8.1 What is Event Management?

According to the Oxford dictionary, an “event” denotes a happening, especially one of importance. Events can include small groups of people gathering to celebrate or to learn for short periods of time, or they can entail large-scale gatherings of thousands of people over several days. Events can be categorized by type, such as social, corporate, government, philanthropic, community, or sporting events. Social events include birthday parties, weddings, anniversary parties, or funerals. Corporate events include product launches, trade shows, conferences, and training seminars. Government events include forums, training, and seminars, whereas philanthropic events might be held to gather financial or community support around a specific cause or organization. Community or sporting events include concerts, parades, community festivals, non-professional or professional sports games or promotional events, comedy shows, and festivals. Regardless of the type of event, the purpose of the event should be clear to all those involved. The purpose of the event can be as varied as the type. Events can be for education, as in the case of conferences and seminars, or they can be purely celebratory, like weddings and birthday parties. Events can be for the purpose of raising funds, or the event can be free to attend, where the host covers all costs. Regardless of the classification or purpose, all events bring people together. Events can be face-to-face, with all attendees live in the same space, or they can be virtual, with all attendees on a digital platform together at the same time. A third option is to create hybrid events where some attendees interact in person, and some interact live in a digital space. The goal of any good event should be to create change. The change intended may be to educate attendees by imparting skills and information, to create lasting memories, or to grow networks. The success of the event will be measured by how valuable that change is to its attendees.

The Economic Impact of Events

Gathering for events can be fun and exciting. However, the business of events is just that, a business. The vast events industry serves as one of the largest drivers of tourism and hospitality dollars.

Business events are a $1.6 trillion industry, with a GDP (gross domestic product) larger than many global economies,” said Amy Calvert, CEO of the Events Industry Council. “The economic significance of the global business events industry is immense, and so are its broader impact. Events are a catalyst for meaningful change. Across industry sectors, organizations and individuals all gain in ways that are fundamental to advancement, innovation, and adaptation to a changing world. The way we understand, measure, and communicate the importance of business events is vital to showcasing their overall value. (Luna, 2023, paras. 4-5)

Events entail the exchange of money between many different partners. Event management purchases goods and services from other hospitality vendors. Event managers purchase ballrooms and meeting space, rent tables and chairs, and contract for audiovisual services and catering, as well as a host of secondary services. These services include items like floral arrangements, table linens, printed signage, musicians, and even specialty items and services like balloon artists and security personnel. Then events include what’s known as a secondary economic impact, which includes the amount of money that attendees spend outside of the actual event as tourists. Attendees need to book lodging, utilize transportation services, eat in local restaurants, and spend money in local stores and tourist destinations. The combination of the direct spending required to host and attend an event coupled with the secondary event spending of guests acting as tourists at a destination makes event management the largest contributor to the tourism economy. The event management sector hires close to 11 million employees who keep the hospitality industry productive. According to the Global Economic Significance study conducted by the Events Industry Council, the event industry creates 10.9 million direct jobs globally (Edelstein, 2023). Because of their significance and economic impact, events play a vital role in the hospitality industry, making effective event management essential.