Business is not up to the holiday – Newspaper Kommersant No. 187 (7388) of 10/10/2022
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Following the regional and municipal authorities this year, business began to refuse New Year’s corporate parties. Two-thirds of companies that planned holiday events for employees and customers decided not to hold them. This has already led to a decrease in occupancy of popular venues and hotels, and is also expected to negatively affect the income of artists, musicians and catering operators.
Andrey Zinkovetsky, general director of Aeroclub Tour, told Kommersant that 70% of companies planning to hold New Year’s corporate parties this year canceled them “due to the untimeliness of entertainment events.” Traditionally, by the beginning of October, almost all places for corporate events are already booked, but this year – only 40% of the venues, the expert notes. Pavel Vasin, executive director of the Union of Business Travel Agencies, also expects that the number of New Year’s corporate parties will decrease this year.
Galina Polishchuk, managing director of Vipservice’s corporate business, adds that there are currently no confirmed orders for major New Year’s events with performances by artists, calling the situation unusual.
A representative of a large development company confirms that he does not plan to hold a New Year’s corporate party. One of the major retail chains noted that a decision would be made towards the end of the year “depending on the circumstances.” Ekoniva Group of Companies will not organize corporate events “on external sites”. In “Kuban-Vino” also “there will be no large-scale holiday.” But there is another position. Thus, the co-owner of the Rodina group, Vladimir Shchekin, plans to hold corporate events for colleagues and partners this year. Samolet Group also does not want to abandon the usual format yet.
Business began to abandon New Year’s events following the authorities. Thus, the administrations of St. Petersburg, Kaluga, Nizhny Novgorod decided not to hold New Year’s festivities this year, directing funds to help the mobilized and their families. The Moscow authorities have not yet made public their decision, but earlier the mayor’s office abandoned the traditional festival “Circle of Light”.
The situation in the segment of corporate events, according to the director of hotel consulting NF Group Natalia Rosenblum, has already led to a decrease in demand and cancellations of room reservations in hotels: “The situation does not stimulate New Year’s bookings at all.” Amid uncertainty, companies are looking to cut costs, the expert adds. The situation has a pronounced negative effect on high-budget hotels, notes Irina Ushakova, senior director of CORE.XP. In her opinion, in general, activity on the MICE market in the fourth quarter will depend on the further foreign policy situation.
Andrey Zinkovetsky expects that popular venues for New Year’s events this year will be forced to reduce prices. Ms. Ushakova doubts that the cost of renting halls in hotels of the upper price segment will become cheaper, unlike budget hotels.
Sergei Babich, producer of the Colisium International Music Forum, believes that the cancellation of corporate events that has begun will lead to a drop in the income of box office artists: “New Year’s holidays for many of them are the lion’s share of their annual earnings.” The conjuncture will negatively affect session musicians, technical and catering companies.
Restaurateurs are not waiting for a drop in income, however, considering the forecasts premature. Ugolek notes that it will be possible to talk about the demand for corporate events only by the end of October. Restaurateur Stepan Tsarukyan (Mouflon, Ginetun, Khamov tnak, Yasaman) claims that the number of cancellations “is still minimal and does not exceed the average statistical error.”
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