Average Event Price Increased For Third Year In A Row
The average price charge for an event in a restaurant, hotel or unique venue for 2016 increased by 35% over 2015 prices. This is the third year in a row that the average event price has increased and 2016 increases have been the largest ever. In 2008 at the lowest point for prices for events the average price was $2,200 per event, in 2016 the average event is now $6,200.
The reasons for the rise in price for events is twofold. Restaurants, hotels and unique venues are placing more value on their event spaces and are charging based on food and beverage minimums versus rental for space and the price per person. The F&B minimum is a strong negotiating tool and keeps the guest accountable to what they will spend regardless of how many people they estimate will attend. The minimum also allows for accurate forecasting of the event business because the venue will know at the very least, they will book the negotiated minimum.
The second reason for the increase in price is that venues, especially restaurants, are using technology like Tripleseat to manage the space and turn events more effectively. Before sales tools like Tripleseat, the price of a room or space was lost in the paperwork and Event Managers were either guessing on the value of the space or just booking anything to fill the space. Now, it is much easier to understand the value of the space based on past history and day of the week. Venues having an understanding on when events are booked and how many events a room can do in a day means that they can book more events at a higher price.
By every measure, 2016 was a great year for the Event business with occupancy up and average price up and the reduction of cyclical sales in the Summer months. 2017 looks to be even better with more and more venues adopting technology to manage their event business and hiring dedicated Event Sales Managers to book and manage the event space.