How Is COVID-19 Changing the Business Events Industry?

pcma convene COVID-19 SURVEY How is COVID-19 changing the business events industry?

Survey and analysis by PCMA Convene editors Charts and design by Point Five

PCMA.ORG You’ll find supplier track responses on pp. 9–11. The COVID-19 pandemic has, as we allThe know, COVID-19 hit the business world, and to redraw their value proposition. taken on the industry, it is a testament to the resilience of the that they were still employed. impact of the coronavirus on the business events industry, we identified as suppliers serving business events professionals. makes sense that the vast majority of those who responded said report. Thirty-one percent of respondents (546 individuals) newsletters and on social media. professionals who make up the business events industry that heavy job loss. Since the email invitation to participate in the professionals. Their results can be found on pp. 2–8 of this planners and suppliers to participate in a survey on the how business events professionals are responding, PCMA assuage concerns about inassuage a the post-pandemic spread of germs an opportunity to reset — to rethink a future in which digital are mindful that it doesn’t accurately represent the ensuing PCMA.ORG survey was sent to work email addresses PCMA has on file, it sent out an email invitation on April 1 to its database of event so many who responded to this survey were using this time as events industry with unprecedented force. To get a sense of connection-making mix, to plan for how in-person events can events are an important part of the knowledge-sharing and days; 69 percent (1,230 individuals) identified as business event events. The link to participate was also included in PCMA coronavirus’ effect on them, their organizations, and their While the survey results provide critical insights about the While there is no denying the toll COVID-19 has already hasWhile already there is no denying the toll COVID-19 A total of 1,776 people responded to the survey over five

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What best describes your describes What best profession? What isyour preferred genderidentity? How many years event ofbusiness management experience doyou have?

69% 31% /PREFER NOT TO ANSWER FEMALE events professionals business Supplier serving eventsBusiness professional OTHER 28% What isyour age? MALE 26% 25% 25% 13%

8% 41% 31% 17% 17% 11%

60 orolder 50-59 40-49 30-39 20-29 74%

2% 24% More than20 11-20 6-10 1-5 PAGE 1 PAGE 6+9+1520 4+12+1314+7 35 +15 PAGE 2 ------

Planners reported Planners There was more was There PLANNER TRACK PLANNER There was much less much was There Six months: Rest of 2020: of 2020: Rest events might be held in Q4, par Q4, in held be might events Independent and Third- Independent and ance questions, and rebooking, and questions, ance moving actively were many and Party Planners: Short- going forward. business ranged widely, from near- from rangedbusiness widely, consensus about whether meet whether about consensus were Some looked. planners out events face-to-face that optimistic face-to-face events that optimism of events scheduled for late June June late for scheduled events of plan of majority a And July. in or fall — many respondents reported respondents many — fall in loss the of Estimates formats. planned events online. events planned virtual to meetings switch to plans ments would be part of planning of part be would ments ness would rebound by 50 percent. 50 by rebound would ness months are canceled or postponed, postponed, or canceled are months busy, were working were who ners ings would be canceled the further the canceled be would ings tion from many that virtual ele virtual that many from tion ticularly in September and into the into and September in ticularly busi that predictions to loss total meetings, domestic small, ticularly that events for the next three next the for events that juggling cancellations, insur cancellations, juggling while others were looking toward toward looking were others while would begin picking up again, par again, up picking begin would with the exception of a handful a of exception the with 2021. There was a strong expecta strong a was There 2021. Three months: Three Term Expectations Term

5% 5% 7% 2% 6% 10% 10% 10% 32% 32% 23%

Unaffected on furlough Been placed Laid off Salary has been reduced off other lay had to Have members team Other

