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Evendo inside.events presents:

Are virtual events the next big thing?

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INTRODUCTION

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COVID-19 has spread rapidly around the world. Almost every country has reported cases, but the burden is asymmetrically distributed. To an extent, that’s because countries are at different stages of the pandemic. Some that were effective at initial containment, such as Singapore and Hong Kong, have seen resurgence and are implementing additional measures to address it. Others, such as many countries in Western Europe, have seen the number of new cases plateau or begin to decline and are debating the right approach to reopening their economies. Some countries appear to be at the peak of infection and are urgently building surge capacity in their health systems. During the past weeks, we have witnessed significant behavioral changes around the world. Some of these are expected to be short-term, and related to the COVID19 restrictions only. However, it must be expected that the general behavior will have changed to an extend, where are return to “old normal” is not likely – at least not on the short term.

What does COVID19 mean for events?

First of all; social distancing measures have put an effective hold to most event-related activities. With many countries imposing strict limitations on how many people can gather in the same location, even if people were looking to do events, they would not be able to. However, based on the search activity around events and event related experiences online, it is obvious that the demand for events during these times have seen a significant decline. Page 4

We set out to determine: 1. How big is the 2020 decline? 2. Are there differences between types of event experiences? 3. How long is this likely to last? – and to which extend will things recover after COVID19 restrictions are lifted? 4. Is there a change in the demand as a consequence of COVID19? If yes, where does this demand go? In order for us to have a uniform way of measuring the demand before and during the COVID19 period – as well as providing reliable predictions for the “post-COVID19” period – we decided to utilize search interest as an indicator for the demand. An increase in demand would naturally result in an increased search interest and volume. We ended up with millions of data-points - which we have aggregated into the summary you will find in this document. When predicting the months to come, we not only took past years patterns into consideration. We also considered where in the COVID19-“cycle” (see right page) we are at this point in time – and incorporated a gradually lifting of associated restrictions into the assumptions for the predictions. We then gathered quantitative data for a number of representative “traditional” event experiences as well as similar for a series of “virtual” experiences. This not only allow us to precisely map the past and present and to some extend predict the future, but also to monitor a shift in demand from “traditional” experiences to “virtual” – if such exist.

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Evendo Phase

Hibernation

Exploration

Spread deceleration

Preparation

Execu

Localized clusters

Uncontrolled accelleration

Control and battling resurgence

Transmission

Majority of cases can be linked to known chains of transmission (i.e. cases can be managed individually)

Majority of cases involve an unknown source of infection and infection rate is accellerating

Magnitude

Handful of new cases per day

Significant number of new Significant number of new Handful of new cases per cases per day cases per day day, with no siginificant spikes

Growth

Percentage grow may be high, but absolut number of cases remains within capacity of public health systems

Exponential-to-fast linear growth in the number of new cases

Likely interventions

Indicators

Predominant measures

Detect and trace all • cases without losing control of chains of • transmission (contain accelleration) •

Number of new cases has Limited number of new peaked and infection rate cases, and systems are in is decreasing place to control spread of infection (e.g. track and manage individual cases)

Decline in the number Cases flat or trending of new cases over time down over time (with potential day-to-day variation)

Apply distancing • measures Expand healthcare capacity • Build testing capacity

Maintain distancing • measures, prepare to release when feasible Prepare systems for individual case management

Detect and trace all cases, without losing control of chains of transmission while restarting activity

Physical distancing and quarantine Travel restrictions Effective use of personal protective equipment Testing and tracing Healthcare capacity surge Copyright (c) 2020 · Evendo Ltd

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Traditional Experiences

Throughout this document, we will utilize a variety of different experiences to represent 4 different major types: • Group Indoor - Experiences, where participants are working indoor as a group, with short distancing. • Individual Indoor - Experiences, where participants are working individually indoor, and thus

Group Indoor

with ability to perform social distancing in accordance with COVID19 guidelines. • Group Outdoor - Experiences, where participants are working outdoor as a group, with short distancing. • Individual Outdoor - Experiences, where participants are working individually outdoor, and thus with ability to perform social distancing in accordance with COVID19 guidelines.

Individual Indoor

Group Outdoor

Individual Outdoor

Gokarting

White Water Rafting

Zorbing

Sample experiences

Escape Room

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Virtual Experiences

In order to compare any change in demand for traditional experiences with a potential shift towards virtual experiences, we utilize a wide selection of representatives. Common for all these are, that participation is remote, and can be done without any physical representation. Participation thus has no geographical constraints - and participation can be done from distributed offices, remote workers, home office or similar.

