Article Review
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Article Review
Colston, Paul. Seize the Digital Opportunity to Lay Foundations for Golden Age of Events.. https://www.c-mw.net/seize-the-digital-opportunity-to-lay-foundations-for-golden-age-of-events-says-cvent-chief/. November 10, 2020
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Article synopsis
Cvent CEO, Reggie Aggarwal is addressing events, marketing, and hospitality professionals on the need to embrace technology to lay a strong foundation for golden age events and to drive the industry to greatness and recovery by 2021. The current pandemic, COVID-19, has negatively impacted the industry-leading to cancellation of hotel bookings and events around the world; hence events industry stakeholder has been forced to go digital and conduct their activities virtually. Referring to his company as an example, Reggie said that this year’s online events attendance has increased by 400% as compared to 2019 face to face events. He illustrated that they are planning to invest more in technology and to host more hybrid events in 2021.
Positive impact on the event industry
- Use of technology
During the pandemic, in-person meetings and events were banned, restrictions imposed on local and international travels, and the imposition of Lockdown as a way of containing the spread of the virus. That was a massive blow to events industries whose source of revenue is events. Therefore, there was a need to adapt and embrace technology to organize and conduct events online. It led to innovation and the creation of digital solutions to facilitate virtual events. In virtual events, all attendees all over the world do not need to travel but instead, use digital tools such as Zoom to access event venues and participate. This technology, therefore, will allow events to go on as planned hence not disrupting the industry’s operations that much. Such events will generate more revenue which could have been lost if the meetings and events could not take place hence increasing profitability.
- Increased personalization
The conventional and traditional events are always characterized by a lot of people and a large stage. However, some participants do not enjoy such events to the fullest citing overcrowding of the venue hence may not attend future events. The virtual events during this period have offered a solution to such flaws and ensure all participants and attendees enjoy every opportunity at the comfort of their homes. Therefore, this will increase the number of participants which translates to more revenues.
- Global presence.
The new normal has re-established the world as a global village. The virtual village connects all people and those waiting for time to pass. Virtual events are a relief to them as they counter travel and geographical restrictions, and as a result, they can enjoy all performances around the world. That means that the performance and events will go on virtually as planned.
Negative impact on the event industry
- Increasing operational costs
The cost of operations in the events is on the rise because the virtual events require technological tools and technological know-how. The cost of purchasing, installing, and implementing the technological infrastructure to facilitate the virtual events is high hence increasing operation costs which reduces profits.
- Events cancellation.
As a result of lockdown and travel restrictions in many countries around the globe, several corporates companies and artists have cancelled their events. Their primary source of revenue is organizing and conducting events; therefore, cancellation of events translates to a loss in revenue.
- The collapse of some companies
As a result of a loss of revenue due to the cancellation of events and a decrease in demands of events, some companies have been declared bankrupt while others have discontinued their operations. That is due to high operation costs and the inability to pay their debts because of insufficient income.
Conclusion
All events industry players need to embrace the new normal and adopt technology to remain competitive, lay a foundation for recovery plans, and to mitigate risks against the changing business environment. Therefore, to be more profitable, they should invest in technological infrastructure to minimize operational costs and to facilitate more events that generate more revenues.
Reference
Colston, P. (2020). Seize the Digital Opportunity to Lay Foundations for Golden Age of Events. https://www.c-mw.net/seize-the-digital-opportunity-to-lay-foundations-for-golden-age-of-events-says-cvent-chief/