2% 12% 57% 4% 6% 18%

+43+M +3412618M 6+7+32+22+2+5+10+5+10 + Other

President/CEO Business owner convene

COVID-19 SURVEY COVID-19 pcma Association executive

Medical professional meeting

Corporate meeting professional meeting professional Corporate

Association meeting professional Government meeting professional Government Independent meeting professional employment been affected by the COVID-19 COVID-19 the by been affected employment said that their job duties have changed. have duties job their that said mentioned financial impact in the form of pay cuts, reduced hours, and hours, reduced cuts, pay of form the in impact financial mentioned answered “other” said that they are now working remotely, and a number a and remotely, working now are they that “other” said answered Since the email survey invitation was sent primarily to work addresses, addresses, work to primarily sent was invitation survey email the Since the percentagethe “laid of who off”Most low. very skews responses loss of commissions/annual salary increase/bonus/401K match. Others match. increase/bonus/401K salary commissions/annual of loss PCMA.ORG selection and contract negotiation), creative director, experiential experiential director, creative negotiation), contract and selection development, project manager, incentive house, intermediary (site intermediary house, incentive manager, project development,

agency, innovation strategy consultant, sponsorship and exhibitor sales. exhibitor and sponsorship consultant, strategy innovation agency, pandemic?

higher education professional, event marketing professional, business professional, marketing event professional, education higher If you work for an organization, how has your your has how an organization, for work If you

Other responses include nonprofit event and engagement manager, engagement and manager, event nonprofit include responses Other

What best describes your current role? current describes best your What

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Have you canceled any events as a result of the Has this pandemic changed the COVID-19 pandemic? way you will handle contracts and

+ 6 insurance going forward?

87% Yes 13% No 81% Yes 19% No 44

Timing of Cancellations

When canceled events still been hesitant to cancel or 81The vast majority of those who answered “yes” +19M were scheduled: Event postpone. indicated that they will be more specific with the cancellations as reported by wording of their contract language in the future — specifically, surrounding cancellations and what Reasons for canceling respondents were minimal in unforeseen circumstances the force majeure February, but then exploded include: Travel and gathering clause covers. One respondent noted that they will the following month, with bans, social-distancing make sure the force majeure clause considers not events planned for March, requirements, heavy attendee only where the event takes place, but also where April, May, and June seeing cancellations, attendee worry attendees are coming from to attend the event. the largest numbers of and fear, fear of putting “Everything will be read with the COVID-19 cancellations. Through the rest employees at risk, hotel pandemic in mind. I’ll remember that things can of the year, cancellations — so pressure about the room block, change quickly,” one respondent said. far — drop off. However, several leadership directives, hotel respondents said that their closings, the decision by the A few respondents mentioned that they will consider reducing room blocks in the future to events — sometimes dozens Centers for Disease Control prevent losses. “Either lower room blocks or more of them — have been canceled and Prevention, force majeure allowable slippage being offered — at least 30-per- through 2020, and some going into effect, employees cent allowable or I won’t book the hotel,” one reported already canceling 2021 being laid off, and the World respondent said. events. Health Organization’s pandemic declaration. For When canceled and why: an event canceled on March Again, March was the pivotal 12, the respondent said: “100 month, with respondents people dropped out of the saying it was when they meeting in one day.” decided to cancel. Some respondents indicated that early in the month, clients had

PCMA.ORG PAGE 3 “ASAP.” Respondents were almost evenly split between not Are you inthe midst of deciding whether to cancel or What isthe date it isscheduled to beheld and when postpone anupcoming event? The majority of respondents said they would be deciding the Have you postponed any events asaresult of the Most of the respondents who were in the midst of deciding had PCMA.ORG COVID-19 pandemic? are you planning to make afinaldecision? five respondents were unsure about their events in November knowing when they would be making a fate of those events this month, and more than a dozen said could find new workable dates to announce postponing the event. and December. about events in August, September, and even October. Twenty- an event scheduled in June, followed by July. There were 53 decision and calling it in May. Some events still in the balance for May, and dozens were deciding said they were waiting until they

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39% 34% 61% 66%

30 33+20 +17

Yes Yes No No Timing ofPostponed Timing for rescheduled events: More than 25 percent have yet to Most survey respondents who Fifteen percent of respondents post when things will come back to number makingwith the a large timeframe — more than 25 percent of the most-often reported new meeting Of those who had rebooked, fall was through the end of the year. than 10 percent — were postponed. When postponed events were When events were postponed: months. Far fewer June events — less respondents reported rebooking respondents have rescheduled their normal,” one respondent said. meetings. “We are waiting to see poned were scheduled in March, April, postponed events did so in of March, poned events scheduled from June Events and May — 75 percent of postponed events were to be held during those events in 2021. events in September or later. Fifteen determine dates for scheduled decision in mid-March. scheduled:

Most of the events post PLANNER TRACK - - PAGE 4 PAGE pcma convene COVID-19 SURVEY PLANNER TRACK

Making Meetings Virtual Did you or will you move your face-to-face event to a virtual platform? Twenty-two percent of respondents added or planned elements to their virtual events that were not listed in the survey. Most common was a virtual expo or exhibit — dozens of respondents 18% Yes, completely reported already incorporating that 52% Yes, portions of feature or actively looking for a virtual the content expo platform. 30% No Other additions included: 18+52+30= • Peer coaching — enabling attendees to chat in small groups over a number of weeks. For this virtual event, did you or will you: • Sending gift bags to all registrants — (check all that apply)

including a dessert to be consumed 62 en masse to end an event Livestream speakers 62% • Creating a closed Facebook group — + 69 to create a sense of community Use a webinar format 69% + 62 • Virtual networking lounge — as well Present an abbreviated program 62%

as happy hours and round tables. + 25 • Podcasts featuring speakers Have an emcee 25%

• A virtual poster library on the event + 75 website — including the Kubify Include Q&A and chat and 75%

ePoster platform interactive features + 22 • KUDO for simultaneous translation, Other 22% and adding language subtitles on existing online education • Spreading event content out over a longer period of time How did you or will you monetize the virtual event? • Combining different platforms for (check all that apply)

different types of educational content 13 • A virtual awards ceremony Registration was/will be the same 13% + • A quiz with instant results for cost as in-person 46 certification Registration was/will be lower cost 46% + 39 Sponsorship 39% + 21 Virtual exhibit hall and/or pre-arranged 21% + “meetings” with buyers and sellers 44 It was not/will not be 44% revenue-generating

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Were you or will you be able to collect data from your virtual attendees that you’re not able to collect on site?

Will Virtual Events Cannibalize F2F? It’s Complicated.

51% Yes Respondents said no, by a wide margin, when asked if virtual 49% No events would cannibalize face to face. But 14 percent saw it as something other than a yes-or-no question. Here’s what they had to say:

“We know historically digital events do not, but in 2020, we 51+49M are worried our digital event will cannibalize our October F2F citywide, because of lingering fear and doubt.”

“F2F will return, but with a need to better incorporate digital in what were previously F2F only events.” Do you worry that digital events will cannibalize face-to-face events in the future? “I think the explosion of online events will make associations think about what other types of education they might offer in this format, or how they may supplement their in-person events with online content.” 24% Yes 62% No “Virtual conferences are here to stay. Expos no. The tech isn’t 14% Other 24+62+14M there yet.”

PCMA.ORG PAGE 6 62 2020? Have you revised your event PCMA.ORG 20- to 50-percent range. 20- to 50-percent range. from less than 102020 percent go to 100 percent, this unprecedented business budget/revenue projections for Have you considered or have you Revised event budget and revenue projections for 43% 48% with the biggest number of reported cuts in the other skillsets) asaresult of developing otherskills(seep. 10) disruption? started reskilling (developing said Eleven percent more thansuppliers planners 9%

that they were thinkingorhadalready begun

Yes, we have decreased ourbudget/ No, we have notyet to madechanges No, we donotplanto changeour our budget/revenue projections but revenue projections by Xpercent. plan to doso. budget/revenue projections.