As virtual experiences is a relatively new phenomenon, we have opted to include only virtual experiences with some demand already in 2019. This is a prerequisite to determine any increase or decrease in demand - and thus to calculate valid predictions for remainder of 2020. As a consequence of this, there may be other virtual experiences returning more - or less - traction, than those included in this document.

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Traditional Experiences

-46%

decrease in demand 2020 compared to 2019 Page 8

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+241%

increase in demand 2020 compared to 2019

Virtual Experiences Copyright (c) 2020 ¡ Evendo Ltd

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TRADITIONAL EVENT EXPERIENCES

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Impact of COVID19

with the highest decrease found in United Kingdom (48%). Overall, the two countries show similar patterns, and we expect both to rebounce to 54% of 2019 demand at the end of year.

2020 started off with an 18% lower demand across the board during January and February. At the end of february, the usual increase in demand towards march was replaced by a continuous decrease in demand - although the significant effects of COVID19 were not seen until April - where demand dropped with 58% compared to same period in 2019. Our predictions indicate a slight rebounce during the remainder of 2020. However, we do not expect demand to reach the levels of 2019 within this calendar year. In fact, end of year we expect the drop in demand to have rebounded only 12 percentage points compared to April - leading to a total decrease in demand in 2020 of a staggering 46%. We have noticed some slight geographical differences between United States and United Kingdom,

-46% decrease in demand in 2020

Where the overall trend shows little difference geographically, bigger differences are seen when it comes to the developments within the different types of experiences. Unsurprisingly, the biggest de-

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Searches per 1,000 people

40 35 30 25 20 15 10 5 0 Page 12

01

02

03

04

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07

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08

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12


Group Indoor

Individual Outdoor

-49%

-42%

crease is found within the Group Indoor experiences (49%) - experiences with the highest density of participants in a confined space - while the smallest decrease is found in the Individual Outdoor experiences (42%) - those with the best opportunity to ensure social distancing and. The impact of COVID19 in

these developments are further emphasized by the biggest decrease being in Indoor experienves, and the smallest in outdoor experiences. The combination of ”group” and ”indoor” thus returned the highest impact - while combination of ”individual” and ”outdoor” returned the lowest.

-48%

-48%

Individual Indoor 2019 demand

2020 demand

Group Outdoor Copyright (c) 2020 · Evendo Ltd

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General Trends In general, the demand for any sort of event related experience has seen substantial decrease from March 2020 and onwards. The overall decrease is largely the same regardless of whether Europe or United States. However, there are some differences

Timing apart there appear to be a trend in overall preference: In United Kingdom, customers prefer ”Group” experiences, while United States see a significantly higher demand for ”Individual” experiences. This goes both before and after COVID19. As most types of experiences have seen the same decrease in demand (apart from Individual Outdoor as described

-50% -48%

Demand in United States is for ”Individual” experiences - while United Kingdom is looking for ”Group” experiences

in the patterns. For instance, the decrease in demand in United States appear to have a slight delay - 2-3 weeks - compared to the development in United Kingdom. It is impossible to determine whether this is due to a delayed introduction of COVID19 restrictions, or whether it is due to differences in mindsets. Page 14

later) there is no change in the proportions of these preferences. It is thus likely to be due to general preferences between the two markets.

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Individual Indoor (2019 vs 2020) 450

350

350 Searches per 1,000 people

Searches per 1,000 people

Individual Outdoor (2019 vs 2020) 450

250

150

50

-50

250

150

50 United Kingdom

United States

-50

450

350

350

250

150

50

-50

United States

Group Indoor (2019 vs 2020)

450

Searches per 1,000 people

Searches per 1,000 people

Group Outdoor (2019 vs 2020)

United Kingdom

250

150

50 United Kingdom

United States

-50

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United Kingdom

United States

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Geographical differences

Searches per 1,000 people

United States (2019 vs 2020)

70 Searches per 1,000 people

In general, the demand per capita is significantly smaller in United States compared to United Kingdom - with United Kingdom showing almost double the activity as United States across the board. This picture has not changed as a consequence of COVID19, as the decrease in demand per capita is comparable for the two markets before and after.

United Kingdom (2019 vs 2020) 80

60 50 40 30 20

80

10

70

0

60 50

White the general decrease in demand is about the same for United States and United Kingdom in terms of percentages, there are significant differences in preferences.

