AI is helping meeting and event agencies complete work faster than ever, but does greater efficiency necessarily translate into higher profits or a more valuable business?
In today’s solo episode, Eric Rozenberg explores how AI-driven productivity can actually reduce agency revenue when services are billed by the hour. Using a practical venue-sourcing example, he explains why agency owners need to rethink their pricing models, focus on the value they deliver, and build businesses that can operate without their constant involvement.
Eric also shares a memorable experience organizing a product launch for Schweppes in Malta, illustrating why human judgment, client understanding, and strategic recommendations remain essential in an increasingly automated industry.
Tune in to learn how to use AI to improve profitability, strengthen client relationships, and increase your agency’s long-term value.
AI Productivity and the Pricing Problem
According to the 2026 AMEX Global Business Travel Global Meetings and Events Forecast, approximately half of surveyed meeting professionals are embracing AI throughout the meetings journey. While AI can significantly reduce the time required to complete certain tasks, agencies charging hourly rates may earn less for the same results.
The Hidden Cost of Hourly Billing
Eric demonstrates how reducing a venue search from ten hours to five can cut an agency’s gross profit from $1,000 to $500 under an hourly billing model. By contrast, maintaining a $2,000 fixed fee while reducing delivery costs increases gross profit to $1,500. The difference highlights the importance of pricing based on value rather than time spent.
Selling Decisions Instead of Tasks
Clients can increasingly use AI to research venues, compare options, and generate preliminary recommendations. An agency’s real value lies in evaluating risks, understanding event objectives, negotiating terms, and helping clients make informed decisions. Eric encourages agency owners to position their services around clear deliverables, outcomes, and strategic expertise.
The Human Factor AI Cannot Replace
Drawing on his experience organizing a Schweppes product launch in Malta, Eric recalls choosing between two comparable hotels. One property’s willingness to replace the contents of 180 guestroom minibars with Schweppes products became the deciding factor. The example illustrates how understanding a client’s priorities can make all the difference.
AI and the Value of Your Agency
A potential buyer wants to know whether an agency can stay profitable as technology reduces delivery time, whether the team can operate without the founder, and why clients keep returning. AI can improve efficiency, but a business that depends on its owner for every decision, negotiation, and relationship remains difficult to scale or sell.
Three Actions to Take This Week
Eric challenges agency owners to put these ideas into practice:
Eric also suggests using Eric AI to evaluate an anonymized proposal, identify where an agency is selling hours instead of outcomes, and explore a fixed-fee or fixed-fee-plus-success-fee structure.
Connect with Eric Rozenberg
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