Timothy Chee, CEO of The Knot Worldwide, a wedding planning website company, told CNBC on Friday that weddings, including those with big budgets, are on a return.
“In the US, on average, there are about 2 million weddings a year. We saw that about 50% of those weddings happen, it simply means there are another million marriages that have been carried forward, and we’re really starting to see that.” Here’s what happened,” Chi said on “Squawk on the Street.”
As a result, Chi said, he expects weddings to increase by 20% to 25% this year and in 2022 compared to pre-pandemic levels.
According to a report by market research firm IBIS World, the wedding industry saw a 34% drop in revenue last year as the covid crisis forced many weddings to be postponed or at least reduced.
As weddings are coming back now that most pandemic restrictions have been lifted, Chi said the couple are “ready to go out again,” evident from their spending preferences.
According to The Knot, the average budget for wedding receptions this year is about $22,500, which is more than $3,000 compared to 2020 and comparable to 2019 levels.
Additionally, a recent survey by The Knot found that about 66% of respondents are looking forward to increasing their budgets for aspects that can make the day “more special”, Chi said, such as a Second photographers, more exotic flowers, an increased guest count, and continued health and safety measures.
Chi said he thinks the increased budget could serve as a “leading indicator” of consumer spending in some parts of the economy, given that travel and hotel stays are often included in wedding events.
“There is no better way to re-enter the times of Covid than with a huge celebration to bring our closest friends and families together,” he said.