40 30 20 10 0

01 02 03 04 05 06 07 08 09 10 11 12

2019 activity per 1,000 people

Throughout the calendar year, the activity level differs slightly. In United States, the activity level is highest during the summer months, while United Kingdom notices the highest activity levels during winther months. Overall, the two markets follow the same behavioral pattern - despite differences in government invoking COVID19 initiatives. Page 16

01 02 03 04 05 06 07 08 09 10 11 12

41%

of demand in US is for Individual Outdoor Experiences United States see a significantly higher demand for Individual Outdoor experiences compared to United Kingdom . More than 41% of all post-COVID19 de-

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mand in United States is for such experiences, while only a little less than 15% in the United Kingdom.

65%

of demand in UK is for Group Indoor experiences An even more remarkable difference can be seen in

2020

the demand for Group Indoor experiences - where around 65% of the total demand in United Kingdom can be found. In United States, the corresponding demand is just 22%. This difference should not lead to a conclusion, that british people prefer indoor experiences more than people in the United States. They just like Group Indoor experiences more. In terms of Individual indoor experiences, United States see a 28% post-COVID19 demand - with United Kingdom only showing 9%. Overall, the preferences canUK be summarizedUS as: Individual Outdoor 15% 41% Individual Indoor 9% 28% Group Outdoor 11% 9% Group Indoor 65% 22%

2020

United Kingdom

United States

Individual Outdoor

Individual Indoor

Group Outdoor Copyright (c) 2020 ¡ Evendo Ltd

Group Indoor

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Individual Outdoor Individual Outdoor experiences should, at least in theory, be the experiences with the best possibility of complying with various COVID19 guidelines. First of all, it is outdoor. Secondly, experiences in this category offers opportunity for increased social distancing - compared to others. Not surprisingly, this has led to Invidual Outdoor experiences being the category with the smallest decrease in demand - provided a 42% decrease can be considered ”small”.

which is likely due to Christmas related experiences). With most countries under some degree of lockdown, even Individual Outdoor experiences will be difficult - if not impossible - to perform during most of the summer of 2020. Individual Outdoor experiences see a significantly higher demand in United States compared to United Kingdom, with the latter trailing some 23% behind before (and 26% after) COVID19. United States (2019 vs 2020) 14 12 Searches per 1,000 people

While 2019 saw around 113 searches per 1,000 people for products in this category, the demand decreases to 66 in 2020. 14

Searches per 1,000 people

12 10

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0

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This is despite some expected rebounce following lifting of COVID19 restrictions. Timng plays a crucial role in this. Outdoor experiences typically peak during summer (with an ”abnormal” peak in December, Page 18

8

2

8

0

10

01 02 03 04 05 06 07 08 09 10 11 12

The higher demand in US is further reflected in the impact of COVID19. In US, the demand decreases with 41% in 2020 - while UK shows a 47% drop in demand. Despite the significant difference between the two markets, this cannot be directly interpreted as demand for Individual Outdoor experiences showing abnormal behavior in UK. In fact, despite the 47% it is still the experience type with the smallest decrease in UK.

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United Kingdom (2019 vs 2020) 12

Searches per 1,000 people

10 8 6 4

demand end of year, compared to 2019

2 0

54%

01 02 03 04 05 06 07 08 09 10 11 12

What to expect in 2020 Disregarding seasonality and differences between the two markets, the demand for Individual Outdoor activities started off 120% 2020 with a 18% lower demand compared to 100% 2019. Although february saw a small increase, the 80% introduction of COVID19 60% in february led to an immediate drop - follow40% ed by an even bigger in march, as the restrictions 20% started to be introduced.

end of year to just 54% that of 2019. As described previously, the biggest decrease is expected during the summer months - normally the ”big months” for these experiences.

Demand compared to 2019

One note worth remembering when it comes to Outdoor experiences is, that these are significantly harder to replace by virtual counterparts compared to Indoor experiences. One might thus expect, that as the behavioral changes due to COVID19 wears off, Outdoor activities may see 0% an increase rebounce. The We expect to see the 01 02 03 04 05 06 07 08 09 10 11 12 timing for such is, however, relative demand increase with a high level of uncerslightly during the remainder of 2020. However, even tainty, and is likely to differ from market to market. the most optimistic scenarios still return a recovery Copyright (c) 2020 · Evendo Ltd

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Individual Indoor

from certain demographic groups, following months of isolation.

