Rising costs and inflation see a shift from hired venue spaces to private events
Rising inflation sees changes in the event industry
In a recent interview with Eleven Media, managing director Tara Hoyek stated "The current business climate in the hospitality industry is dire. With rising costs across all sectors of business, from general groceries, electricity, transport, travel, interest rates and more, the disposable income available, particularly with the younger demographic, has diminished sharply. Younger people are just not going out any more like they used to. The ones that do, they’re spending much less, and venues are hurting as a result. Venues are faced with a tough situation, rising costs and significantly lower income coming in”.
Asked about where Tara sees the future for the events industry she had this to say "We are already seeing a lot of our chair hire and general function equipment shift to private events. We recently had a couple that had originally put a small deposit down on a venue for their upcoming wedding. However, costs in excess of two hundred per head saw them shift to a wedding on a family members property. They found that it was about half the price to organise the marquee hire, furniture, styling and decorations on their own and essentially DIY their wedding”
We spoke to Tara about what she thinks the long term outlook might look like for the hospitality industry- “Were hoping for the sake of a lot of the venues we work with, be it hotels, wedding receptions, bars and pubs and restaurants that people do come back in over time and support them. They provide a lot of employment and stimulate economic activity. It’s a downward spiral if people continue to pull away. I do understand from the clients perspective though they still want to have a great party and hire all the luxury party equipment they want, whether it be fancy chairs, to beautiful bar tables and lounges. I guess they would rather sacrifice the space but still hold onto all the hire items that style the event and make it look great”
Furthermore to our discussions we asked Tara if they had seen widespread cost cutting measures to deal with the downturn in revenues, and she had this to say- “Absolutely, we have seen many businesses we work with lowering shifts and just not having the work they use to before. Some businesses that were paying some staff more than a 30% increase in wages to get them into the workplace as we woke up from Covid when there were mass shortages, are now letting people go. In our own business, we have had to reduce some of our casual staff, but fortunately for us as an established business we still have a healthy number of events, and hope to re hire more casuals as things improve”.
About Chair Hire Co
Chair Hire Co is an expert in furniture hire in Sydney. Having been in the industry for over 20 years they have curated a range ideal for wedding hire, conferences, cocktail parties, festivals, birthdays and more.
Learn more about Chair Hire Co services offered in Sydney by visiting their website here: https://www.chairhireco.com.au
nick zahra
NTZ Group
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