Demand for goods and services for New Year’s corporate events has doubled
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Pent-up demand and personnel shortages encourage businesses to invest more in motivational and entertainment events for employees. Interest in holding New Year’s corporate events has grown by 30–50% year on year, venues for them are being sought almost twice as often, and hosts are being sought three times more often. At the same time, due to inflation, the cost of holiday events increased by 15–30%.
Demand for renting venues for New Year’s corporate events at the end of October increased 2.4 times year-on-year, as calculated by Avito Services. Interest in catering and organization of specialized banquets over the same period increased by 95%, the services of photographers – by 87%, and specialized carriers – by 77%. They began to look for event hosts three times more often, and specialists in organizing corporate events – twice as often. Vipservice MICE Operations Director Alena Eivel believes that business demand for corporate events has increased one and a half times year on year. “Companies are trying to pay attention to the emotional well-being of employees,” she adds.
Trivio Marketing Director Andrey Baturin talks about an increase in bookings for corporate events by 30–40% year on year. He notes the high activity of manufacturing companies, representatives of the auto business, IT, and beauty industry. Business development director at Aeroclub Tour Ekaterina Darvin speaks of an increase in the number of requests by 10–15%. “A year ago, business was in a high degree of uncertainty, now adaptation has taken place, and we see that special attention is paid to staff motivation,” she says.
Senior consultant at Magnum Hunt Ksenia Uralskaya calls corporate parties a tool for non-material rewards within the framework of HR policy. Now business representatives also view them as a signal to the team that the company is ready to invest “not only in purely work processes, but also in the emotional well-being of the team,” she notes. This approach, according to the expert, is important given the shortage of personnel in many industries.
October sees the main demand for New Year’s corporate events. Vipservice notes that about 60% of events have already been planned, Trivio says about 80%. Deputy Director of the Hospitality Industry Division of CORE.XP Dmitry Parinos adds that by November all pre-holiday Thursdays and Fridays are booked in hotels, leaving only less popular Tuesdays and Wednesdays. The New Year’s holiday events market has been under pressure from external circumstances for the past three years. In 2020–2021, demand for them was hampered by pandemic restrictions, and last year, about 70% of companies abandoned corporate events, considering entertainment events untimely given the Russian military actions in Ukraine (see “Kommersant” dated October 10, 2022).
The growth of the corporate events segment was also felt by specialized sites. Kommersant’s interlocutor in one of the hotel chains explains that there are now many requests for entertainment and motivational events for employees, while last year there were almost none. Dmitry Parinos believes that the number of New Year’s events will reach pre-pandemic levels for the first time since 2020. He adds that such events are an important source of income for hoteliers and account for a significant portion of revenue. The founder of the Meat & Fish restaurant chain, Sergei Mironov, says that there are orders for corporate events, but for restaurateurs the peak of activity occurs in the second half of November.
Corporate event budgets for companies vary greatly. On average, their size, according to Alena Eyvel, has grown by 20–30% year on year. This is due not only to higher prices, but also to a greater variety of events, she believes. 40% of requests involve holding a full-scale event, 20% each are for New Year’s dinners, trips and events for several days for employees with children. On average, 50–120 employees participate in corporate events, adds Ms. Eivel. Catherine Darwin noticed an increase in budgets by 15–20%, explaining it both by inflation and the willingness of businesses to spend more. Mr. Baturin notes additional interest in “exclusive programs.”
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