In March 2020, demand had dropped to 60% of 2019 levels. However, this was nothing compared to what happened in April 2020, where we have noticed a staggering 77% decrease in demand, compared to April 2019. This is almost 3 times the decrease as for Individual Outdoor experiences: Demand compared to 2019

9 8 7 6 5 4 3 2 1 0

80% 60%

03

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Individual Indoor

Individual Indoor (2019 vs 2020) 14

20%

12

01 02 03 04 05 06 07 08 09 10 11 12

Individual Outdoor

Individual Indoor

As COVID19 restrictions are lifted, we expect to see a relatively fast rebounce of experiences in this category, primarily from a B2C audience. Many experiences in this space are adrenalin and action oriented - something we would expect to see a demand for

Searches per 1,000 people

40%

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02

This fast recovery will bring the demand for Individual Indoor experiences almost to the level of the demand for Individual Outdoor experiences - however, it will not reach the level of past years.

100%

0%

01

Individual Outdoor

120%

Demand compared to 2019

Indoor vs Outdoor experiences

Searches per 1,000 people

Individual Indoor came out with a strong beginning of 2020 - with demand surpassing 2019 levels in february. When COVID19 restrictions were introduced, however, we saw Indoor experiences suffering significantly more than outdoor experiences.

10 8 6 4 2 0

01

02

03

04

05

06

2019 activity per 1,000 people

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07

08

09

10

11

12


Sample experience: Gokarting Individual Indoor experiences follow the same geographical pattern as the Individual Outdoor experiences previously described; They are in significantly higher demand in United States compared to United

Kingdom. Looking at Gokarting specifically, the demand in United States is 61% higher than in United Kingdom. This applies both before and after COVID19 - as both markets have seen a decrease of around 48% in demand for Gokarting. United Kingdom (2019 vs 2020)

12

12

10

10 Searches per 1,000 people

Searches per 1,000 people

United States (2019 vs 2020)

8 6 4

6 4 2

2 0

8

01 02 03 04 05 06 07 08 09 10 11 12

What to expect in 2020 Expect a relatively slow summer 2020, while the various markets lift their COVID19 restrictions, followed by a stronger Q3. In August 2020, we expect the demand for indoor activities to have bounced back to 49% of the 2019 level - which may not seem like much, but must be seen in the perspective of the 77% initial decrease in demand in April 2020. The last two quarters of 2020, we expect to see a slower rebounce than during the period towards August. We expect the demand end of year to end at about half of the corresponding demand in 2019. Overall, 2020 see a 48% decrease compared to 2019.

0

01 02 03 04 05 06 07 08 09 10 11 12

-48% decrease in 2020 demand compared to 2019

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Group Outdoor The Group Outdoor experiences appear to have a decrease comparable to that of Individual Indoor experiences. Approximately 48% decrease in 2020 demand compared to 2019. This drop is significantly bigger than the decrease seen in Individual Outdoor experiences on a global basis - relatively speaking.

Large geographical differences

Demand compared to 2019 10

Overall, this is the type of experiences with the smallest demand - a little less than 10% of overall demand per capita is for Group Outdoor experiences. United States and United Kingdom has seen almost identical decrease in demand in terms of percentages - 47,8% for United States and 47,5% for United Kingdom.

9 8 7 6 5 4

The starting point for these two markets are quite different. In United Kingdom, the demand for Group Outdoor activities was almost 3 times that of United

3 2 1 0

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Individual Outdoor

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Group Outdoor

9

The actual decrease in 2020 is significantly smaller than Individual Outdoor activities, as the two types had different starting points and thus different overall demand. Unlike Individual Outdoor experiences, which is mostly targeted a B2C audience, the Group Outdoor experiences are largely focused on B2B customers, such as companies performing team building or morale boosting. Due to this difference in audience, we expect a slight increase in Group Outdoor experience Page 22

United Kingdom (2019 vs 2020)

12

8 Searches per 1,000 people

Searches per 1,000 people

duting the next six months - while the Individual Outdoor experiences are likely to see a few months of decline, before the rebounce. Once Individual Outdoor experiences pick up, however, they do so much more aggressive than Group Outdoor activities. One reason for this is likely to be a continuous demand for social distancing from participants, which is easier to achieve in Individual Outdoor experiences.

7 6 5 4 3 2 1 0

01 02 03 04 05 06 07 08 09 10 11 12

2019 activity per 1,000 people

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What to expect in 2020

States before COVID19. United States (2019 vs 2020) 10

As for most other experience types, the demand for Group Outdoor experiences is expected to remain relatively low throughout 2020. Adding to this is a low starting point, which makes relative increases and rebounces in demand return little total effect.

