The Party and Event Planners industry is highly dependent on the ability of its clients to spend money on discretionary services. Typically, businesses hire event planners to coordinate holiday dinners, fundraisers and client appreciation events. The level of corporate profit determines demand for planners; that is to say, the higher a company’s earnings, the more money it can allocate to special events. Likewise, households hire event planners for weddings, birthdays and other similar milestone celebrations. Moreover, consumers’ per capita disposable income determines demand from this market. Over the five years to 2013, these metrics weakened as a result of the recession. Consequently, industry revenue fell during this time. Nonethless, as economic conditions have begun to improve, so has industry performance and IBISWorld expects revenue to grow slightly in 2013.
According to IBISWorld Industry Analyst Nikoleta Panteva, “Profit has followed a similar trajectory to that of industry revenue.” During the recession, budget-conscious corporations and consumers opted for lower-priced event options, reducing the industry’s profit (earnings before interest and tax) in 2009. Nonetheless, the outlook appears positive for event and party planners. Despite a rising number of industry participants, the industry is set to benefit from climbing corporate profit and per capita disposable income. Over the five years to 2018, revenue is forecast to increase. Similarly, profit will also expand as clients choose higher-priced options. “However, because weddings represent a large portion of the industry’s services, the declining marriage rate is likely to limit industry growth to an extent,” says Panteva.