Baubock Report issued by ETTFA

JUNE 2002: Baubock Report issued by European Tourism Trade Fairs Association

The threat to travel exhibition organisers from ‘Virtual Trade Fairs’ is nonexistent, claims a report published this week.

Vanessa Baubock, commissioned by the European Tourism Trade Fairs Association (ETTFA), conducted a one-year study of both physical and virtual exhibitions. Her findings show that Internet expos are claiming to be up to seven times more cost effective, easy to access and free from the logistical headaches that face any traditional fair. But, while market share for online fairs is increasing, the Baubock report says their physical counterparts still outstrip them at the most fundamental level.

“Exhibitors need the human touch,” says Ms Baubock, “and that’s the one thing the Internet cannot offer. People prefer to negotiate face-to-face, read one another’s body language, eavesdrop other deals being done. This is impossible online. Virtual trade fair organisers need to recognise that.”

While maintaining the confident image, many exhibition organisers nevertheless have detailed knowledge of their high-tech competitors. Meanwhile, among show-goers, the aftershock of Sept 11th gave rise to uncertainty: might virtual fairs, cheaper and more time-efficient to run and attend than real ones, soon become the better option? Certainly the spectre of virtual shows has caused sleepless nights in the travel expo industry. But is there anything to worry about?

“I could conceive that web-based market places might have some negative implications for the individual shows,” concedes Wendy Walker, Secretariat for the European Tourims Trade Fairs Association (ETTFA). “But the Internet cannot replace a tradeshow, in the same way that videoconferencing, for example, has not reduced business travel.”

According to the Baubock report, virtual fairs offer some tremendous advantages to visitors and exhibitors alike – attractions with which physical fairs cannot compete. Besides obvious savings in time and travel expenditure, the absence of materials means that exhibiting online costs a fraction of the ‘real world’ price.

The scope for each exhibitor is seemingly limitless (and not measured in square meters); a single stand can hold seminars, competitions, product demos and conversations simultaneously. And the 24/7 nature of the Internet means that visitors who would be unable to attend a physical fair can visit online.

There are also fewer logistical problems. Dr. Sharda, President of iTradeFair.com says, “To see the physical limitations affecting the industry, take for example the San Jose McEnery Convention Centre – it is booked out until 2010!”

The biggest advantage, however, is that a decentralised trade fair held in cyberspace is far more likely to ride out waves of economic uncertainty.

Despite all of this, physical exhibition organisers remain confident that they will retain a comfortable lead – and their clients appear to agree.

Tom Nutley, chairman of the European Tourism Trade Fairs Association (ETTFA), concurs. “Organisers do not feel the need to go virtual because the human species needs human contact,” he says. “Anyone who thinks that computers can replace this is dreaming.”

With physical fairs enjoying steady growth and their virtual counterparts yet to mount a coherent offensive, it seems unlikely that any collision will take place in the foreseeable future. But the Baubock report, which assimilated data from a large number of fairs and consultations with members of the ETTFA, recommends that a ‘third way’ be taken.

“It’s a question of working together,” says Ms Baubock. “The benefits offered by virtual fairs can never replace those of face-to-face dealings, but they can greatly enhance extant physical fairs.” Outlining the Internet’s ability to provide multi-lingual information day and night, hotel booking and car-rental online and image improvement.

“Organisers can also use the Internet to cut down on the time needed to input data, by posting online registration forms, online stand bookings, online payment and online badge booking for participants to fill out themselves,” she said. “Physical trade fairs should be looking on virtual fairs as the next enhancement of what they’ve already got.”

The most surprising revelation of the report, however, is that to date, no-one has thought of this yet. “In a year of research, I could not find one exhibition that had been approached by a virtual fair with a view to collaboration,” Ms Baubock says.

The report concludes that those who take up the challenge of merging cyberspace with flesh and blood in one trade fair have everything to gain.

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For further information contact:

Wendy Walker
ETTFA
PO Box 585
Richmond
Surrey
TW9 1YQ
Tel: +44 208 939 9000
Email: [email protected]