Business tourism is also known as "MICE" industry which stands for meetings, incentive travels, conference and exhibitions industry. Over the period of time "MICE" is becoming larger and larger as an industry, not only is it a lucrative business in itself but it has got great strategic implications since it influences investment and other businesses as well. It had been calculated that a one dollar investment in business tourism can bring revenue of 8-10 dollars in other industries. The following blog will take a look at the current trends in the business tourism:-
• MICE activities in a particular industry type are directly linked to the performance of that sector. If a particular sector shows boom then it can be concluded that there will be more number of activities in that sector.
• The present economic downturn had badly hit the MICE industry. It had resulted in cutting down of budgets for tours and travels hence reducing such events all together.
• Since the supply is more than the demand it is more of a buyers’ market. Buyers don’t prefer directly signing deals; rather they prefer matching various prices. More over in order to get economy of scale they prefer dealing with lesser number of suppliers.
• The customer base of “MICE” industry does not only consist of corporate sectors but also various kinds of national, international and government associations which keeps on meeting regularly. These associations consist of professionals from particular industry type such as Medical Science, Law, IT. In spite of economic downturn faced by corporate sector these associations have witnessed a decent growth which is a good signal for the “MICE” industry.
• Another segment that can provide a potent business for the “MICE” industry is the so far neglected “SMREF” segment. ( it stands for the Social, military, religious, educational and fraternal segments which is generally unaffected from the economic conditions)
• These days rather than conducting meeting at exotic resorts and city centers companies prefer dedicated conference centers which have all the dedicated services available at economic prices.
• Newer destinations like China and Middle East are becoming more and more popular for meetings and conferences.
1> EIBTM 2009 industry trends and market analysis, 2009 , available at < http://www.iccaworld.com/dbs/eibtm/files/3464_eibtm_industry_report_print_2009_v6_notrim.pdf>
2> KPMG business outlook report, 2009