9 Searches per 1,000 people

8 7 6 5

Especially in United States, we expect a noticeable ”reluctancy” to revisit Group Outdoor experiences, while the demand in United Kingdom is expected to reach double the current demand during Q3 of 2020.

4 3 2 1 0

01 02 03 04 05 06 07 08 09 10 11 12

The effects of the decrease in demand is thus much bigger in United Kingdom than in United States. These geographical differences may be worth noticing. Due to the larger population of United States, the activity level there dominates the overall picture. Share of Total Demand

The overall level will however remain some 48% lower in 2020 compared to 2019.

-48% decrease in 2020 demand compared to 2019

United States

United Kingdom

One thing that could change these expectations would be differentiated COVID19 restrictions. If these are lifted to a more relaxed level outdoor, while remaining strict indoor, some demand may shift from Indoor to Outdoor experiences during the year. Copyright (c) 2020 · Evendo Ltd

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Group Indoor

United States (2019 vs 2020) 60

United Kingdom (2019 vs 2020) 60

Searches per 1,000 people

30 20

0

01 02 03 04 05 06 07 08 09 10 11 12

These high levels of decreases in demand are hardly surprising. Indoor experiences with little or no possibility for social distancing are bound to be under pressure during COVID19 restrictions.

40 30 20 10

01 02 03 04 05 06 07 08 09 10 11 12

2019 activity per 1,000 people

In United States, the decrease in demand has been even bigger. 50%!. However, Group Indoor experiences are not as popular in United States as in United Kingdom, so the corresponding impact in terms of revenue drop is not the same. In United States, the demand for Group Indoor experiences share of total have decreased from 24% to 22% - almost 1/3 of the share of the total demand in United Kingdom. This proportion is not new. It was seen also in previous years, and must as such be considered a general trend. Page 24

40

10

50

0

50 Searches per 1,000 people

Before COVID19, Group Indoor experiences was by far the biggest category in United Kingdom, with almost 65% of demand seen within this category. Coindidently, it is also the category seeing the biggest decrease in demand in United Kingdom in 2020 - more than 48%.

Disregarding the consequences of COVID19, the past years also displayed a noticeable peak period during the months from December to March, with a following decline as the weather improved allowing for outdoor experiences.

65%

of demand in UK is for Group Indoor experiences

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The differences between Uni​ted States and United Kingdom are so great, that it would be misleading to conclude demand for Group Indoor experiences solely based on the total demand predictions:

With United Kingdom driving more than 85% of the total demand for Group Indoor experiences, the sheer size of the US population highly impacts the overall demand.

Group Indoor (2019 vs 2020)

Share of total demand

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Searches per 1,000 people

50 40 30 20 10 0

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United States

What to expect in 2020 Demand compared to 2019

120% On a global scale, we expect the demand for Group 100% Indoor experiences to bounce back almost to the 80% level of the beginning of 2020 (which, albeit, was al60% ready lower than same period in 2019). As would be 40% expected for indoor experi20% ences, the summer months will not see a significant 0% change from current level 01 02 03 04 which further corresponds with the COVID19 restrictions being in place. As so-

05

United Kingdom

cieties - and companies - are likely to start their shift towards ”normalization” following the summer, we expect to see an increase in demand. This demand is primarily driven by experiences related to team-building and morale boosting, as companies are bringing their teams back together and are looking to boost productivity. We expect the increase to remain for the duration of 2020, as the lifting of restrictions will 06 07 08 09 10 11 12 happen sequentially across the world.

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VIRTUAL EVENT EXPERIENCES

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General Trends As the COVID19 restrictions have been introduced around the world, the demand for traditional event experiences has seen a significant decrease. While this decrease is a general decrease - and not a shift in consumer focus as such - some parts of the demand has shifted towards virtual experiences.

Overall, the virtual experiences has seen an increase of 241% in 2020 compared to 2019. The increase has been bigger in United Kingdom (261%) than in United States (239%). However, the starting point has also been different. Already before COVID19 restrictions were introduced, consumers in United States had adapted the virtual experiences to a larger extend than United Kingdom. Out of the total demand per capita for virtual experiences, some 62%

+230% +218%

Demand increase 2020 vs 2019

350% 300% 250% 200% 150% 100%

50% 0%

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virtual museum tours

virtual escape room

virtual virtual quiz virtual bingo karaoke

virtual yoga

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virtual team building

virtual virtual virtual city activities scavenger tour hunt


originates from United States.

likely to be executable during the summer months - and thus a certain reluctance to replace these with virtual versions.