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Yes No

+38M 22+244 Answers to the question Uncertain Territory the wake of event cancellations. their teams, particularly during this time of stress and uncertainty; to pivot to digital; canceling events and managing contracts, damages, revenue; uncertainty preventing their ability to plan “intelligently”; revenue; uncertainty preventing their ability to plan “intelligently”; fell into the following main buckets: dealing with the loss of income or communication issues; difficulty convincing leadership of the need and navigating the possibility of having their own to change roles in and payments; getting a handle on producing a virtual event; managing professionally andatyour organization duringthepandemic? ‘This May Allow/Force MetoReconsider My The majority of planners Nearly 300 of 490 respondents where they would like to tion: Other respondents mentioned they are currently re-skilling mastering virtual meetings marketing skills are areas crisis management, legal legal crisis management, strategies.online engagement by studying digital events and Career Choices’ answered “yes” to this ques and digital technologies and expand their knowledge. Some expertise with contracts, and said that relevance starts with as aresult ofthisunprece have you re-skilling started dented business disruption?dented business Have you considered or What hasbeenyour challenge biggest - - Another was further along that writing in: “I will have to find One respondent wrote: “This industries my skill set can be leaving the events industry most stress right now, with one ness owners are feeling the respondents expressed con may allow/force me to recon much work available in 2020.” pen have some considering prospects. Worries about when path, “trying to see what other cerns about their long-term altogether. Independent busi a return to meetings will hap applied to.” and I don’t think there will be a way to make some income, sider my career choices.” PLANNER TRACK - PAGE 7 PAGE - - -

PCMA.ORG “If I were to create a brand-new “If I were to create a brand-new Time toReset We asked event organizers: The next most-popular response Many, however, dealing with Don’t play catch up — refocus Not surprisingly, an overwhelm were reeling from recent world what would that event look like?” were starting to think in terms of went in the opposite direction: to you dodifferently orhow your next event, whatwould they would be revisiting their the ramifications of canceled to figure out what comes next. that it was too soon for them One respondent shared that they to-face events. As one respondent they would be focusing more Considering how respondents it more interactive, experiential, in to the in-person event to make ing majority of respondents said relevant, and to provide stronger would you fresh? start organization’s event insurance, content and rethink the format. component from the beginning. or hybrid program at their face- online-only events forward going on virtual events. That included ble to reinvent the wheel.” and postponed events, said already built rather than scram and planning a virtual component events, number said a large event to compete against my event, energy to something you’ve start from scratch and really dig said: “I’d incorporate a virtual chance toreset/rethink/reboot If you were tothinkofthis pause-on-events period as a periodasa pause-on-events

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- - Another repeated response was The sentiment of using this as a For future events, number a good would be looking at how to make with other teams and making whole organization to rethink us all to the needs of attendees to our conference. It will reorient that attendees to come’ just ‘have time to reset resonated. “This will that they were using this time to the same.” to position myself as a project to sell anyone on a new tool, to all of this is that it forced my in-person, hybrid, and virtual manager who can pull together manager now. Professionally, I’m going new ways.” practices at venues, especially processes more efficient and plans. force our organization to limit for F&B. Others said that they focus on internal improvements, our event design. I didn’t have community and networking in content and do away with the idea of respondents said they would contingency, and risk-assessment contracts, and room block because everyone is open to tech be more stringent about sanitary Said another: “A silver lining and to deliver content and create and prioritize the most needed affordable. attending their events more agreements, as well as their crisis, events because the principles are streamlining expenses. specifically on collaborating “other” said“other” “both.” They cited economic will still beconcerned will beapent-up demand to The vast majority of those who marked

25% 25% 48% would only feel comfortable if major when there is a vaccine, and that people literally saying they have never wanted to connect face-to-face with follow attend events, that it depended on if/ industry members more in their lives.” emails from members saying they will of sanitary practices. “I have received were made to venueschanges in terms issues impacting whether people could respondent, “and I have received emails not travel for a long time,” said one to travel? pandemic isbehind us, or Do you anticipate that there very similarexpectations— meet face-to-face once the On this, plannersandsuppliersshareOn this, about close contact and the of suppliers believeof suppliers there willbe do you worry that people spread of germs and opt not a pent-up demand to travel percent think people will be hesitant percent thinkpeoplewillbehesitant 27%

