2022 State of the Industry
By Henry Fitzgerald
FLORIDA, December 16, 2021 (themeetingmagazines.com)
Kevin Brewer, Principal, LEO Events, and Michael Dalton, SVP, Strategy, LEO Events
Many meetings and events industry experts were optimistic that 2021 would see things improve quickly after a dismal 2020 caused by the COVID-19 pandemic. As the vaccine rollout started in earnest early in 2021, those feelings were amplified. But the pandemic lingered and the recovery stalled, in part because of the Delta variant and unexpected supply-chain issues pushing back many of those recovery projections.
So where do we go from here? Industry leaders remain hopeful, saying a strong rebound is just around the corner. We asked several of these leaders for their thoughts on how the industry can continue to recover in 2022.
Kevin Brewer, Principal, LEO Events, and Michael Dalton, SVP, Strategy, LEO Events
Q: As the U.S. eases out of the COVID-19 pandemic, how does the meetings and events industry rebound?
MD: Oh, the industry is rebounding — has rebounded. Now, the challenge is how to meet demand while successfully navigating current conditions. The pandemic occasioned what will be lasting change in how we produce meetings and events — and in the expectations of our attendees, clients, vendor-partners, employees and contractors.
Q: What challenges will corporate meeting planners face in 2022?
KB: Everyone is seeing the same demand and asking, “How do I fulfill that demand and still provide quality service?” Crew members have always been vital to the success of any event, and current labor shortages provide a powerful reminder of that fact. Producers and planners are now paying more for labor, which is, in turn, increasing costs considerably.
Q: Is the nationwide supply shortage something that is affecting LEO Events? Your clients?
KB: Supply issues are temporary and will resolve, and the resolution of that is in sight. The labor issues will continue to be challenging for some time and may be our biggest obstacle, but the opportunities that come from a changing industry are everlasting. To continue to grow, we’ve got to investigate innovative ways to cope with supply chain and labor issues.
Q: What were your initial thoughts about how long the industry would be affected by the COVID-19 pandemic?
MD: We never doubted that people’s need to gather, connect and communicate would only grow stronger as the pandemic surged. The question was how, when and where. The pandemic very quickly became impossible to predict, and we all hoped to be clear of it by now.
KB: The desire and the need to meet face-to-face, while affected by the pandemic, never changed, and it will always be there. While our core competencies are still the same, the company we were in the first quarter of 2020 compared to the company we are today has changed in many ways. Our overall offerings have grown tremendously through innovation and the creation of opportunity. We’ve changed how we do things and how we look at things, and it’s not all bad. In fact, we needed to look at how we did things — it’s been a necessary reset in many ways.
Q: What is the biggest hurdle other than the pandemic facing the industry right now?
MD: Ongoing uncertainty about whether to produce a live event — and if so, to what degree — creates a domino effect that knocks down all our conventional methods of planning and production. The decisions that need to be made are taking longer to make, and that eats away at our lead time — which had already been getting shorter and shorter, pre-pandemic. Everybody is under new pressure affecting timelines, costs, staffing and, ultimately, the quality of the experience. We know people are going to be more selective about the events they attend, and they’re going to be more contemplative about why they are making that effort. Up until now, our industry’s focus has been on the ability to produce any event at all. But as the threat of COVID wanes and the remaining challenges are related to the “how” rather than the “if” — the job will once again be to produce the best event.
Q: How are 2022 meeting budgets different from 2021? 2020?
KB: Economists don’t expect supply chain pressures to ease significantly until [well into] 2022 or even 2023. The pent-up demand and lost revenue of 2020 are continually increasing the price of live events. We’re finding that production costs have increased 30% to 40% compared to pre-pandemic events, and health and safety measures can now account for 10% to 15% of a total production budget. Deposits are higher, transportation is more difficult to obtain, and supplier response times are double what they were in 2019.
Q: Did LEO Events host a meeting or event in 2020 or 2021?
MD: We did. When the lockdown and cancellations hit in the spring of 2020, we took that time to refocus our strategy, staffing and services. We’re proud to say we have continually executed live, hybrid and virtual events for both long-standing and new clients. In 2020 and 2021, we have produced hundreds of virtual events. And now we’re producing a full slate of live, virtual and hybrid events. For nearly 20 years, we have produced AutoZone’s National Sales Meeting — and we continued that with great success this year. In September, 1,500 in-person attendees and 1,500 virtual attendees gathered for a week of education, recognition and networking in Memphis, Tennessee. We are also proud to have produced the 43rd Ryder Cup Opening Ceremony at Whistling Straits for a globally televised audience.
Q: What encouraging signs or trends do you see ahead for the meetings industry?
MD: While budgets, supply chain and staffing are the biggest pressure points at the moment, corporations and brands are listening and responding to consumers who, increasingly, expect focus and action on important social and environmental issues. That, in turn, shapes how meetings and events are planned and produced — not only on the supplier side, but also in agendas, content and experience.
KB: Diversity, equality, inclusivity and sustainability will continue to be major focal points for corporate events in 2022 — and many would agree that focus, and meaningful action, is long overdue. We’re beginning to see a shift in communication from Supplier Diversity Managers who are reaching out to certified women or diverse-owned businesses, like LEO Events, for event and production services. This helps create a relationship-based approach to the procurement process and is a huge step in the right direction for companies looking to build more meaningful and diverse supplier connections.
Roger Dow, President and CEO, U.S. Travel Association
Roger Dow, President & CEO, U.S. Travel Association
Q: As the U.S. eases out of the COVID-19 pandemic, how does the meetings and events industry rebound?
A: Business travel is not expected to fully recover until 2024, but we are hopeful and working to accelerate that timeline. First, travel leaders must set an example and lead the charge back to hosting in-person meetings and events. The Let’s Meet There coalition has been working to communicate the safety and value of holding in-person meetings again. U.S. Travel is also advocating for Congress to provide temporary tax incentives to help spur demand, such as tax credits to venues, event organizers and small businesses to help cover the cost of running an in-person event, as well as temporary deductions of entertainment business expenses.
Q: What challenges will corporate meeting planners face in 2022?
A: One obstacle is that budgets for corporate travel have changed, and with it, a shift in the number of business travelers taking to the roads and skies for professional travel. It will take some time to build back up to pre-pandemic levels, though a clear relationship exists between personally connecting with clients and colleagues and overall business success.
Q: What were your initial thoughts about how long the industry would be affected by the COVID-19 pandemic?
A: In March 2020, we never could have imagined that COVID would shut down the world for as long as it did. The reality is that we must now find a way to manage it for the long term. Our hope is that, in the months and years ahead, we continue to effectively contain the virus and continue the safe resumption of all segments of travel.
Q: What is the biggest hurdle other than the pandemic facing the industry right now?