(Tom Siciliano) – The US economy is not perfect, but unemployment remains at record lows, inflation is cooling, consumer spending remains strong and wages are rising steadily, not fast.
While the media loves to cover the usual indicators, there’s one statistic that doesn’t get enough coverage: live events. Events such as trade fairs, concerts, sports competitions, weddings and business seminars are important economic factors. According to this month’s Deloitte Insights report, “Households continue to increase spending on pent-up demand for services like entertainment and travel.”
Statistics back this up. Note:
According to the Themed Entertainment Association’s annual report, attendance at theme parks in North America increased by 32% in 2023.
· The 2023 Consumer Electronics Show in Las Vegas in January, a high point for the industry, attracted more than 115,000 visitors, 15% more than expected.
Live Nation had a monster quarter in the first quarter of 2023, with record revenue of $3.1 billion — a 73% increase from the same period last year — and a record 19.5 million fans who attended its events. Almost 90 million tickets were sold for their concerts this year, more than 20% more than last year.
· Major League Baseball viewership is up more than 4 percent compared to 2022. More than 70 percent of the teams are happy about an increase in visitors. Since school is cancelled, the number of visitors is likely to increase further in the summer.
· According to Allied Market Research, the events industry will grow to $1,552.9 billion by 2028, with projected CAGR growth of 11.2% over the next seven years.
It’s no secret that humans are social animals, and after being trapped during the pandemic, the urge to gather and socialize has returned. But it’s more than that. The experience has improved tremendously socially and technologically. There’s more to football games like SoFi Stadium (one of our clients) than gourmet food, huge screens, super-fast WiFi and more comfortable seating: the fans are getting more and more engaged.
As Forbes recently noted, “Fans’ devices give them access to real-time information about player performance, allow them to share game updates on social media, and give them the opportunity to connect with other fans… At the World Cup fans could use augmented reality to view real-time stats for players on the pitch.”
At the recent US Open at the Los Angeles Country Club, opulent indoor and outdoor seating areas and structures, as well as luxurious dining service and premium seating, made the experience feel more like a luxury hotel or resort than a crowded, sun-drenched golf course tournament with restricted view.
As the CEO of California’s largest event rental company with more than 1,000 employees organizing and servicing more than 12,000 annual events, we’ve seen these trends for years. Event personalization, social spaces, technology, connectivity and creativity are still evolving and improving.
Trade group surveys show that consumers today are more interested in an experience than in a physical item. People want a lifestyle where they can enjoy the company of others and have fun with people they know and love after being trapped during the pandemic. Many in the live events industry believe that the trend toward more live event attendees and more customizable experiences will continue for years to come.
With the advent of 3D printing for event structures, AR, VR and other technologies, some of these stadium experiences are making their way to smaller events such as birthday parties, weddings, anniversaries and reunions. It’s hard to measure the impact of innovation and enjoyment, but if these industry trends continue, the live events business will remain strong for years to come.
Tom Siciliano is CEO of Town & Country Event Rentals and Signature Party Rentals based in Southern California.
Comments are closed.