Smaller, specialised events expected in 2009

Event organising enterprises hope that recession will not have a drastic effect on their business. However, creativity is expected to play an even bigger role in the event marketing business in the future. Péter Varga, manager of Horizont rendezvény, believes that the domestic market is so diverse that it is impossible to give an accurate estimate of its size. He thinks that sales in 2008 were similar to those generated in 2007. 2008 was a very successful year for Horizont. According to Csaba Nagy, sales director of Budapest Party Service Kft., there was some growth in the market in 2008, including his company as well. He has however, already encountered some signs of the recession because many of their clients are from the financial sector. As András Varga marketing and CR director has told us, Gála Eseményszervező Kft succeeded in achieving its annual targets for 2008 by the third quarter of the year. He expects to be able to produce last year’s results this year again. He also expects some restructuring to take place in the type of events organised. Experts agree that demand for events organised around specific topics has been growing for years and this trend is going to continue in 2009. Events are also expected to become smaller and more consciously targeted. Some of the experts we have talked to expect some recession to take place in 2009, but could not provide estimates regarding its extent. Recession is seen by some as an opportunity for renewal within the profession when less professional businesses will disappear from the market. Péter Varga thinks that only reliable and cost-focused companies will be able to survive 2009. Companies expect an increase in their costs this year. Price/value will be a key word in the future, as compromises in terms of locations will be made. Another way of reducing costs is to organise “beginning of the year” parties rather then “end of year” parties, because there is a substantial difference in rent, as January is a low season for events. Event organisers are not worried by the possibility of clients deciding to organise events for themselves. The majority of clients organise an event only once or twice a year, which means they are better off, if they leave these tasks to professionals. Per capita budgets are not expected to grow, which means that costs will need to be revised.