After the last analysis of the event market in April 2022 was still heavily influenced by coronavirus and the pandemic-related measures, it is time for an updated status report.
A look at the event market, which in this article includes event venues such as multifunctional halls, congress centers, conference hotels and event locations, shows that market activity has increased significantly. Compared to the previousyear, there were around 70% more events and 25% more event participants in2023. Face-to-face formats in particular have seen strong growth compared tothe previous year. With this growth, we are now at just under 75% of the pre-pandemic level from 2019. The market is gradually recovering and market participants are also optimistic about the future: around 90% of event organizers and 80% of providers expect the event and booking situation to be very good in the coming months. Forecasts therefore assume that the number of events and event participants will continue to rise and reach around 90% of the pre-pandemic level in 2024. In a survey conducted in May 2023, providers and event organizers expected a full recovery of national business in the long term. An international comparison confirms this expectation of a full recovery: In Switzerland, full recovery was already achieved in 2022 and even more events were held than before the pandemic.
Shifts in the event segments
The market has also changed in terms of event sizes. With the experience of lockdowns and familiarization with digital conference media, small events can now be held independently and show a declining trend compared to the previous year 2022.
Larger events, on the other hand, are on the rise again: event sizes from 250 people up to events with more than 5,000 people show a
a larger market share compared to the previous year. In addition to event sizes, the segments of business events and leisure events are also developing differently. The market for conferences, seminars and congresses has recovered quickly and once again accounts for the majority of the market at 58% after coronavirus. In the trade fair sector, the AUMA analysis shows a much faster recovery for regional trade fairs. At around 5.3 million visits in 2022, attendance figures were already back at the pre-coronavirus level.
By contrast, national trade fairs were only able to generate around 50% of their pre-pandemic visitor numbers in 2022 and are expected to fully recover in 2024. In the entertainment sector, the live music market reflects the intensification of the overall market: while sales are likely to exceed the pre-corona level this year, attendance figures show a slight downward trend in the long term. There are also signs of a concentration on the high-price segment: the willingness to pay correlates more strongly with the popularity of the acts performing (and therefore also for particularly large events). Adele's concerts in Munich and Taylor Swift's world tour are just two examples of this trend.
Overarching trends
The market analysis also shows that event organizers and providers must be able to withstand the continuing pressure from price increases (e.g. energy prices) and a shortage of skilled workers (particularly in the event technology and temporary staff sectors), as well as taking into account other overarching trends in the event industry. These overarching trends include digitalization, individualization and sustainability. Digitalization is leading to greater demand for digital and hybrid formats. For example, large trade fairs are increasingly being expanded to include a digital channel. Opinions differ when it comes to the use of artificial intelligence: while 80% of organizers want to use AI at events, 73% of providers reject this. In order to meet the trend of increasing individualization, it is advisable to respond to the increased service requirements of customers, which are reflected, among other things, in requests at shorter notice and the increased demand for flexible room options. In addition, the topic of sustainability remains present in the event industry and is becoming a success factor. Event venues with a sustainability certificate are preferred for bookings and more than half of event venues have now implemented a sustainability management system to improve resource efficiency and image.
Sources: 1)Meeting & Event Barometer, 2)Index of the Swiss Music Production Association, 3)Association of the German Trade Fair Industry (AUMA), 4)PwC: German Entertainment and Media Outlook
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A contribution by Tassilo von Schmeling, consultant.