New dynamics and variables affecting the wedding industry are being closely watched by professionals that say they plan to change their business model for 2011. Standards and information that were so clear in the past have many mystified by new studies going against expectations.
A recent study done by The Wedding Report shows that weddings are less formal than ever before, but in addition, the report findings shows a dramatic drop in destinations weddings of nearly half of what they were only two seasons ago. According to the report a 35% decline in the number of destination weddings in 2008 (259,200) will fall to just over 167,000 this year. Spending will decline even further by nearly half to $1.26 billion, down from $2.49 billion in 2008.
The findings and forecast of the report says in 2010, we estimate that couples will spend $1.26 billion on destination weddings with 167,200 (7.6%) weddings and an average cost per wedding of $7,520. We believe the additional decline in 2010 is based on a recovering economy where couples have put off their wedding until 2010. However, number of guests look to increase by about 7% for 2010; therefore, we believe couples are more concerned with having additional family and friends at their wedding.
This will translate into keeping the wedding closer to home as they can reduce overall travel costs for everyone. We also believe that “eco or green” may be playing a factor in reduced travel. Spending will be down slightly also as couples continue to be frugal about how they spend their money. While there are signs of some economic recovery, the job market is still slow and many areas are still struggling.
The information is felt to be contrary to what many retailers have been saying, feeling there has been a huge increase in the amount of destination weddings since the economy dramatically declined in late 2008. Most feel there has been a huge drop off in available weddings that are using the services of planners, transportation, photography, invitations, cakes, etc. Some sources feel the influx of start-up services in every category has diluted and impacted the market. Further investigation to support the results is being explored.
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Posted on 03/31/2010
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