From temporary events to phygital market ecosystems: Platformization and business model innovation in trade fairs

Trade fairs are vital marketplaces for international business and destination-based service economies, yet their digital transformation has been slow and uneven because value depends on physical co-presence, trust, and sensory evaluation. This study examines how trade fairs evolve into phygital ecosystems, where digital infrastructures are embedded into the physical fair to augment coordination and engagement across the event lifecycle. We conducted an exploratory case study of the Italian trade fair ecosystem (2021–2024), combining 105 interviews with organizers, exhibitors, experts, and association representatives with extensive archival evidence, including a database of 654 AEFI-certified fairs. Findings reveal three dynamics: (1) in-person exchange remains the core of marketplace value despite digital extensions; (2) platform-based coordination shifts fairs from episodic events to more continuous, year-round engagement; and (3) frictions emerge around market structuring and governance, economic sustainability, and uneven digital readiness. We develop three propositions theorizing the platformization of historically physical marketplaces: embedded platforms become the coordination layer enabling phygital business models, reconfigure value creation mechanisms (efficiency, complementarities, lock-in, novelty), and shift governance toward multi-stakeholder orchestration. We also derive four actionable design pillars–management, connection, community, and monetization–to guide sustainable, inclusive phygital trade fair models.