PLANNER TRACK There willbeapent-up demand Other People to willbehesitant travel. to meet. (p. 11). to meetand 28 percent 44 44 PAGE 8 PAGE 14+2412 PAGE 9 - The near-term near-term The Mixed bag of bag Mixed SUPPLIER TRACK SUPPLIER Suppliers are hopeful are Suppliers Six months: Suppliers’ Short-Term Suppliers’ Short-Term Rest of 2020: of 2020: Rest soft conversations and inspiring and conversations soft fall.” early in fear still event clients by Q4. Some hope Some Q4. by clients event expected to “reschedule and “reschedule to expected a “permanent change in contracts, change “permanent a contracts, in supplier, one wrote attrition,” at entrance points and cleaning and points entrance at practices distancing new assuming will standards service food and Expectations on the ability to begin to reengage to begin to ability the on cautious about what the landscape the what about cautious sales.” hard no content; outlook is bleak. “All major “All bleak. is outlook increases.” confidence for a successful 2021. There will be will There 2021. successful a for hygiene.” respondents many but predictions, meetings are conducted.” are meetings responses: implemented.” be to need meetings will be canceled,” one canceled,” be will meetings Another wrote. respondent reduce and events refund market until spend marketing ing place, but at a smaller scale smaller a at but place, ing focused are they that indicated that they can lay the groundwork the lay can they that this timeframe, but many remain many but timeframe, this that business begins to return in return to begins business that will look like. Here’s a handful of handful a Here’s like. look will checks health on emphasis with Three months: Three “and a complete change for how changehow for complete a “and “Events and exhibitions start tak start exhibitions and “Events starting respectfully and “Slowly events, to return for “Hopeful but rebookings, of amount “Fair

5% 7% 7% 3%

11% 7% 7% 2% 10% 17%

10% 10% 10% 22% 22% 56%

Unaffected on furlough Been placed Laid off Salary has been reduced off other lay had to Have members team Other

8% off” low. very skews responses addresses, the percentage the “laid of addresses, Since the email survey invitation invitation survey email the Since was sent primarily to work to primarily sent was 25% 27%

4% 15% 21% +75M AV 710+22+4+17+10+7+2+22+ +84271521M Hotel Other 1110+5+56+7+3+7+ Other

Operations Operations Development President/CEO convene

Business owner Event technology Event General manager General Convention Center Convention Event transportation Event COVID-19 SURVEY COVID-19 pcma Sales and marketing

Destination experience (DMC)Destination experience

Event design/brand experience design/brand Event

What best describes your sector? describes best your What employment been affected by the COVID-19 pandemic? COVID-19 by the been affected employment managerial roles, or in event and client services. services. client and event in or managerial roles, center event venues, as general service contractors, for photography and photography for general as contractors, service venues, event center PCMA.ORG videography companies, as speakers or entertainers, and in F&B. F&B. in and entertainers, or speakers as companies, videography Respondents who checked “other” worked at the C-suite the at “other” worked checked who in and Respondents level

Respondents who checked “other” worked for non-hotel or non-convention non-convention or non-hotel for “other” worked checked who Respondents If you work for an organization, how has your has your how an organization, for work If you

Destination organization (DMO/CVB) Destination organization

What best describes your role? describes best your What

2525 pcma convene COVID-19 SURVEY SUPPLIER TRACK

$ Have you considered or Suppliers’ Biggest Challenges have you started reskilling Professionally, and Organization-Wide — (developing other skill sets) as a result of this unprecedented business disruption? The overwhelming majority of the “Ensuring we will be able to nearly 400 responses to this ques- reopen ... and grieving what was tion pointed to the loss of revenue and the people no longer working or income — and expressed with us.” their concern for staff members, clients, partners, and industry “Professionally, we have been colleagues who also are facing trying to figure out the right mes- 51% Yes hard times. Two things stood out saging to support both our venue 49% No as particularly tough: planning for partners and clients during this the future when so much is uncer- difficult time in the events indus- tain, and the difficulty in finding try. Finding the right way to pro- ways to support struggling clients, vide value and content without team members, and association adding any clutter to the inboxes members. of our venue partners and clients.”