Share of total demand

Combined demand virtual city tour virtual scavenger hunt virtual activities virtual team building virtual yoga virtual karaoke

Apart from Virtual Museum Tours, demand for Escape Rooms have seen the biggest shift towards virtualization. This corresponds with the similar decrease in demand for the physical/traditional version.

virtual quiz virtual bingo virtual escape room

United States

United Kingdom

virtual museum tours

Although there are similar increases, measured in percentage and compared to 2019, across most of the virtuel experiences, some of these see a significantly bigger general demand than others. This translates into significant differences in ”volume of potential business” across the various experiences. The general preferences appear to match the preferences for ”traditional event experiences”, with the virtual counterparts to ”Group Indoor” experiences topping the list. The virtual counterparts for traditional outdoor activities have not seen same increase in demand. As described in the ”traditional experiences” section of this document, the outdoor activities leave better room for social distancing - and thus for compliance with COVID19 restrictions. As such restrictions further start to lift in certain countries, there might be a general expectation that outdoor activities are

Searches per 1m people

Despite this, the demand for Virtual Escape Rooms is still but a fraction of the demand for traditional.

Traditional Escape Room

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Virtual Escape Room Page 29


Geographical differences Prior to COVID-19, t​ he demand for virtual experiences was already significantly higher in the United States compared to United Kingdom. This overall difference in demand between the markets have not changed with COVID19. Today, 62% of demand for virtual experiences originates from United States compared to 63% prior COVID19.

62%

of demand for virtual experiences comes from United States

There are, however, some remarkable differences when it comes to priorities. Where customers in United States prefer individual experiences when it comes to the traditional version, there seem to be a shift towards group oriented experiences when it comes to the virtual versions. One example of this change in preference is Escape Rooms, where United Kingdom made up for 89% of demand for ”traditional” Escape Rooms, they only make up for 31% of the demand for the virtual counterparts.

This can, to some extend, be related to the general bigger adaption of virtual experiences in United States. Across most virtual experiences, the relative demand is significantly higher in United States. Exceptions are experiences such as Virtual Quiz, Virtual Bingo and Virtual City Tour, where the vast majority of demand is seen from United Kingdom.

Share of total demand (virtual)

Share of total demand (traditional)

virtual city tour

brewery tours

virtual scavenger hunt

white water rafting

virtual activities

wine tasting

virtual team building

paintballing

virtual yoga

cookery class

virtual karaoke

zorbing

virtual quiz

river cruise

virtual bingo

go karting

virtual escape room

segway

virtual museum tours

escape room Share of total demand

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United States

United Kingdom Copyright (c) 2020 · Evendo Ltd

Share of total demand


Both markets have seen an almost identical development in the demand for virtual products during the first 3 months of 2020. While the year started with a demand at level with that of same period 2019, the introduction of COVID19 restrictions saw this demand skyrocket in March 2020. Since then, we have seen a similarly drastic decrease in demand - but only in United States. United Kingdom appear to keep interest at the same level as the March peak. 600%

100% 90% 80% 70% 60% 50% 40% 30% 20%

500% Demand compared to 2019

In terms of actual demand, this translates into the demand in United States bouncing back to a position with more than 60% of the total demand.

Share of total demand

Expected development in 2020

10% 400%

0%

300%

Traditional

200% 100% 0%

01 02 03 04 05 06 07 08 09 10 11 12

01 02 03 04 05 06 07 08 09 10 11 12

In 2019, there were some seasonal patterns on the overall demand for virtual experiences - and we expect to see similar pattern in 2020, albeit with different starting points. We expect the April 2020 drop in demand in United States to be due to a general expectation of the COVID19 restrictions being lifted. However, as this does not appear to be the case on the short term, we expect the demand in United States to increase similarly to that of United Kingdom.

Virtual

Throughout the year of 2020, we expect to see the increase in demand for virtual products continue until mid Q3. After this, many countries will have started to ease back on the COVID19 restrictions, wherefore a (limited) return towards ”normal” should be expected. Virtual experiences do, however, offer particularly B2B customers an opportunity to provide team building and morale boost to teams earlier, than it would be possible with ”traditional” experiences. This being said, we do believe the demand for virtual products is here to stay. Even with the lifting of COVID19 restrictions, some reluctancy towards events with limited possibility for social distancing should be expected..

