Improving business sentiment is set to drive industry growth.
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.
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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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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