If there’s one industry that’s indeed suffering the debilitating effects of the COVID-19 pandemic, it’s the events industry. Events Industry News suggests that at least half of event businesses are likely to fold because of the continued impact preventing large gatherings. Some event locations have managed to adapt quite well. The Venue at Friendship Springs has developed a proactive approach, along with limited sizes of events for corporate customers. However, the industry is still hurting on a fundamental level. International organizations have pulled both funding and events, putting the safety of their employees first. The big question is, how deep does this problem run, and is there anything businesses in the industry can do about it?
Slow Reopenings Offer Hope
While most event agencies remain shuttered because of the lack of corporate clients, several others deal with the situation by readjusting their expectations. After the reopening, hotel conference halls are likely to operate on an “any event goes” priority system. Until they can guarantee consistent income streams from events, they’ll have to settle for the clientele they can get. For businesses planning events, even the stay-rates on hotels are extremely low for this period of the year. Taking advantage of these deals can help companies who’d like to keep their event, albeit in a more local and less crowded setting.
Budget Slashes May Mean Outsourcing
The event and marketing industry is one of the hardest hit since businesses don’t see ad spend as a critical operating cost. The Drum mentions that ad budgets from major brands will likely be frozen for a period between six months and a year. Event locations will have to adapt by remaining at minimalistic staff. While in an ideal world, rehiring furloughed staff would be the best option, the fact is that many businesses won’t be able to afford it. Instead, they may find themselves outsourcing excess work, just to be able to pay their bills.
To pivot as an event company means shifting your focus towards something that can earn more money to keep the business afloat. While many event companies make a majority of their money from the standard planning fees, they may need to offer a bit more to get clients interested. Addons provide a great way to provide flexible service, yet tap into the existing ad spend that businesses will have available. If your offering is a good deal, companies will leap at the opportunity.
A New World to Get Used To
Businesses have always had to adapt to changing times and demands. However, this particular situation has forced companies within the event industry to re-evaluate their business models. Instead of solely focusing on event planning and execution, they may leverage their skills for other things. Survival in this uncertain economic time might not be based on how many new clients the business can get within the industry. It may require the company to look outside the industry for other opportunities to remain solvent through the coming financial crisis.