Event venue revenue expected to surpass 2019’s by 2023: IACC study

It remains to be seen if the Wuhan flu outbreak will affect Chinese tradeshows

Two-thirds of venues say they will recover to 2019 meeting revenue levels in 2022 or 2023, with Danish and Australian venues predicting the fastest recovery, according to the International Association of Conference Centres’ (IACC) annual Meeting Room of the Future Barometer 2022.

Respondents globally reported that 2023 would be the first year to surpass 2019 meetings and business events revenue levels. Predictions did differ slightly by country, with projected revenues in Denmark to surpass 2019 levels as early as 2022 while the Americas had a slightly longer outlook with revenues not returning to pre-pandemic levels until 2024.

Respondents say the gradual return to meetings is weighted towards more in-person interactions, with just 19% of live meetings and events offering virtual access in 2022, compared to 90% in 2021

The study, which is financially supported by IACC’s partners Encore Global, Benchmark Hospitality, Flik Hospitality Group/Rapport and Aramark Conferencing, shows that in 2021, average meeting and business events revenue was 45% lower than 2019 levels but in 2022, this percentage is expected to shrink to just 8% below 2019 levels.

Sustainability continues to be an emerging topic, with some improvements made since the 2021 report. The report shows that, in general, there is more of a focus on environmental and social responsibility at venues in Europe and Australia when compared with North American venues. 46% of respondents to this year’s survey reported that they are receiving increased requests from clients to either state or provide social responsibility and environmental credentials.

There is one sustainable practice where venues have shown considerable improvement since 2020, and that is the ability to donate unused food to local community outreach programmes. More than 50% of responding venues report this option compared with only 23% of venues in 2020, and North American venues reporting a greater likelihood of offering healthy food options and the ability to donate unused foods than other regions.

The study further supports the gradual return to meetings weighted towards more in-person interactions. In 2021, 30% of respondents reported that more than 90% of their live meetings and events also offered virtual access. In 2022 this percentage has dropped to 19%. This is corroborated by IACC’s report, The Future of the Meeting Industry, from February 2022, which showed that the value of human interaction is ranked the highest of seven factors when considering attending an in-person meeting, above expanding one’s network, scheduling and cost of attending. Collaboration with colleagues is also highly ranked.

Talent shortages across industries have been dominating headlines and while the meetings industry is not immune to the challenges of attracting and retaining workers, operators are showing optimism that they will be able to find employees to keep their venues running successfully. The study predicts that talent shortages will be alleviated over time, and overall, respondents do not anticipate that workforce shortages will negatively impact their ability to meet client and attendee needs. As 2022 unfolds, 55% of respondents reported that their venue has or will return to full-staffing levels by the end of 2022.

The survey ran over a three-week period in March 2022, with 87 venue operators from three continents (Americas, Europe and Australia) taking part in the research study.

The full report is available at here.

Sponsored Post