The situation is complicated, said events agency 'In and out events' founder Atis Sīlis. The agency organizes corporate events, sports games, team-building events, and similar events. For the summer, the interest is very high, but the sector is already experiencing price increases.
"During the pandemic, agencies and clients have established a much better relationship. It is easier to communicate on both sides [..]. There is mutual work and timely information," said Sīlis. He said costs can be reduced by 'creative thinking'.
"Earlier, to surprise customers, we had to make grandiose things where more money is spent on details. At the moment, the details are in the background, the most important thing is to be together, to meet, to have fun, and the quality of it is no longer so important. At the moment, we need the concepts of events where everyone can participate, have a good time," said Sīlis.
The agency forecasts that costs could rise by 20% in total and are already communicating to customers now.
Event organizer Madara Gavare also said, to some extent, price increases will result in a decline of the quality of the events. Gavare organizes holds weddings, anniversaries, corporate events. It could even be difficult to manage to organize something in the summer, said Gavare:
"Everybody who provides events, catering, rentals, performers, musicians – this summer is nearly full for everyone. Consequently, if someone wants to organize the event at the last minute, it's more difficult. While other summers it might have been possible. This year, we feel that all of these dates have been booked very timely."
Gavare also believes that organizers will have to become more creative in the future to save costs.
While prices are rising rapidly, the budget for people dedicated to events remains unchanged. Chief executive of the event agency Luka, Inese Lukaševska, said that many companies are now rushing to organize parties in the summer as there is great uncertainty about the autumn and winter in terms of prices and pandemic restrictions. Another challenge for organizers this year is recruitment, as many workers have reprofiled during the pandemic, resulting in significant labor shortage.