Encore CEO on Tackling AV Budget Challenges and Service Gaps

Ben Erwin, Encore’s President and CEO, addressed some of the biggest challenges and changes shaping live event production. During the 2024 Skift Meetings Forum session titled “Bigger, Brighter, Louder—Exploring the Future of Live Event Production,” he touched on pricing complexities, competition in AV services, and how Encore is adapting internally after the pandemic.

Balancing Pricing Pressure and More Complex Event Production

“One of the things that customers want to talk to me about most frequently is price,” he said, acknowledging that AV and production pricing has become a key concern for clients. Yet Erwin pointed out that events today require 75% more complicated technology than in 2019, driving up costs across the board. He also highlighted that what’s being invested into production isn’t just about the visible tech. It includes all the behind-the-scenes infrastructure that makes live events happen.

Erwin laid it out simply. Encore isn’t trying to be the cheapest option. Instead, it focuses on delivering value in partnership with hotels and venues. “If the prices we’re charging, the experience, and the service don’t align, our business is going to be challenged.”

Nevertheless, he assured the planners in the room, around a third of which are currently working with Encore, that the company is actively looking at where to reduce costs, with labor a particular focus. “Are there ways to be more efficient so you’re not necessarily paying for all the human capital that goes into producing events?” he asked. 

For planners who juggle fluctuating prices in different markets, Erwin acknowledged the frustrations: “If I show up in Boston and use Encore, and two days later do something similar in Chicago and pay something different, that doesn’t feel right.”

The In-House Advantage

Providing audiovisual services at hotels accounts for roughly 80% of Encore’s revenue. It is the in-house AV provider at 2,200 venues in 20 countries, but Erwin disputed the idea that planners are forced to work with Encore at these properties. He said that certain services like rigging can only be done by Encore as the in-house provider, but the company competes daily with other AV companies.

But Erwin stressed that being an in-house AV provider doesn’t remove the need for Encore to continuously prove its value. “If we’re not doing our job, our capture rate in those properties will go down,” he warned.

Erwin mentioned customer journey tools that all Encore representatives have at their disposal and urged planners to check if they have done their research on each client. “If they have, they should immediately be smarter in how they’re talking to you.”

Rebuilding Post-Pandemic

Like many companies, Encore faced severe cuts during the pandemic. Erwin said revenues dropped from $3 billion to just $3 million in May 2020. Encore furloughed 10,000 employees were during this challenging time, but he made the case to retain 3,000 staff despite the lack of work. “If we don’t retain our teams, there will be no muscle memory to grow back from,” he said.

The company has rebuilt, and Encore hired 10,000 people in 18 months. “How do you hire, train, retain, and develop 10,000 people in a year and a half?” he asked. The solution involved getting “really good at systems and tools.” Encore also says it listened carefully to customer feedback. It now collects 20,000 responses annually from clients about their experience, using the feedback to refine operations and improve service levels.

Moving from Behind the Scenes to the Front Lines

Focusing on service levels is not just good company policy; it results from an intentional move to connect closely with planners. “We’re more comfortable being dressed in black, behind the scenes,” Erwin admitted. However, the Covid pandemic revealed an opportunity to connect more directly with the planner community.

“The voices that had been in my head and been so valuable weren’t necessarily our hotel partners… it had been planners, it had been our customers,” he said. Encore aims to connect more closely with planners moving forward, pulling them into conversations earlier in the process to address their needs better. Encore’s experiential activations at the IMEX shows are perhaps the most tangible example of this new focus on planners.

Managing Debt and Investing in the Future

Encore isn’t immune to the financial pressures the events industry faces. According to Bloomberg, the company carries significant debt, with roughly $2.5 billion of loans due through 2026. Erwin confirmed the latest refinancing in June raised $500 million in new equity. He is confident this will support the company’s growth plans. “We have wonderful owners. They believe in putting every dollar of cash we generate back into our organization.”

Looking ahead, artificial intelligence is a hot topic across industries, and live event production is no exception. While Encore is still experimenting with AI, Erwin sees its potential. “Can we use AI to be better recommenders of solutions to our customers?” he asked. Encore has piloted AI solutions at some events, focusing on audience sentiment and matchmaking technology, but Erwin admitted it’s still “early in the process.” Nonetheless, Encore plans to continue exploring AI’s potential as part of its broader push to improve customer experiences.