|Author(s):||Wayne W. Smith, (Department of Hospitality and Tourism Management, School of Business and Economics, The College of Charleston, Charleston, South Carolina, USA), Stephen W. Litvin, (Department of Hospitality and Tourism Management, School of Business and Economics, The College of Charleston, Charleston, South Carolina, USA), Andrea Canberg, (Department of Hospitality and Tourism Management, School of Business and Economics, The College of Charleston, Charleston, South Carolina, USA)|
|Citation:||Wayne W. Smith, Stephen W. Litvin, Andrea Canberg, "Setting parameters: operational budget size and allocation of resources", International Journal of Event and Festival Management, Vol. 1 Iss: 3, pp.238 - 243|
|Keywords:||Benchmarking, Budgets, Costs, Festivals, Financial management, Operations management|
|Article type:||Research paper|
|DOI:||10.1108/17852951011078032 (Permanent URL)|
|Publisher:||Emerald Group Publishing Limited|
Purpose – The purpose of this paper is to determine how festivals allocated their funds among various expense categories.
Design/methodology/approach – Festival managers from across North and South Carolina were asked to specify the percentages of their expense budgets allocated to each of the following categories: marketing, administrative, entertainment and operations.
Findings – It was found that “smaller” festivals spend a significantly greater proportion of their budgets on marketing (23 percent) and a far smaller share on administrative expenditures (5 percent) than do their “larger” counterparts that spend only 15 percent on marketing and triple the “smaller” festival's administrative costs (15 percent). The differences related to their spending for entertainment (35 versus 28 percent) and operations (36 versus 41 percent) are not as dramatic in relation to their proportion of total spending. The data herein suggest that festival size plays an important role when it comes to such allocations.
Originality/value – The paper has provided benchmarks that hopefully will assist festival directors' budget-decision-making strategies as they allow a measure with which to evaluate those decisions. While the research needs to be interpreted with great care due to its relatively small sample size and broad budgetary categorizations, the findings provide a guide to assist festival organizers as they manage their events for the benefit of their stakeholders and the communities that support them. The paper also provides a starting point for future research in this area, much of which is needed.
Monday, October 25, 2010
See my latest publication in the International Journal of Festival and Event Management.