The industry is set to benefit from climbing corporate profit and disposable income
New York, NY (PRWEB) January 10, 2015
The Party and Event Planners industry depends heavily on the willingness of households and businesses to spend money on discretionary services. Typically, businesses hire event planners to coordinate holiday dinners, fundraisers and client appreciation events. Companies with strong earnings over the course of the previous year have more money to allocate toward special events; therefore, demand for industry services from this market is primarily driven by corporate profit levels, overall business sentiment and consumer confidence. Likewise, households work with professional event planners to organize and manage weddings, birthdays and other milestone celebrations. Consequently, overall per capita disposable income levels drive demand for industry services from the household market.
According to IBISWorld Industry Analyst Ibrahim Yucel, “Over the first half of the five years to 2014, these metrics weakened because of the economic downturn, though rising business sentiment and per capita disposable income levels quickly revitalized demand for industry services from all market segments.” Consequently, industry revenue is estimated to grow over the five years to 2014. IBISWorld estimates revenue to increase in 2014, primarily driven by large businesses spending more on corporate dinners and other social events.
Profit has followed a similar trajectory to that of industry revenue. In response to ongoing economic uncertainty and low business sentiment, budget-conscious corporations and consumers opted for lower-priced event options, which reduced the industry's profit margins. Nonetheless, demand for professional event services quickly rebounded from 2011 and onward, driving profit margins up in 2014.
Over the next five years, event and party planners are expected to perform well. “Despite a rising number of industry participants, the industry is set to benefit from climbing corporate profit and per capita disposable income,” says Yucel. Industry revenue is forecast to increase over the five years to 2019. Similarly, profit is expected to continue rising as clients increasingly opt for more lavish, higher-priced venues and event services.
For more information, visit IBISWorld’s Party & Event Planners in the US industry report page.
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IBISWorld industry Report Key Topics
This industry comprises companies and individuals that organize social events such as parties, weddings and other social gatherings. The Party & Event Planners 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
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