Events are coming back but planning an event looks nothing like it used to. Venue and governmental regulations keep changing. Many of your regular vendors have lost staff or gone out of business. With so many new safety-related expenses, your old budget template no longer works.
Event budgets were the focus of part IV of our virtual series on Pandemic Compliance and Safety at Live Events. You can catch up on previous panels in these recaps:
- Part I: Public health and event safety best practices
- Part II: Legal and event safety best practices
- Part III: 2021 Event Planning Playbook
Marcella Farman-Dietz, executive event consultant for Medialink, joined Ryan Costello, co-founder of Event Farm, to discuss a sample event budget for a one-day business summit and reception for 400 attendees at a hotel conference center in NYC. We looked at the cost differential between today and 2019 when the actual summit took place to get a sense of the expense increases you can expect when planning your events. Of course, your costs will depend on the venue and local/state regulations still in place regarding mask-wearing, social-distancing, and room capacity. But, as Marcella said, this was an incredibly useful exercise to start getting a handle on the new reality.
Here’s the recap of the budget items where you can expect increases in expenses if you plan to host safe events.
#1: Venue and staff costs – 24% increase
Ryan and Marcella project a 25% increase in food and beverage costs due to not having buffets or family-style service. Some cities/counties may have “slightly irritating” regulations, for example, in New York City right now, you must be seated at a table to eat or drink. Cut costs by opting for boxed meals instead of table service.
When it comes to venues, you are likely to see a 25% increase in meeting space expenses. Venues must spend more time and money on cleaning with less staff to do it.
Expect a 100% increase in event staff (catering, service) costs—curveballs you can’t control. Vendors are still recovering from the impact of staff furloughs last year. Plus, when social distancing rules mandate less capacity in meeting rooms, you need more rooms and, therefore, more staff. You also need more staff for table (vs. buffet) service, health checks, check-ins, and compliance monitoring.
#2: Audio visual, décor and entertainment – 6% increase
If you need more meeting rooms, you need more equipment. The panelists anticipate a 10% increase in lighting costs and a 50% increase for additional monitors and screens.
Don’t expect any cheap deals on entertainment. Artists are excited to get back to performing live, but some of them could increase costs to recoup lost revenue – so you could see a 25% increase.
#3: Event technology – 50% increase
There doesn’t seem to be any changes in costs for registration software, event app, check-in app, and lead retrieval. However, you need to budget for new event safety technology. Event Farm has rolled out a suite of event safety tools to assist with code of conduct agreement, health screening, attendee messaging, access control/contact tracing, queuing, mask management, and vendor management.
Another solution available to manage your safety requirements at the door is Clear Health Pass. Right now, we’re budgeting this as $1 to $3 per guest plus set up costs. Once you set up the criteria for attendees, the Clear Health Pass app handles health screening questions and proof of vaccination. Attendees simply pull up the app to show their green checkmark and their entry is approved.
Will this health pass solution be necessary six months from now? No one knows because so much depends on virus variants, vaccination rates, government regulations, and your audience’s comfort level.
#4: Hardware and registration supplies – 27% increase
Because social distancing requires more check-in stations, you can expect an increase in registration hardware needs (computers, printers, tablets). You can reduce the need for additional hardware by staggering arrivals, for example, assigning check-in windows.
#5: Pandemic compliance – new expense – 100%+ increase
Every event needs a Pandemic Compliance Advisor (PCA), but the cost can fluctuate. Many of the agencies providing this service were once live event companies so they understand our business. However, someone on your staff can become a trained and certified PCA—five people on the Event Farm staff did just that. If you’re curious about the role and responsibilities of a PCA, our 2021 Event Planning Playbook provides a job description.
Onsite testing is another variable. There’s no federal requirement and state/local regulations are constantly changing, but venues sometimes require it. Marcella’s venue for an upcoming event feels more comfortable knowing she’s going to do it. Rapid tests are coming down in pricing. Depending on how safe you want to make your attendees feel, you may opt for home testing for VIPs—entertainment, speakers, executives—so they don’t get on the plane if they have a positive result.
#6: Safety equipment – new expense – 100%+ increase
Masks, disinfectant wipes/spray, gloves, thermometers, plexiglass, and hand sanitizers are not a huge budget item, but they are a new expense. They’re also a sponsorship opportunity.
#7: Travel and transportation – 111% increase
If you’ve planned any travel lately, you’re familiar with the huge increases in the cost of rental cars and flights, especially fully refundable fares. We’ve also seen Uber/Lyft price increases. If buses are running at lower capacity, you’ll have to budget for more of them.
#8: Signage – 53% increase
You’ll need more signage, for example, social distancing and access control signs, and you’ll need more lead time. Signage is typically the last thing on the list, but print houses have laid off employees, so you can’t rely on a quick turnaround or 24/7 coverage. Let everyone know they can’t wait until the last minute to put in their requests. Marcella suggested building in more time for all vendors since most of them have less staff than they used to.