexibility and Variable It’s not a decision any event organiser would make lightly but sometimes events have to be cancelled or postponed due to an emergency. The global pandemic is a recent example of an emergency beyond the control of any event organiser. The stress, time and energy required to replan an in-person event can be huge. Virtual events are much easier to replan and replicate. The flexible nature and clever use of technology allows you to set up a similar online event in a matter of weeks. 3. Making Global Connections The global reach of virtual events and the effective use of technology means you are able to reach an unlimited audience regardless of where they are in the world. Last autumn, one client’s event attendance almost tripled in size from 128 to 380 attendees when their in-person event changed to virtual. Of course, the social contact and connection experienced from meeting people in-person cannot be overlooked. But virtual events make it easier for your event attendees to connect with a global network of people. 4. Sustainability Virtual events can help people attend your event without the long travel distance and cost to be there in person. Hosting events online also reduces and removes a lot of the waste created when hosting in-person events, particularly with food and beverage and rubbish from set up or breakdown after the event. 5. Data Data is the new gold and technology is putting a lot of data directly into our hands. Whilst ensuring adherence to data protection regulations, you can gather valuable event data and leverage information which provides insights that help you make informed decisions. This reduces the risk that comes with trial and error testing methods on your event. Using the right virtual event platform and event management software you can harness data points throughout your event process, from online registration, to in-event activities, attendance tracking and post-event feedback. We hope that highlighting some of these benefits helps you take that confident step towards hosting your next virtual event. Planning a virtual event? Let us help you do the hardwork. Make an enquiry HERE .
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