Encore President and CEO Ben Erwin addresses some of the biggest challenges and changes impacting live event production. In a 2024 Skift Conference Forum session titled “Bigger, Brighter, Louder – Exploring the Future of Live Event Production,” he spoke about pricing complexities, competition for AV services, and how Encore will fare post-pandemic Internal adjustment.
Balancing pricing pressures with more complex campaign production
“One of the things clients want to talk to me about most is price,” he said, acknowledging that audiovisual and production pricing has become a major concern for clients. However, Owen noted that today’s activities require 75% more sophisticated technology than in 2019, driving up costs across the board. He also emphasized that investment in production involves more than just visible technology. It includes all the behind-the-scenes infrastructure that makes live events happen.
Alvin puts this point simply. The Encore doesn’t try to be the cheapest option. Instead, it focuses on working with hotels and venues to create value. “If the price, experience and service we charge are inconsistent, our business will be challenged.”
Still, he assured planners in the room that the company is actively looking for ways to reduce costs, with labor being a particular focus, with about a third of planners currently working with Encore. “Is there a way to be more efficient so you don’t have to pay for all the human capital required to run an event?” he asked.
For planners who need to juggle price fluctuations in different markets, Irving acknowledged the frustration: “If I show up in Boston and use Encore and two days later do something similar in Chicago and pay a different fee, that doesn’t feel right. “
internal advantage
Providing audiovisual services in hotels accounts for about 80% of Encore’s revenue. It is the in-house AV provider for 2,200 venues in 20 countries, but Irwin disputes the idea that planners are forced to work with Encore at these venues. He said some services, such as rigging, can only be done by Encore as an in-house provider, but the company competes with other AV companies every day.
But Erwin stressed that being an in-house AV provider doesn’t mean Encore needs to constantly prove its worth. “If we don’t do our job, our catch rates on these properties will go down,” he warned.
Irvine mentioned the customer journey tool available to all Encore representatives and urged planners to check that they have conducted research on each customer. “If they do, they should immediately become smarter in the way they talk to you.”
Rebuilding after the epidemic
Like many companies, APCO has faced severe layoffs during the pandemic. Irvine said revenue in May 2020 fell from $3 billion to just $3 million. 3,000 employees. “If we don’t retain our team, there’s no muscle memory to recover,” he said.
The company has been rebuilt, with Encore employing 10,000 people within 18 months. “How do you recruit, train, retain and develop 10,000 employees in a year and a half?” he asked. The solution involves “getting really good at systems and tools.” Encore also said it listened carefully to customer feedback. The company now collects 20,000 customer experience feedback annually and uses the feedback to improve operations and service levels.
From behind the scenes to the front line
Focusing on service levels is not only good company policy; This is the result of a deliberate move in close contact with planners. “Behind the scenes, we were more comfortable wearing black,” Irwin admits. However, the pandemic has revealed opportunities to connect more directly with the planner community.
“Those voices in my head that are so valuable are not necessarily our hotel partners… but planners, but our customers,” he said. Encore aims to create a closer connection with future planners, allowing them to have conversations earlier in the process to better meet their needs. Encore’s experiential event at IMEX is perhaps the most tangible example of the new focus on planners.
Manage debt and invest in your future
Encore is not immune to the financial pressures facing the events industry. The company is saddled with huge debt, with about $2.5 billion in loans due by 2026, according to Bloomberg. He believes this will support the company’s growth plans. “We have great owners. They believe in investing every dollar of cash we generate back into our organization.
Looking ahead, artificial intelligence is a hot topic across all industries, and live event production is no exception. While Encore is still experimenting with artificial intelligence, Irvine sees its potential. “Can we use artificial intelligence to better recommend solutions to customers?” he asked. Encore has trialled AI solutions at some events, focusing on audience sentiment and matchmaking technology, but Irwin admits this is still “in the early stages”. Nonetheless, Encore plans to continue exploring the potential of artificial intelligence as part of its broader push to improve customer experience.
