Hybrid and virtual modes still override physical meetings and events

Hybrid work formats, coupled with inflation, insufficient budgets, sustainability, and effects of the pandemic have made the trend of organising meetings, events and shows unpredictable. As a result, event organizers and marketers must rework on their strategies to see a return of the culture of face-to-face audience at events for a satisfactory attendee experience. Rather than relying on what's worked well in the past, these professionals focus on innovation and resiliency, shifting the primary focus to flexibility and exploring non-traditional event formats and unique digital experiences to reach their audiences with a personal touch.

Inflation could have a far-reaching impact on events in 2023 as expenditure on travel, lodging, and even food could increase because of the enhanced prices. In fact, the cost of business travel is set to rise significantly because hotels, airlines, and conference venues have increased their prices. This could result in a less than desired attendance. Moreover, with less disposable income, attendees will be hindered in their ability to enjoy excellent conference locations and, therefore, the hesitancy to travel.

According to UFI, the Global Association of the Exhibition Industry, in most markets full recovery from Covid-19 is expected this year, though there remain some like China, where it may not be possible in the immediate future. Globally, the level of operations continues to improve, with a proportion of companies declaring a “normal activity” gradually increasing from 30% in January 2022 to 72% in December and expected to reach 80% in June 2023 – aligning with pre-pandemic levels.

The study also includes outlooks and analysis for 21 focus countries and regions – Argentina, Australia, Brazil, Chile, China, Colombia, France, Germany, Greece, India, Italy, Malaysia, Mexico, Saudi Arabia, South Africa, Spain, Thailand, Turkey, the UAE, the UK and the USA – as well as five additional aggregated regional zones.

In terms of operating profit, the markets in all the countries analysed are above average levels in either 2022 or 2023, or both, except China, Germany, Italy, Thailand, and the US.

Globally, four per cent of respondents expect a loss for 2023, compared to 11% for 2022. The highest proportion of companies expecting a loss is declared in China (18%), Germany (17%) and Italy (11%). For Germany, Italy, the UK and the US, however, “Global economic developments” have become the most pressing issues.

The events industry greatly influences the ecosystem, and the pandemic exposed many of the benefits of virtual and hybrid events, including sustainability. Now, more event attendees are sensitive to the adverse environmental effects of in-person events, such as waste, travel-related carbon emissions, among others. Businesses, too, will be looking for ways to align themselves with sustainable initiatives as a competitive differentiator.

In-person events will embrace technology, and regardless of event format – in-person, hybrid or virtual –there will be a seemingly endless array of digital touch-points for attendees to enjoy at an event. Advanced personalization based on attendee behaviors and preferences, including content and promotional offers, will become the norm. The menu of engagement activities, from games, polls, and quizzes to digital chats and matchmaking, will grow larger and become more immersive.

The flexibility of hybrid events can't be denied. Hybrid events present a large menu from which attendees can order items in any category to satisfy their appetites. For example, if an attendee wants an in-person experience, he or she can attend in person. If he or she wants a virtual experience, he or she can attend virtually. This agility increases event reach and accessibility, making hybrid formats more popular than ever with event organizers and marketers, so much so that 67% of event professionals say hybrid formats will be their go-to event format in the future.

Technology now plays a significant role in the event experience, from attendee registration and behavior tracking to post-event surveys and marketing. But while technology enhances the event experience, it also opens the doors for cyber-attacks while the risk of data and files getting stolen increases.

Jörn Holtmeier, Managing Director of the umbrella organisation of the German trade fair industry, AUMA, sums it up aptly: “2022 was once again a rollercoaster ride for trade fairs, but in the end it developed amazingly. Despite never-ending uncertainties, the first industry trade fairs are recording above-average visitor and exhibitor numbers. Although the costs for travel and accommodation have risen sharply, companies do not want to do without their industry get-togethers. Last summer, visitors and exhibitors showed reluctance initially. However, it has become evident that trade fairs are the best places for acquiring new customers and solid sales channels as far as innovative topics are concerned.”