The road to recovery
SVEN BOSSU , CEO OF AIPC DISCUSSES THE FINDINGS OF THE ASSOCIATION ’ S ANNUAL MEMBER SURVEY
D uring the AIPC Annual Conference , which took place at HUNGEXPO , Budapest , we shared the results of the annual AIPC member survey .
After two difficult years for the global convention centre and events industry , as of mid-2022 there is finally a widespread sense of relief that the industry has stabilised ( or is at least close to stabilisation ) and is poised for a period of growth and possibly even strong growth .
Yet , many challenges remain , and there will be a multiyear process of recovery and rebound for the industry . It is also likely that various AIPC members will continue to experience this transition to growth at different speeds .
While the outlook is good , it ’ s important to note that 37 % of members don ’ t expect a full recovery to 2019 levels in terms of their total event and group bookings until the second half of 2023 , and 31 % expect this to be achieved in 2024 or 2025 .
AIPC members are more concerned about air travel issues and related challenges impacting attendance , as well as the challenges still related to the event and group re-booking and re-scheduling process , than they are about a lingering pandemic impact on attendance , especially at important congresses , conventions , business conferences and exhibitions , and other events that draw non-local attendees .
Unfortunately , members ’ top concern relates to major international conflicts ( which the survey didn ’ t ask about in 2021 ). There are also important issues around inflation impacting many areas of venue and event management , as well as staffing challenges - both the loss of staff due to the pandemic and tight labour markets - in many regions of the world . To say managing convention centres will remain a challenging job for years is an understatement .
The six key insights of this year ’ s survey :
1 . Over two-thirds of AIPC members are already at or getting close to a more “ normal ” pre-pandemic level of centre bookings and revenue
2 . Worldwide , the average in-person attendance recovery for events held in 2022 compared to 2019 has been 64 % 3 . International conflict and air travel costs / disruptions are the biggest risks to convention centre business , according to members . The “ good news ” is that low attendance especially from non-local attendees is now a secondary concern
4 . 60 % of members say recruiting and retaining suitable employees is extremely / very challenging
5 . 65 % of members expect to see a full event and group bookings recovery back to 2019 levels by the end of 2023
6 . Worldwide over half of postponed events have yet to be held again but are rescheduled for a later date – and only 38 % have been held again already .
Another important element highlighted by the survey responses is new revenue streams for convention centres .
Some 43 % of members say they added at least one important new revenue source during the past year . An example is technology-related services .
However , this is down from 60 % recorded in the 2021 survey , when many centres gained new revenue from pandemic-related government health services .
In conclusion , the industry has survived a truly terrible experience , but as many findings in this survey show , the outlook for a steady recovery and rebound is quite good – in fact , it ’ s already well underway .
66 / CONFERENCE & MEETINGS WORLD / ISSUE 120