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SAMPLE VIRTUAL EXPERIENCES

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Virtual Escape Room

Virtual City Tour

Escape Rooms are extremely popular in Europe. Much more than in United States. Despite this, the higher adoption of virtual experiences in US leads to the demand for Virtual Escape Rooms in US.

City Tours have been used by both private people, tourists and companies for a long time. Virtual City Tours have seen a remarkable increase in demand following COVID19 - however, the share of the total demand is still very small.

Throughout 2019, both markets saw a rather steady demand. With the introduction of COVID19 restrictions, the demand for ”traditional” Escape Rooms dropped instantly - and was, to some extend, replaced by a corresponding increase for Virtual Escape Rooms. We expect a further increase in the demand, as companies start bringing teams back after lockdown. The virtual Escape Rooms, will allow companies to engage teams earlier in the process, and thus boost productivity already before the team members are re-united in the offices. 140

The demand from B2B customers are expected to fall back to 2019 levels when restrictions are lifted.

+228%

100 80 60 40

+182%

4

Searches per 1m people

Searches per 1m people

120

+234%

We expect to see a further increase in demand in the months to follow, whereafter the demand will fall back to around or below the pre-COVID19 levels. The timing for this decrease will be largely dependant on the speed with which the restrictions are lifted in the various markets - and whether consumers will be able to resume travel activities.

+198%

3

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1

20 0

2

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1

9

2

0

2

0

Share of virtual demand:

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United States

0

2

0

1

9

2

0

2

0

Share of virtual demand: 14.3%

0.2%

10.6%

0.7%

United Kingdom Copyright (c) 2020 · Evendo Ltd


Virtual Team building

Virtual Bingo

The slightly broader term of ”Virtual Team building” was not used much prior COVID19. Once restrictions were introduced, this changed - and one of the biggest increases in demand was registered.

People in United Kingdom want Virtual Bingo! At least this is what the numbers indicate. The demand is at a considerable level, almost reaching that of Virtual Escape Rooms - and it is more than 8 times higher than the demand in United States.

We expect this increased demand to continue for the remainder of Q2 and Q3 - as companies bring teams back, and are looking to boost productivity as early as possible. Once ”back to normal” we expect the demand to remain at a reasonable level for a 1218 months period, as some teams will continue to work partly remote. On the supply side, we see an increase as well. However, there is still a significant ”vacuum” and amble room to introduce new products in this category.

+270%

10

Current offerings within this category are likely to be modified based on learnings from the COVID19 period. A sizeable part of these ”modified offerings” is likely to remain with a reasonable demand even following the 12 months decline.

+239%

45

8

40

7

35

6 5 4 3

25 20 15 10

1

5 2

0

1

9

2

0

2

0

0

Share of virtual demand:

+307%

30

2 0

+296%

50

Searches per 1m people

Searches per 1m people

9

The explosive increase in demand is expected to follow a downwards trend towards a level at 2 times ”pre-COVID19” level during the next 12-months.

2

0

1

9

2

0

2

0

Share of virtual demand: 1.2%

1.0%

1.0%

8.3%

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Virtual Scavenger Hunt

Virtual Karaoke

Scavenger Hunts have been popular products for corporate Team building in the past. Following COVID19 we have noticed a significant shift towards virtual versions - where participants do remote scavenger hunting in their own homes. The same shift has not been seen in United Kingdom - and we expect the demand in UK to decrease again faster than that of United States.

We have seen an increase in demand for ”traditional” Karaoke during the past years. With the introduction of COVID19 restrictions in the United States, a part of this demand shifted towards virtual versions. The same reaction was not seen in United Kingdom - where Karaoke was in less demand also prior to COVID19. After a small spike, we saw the demand in UK drop back to 2019 levels.

On the supplier side, these experiences require the same man-power and attention as the ”traditional” versions, and are thus harder to scale globally. As traditional Scavenger Hunts become available again, the expected decrease might thus be accellerated - as pricing would have to remain largely the same between virtual and physical versions.

However, we expect to see a significant increase in demand, as product offerings in the category will mature and become available between markets.

+291%

9 8

Overall, we expect a decline following the next 6 months - but, to a level higher than 2019 due to the general trend of adaption of virtual experiences.

