| As the effects of the global recession become more widely felt, corporate are realising that lavish spending on hospitality will not endear them to anyone.
With company branding emblazoned across swanky boxes at high-profile sporting events and concerts, corporate hospitality is among the most conspicuous forms of client courtship.
But its association with Champagne and glamour has led to many corporate viewing it as a frill that is best removed from the marketing mix, amid an economic climate of taxpayer bailouts and redundancies.
This attitude has undeniably damaged the industry, which, according to market research firm MBD’s UK Corporate Hospitality Market Development report, was worth £1bn in 2008. The report forecasts that the market’s annual growth will slow from seven per cent on 2006 to between one and three per cent in the next few years.
But the real killer is perception. The impact of this paranoia is expected to come to an end in the coming months. “There is likely to be a drop in corporate bookings for hospitality events this summer, because brands don’t want to highlight their spend on entertaining,” says Justine Clement, managing director of agency Unmissable.
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