Cut your losses
Sometimes, your first-choice supplier won’t be the one you go with, says Rosangela Quieti, managing director of congresses at PCO, AIM
Group Italy. “If some services are simply no longer affordable, it is more useful, and in some cases necessary, to investigate different destinations or solutions, reduce the length of the event and optimise the allocation of the spaces.”
This is especially true when services that were previously financially viable become unattainable due to fluctuations in currency exchange rates – a symptom of inflation.
“It is an immediate risk factor for international business where you have budgets involving different currencies and international partners,” explains Quieti. “In the last 20 years, we were used to seeing
currency stability of one euro to one US dollar, for example, without significant fluctuation. Nowadays, the currency exchange ratio across three months can see countries collapsing up to 50 per cent of their
value. The impact on budgeting is astonishing!
“The effects are immediate and huge: Who will pay that difference? The final client? Associations? The agency or PCO? At AIM Group we suggest that the exchange ratio must be a risk defined and shared
with clients at all steps clearly and transparently.”