Los Angeles, CA (PRWEB) September 15, 2013
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.
The Party and Event Planners industry has a low level of concentration with the top four industry companies accounting for a small portion of total industry revenue. The majority of industry firms operate on a highly localized and niche market basis because diversified and changing consumer tastes force industry operators to adapt their service offerings, which limits their geographic expansion. In addition, low industry barriers to entry allow a large number of firms to operate in the industry. IBISWorld estimates that company operations in the industry will increase in 2013, up from the number of companies recorded in 2008, despite the recession contracting industry demand over the same period. A significant number of these companies operate as nonemployers or with a high percentage of part-time staff.
For more information, visit IBISWorld’s Party & Event Planners in the US industry report page.
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IBISWorld industry Report Key Topics
The Party & Event Planners industry comprises companies and individuals that organize social events such as parties, weddings and other social gatherings. This industry does not include companies that organize conventions and trade shows.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
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