Rising Costs and Exhibitor Mistrust: A Wake-Up Call for Event Organizers

December 10, 2024
rising costs

The latest research from The Exhibitor Advocate and EVOLIO Marketing paints a sobering picture of the current state of the event industry.

The report, The State of the Event Industry: From the Perspective of Exhibit and Event Marketers, highlights critical challenges facing exhibitors, organizers, and service suppliers. Rising costs and strained exhibitor-organizer relationships threaten revenue and the long-term sustainability of the industry, according to the research.

Key Findings Event Organizers Need to Know

1. Cost Concerns Are Skyrocketing

  • 88% of exhibit marketers list budget management as their top challenge.
  • The primary culprit? Show services costs, cited by 82% of respondents.

2. Flat Budgets for 2025

  • Over half (57%) of companies predict no budget increase for 2025, while 18% foresee cuts.
  • Exhibitors plan to offset rising costs by reducing booth sizes, show participation, and sponsorship spending.

3. Eroding Trust

  • Nearly half of exhibitors express a lack of trust in show organizers, emphasizing the need for more transparency and collaboration.

Implications for Organizers

jessica sibila
Jessica Sibila, executive director of The Exhibitor Advocate
 

These findings indicate a pivotal moment for show organizers. Without action to address exhibitors' cost concerns, organizers risk losing revenue and long-term loyalty. Jessica Sibila, executive director of The Exhibitor Advocate, warned, “The math simply doesn’t work anymore. Show organizers who take the lead in negotiating fair costs and transparent pricing models will gain a competitive edge.”

Joe Federbush, President of EVOLIO Marketing, underscored the need for collaboration: “This is an opportunity to enhance event value, strengthen exhibitor relationships, and secure revenue growth.”

We reached out to a number of exhibitors for comment, but none wanted to go on the record. 

Recommendations for Organizers

To navigate these challenges, the report urges organizers to:

  • Collaborate with exhibitors: Foster partnerships to understand and address cost concerns.
  • Negotiate with suppliers: Advocate for fair pricing models that align with exhibitor budgets.
  • Promote transparency: Build trust by offering clear, predictable pricing structures.

Methodology

state of the industry
Released in November, the report is available for free download.

An online survey was conducted in July through September 2024. Survey invitations were emailed to U.S.-based exhibit and event marketers, and the survey link was posted on the Instagram and LinkedIn social media pages for The Exhibitor Advocate, a nonprofit association dedicated to trade show exhibitor success, and EVOLIO Marketing, which provides data-driven solutions and analysis for events. Completed surveys were submitted by 171, with a +/-7% margin of error at a 95% confidence level.

Want to know more

The complete report, available for free download, provides detailed strategies to enhance collaboration and improve industry outcomes. To access the full findings, visit The Exhibitor Advocate.

Join Sibila and Federbush for a deep dive into the findings from the new report during a free webinar at 1 p.m. ET on Tuesday, Jan. 14. Register here.

 

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Partner Voices
MGM Resorts is committed to fostering an inclusive and diverse culture, not just among employees and guests but also within its supply chain. The company prioritizes procuring goods and services from businesses owned by minorities, women, veterans, people with disabilities, LGBTQ individuals and those facing economic disadvantages. This commitment is integral to MGM Resorts' global procurement strategy.    Through its voluntary supplier diversity program, MGM Resorts actively identifies and connects certified diverse-owned suppliers to opportunities within its supply chain. The company is on track to spend at least 15% of its biddable procurement with diverse-owned businesses by 2025, demonstrating that supplier diversity is not only a social responsibility but also a strategic business imperative.    Supplier diversity isn’t just the right thing to do – it’s good for business. A diverse supply chain allows access to a broader range of perspectives and experience, helping to drive innovation, entrepreneurship and resilience, while strengthening communities. At MGM Resorts, engaging diverse suppliers ensures best-in-class experiences for guests and clients. Supplier diversity ensures a more resilient supply chain while supporting economic development in the communities in which it operates.   The impact of MGM Resorts' supplier diversity initiatives is significant. In 2023, these efforts supported over 3,500 jobs across more than 30 states, contributed over $214 million in income for diverse-owned businesses and generated more than $62 million in tax revenue. The story extends beyond the numbers – it reflects the tangible benefits brought to small and diverse-owned businesses, fostering economic empowerment in their communities.    MGM Resorts also supports the development and business skills of diverse-owned businesses through investment, mentorship and education. Through the MGM Resorts Supplier Diversity Mentorship Program, the company identifies, mentors and develops diverse-owned businesses to fill its future pipeline, while providing businesses with tools and resources to empower and uplift. Since 2017, the program has successfully graduated 105 diverse-owned businesses and is on track to achieve its goal of 150 graduates by 2025.     MGM Resorts’ commitment to supplier diversity not only enhances its business operations but also plays a crucial role in uplifting communities and fostering economic development. This approach reinforces the idea that diversity is a powerful driver of innovation and resilience, benefiting both the company and the wider community.