Live communication: Where to put all that energy?

The first BEA since 2019 drew 300,000 visitors in early May. That’s more than before the pandemic. The Luga in Lucerne drew 120,000 visitors, roughly the same number as in 2019. However, these impressive figures do not obscure the fact that many trade shows held in 2022, both domestically and abroad, have shrunk dramatically. Patrick Sägesser, Head of Business Development for Trade Fairs at Olma Messen St. Gallen, comments on this as follows: «It shows that the preparation time was still too short in some cases, but that the industry believes in trade fairs as a tool and is therefore investing in them. Our confidence is based on the Tier & Technik trade fair, which was fully booked for February 2022 but had to be canceled due to COVID. The booking figures for the upcoming OBA and Olma 2022 are also very encouraging.»

Delivery and Material Shortages

Where a relentless price war raged before the pandemic, customers now have to be grateful just to find a service provider at all. Gone and forgotten is the era of trade show builders« desperate diversification into other business areas during the COVID-19 pandemic. Exhibition stand construction companies are now booked solid for months ahead. They’re reporting record sales not seen in 15 years. »Rising energy and raw material prices, as well as limited installation capacity across Europe, are presenting us with major challenges,” says Thomas Stenz, Managing Director of Syma Switzerland.

The War for Talent in the Events Industry

The live communications services industry—exhibition stand construction companies, media service providers, event agencies—is facing a dramatic labor shortage following the exodus of skilled personnel due to the pandemic. There’s no doubt about it: In 2022, there will be numerous events that won’t take place at all for this very reason. To a certain extent, this is a comfortable situation for event service providers. But how do I break the news to my clients? «A disaster, to put it mildly.» No matter which sector you look at, the staffing situation is extremely tight. There’s no sign of improvement,« says Michael Dancsecs, co-owner of the event agencies Standing Ovation/Fox. »The labor market is more competitive than ever. You can actually call it a «war for talent.»« »Our approach is to embrace the gaps, but the shortage remains,” says Markus Walder of the event agency Bright. “One of the biggest challenges we face is finding the right skills and resources in the labor market,” adds Beat Zwahlen, CEO of MCH Group. At the end of 2021, the MCH Group won a competition to host the art fair in Paris, named Paris+ by Art Basel. This is intended to both expand international business and strengthen Basel as a business location.

Sustainable Event Management

The live entertainment industry has long been working to reduce its environmental footprint. The Zurich Film Festival (ZFF), one of the largest events in the city of Zurich, operates a fully electric fleet of Mercedes-Benz vehicles. The film festival also avoids using plastic tableware. The ZFF is currently working with a partner to analyze its environmental footprint in order to identify further opportunities for improvement.

«The issue of CO2 reduction is rarely discussed in depth in our industry because the exact implications aren’t clear at all. But where the issue becomes concrete is in the restaurant industry. And this is where we could make a difference. For example, by flipping the script and no longer asking in invitations who wants the vegetarian option, but rather who wants the meat option,» says Reto Leder, CEO of the event venue Trafo Baden. «For the younger generation, meat-free events are a given. They’ve understood that an event is only sustainable if it’s meat-free,» says Felix Courvoisier, managing director of the audiovisual media specialist Seed. «We expect sustainability to become even more important and to be a key decision-making criterion in agency competitions as well,» says Michael Dancsecs.

Events Without a Venue? Merry Christmas

In May 2022, the famous World Economic Forum (WEF)—a major source of revenue for numerous event service providers—took place in Davos, though it received less attention than in previous years. Compared to the pre-COVID years, activity on the many temporary stages was only slightly reduced. Why? People want to meet in person again; this experience cannot be replaced online. On the contrary: While before the pandemic, the «environmental issue» surrounding this mega-event—and, as a consequence, the question of whether such an elite gathering in the Swiss Alps was even necessary—dominated the discourse, people are now simply glad that in-person business meetings are possible again at all. The war in Ukraine, along with the online address by Ukrainian President Volodymyr Zelenskyy, has actually heightened the WEF’s relevance.

The events industry is set to rebound dramatically in the second half of 2022 as well, provided the COVID-19 pandemic doesn’t throw a wrench in the works this fall. «People want to meet in person again,» says Urs Schmid, a member of the executive board at multimedia specialist Smartec. «By Christmas 2022, there simply won’t be enough event venues to meet the high post-COVID demand,» he says.

Digital, hybrid, or live communication?