+255%

10 Searches per 1m people

Searches per 1m people

7 6 5 4 3 2

2

0

1

9

2

0

2

8 6 4

0

0

Share of virtual demand:

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+153%

2

1 0

+238%

12

United States

2

0

1

9

2

0

2

0

Share of virtual demand: 1.0%

1.4%

0.7%

1.2%

United Kingdom Copyright (c) 2020 · Evendo Ltd


Virtual Quiz

Virtual Yoga

Together with Virtual Bingo, Virtual Quizzes has seen an explosive increase in demand in the United Kingdom following COVID19, reaching a level where demand is significantly higher than supply. One reason is ”pub-quizzes” moving towards virtual versions as restrictions shut down pubs.

Yoga is among the wellness experiences translating to virtual versions the best. As corporate wellbeing became increasingly popular during the past years, so did yoga.

In United States, Virtual Quizzes has never seen same popularity. Despite an increase in 2020, the demand remains at a low level - specially when compared to United Kingdom. We expect the demand to slowly decrease as restrictions are lifted and pubs are reopened. However, the demand will remain at a significantly higher level than pre-COVID19.

+169%

45 40

However, not until COVID19 related restrictions did the virtual counterparts of physical class-room based yoga see an increase in demand. And when it did, the demand decrease rapidly again. This could indicate immaturity in the offerings in the category. However, we expect suppliers to adjust based on such learnings - and thus expect to see an increase in demand, as the quality of the offerings increase as well. With this, we expect demand to rebounce - and to remain significantly above 2019 levels.

+305%

9 Searches per 1m people

Searches per 1m people

+180%

8

35 30 25 20 15

7 6 5 4 3

10

2

5

1

0

+242%

10

2

0

1

9

2

0

2

0

0

Share of virtual demand:

2

0

1

9

2

0

2

0

Share of virtual demand: 0.2%

1.2%

7.7%

1.1%

Copyright (c) 2020 · Evendo Ltd

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Virtual Activities

Virtual Museum Tours

The broader term Virtual Activities is one of the few showing ”abnormal” behavior. Where others mostly follow the same pattern in United States and United Kingdom, Virtual Activities are expected to see a continues incline during 2nd half of 2020 in United Kingdom - and a decline in United States.

There is a remarkable demand for Virtual Museum Tours - and this demand has followed a well-known COVID19 pattern, with corresponding increase.

One reason is an initially significantly higher COVID19 response in US - from which decline is the most likely scenario. Another is the higher pre-COVID19 adaption of virtual experiences in US - which is likely to follow with a delay in UK. This will impact the demand for Virtual Experiences positively in UK. In general, the demand is still relatively small for virtual variants - traditional appear to be favored.

+281%

9 8

The high demand was established a few years ago. It has remained constant until COVID19 - and is expected to slowly decrease towards a level around 2 times the pre-COVID19 demand. However, Virtual Museum Tours has shown the way for many other similar virtual experiences. We now see an increase in both supply and demand for i.e. virtual gallery visits, virtual brewery tours etc. We expect this trend to see a continuous incline in the years to come.

+219%

800 700 Searches per 1m people

Searches per 1m people

7 6 5 4 3 2

2

0

1

9

2

0

2

600 500 400 300 200

0

0

Share of virtual demand:

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+263%

100

1 0

+238%

United States

2

0

1

9

2

0

2

0

Share of virtual demand: 1.1%

78.4%

1.0%

67.6%

United Kingdom Copyright (c) 2020 · Evendo Ltd


Putting things into perspective Although the demand for virtual event experiences has increased by some 241% globally due to COVID19, while demand for �traditional� event experiences has decreased with 46% during the same period, the demand for virtual experiences is still but a fraction of the demand for traditional experiences. To illustrate the proportions, the red area on this page represent the demand for traditional experiences, while the two green boxes in the lower right corner represent the proportional demand for virtual experiences.

As the COVID19-related restrictions will be lifted throughout the world, our predictions are that the relative interest for virtual products will see a decline, while the demand for traditional experiences will move towards its 2019 level. It is, however, expected, that the shift from traditional to virtual, at least to some extend, will remain noticeable in the years to come. The volume of the demand for specific virtual experiences should be considered when investing into this space. Depending on the future progression of this demand, which again is heavily dependant on the COVID19 initiatives, may dictate a further increase or decline in such demand.

2020 2019 Copyright (c) 2020 ¡ Evendo Ltd

Page 39


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Evendo - Are virtual Events the next big thing?  

During COVID19 a remarkable shift has been seen from "traditional" towards "virtual" Event Experiences. But, does this mean Virtual Events a...

Evendo - Are virtual Events the next big thing?  

During COVID19 a remarkable shift has been seen from "traditional" towards "virtual" Event Experiences. But, does this mean Virtual Events a...

Profile for evendo