2. Introduction
The MICE industry size was valued at $805 billion in 2017 and
is expected to grow at a CAGR of 7.6% to reach $1,439.3
billion by 2025. MICE industry offers tourism services in which
organizers and suppliers that manage and deliver meetings,
conferences, exhibitions, and other related events held to
achieve a range of professional, business, cultural, or academic
objectives. MICE industry growth shall have a positive impact
in the growth of businesses, cities, destinations, and other
covered spectrums. Organizers of MICE events also provide
other creative services that include show displays, directional
signages, banners, kiosks/exhibit space, event photography,
and AV/technical production; and event marketing and
sponsorship management, group air fulfillment, on-site event
logistics and staffing, supplier management, virtual meetings,
and risk management services.
3. There has been a surge in presence of corporate industries all around the globe. This has increased
the frequency of business activities such as client meetings, brand promotions, and employee
training activities and has supplemented the growth of global MICE industry. Moreover, rise in
government initiatives to promote SMEs and liberalization of market entry to increase FDIs has
boosted the growth of this market even further. Other significant factors that promote the growth of
the market are change in lifestyle of business travelers to seek leisure trips, rapid urbanization, and
industrial growth. Furthermore, infrastructural development and continuous technological
advancements in emerging nations has fueled the MICE industry market growth.
4. Global MICE Industry
In 2017, Europe dominated the MICE industry and is expected to continue this trend
throughout the forecast period. Asia-Pacific along with Europe contributed more than
50% in the global MICE industry share. The Europe market for MICE industry is
primarily driven by the rising demand for meetings and a surge in adoption of smart
devices and rise in internet penetration. Asia-Pacific is the fastest growing market and is
expected to grow at the highest CAGR throughout the forecast period. Rapid growth in
the business travel sector in recent decades have positioned Asia-Pacific as the fastest
growing market in the world. The Asia- market for MICE industry is driven by high
penetration of internet & technology and by strongly influenced government policies of
China, which are focused on regulating a moderate growth of the economy. Moreover,
most of the countries in this region are emerging nations and these economies offers
lucrative business opportunities for investors.
5. The MICE industry, however, is one of the
main drivers within the tourism industry
and has witnessed important growth over
the past years. As the demand for meetings,
incentives, congresses and events is on the
rise, the MICE sector’s future looks bright.
However, as things grow, challenges arise.
For example, for MICE hotels, one of today’s
greatest challenges is retaining a share in
the increasingly competitive marketplace
and this competitiveness poses issues on
every sector of the MICE industry. Some of
the biggest challenges are as follows:-
MICE Market Challenges
Worldwide
6. 1. Virtual meetings vs
Destination meetings.
Virtual meetings are like the fast food versions of
destination meetings. Although the latter are more
valuable since they provide engagement opportunities
with pertinent topics without any distractions, virtual
meetings are appealing because they allow you to attend
without having to book a hotel room, get on a plane or
leave your office chair. Of course, since they don’t
involve booking rooms and buying plane tickets, virtual
meetings are oftentimes cheaper than destination
meetings. At the end of the day, there is value in both.
Sometimes you can’t miss out on the huge networking
opportunities during an event and you choose to go
there in-person, other times you’re just interested in a
topic and attend a virtual conference. However,
planning for both and trying to appeal to both types of
attendees is something the MICE industry will have to
work on and it won’t be an easy task.
7. 2. Keeping up with
technology
Technology is evolving at an incredibly fast pace
and, as this happens, event attendees’
expectations become higher. They want to be
able to book hotel rooms, plane tickets, event
access with minimum hassle, at the time of their
convenience and on the device they’re using.
On the other hand, hotels need to keep up and
improve their technologies to streamline
communications and logistics with meeting
planners and hotel broker companies in order to
diminish redundancy and reduce mistakes.
Needless to say, Internet access and good Wi-Fi
in hotels are a must! (still, many event attendees
complain about this regularly).
8. 3. Managing Accommodation contracts (oldie
but goldie)
This is something that’s very familiar to old industry players. However, for
those who are new in the business event sector, negotiating a contract with
a hotel or venue is no easy thing. Hotel groups provide different contracts
and signing the contract without really understanding what each and every
sentence means can be a recipe for a big failure. PCOs and anybody signing
venue contracts should read them carefully and if they have any doubts get
legal advice before signing them. Also, they should establish their own
clauses. An example would have to do with the venue being forbidden to
advertise cheaper rooms than the contracted block, over the same period of
time, without extending the lower rate to the block.
9. Some best practices when managing accommodation contracts would be:
● Thoroughly read and understand contract terms.
● Be very careful with your expected numbers, as over-inflation is not
going to do anyone any good while underestimating the number of
rooms may force you to find additional spaces elsewhere.
● Make sure that room rate protection is included so that you have
competitive room rates.
● Include all financial liabilities in the contract.
● Maintain a constant communication with all parties involved.
10. 4. Lack of creativity
Big brand hotels’ corporate bureaucracy
partially accounts for planners’ demand for
greater creativity in the meeting process, and
a far more flexible business environment.
Larger hotel brands often have corporate
policies that may place limits on pushing the
boundaries of creating the ultimate meeting
experiences for planners. But the need for
innovation and original events, imaginative
use of technology, effective team building
exercises, new experiences in even the most
tried and true destinations, and diverse,
sustainable and healthy food cannot be
ignored.
11. 5. Increasing complexity
and costs of Food &
Beverages
As the population becomes more diverse, food
preferences and dietary requirements have
become more complicated. Growing awareness of
wellness and sustainability issues add to a mix
that could become more problematic and costlier.
Paleo, keto, pescatarian, vegan and religious
dietary requests are among the newest trends in
conference dining in 2019. Respondents also
called for better management of food ordering to
keep costs down and eliminate waste.
