Event planners are still facing notable increases in hotels/venues, F&B, airfare and A/V costs, adding further pressure to budgets.

Budgets are still tightening as we move into Q2 of 2025. According to a new report from Global DMC Partners, a global network of independent destination management companies (DMCs) and specialized event service providers, the budget growth of almost 40% on a global level reported at the end of 2024 isn’t trending into 2025. Now, almost 50% are saying that they’re experiencing either stagnant budgets or budget cuts, while only 25% are reporting increases. This holds true on a global level, though U.S. and Canadian organizers held a slight edge, with 32% reporting increases, compared to just 15% in other global regions. Twenty-one percent from both U.S./Canada and international regions said they were experiencing decreased budgets.

The shrinking budget challenge is only deepened by the stubborn continuance of the rising-costs trend, particularly for meeting-specific costs. Among the areas hardest hit by rising prices, according to the report, are hotels, food and beverage and AV. The biggest spikes were in hotels/venue costs, where 42% of planners are seeing an 11% to 20% rise — 80% said that higher accommodate rates remain a major challenge most or all of the time — and F&B, where 35% of planners reported a similar increase and 75% said they struggle with containing F&B costs while maintaining quality. Airfare and AV costs also are expected to rise 21% to 30%, according to respondents.

Adding to the challenge is that, while rising costs continue to strain budgets, end-client expectations for quality and deliverables also keep rising, so planners are under increasing pressure to do more with less.

In addition to the quarterly survey, Global DMC Partners has been gathering feedback on industry trends from its Customer Advisory Board, said Global DMC Partners President and CEO Catherine Chaulet. “While many of the themes overlap, we’ve also found that despite facing budget restraints, planners are still expected to deliver tailored and top-notch, immersive and flexible attendee experiences. Sustainability is no longer optional and there is a demand for wellness-focused event formats, healthier, locally sourced food options, and stress-reducing experiences. Tightening budgets is causing more vendor scrutiny, and planners are insisting on no surprise costs or hidden fees.”

So how are meeting and event planners managing in this tightening budget/rising cost environment? Among the more popular tactics found in the research were reducing attendee numbers and turning to second- or third-tier markets; building in more leisure time; reusing décor and material across multiple events; and reducing the number of days in a program.

Regardless of the specific tactics, planners emphasized the importance of proactive, early planning and contracting to lock in cost efficiency while maintaining event quality. The rub, at least when it comes to venue contracting, is that even when the process is accelerated, stricter contracts, higher prepayment demands and reduced flexibility aren’t making it easy to stay within budget. Twelve percent more said this is an issue than did in the last survey.