Learn how to manage costs with these insights
In an era of soaring costs, certified meeting planners are facing unprecedented challenges in delivering high-quality events without breaking the bank. A recent webinar hosted by Smart Meetings offered timely insights and practical strategies for managing budgets effectively in 2025 and beyond.
The webinar featured a panel of industry veterans: JT Long, vice president and editorial director with Smart Meetings; Leslie Barnett, CMP and CIS; Nicole Mattar, CMP and senior meeting planner at Leo Events; and Shannon Frank, VP of global accounts at HPN Global. The discussion tackled key issues such as rising food and beverage costs, hidden fees and the need for creative negotiation tactics. The full webinar can be viewed here.
Rising Costs and Flat Budgets
One of the central themes of the webinar was the growing disparity between rising costs and stagnant event budgets. “Clients’ budgets are staying flat,” noted Mattar. “So they’re expecting to spend the same amount and get the same, if not more, than previous years, and that just, unfortunately, isn’t the case.”
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Panelists highlighted specific areas where inflation is having the most significant impact, including food and beverages, audiovisual (AV) services and shipping costs. Barnett noted the emergence of unexpected fees being added to event contracts, “not just in the contracting stage, but also throughout the event planning.” These random fees can easily bust a budget. She shared, “They’re just random fees that pop up, and it’s just been a real budget buster and something really challenging that our clients are having to work through.”
Negotiation Strategies
With budgets stretched thin, the panelists emphasized the importance of proactive negotiation and creative problem-solving. “Think of the hotel or venue that you’re using as a partner and try to figure out what’s beneficial for both your clients and the venue as well,” advised Mattar. “Try to work on it through that aspect.”
Read More: The Art of Negotiation in Unpredictable Times
A key strategy discussed was the use of historical data to justify budget requests and negotiate favorable terms. Frank pointed out, “If you’ve got historical data that says we always spend $200,000 on food and beverage, and they only want $100,000 food and beverage minimum, you may be able to up that minimum in lieu of reducing a rental or something like that as well.”
The experts also emphasized the importance of scrutinizing contracts for hidden fees and advocating for transparent pricing. “Make sure that you have the amenities at a resort won’t be any reduced by what these things are, unless we are notified in writing, and we’ll revisit the pricing at that point,” warned Frank.
Flexibility and Creativity
In an environment of constant change and uncertainty, flexibility and creativity are essential for managing event costs. The panelists urged CMPs to be open to alternative dates, locations, and program formats. They encouraged out-of-the-box thinking, such as co-locating meetings to reduce travel expenses and partnering with local convention and visitor bureaus (CVBs) to identify cost-saving opportunities.
“Flexibility is the key,” asserted Frank. “If we can get them to just look at some other options, you know, at least in the sourcing piece, because then they’ll be able to see exactly, you know, if you just switch a week, or if your day pattern is flexible even a day, you know, sometimes that makes a huge difference in the room rates that the hotels can quote.”
Barnett echoed that sentiment, “It is something that we’re finding in smaller cities, so they don’t all have to be in all spread out all over the country.”
Contract Clauses
The panelists explored contract clauses designed to protect clients against unexpected expenses. These include “no additional fees” provisions that prevent venues from adding charges without prior agreement, as well as clauses guaranteeing rate integrity and transparency in pricing.
Mattar asserted that no additional fees, such as destination fees, can be added without “an amendment to the contract, and both parties agree.”
Navigating VUCA
With costs rising and the event planning landscape uncertain, panelists stressed the importance of being proactive to get a hand over VUCA (variability, uncertainty, complexity and ambiguity).
According to Mattar, “be proactive as opposed to reactive. So be flexible throughout the process with contingency planning and being adaptive throughout the process.”
Frank concluded, “Be ready to switch at any moment and go with a different option.”
