including those that have faced difficult times. For example, as AMR is
currently verifying this data Tailwind successfully exited MediaLive – the core
property of which was Comdex, the formerly troubled major electronics show
– to United Business Media.
Revenue models
As described below, revenue models vary widely by segment.
Trade shows
At trade shows, organizers typically capture about 20-25% of the total cost of
exhibiting. The balance is spent on travel, accommodation, booth construction and a
range of related services. Other areas of trade show spend are harder for organizers
to capture and are less attractive as most have a lower margin opportunity.
Nonetheless, organizers do generate revenues from a range of sources beyond
booth sales (also called space sales). Revenue sources for organizers include:
 Booth sales
These are the traditional core revenue stream. In major events demand can
be relatively inelastic, allowing organizers to push prices up faster than
inflation – but exposing themselves to the risk of an exhibitor resistance or a
competitive launch.
 Sponsorship
Increasingly, organizers are using sponsorship sales as a way of tapping into
the marketing budgets of exhibitors.
 Attendee entrance fees
To encourage attendance, many trade shows do not charge an entrance fee
to qualified attendees. The organizer collects data on attendees for its
database and future promotion campaigns. While there is a trend towards
organizers seeking to initiate or raise attendance fees, it is tricky to achieve in
practice without affecting attendee numbers, which are themselves under
pressure.
 Conference sales
Major trade shows are able to add conferences as side events, thereby
increasing the content of the event and attendee appeal. Conferences are
not always well attended, however, and even when they are, exhibitors may
complain that the floor is empty as key contacts are taken away by the
conference.
 Hotel booking commissions
Organizers are often involved in organizing the travel and accommodation for
participants and earn a commission from the hotels and airlines.
 Additional services
There are a number of additional services that organizers can offer depending
on the event and location.
Conferences
The revenue model in conferences is somewhat simpler, but there are still several
sources of revenue.
 Delegate fees
The primary revenue source for conferences is delegate fees.
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