Events industry expected to boom in 2023 despite the cost of living crisis

The past few years have been difficult for the events industry. The pandemic saw a domino effect of cancelled events, venue closures and job losses, with some venues and industry roles disappearing altogether once restrictions were lifted. According to the ‘This Is Music 2022’ report by UK Music, the music industry contributed £4 billion to the UK economy in terms of Gross Value Added in 2022. It was a 26% increase compared to 2021 but 31% down on the £5.8 billion the industry contributed in 2019, pre-pandemic. 

The recent cost of living crisis has put a strain on everybody. Families are struggling to pay rising bills and people are being forced to deal with astronomical energy costs. Music venues aren’t exempt. In an article for Huck Magazine, journalist Emma Garland reported that an increase in one venue’s energy quote had turned their “typical £22,000 per year energy bill into £122,000”. 

However, despite the increased budgeting and energy increases, it appears that the events industry is set to boom with senior names in the investment world going as far as to say that the industry is “recession-proof”. We’ve seen tickets for festivals, gigs, comedy performances and more are all quickly selling out. And you can see why.

While belts are tightening, the public is still keen to get out there and enjoy themselves. Customers are instead choosing to spend their money more carefully and this could translate to opting to attend a few events across the year instead of a pricey summer holiday abroad, for example. 

Meanwhile, in an interview with The Guardian, Paul Samuels, executive vice president for global partnerships at AEG Europe, explained that “the premium seating boom” has surprised the company. He went on to say that rather than businesses seeking hospitality packages, it’s been customers “that just want an extra experience”. 

When musing on the impact this could have for the company, Samuels explained that based on AEG Europe’s current sales rates, “2023 could be our biggest year yet for hospitality and premium seating.”

We understand not every promoter can offer premium options to their customers in the way that AEG can. The company deals with some of the world’s leading performers, organising events on a massive scale that often take place in arenas up and down the country. There is, however, inspiration to be found here. 

It’s helpful to think about how you can bring something extra to your event. You could start small, too. For example, if you run a club night in a small, no-frills environment, consider thinking about how you can create an immersive experience for your attendees. 

Back in December, we looked at ways you can help sell tickets to your event. In the piece, we discussed how bringing your branding to life in the real world can help the popularity of your event. If customers feel like they are getting something more for their money, they’ll be more inclined to spend their hard-earned money on a ticket. 

The idea that customers would be looking for this makes sense. Over the past few years, we’ve seen a rise in festivals that promise a beautiful location and varied attractions alongside the music. With the cost of living crisis seeing people cut back and budget more, it’s understandable that they would want to get the most value for their money when engaging with the events industry. 

If you’ve got the resources, the extra experience you offer could be a meet and greet with the performers or VIP entry involving premium drinks, seating and backstage access. What you decide to do depends on the size of your event. 

However, it’s crucial to deliver value. Your customers will know if they’re being taken advantage of with price hikes that don’t match the experience. We understand the challenges of rising venue costs, the price of bills and the pressure put on small venues; it would be disingenuous for us to claim otherwise. 

But, a failure to deliver value will turn customers away. Bad reviews, whether online or through word of mouth, can turn sour. It’s customers who make events what they are, and you don’t want to waste the hard work you’ve built attracting them. 

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