Cashing in on MiCE
Highlights of the discussion on ‘MICE – Dynamics & Expectations', held during Travel Business Show at Hyderabad Marriott Hotel
Moderated by Homa Mistry, CEO, Trail Blazer Tours, the discussion on ‘MICE – Dynamics & Expectations' brought to light some key aspects that make the business of MiCE a creative, thought-provoking proposition. The panel during this day comprised Shamitha Shetty, CEO, Success Tours; Ajay Kapoor, VP Procurement, HSBC Group and Tekla Maira, Director Luxury Sales India, AccorHotels Luxe.
COLLABORATE, CONNECT & COMMUNICATE
MiCE is a dynamic industry where expectations keep changing and demands keep growing. Giving an insight into how the dynamics of MiCE have changed over the years, Kapoor said, “First, we need to understand the fundamentals in the execution of any event in which different industries are involved; they need to be synchronised. We definitely need to see how we can meet the expectations of the customer. This can be worked out by the three-C principle which calls for collaboration, connect, and communication. In the MiCE industry, if you want the right end result, you need to engage with all the stakeholders from the initial stage, so that they are the architects of the itinerary to meet the expectations of the end customer.” Adding his bit to the discussion, Mistry said, “Dynamics of the industry remain the same, only technicalities keep changing.”
NOT REVEALING ALL
Offering her perspective on the hotel space, Maira said, “As a supplier, 60-70 per cent of the entire cost of the itinerary comes from the hotel, 99 per cent of the time. Many a times we don't even meet the end client. As a supplier, there are a couple of things I need to know, including the budget, what the three main things that matter are, and what will determine the decision for the respective group. It takes a lot to get those answers.” Kapoor said that since it was difficult to talk to multiple partners, speaking to only the MiCE agent was easier.
Elaborating on the role of an agent, Mistry said, “The disconnect is there and will remain. As travel agents, we do not open all the cards, as we feel hotels might take the business away directly.”
DREAMY EUROPE
Destinations in Europe have always been popular for MiCE. Elaborating on one – Croatia – and why it is a hit for meetings, Shetty said, “Croatia is a well-kept secret of Europe. It has got the sea, the mountains, and also has a 6200 km coastline. It has 1200 islands and 10 national parks. Croatia
Many agents that send large groups use Wetu, so that any change in the event can immediately be made” Homa Mistry CEO, Trail Blazer Tours
Croatia is an emerging destination for MiCE from India; it is one of the best kept secrets of Europe” Shamitha Shetty CEO, Success Tours
offers surreal nature. It's an emerging destination for MiCE from India. It also offers Indian food options in almost all of the cities and in the cities where there may not be any, access to the kitchen can get us going. There are countries like Slovenia, Montenegro, or a combination of the two that might work well.” Providing a corporate's perspective, Kapoor said, “Every time we look for a new destination, we see if the expectations of our internal customers are being fulfilled. Based on that, we decide on a destination; sometimes it's a repeat and sometimes it's new. The role of the MiCE agency/DMC is very important; they are the ones to tell us about the new, undiscovered destinations.”
TECHNOLOGY IN MiCE
Technology has increasingly been playing a vital role in optimising costs for the MiCE industry. Kapoor explained, “Earlier, company's depended on people for execution of any job, which resulted in high operating costs and increased error. From people, we then moved to processes. However, post 2010, it has mostly been a digital era, one of Artificial Intelligence, machine learning, blockchain, reverse auction, etc. When you look at an IT partner like Wipro, IBM, or Infosys and have engaged a regional partner as well, you are requested to come in for the reverse auction process. Usually, the regional partner gets the contract because their operating costs are very low. However, since it lacks a thorough study in terms of scalability, capability, regional offices, support, etc., it may later on result in a bumpy ride in the execution of the project.” Mistry said that though technology was here to stay, it needed to be updated constantly. “Many agents that send large groups use Wetu. Every PAX has the itinerary available live, and you do not require the internet for that. Once you have downloaded it, updates can easily be seen,” he said.
THE MARKET OF CELEBRATIONS
Weddings are an important part of MiCE. Now this market is expanding to include birthdays, anniversaries, bachelorettes, and other celebrations. “This is an emerging trend. Bachelorettes now happen at exclusive hotels and exotic destinations. Another trend is that of ‘babymoon', where a group of friends go for a holiday before the baby is born. This is not really a numbers game and the budgets are far more generous. Here, numbers are in terms of money spent,” concluded Maira.
We can meet expectations using the three-C principle which calls for collaboration, connect and communication” Ajay Kapoor VP Procurement, HSBC Group
An emerging trend is that of babymoon, where numbers are in money spent” Tekla Maira Director Luxury Sales - India, AccorHotels Luxe