Some comments: “Fear of coming to work, fear of 51The need to develop other skill sets +49M “It’s painful to see so many not working, the uncertainties. was emphasized by one supplier, who economically vulnerable people Comforting staff and keeping wrote: “We all need to be thinking about suffering doubly — being laid off/ them busy for as long as we can this topic. Live events as we know it has changed, indefinitely.” furloughed, unemployed, and while practicing CDC guidelines.” being isolated and distanced Many said that they were spending from their professional and social “Connecting with venues that time learning about new technology, networks.” have been shuttered. No way to particularly virtual and hybrid events. support clients you can’t connect Some were using this time to study for “It’s been very hard to see an with.” the CMP, to brush up on contract and negotiation skills, and taking advantage industry I love and believe in of many available webinars to help becoming non-existent in a mat- “Dealing with long-term clients provide direction. Several said that ter of weeks.” that are also friends, that have paid they are having to learn new jobs at deposits and their event canceled, their organizations to cover for their “There’s obviously the complete and we are not in a position to colleagues who have been laid off or furloughed. One respondent was looking loss of revenue from live events. refund deposits already paid and for jobs outside of the industry “as this But as we’ve pivoted, the big stay in business. All cash on hand one takes the hardest hit always.” challenge (albeit an exciting one) has to be used to keep our doors is managing the extremely fast open so we can get through this.” development and rollout of our new offerings.” “Instilling confidence in event organizers that virtual events can “Trying to keep afloat. Manage be as successful and meaningful cash flow. [We] let almost 900 as physical events.” people go to protect the assets of the company.”

PCMA.ORG PAGE 10 PCMA.ORG “I hope it’s not so important “Double down on the importance ‘Now That Disturbed’ ComplacencyHasBeen There was a common thread The answers to this question — videoconferencing AV, social- were adjusting their paths. reflected the diversity of roles your role or your organization’s they planned to make a strategic to convention center staff. Some tainability services to technology that supplier respondents play, ipants — most convention centers in many of their answers — the relationships. many were planning to shift their media marketing, and digital most often-cited place where ranging from event design to sus have their limits anyway — but presentation skills. Additionally, plot a strategy, but the majority focus to maintaining only high- would you dodifferently or complacency has been disturbed.”complacency nowof digital engagement that on digital tools, including or relying more heavily bigger and bigger with live and bigger partic bigger anymore that the congresses get quality personal and business shift was in technology, adding suppliers said it was too early to Here are someof their comments: chance toreset/rethink/reboot If you were tothinkofthis how would you fresh? start eventsbusiness industry, what period asa pause-on-business strategy asitrelates tothe

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—

- - “We are constantly trying to “The hotel environment will “Improved environmental sus “Take an opportunity to sketch By doing this, the organizers have viding services.” that we are operating daily. This is these services.” to them by suppliers. For years, to the value of services provided understand there are actual costs tainability, in the process of pro taking into account the changing they rather grow in digital partici to be ready to launch when the ideas are only slowed by the fact industry returns.” if they are important, move fast no true knowledge of the cost of no one wants to harm anyone.” pants. Most important, let us all change. It is time for organizerschange. to out the customer needs as they’ve by receipt of hotel commissions. be human again, respect everyone, global landscape.” a time to reevaluate big ideas and evolve as an industry, often big evolved in the past five to 10 years, supplier costs have been covered - - - 12-18 months. A handful said people will Others said that while people may have 44% Most responses said a mix or both; will continue just as they always have we are social animals and crave face- wrote one respondent, “that as the will make that difficult. “I foresee/hope,” to-face communication. Live meetings think that there will be more meetings alongside virtual meeting technology.” a social behavior perspective, I think the as a result of pent-up demand but from and attendees) will look forward to a a desire to travel, economic realities attendance will pick up — some said number saida good that most will in six to nine months, and others said resumption of business as usual. I do not not feel comfortable traveling to events self-quarantine has reminded us that pandemic subsides people (organizers until there is a vaccine for COVID-19. be hesitant initially but travel and Based on what you know now, how do you foresee 28% over the next nine months? business events evolving demand for face-to-face 28%

SUPPLIER TRACK There willbeapent-up demand Other People to willbehesitant travel. to meet.

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