Melbourne, Australia (PRWEB) November 19, 2013 -- The Event Promotion and Management Services industry is forecast to be worth $3.8 billion in 2013-14, up 1.1% for the year. This is in contrast to an expected annualised revenue decline of 0.5% over the past five years. The industry has fallen prey to the weak economic conditions that have afflicted the Australian economy in the aftermath of the global financial crisis. Spending on events is discretionary in nature, as hosting events and purchasing tickets are never essential. IBISWorld industry analyst David Whytcross states “a combination of low business confidence, slow growth in household discretionary income and a steadily rising household savings ratio led to a gradual revenue decline for event managers, event promoters and ticketing agencies.”
Business events held by private corporations and industry associations, such as conferences and conventions, make up a large portion of industry revenue. Businesses have reined in expenditure over the past five years, lowering spending on discretionary items such as business events. Decreasing spending has resulted in a lower number of events being held and thus decreased work for event managers and event promoters. Weak economic conditions also adversely affected consumers. While discretionary income increased slowly, the economic uncertainty over the past five years resulted in consumers increasing their savings ratio to historically high levels. Increased savings left less money to be spent on non-essential items such as event tickets. Falling attendance negatively affected event managers by lowering demand to hold events and reduced revenue for event promoters and ticketing agencies as they mainly generate revenue through taking a cut of ticket sales. According to Whytcross, “an upturn in fortunes for the industry is expected over the next five years. Business confidence is expected to increase, resulting in a greater number of events being held with a greater level of attendance.” Consumer sentiment is anticipated to rise due to steadily increasing discretionary income – partly due to low interest rates – and a declining savings ratio as the perception of job security rises. These factors will result in greater ticket sales and general activity for the industry.
Market share concentration within the Event Promotion and Management Services industry is low. This low market share concentration reflects the variety of specialised industry segments. The diversity of the industry means that no particular company is dominant across the industry, although some are dominant within their segment. Examples include Ticketek and Ticketmaster, which together dominate the ticketing agency segment with exclusive ticketing rights agreements and strong industry reputations. Across the industry, the only major player is Nine Entertainment Co Holdings. For more information, visit IBISWorld’s Event Promotion and Management Services report in Australia industry page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau.
IBISWorld industry Report Key Topics
The primary activities of industry participants are event management, event promotion and ticketing services. The industry also includes tourist information centre operations and fundraising on commission or fee basis.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.
Gavin Smith, IBISWorld, +61 396553838, [email protected]
Share this article