The hospitality events budget

Budgeting involves adopting a moderate approach to the way money should be spent and saved

Hotels and hospitality establishments are increasingly making use of events in their operations, meaning that a budget for this growing segment must be treated as a living document and updated regularly.

The result:

The production of financial outcomes needs to take place very early in the planning stages. Failing to draw up a comprehensive budget at the outset is similar to traveling across the country without a roadmap. However, with thought and foresight, this can be accomplished.

The event budget is a forecast of the expenditure that the event will incur and the income it will generate based on deliberated plans made and information collected.

The event manager needs to make various decisions such as:

• Expenditure, promotion, equipment, staffing and other expenses

• Numerous adjustments and refinements to the budget throughout the whole project lifecycle, successful sponsorship and other income included.

• The major rules of event budgeting should be followed from the outset, namely:

• To avoid any loss/extra expenses

• Be realistic about event incomes

• Regular updates/adjustments of the budget

• Avoid spending unnecessarily on items and services that do not contribute to attaining your financial goals

Budgeting involves adopting a moderate approach to the way money should be spent and saved. Through valid and reliable strategic planning, budgeting is the map that holders can then use, albeit appropriately, to achieve results.

Nouhad Dammous Editor-in-chief Docteur Honoris Causa