Will hybrid or digital formats replace live events—or at least partially replace them—in the future? As an event-driven company with a purely in-person trade show presence, aren’t you relying on an outdated marketing tool? «No, that’s nonsense in my view,» said Uli Geiger, Global Brand Experience Director at watch brand IWC, at the Habegger webinar on May 5. «Digital formats like the hybrid »Royaume du Web« will continue to grow. But now, following the trade show industry’s restart, the topic of »digital trade shows» has completely taken a back seat,« adds Claude Membrez, General Director of Palexpo Geneva. »Even if trade show formats have to change—face-to-face contact is irreplaceable; people are social beings,« says Claude Membrez. »The topic of hybrid events won’t be nearly as important as it’s been discussed over the past two years,” confirms Hansgeorg “Hg” Siegenthaler. “The live element in marketing communication is clearly making a comeback.”

Except in exceptional circumstances, people want to meet in person again. «The need to meet in person again is acute. Hybrid events are still only a niche topic today,» Reto Leder adds.

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With a tight labor market, price levels will also rise. But that’s not the only reason: Service providers must offset the sometimes dramatic price increases for energy (gas), event materials (wood), and logistics (transportation) by raising their prices.

«We need to move away from the pre-COVID spontaneity in planning. We therefore recommend that our clients, given the same budget, scale back their events in favor of longer-term planning—or increase their budget,» says Hg Siegenthaler, CEO of the lighting design studio Designlight.

«Exhibitors should decide to participate in a trade show and register well in advance—six to twelve months beforehand, depending on the event,» says Thomas Stenz.

Sabine Neuhaus of the recruitment agency Coople recommends: «The primary goal is to build long-term relationships with agencies, event service providers, and trade show builders—not only to save money, but also to be well-positioned in the medium to long term when it comes to addressing staff shortages and ensuring business predictability.»

Conclusion

«It’s great to see that people are eager to get together again. Whether live events will be larger or smaller certainly depends on the type of event and its target audience,» says Elke Mayer, Managing Director of the Zurich Film Festival, which will take place in Zurich from September 22 to October 2, 2022. «On the one hand, demand for exclusive, smaller events has risen—true to the motto »quality over quantity.’ On the other hand, large events with huge crowds hold a strong appeal because they generate tremendous energy—there’s a pent-up demand for this type of event, which is particularly noticeable among younger audiences.”

INTERVIEW

«The much-touted return to normalcy will not happen»

Tom Winter, CEO of Bernexpo Groupe.

m&k: The BEA reopened for the first time since 2019, attracting 300,000 visitors—more than before the pandemic. That’s a success. But where does the Bernexpo Group stand when it comes to digitalization?

Tom Winter: We’re continuing our pioneering work in live communication, but not as a forced transformation. In Bern, we’re fulfilling people’s aspirations. Nevertheless, digitalization is increasingly part of our business. Our Bam.Connect is a fully digital event that introduces high school students to career paths and employers. Even after the pandemic, we’ll continue to host purely digital events with up to 10,000 participants. In the traditional live formats of our four areas of expertise—«Vacation & Leisure,» «Industry & Hosted Events,» «Education,» and «Conferences & Events»—the experience remains the central focus. But this experience can be significantly extended through digital means. Networking—bringing the famous community together—would be very labor-intensive today if done solely through our transaction-oriented industry platforms, but it’s much easier via digital platforms. They will always complement events, but they won’t replace them.

At the opening of the BEA, you said, «The BEA is a phenomenon. It will remain that way for a long time to come.» Where does this confidence come from?

Taken as a whole, the BEA offers a glimpse into the spirit of Bern. In this universe, new themes are constantly emerging, while others—supposedly—fade away. But we have exhibitors who posted record sales in 2022. Thanks to the dynamism of this universe, the BEA ecosystem is very robust.

What challenges are you currently facing the most?

This is the revitalization of the exhibition grounds, centered on the landmark project of the new Festhalle, which is set to open in 2025. It is at the heart of a transformation that will turn the site into a modern hub with deeper ties to the city and the Wankdorf Quarter. Catering will be a cornerstone of this transformation.

What do you say to exhibitors who ask, “Has the trade show as a marketing tool passed its peak?”

We have to accept that product launches no longer take place at our trade shows. Trade shows are no longer a sure thing. If there isn’t a critical mass of exhibitors to hold a trade show, it can trigger a domino effect. To get things back on track, we’ll need to make a special effort. The status quo—the much-vaunted «new normal»—will not return automatically. However, trade shows can prompt a marketing team to refine its core messages, product portfolios, and presentations in such a way that they decisively complement and complete the entire marketing mix. For those who do so, trade shows will remain the gold standard in the «competition of vanities» well into the future—a fruitful ritual in the annual calendar. That’s not possible from a home office.