A key activity for more than 35 per cent of event planners and agencies working from home is improving their education, reveals a BVEP survey.
- Indications that recovery times are relatively quick - by mid to late 2020
- Shortage of venue capacity in last quarter of 2020 and the first quarter of 2021
- Corporate organisations likely to decrease the number of large events held
- Uptick in association conferences during the last quarter of 2020
- Incentive market showing signs of a potentially fast recovery
- Increasing knowledge and skills a key activity
Undertaking professional education, taking part in industry webinars and online forums is providing an opportunity for event organisers to gain new skills.
The Business of Events (BVEP) team has created briefing documents as part of a COVID-19 recovery plan. Its aim is to offer insights to assist in forward planning for the events industry after the coronavirus pandemic.
To say the meetings and events industry has been hard hit by the current lockdown is an understatement. Research carried out by VisitBritain found that 74 per cent of organisers have postponed planned events in the UK, with 62 per cent having cancelled events within 1-3 months, and 42 per cent in the long term (3 months plus). However, this does indicate that recovery times are relatively quick - by mid to late 2020.
Many in the industry have taken to virtual meetings with alacrity. A key activity for many planners is to move events online via virtual platforms. This comes from a need to maintain engagement - and more crucially - there could be a shortage of venue capacity in the last quarter of 2020 and the first quarter of 2021, most notably in London.
This provides an opportunity for second and third tier venues in London to take advantage of this - as well as venues outside of London.
A sharp increase in conferences and events when the lockdown is lifted in the latter part of the year is predicted by BVEP's Recovery Sentiment Survey. The report is tracking views and opinions from event planners and venues as to when enquiry and booking levels will resume. The results of this survey are currently being collated.
Demand outstrips supply
In the short term, demand for conference event venues and services could outstrip supply. A bottleneck is envisaged as large numbers of events scheduled for early to mid-2020 are moved back later on in the year. Corporate companies could also be aiming to bring back their teams currently on furlough.
Corporate organisations are likely to decrease the number of large events held, especially those with more than 250 people. The findings of the survey reveal that this is due in part to spending time 'regrouping', as well as a ban on the number of non-essential travel. Anecdotal evidence from BVEP reveals that US-based corporates are cancelling or postponing all major live events until mid-2021, as the result of travel restrictions.
Under pressure
In the associations market, pressure is on to forge ahead with their annual events, which are amongst the biggest revenue drivers. There is likely to be an increase in association conferences during the last quarter of 2020 and also in the first quarter of 2021.
Again, opportunities may arise for venues outside of London to capitalise on this as London venues may book up quickly.
The future of trade associations is under pressure, with some reporting short-term financial challenges, as members needing to cut back on expenditure could stop paying fees to associations and look to other sources for networking and knowledge sharing.
Smaller associations may band together, especially in the UK, where there is a view that the number of associations serving the industry has been unsustainable for some time, according to the survey.
Competition on the international arena will increase. Hong Kong is offering free space and venues to conference organisers, and the BVEP survey believes this trend is set to continue.
Rewarding employees
The incentive market is apparently showing signs of a potential fast recovery. There are suggestions of an increase in incentives and short breaks as companies want to engage with their teams face to face and reward them for commitment and contribution during the lockdown period. Companies may look to trips and incentives close to their home market. This provides an opportunity for domestic hotels and venues to work with the incentive market to fulfil this need.
Hotels have been particularly hard hit. There are suggestions that a key activity will be finding new strategies will be needed, such as becoming full-service providers and cutting out the middleman. Hotel groups and independent chains could create their own meetings management and travel agencies, thus entering into competition with traditional agencies.
The research suggests that there will not be a full return to a 'normal market' before mid-2021, as this will be dependent on the return of open borders and air travel.
Market growth confined to the UK and domestic markets due to a lag in normal behaviour resuming and time for people to feel secure and safe enough to resume overseas travel.
These insights have been gathered from a number of sources, including the Department for Digital, Culture, Media & Sport, Events Industry Board, VisitBritain, the Business Visits & Events Partnership, the Tourism Industry Emergency Response (TIER) Group and the Tourism Council.
