The Event Market
The global market of experiences and travel generally moves towards consolidation through online-based booking portals. However, this development has not yet taken place in the Event Market – which is primarily consisting of relatively small and fragmented suppliers, with little or no online presence.
Most suppliers have one thing in common: They are passionate about their products and services, but they have difficulties reaching the customers through marketing efforts.
Isolated, the individual supplier is too small to start targeted and efficient marketing, as the services offered are often too narrow to generate sufficient traffic using Google Adwords and the like. Their budgets leave very little room for aggressive online marketing and/or traditional marketing, leaving them in a position with good offerings but few customers.
Only a very small number of suppliers use professional IT systems for booking and operations. As a result, customers who find their way to the suppliers website are left no other options but to contact the supplier – by telephone or by e-mail. In today’s market, however, customers generally expect instant delivery with immediate booking or confirmation. When they are ready to buy, they expect the supplier to be ready to sell. 24 hours a day. 7 days a week. The low online presence combined with lack of booking opportunities is frustrating and time consuming for both suppliers and customers.
Evendo provides the world’s first integrated planning and booking system that is ready to accept bookings when the customer is ready to purchase.
Every year more than € 800 billion (8,496 BSEK) are spent on corporate events in the western world1. According to studies done by Eventbrite in 2017, about 58% of these events are with fewer than 100 participants – such as team building, kick-offs etc. The majority of events of this size do not have a budget allocated for external assistance – i.e. professional Event Planners – during the planning phases. The task is just left to be managed internally in the organization or group.
Nevertheless, the market is mostly made up of very small suppliers, and transparent availability of products and services is at a very low level. We estimate that more than 50% of the suppliers of products and services in the industry have fewer than 5 employees and very poor internet presence, and less than 5% of suppliers have more than 15 employees and an efficient online presence.
15 years ago, there was a similar pattern in the hotel and travel industry, with individual hotels marketing themselves separately and with a lack of online booking functionality. However, a significant change in this market has since then taken place – and today, portals like Hotels.com and Booking.com dominate.
Booking.com account for 47% of all Hotel bookings by online travel agencies (OTAs) according to Morgan Stanley’s 2013 survey of the industry. The corresponding market value for Booking.com is currently in excess of USD 100 billion (900 BSEK).
According to Statista, the total value of hotel reservations amount to € 113 billion (1,169 BSEK), making the market about one seventh the total market for events – and one fourth of the market Evendo is targeting. However, a similar shift in the market from bookings on individual suppliers’ websites to consolidating booking portals has not yet been seen in the Event market. It must be expected to happen within this industry – and many others – in the foreseeable future.
There are many possible reasons for the lack of automation in the Event industry. Based on the learnings accumulated through the lifetime of Evendo, it is the companys believe that the primary reasons are:
- Smaller suppliers, with no professional booking system to integrate to.
- Complex products – where a hotel room typically has 365 variations during a calendar year – one per day – the average product in Evendo has in excess of 150.000. This is due to timeslots, group-size, season, location and many other parameters.
- Complex planning – where a hotel booking typically contains only one product, an event holds a number of products and services from a number of suppliers, which all must tie in together and thus – combined with the complexity of the individual products – makes the planning significantly more complex.