In pre-Covid times, business events — from small academic conferences to giant trade shows — routinely attracted more than 1 billion participants each year. The pandemic brought those global gatherings to a sudden halt, emptying convention centers and shuttering hotels.
More than a year later, in-person meetings are on the rebound. In late August, 30,000 masked attendees gathered in Las Vegas for ASD Market Week, a retail trade show. In Chicago, the Black Women’s Expo recently held the largest event in its history, with 432 vendors and thousands of masked attendees.
“People are cautious, but they’re glad to be able to get out and network with other people,” said Dr. Barbara Hall, whose company, JBlendz Communications, was among the exhibitors at the expo.
Still, it could be several years, if ever, before conferences attract the crowds they did before the pandemic.
Many countries and businesses are still restricting travel, pinching attendance at big events like the Canton Trade Fair in China, which required 26,000 vendors to pitch their wares virtually in April.
Health concerns also remain. The industry is keen to avoid another black eye like the Biogen leadership conference, a February 2020 event in Boston that was eventually linked to 300,000 Covid cases.
The New York Auto Show, which regularly attracts more than 1 million people, was canceled two weeks before its August start date because of concerns about the delta variant. A construction machinery trade show in Beijing, which normally attracts 150,000 visitors, has been delayed for two months until November.
Experts say one of the big lessons of 2020 is that much of what happens at conferences and trade shows can happen virtually, lessening the need for big in-person events.
Jaiprit Virdi, an assistant professor at the University of Delaware, said moving events online made them more accessible to the disabled and those who can’t afford to travel.
Virdi,
who is deaf, said she’s relieved that in-person conferences are
requiring masks for safety. But masks create serious barriers for her,
since she relies on lip-reading.
“We
don’t need to go back to the way things were pre-Covid, but rather
embrace the lessons from the past year-and-a-half to improve how we
conduct these spaces for everyone,” Virdi said in an email.
Paddy
Cosgrave, CEO of the Web Summit, a tech conference aimed at startups,
said last year’s virtual-only event was less expensive — people paid
just $100 to attend, versus $700 previously — and drew in more
participants from developing countries. But attendees also felt
something was lacking.
“In-person meetings provide a quality of interaction that no amount of technology, as of yet, can replicate,” Cosgrave said.
This
year, the Web Summit expects 40,000 attendees when it convenes in
Lisbon, Portugal, in November. Vaccines or a negative Covid-19 test will
be required to attend, but masks are optional.
The
Render-Atlanta software engineering conference, scheduled for
mid-September, is also requiring vaccination or a negative Covid-19 test
to enter. To make attendees feel even safer, the conference cut a deal
with a sponsor to provide daily testing for its 400 attendees. Masks —
which can be personalized at a decorating station — will be required.
Attendees can also wear blackand-white bracelets showing their level of
comfort with social interaction. Dots mean they’re okay with it, stripes
mean “stay away.”
Justin
Samuels, Render-Atlanta’s chief experience officer, said it’s worth the
extra hoops to gather in person. Render-Atlanta is the only Black-owned
software engineering conference, with an emphasis on culture that
doesn’t translate to a Zoom screen, Samuels said.
“The actual art of human interaction has to happen in person,” Samuels said.
‘More brutal than anything’
A
lot is riding on the revival of in-person meetings. Prior to the
pandemic, conferences and trade shows generated more than $1 trillion in
direct spending and attracted 1.5 billion attendees annually around the
world, according to the Events Industry Council, a trade group.
The
group hasn’t yet calculated the impact of the virus globally. But the
Center for Exhibition Industry Research, which studies the economic
impact of U.S. businessto-business trade shows, said those events alone
were expected to generate $105 billion in direct and indirect spending
in 2020.
Instead, that plunged to $24 billion. CEIR doesn’t expect a return to growth for the industry until 2023.
Chicago’s
McCormick Place, the largest convention center in the U.S., laid off 90
percent of its 2,800 workers last year after 234 events were canceled,
said Larita Clark, the CEO of the Metropolitan Pier and Exposition
Authority. One of the complex’s two hotels, the Marriott Marquis
Chicago, was temporarily closed; the other, the Hyatt Regency Chicago,
saw occupancy drop as low as 10 percent.
The
economic losses extend far beyond exhibition complexes. Fern, a
112-yearold Cincinnati company, builds exhibits and other infrastructure
for 1,400 events in a normal year. But for most of last year and the
beginning of this year, its revenue dropped well over 90 percent, said
Aaron Bludworth, Fern’s president and CEO.
“This was much more brutal than anything I have experienced in my career,” Bludworth said.
Bludworth
doesn’t expect his business to fully recover until 2023. But he has
been surprised by the demand he’s seeing for fall, when his company will
be mounting several hundred shows. He’s had some requests for help with
virtual presentations, he said, but demand for in-person events is
stronger.
“Maybe you
can do education virtually, but when a buyer and seller connect and go
out and have dinner, that cannot happen virtually,” he said. “Our
community realizes we’ve got to get together and sell products and make
this commerce happen.”
Steve
Hill, CEO and president of the Las Vegas Convention and Visitors
Authority, said 2022 is shaping up to be a good year for the industry.
But he acknowledges a lot will depend on the situation around Covid-19
and whether international travel restrictions are lifted. Foreigners can
account for 20 percent to 30 percent of attendees at the city’s major
events, he said.
Hill
thinks virtual convention elements are here to stay. They give shows
another revenue stream and help them develop followers, he said. But
Hill thinks enough people will continue to visit in person that hybrid
events won’t hurt hotels and restaurants in convention cities.
“The shows will get back to 100 percent attendance. People need the in-person aspect of a show,” he said.
But
Sherrif Karamat, president and CEO of the Professional Convention
Management Association, is not so sure, particularly as more convention
attendees question the environmental impact of travel. Karamat is
excited about the prospect of virtual conferencing bringing the world
closer.
“Learning should not be limited to any one channel. Business networking should not be limited to any one channel,” he said.
Karamat
says the pandemic is already reshaping the convention industry.
Organizers are thinking more deeply about why their conferences matter
and the outcomes they want to achieve, he said, which will lead to more
meaningful gatherings.
“I’m very bullish,” he said. “I feel we’re going to take this much more seriously.”
It could be several years, if ever, before conferences attract the crowds they did before the pandemic.