The MICE industry has always been obsessed with process and the production of proposals. For hoteliers who want to find and grow the MICE sector, you must first understand data and trends in order to define your brand. In the end, knowing your market and clients will translate to a higher level of success.
MICE (meetings, incentives, conferences, and exhibitions) is a big business in tourism and hospitality. It’s big now and growing. The global MICE market size In 2024, the market was USD $998.59 Billion. The segment is on track to grow by two-fold and reach $2 trillion in 2034.
MICE is the most lucrative segment of the hotel’s overall mix. MICE room rates are typically higher than transient rates, as groups take up a large portion of the inventory.
The potential for ancillary revenue from meeting and event bookings is profound too, as room hire, audiovisual and F&B packages are almost always required, driving up total revenue.
MICE allows hotels to maximize profits while minimizing inefficiencies.
MICE takes center stage
Over the past 10 years, trends have led hoteliers to different markets and industries as feeders.
Prior to the pandemic, hotels focused on attracting corporate travelers and bookings, who had generous budgets for their companies and a need to travel frequently. Post-COVID, initially, leisure bounced back hard and fast, with business travelers accustomed to virtual meetings and traveling with purpose when necessary – maximizing business objectives – and extending stays into ‘bleisure’ trips. We’re back to work, the trends have shifted, and MICE continues to be the hottest segment. This is why hoteliers should focus their attention on the MICE segment, as it’s the most profitable in hospitality.
What do hoteliers need know about MICE industry?
That’s a part of the issue. MICE has never been a segment traditionally well served by technology. Most of this technology revolves around the automation of requests for proposals in the sales process. MICE is still dominated by a reactive approach to RFPs. However, this only results in a 45% response and 5-7% conversion rate on average.
Crucially, there was never enough focus and data related to MICE market trends, standardizing and calculating relevant KPIs, understanding industry segmentation – and the profitability of specific industries – to drive relevant opportunities.
MICE is shifting to a global market
Hotels need to be aware of broader trends to better understand the MICE market. There has been a general shift in the last few years from the west to the east, with Middle East and APAC in particular flourishing.
Knowing about the performance of industry segments – and therefore where the opportunities are for attracting meeting and event bookings – has been key for these regions.
In the Middle East, for instance, the consulting, travel and training/education industries were the most important in 2024. And the automotive industry grew by an astounding 53%. APAC’s top industries were financial/banking and technology in 2024. The electronics industry also grew by 55%. In the USA, 2024 saw the consulting sector grow, surpassing the manufacturing industry, while the arts/performing art sector grew 33%.
Interesting, the industries on the decline in some areas are key drivers for other regions. Healthcare fell completely out of the top 10 Middle East industries in 2024 but continued to be strong in the USA.
Understanding the wider activity in the business sector will help hotels to develop a successful strategy for attracting MICE bookings.
What about Europe
In other regions, the MICE industry will recover to its 2019 level by 2022 or even 2023. In Europe it took until 2024. But the market is back and is still an incredibly popular MICE destination – and Europe now owns 50% of the global MICE market. It’s also a highly competitive market, so hotels must do more to gain a share.
Hotels in the Middle East and APAC have used data to identify their identities, the contexts they operate in and the types businesses they should target when presenting MICE packages. These hotels are winning MICE contracts by setting up fact-based strategies, and using data to drive commercial decisions.
It’s time to learn from these MICE-thriving regions in Europe and understand our own identity. Without data, however, how can we truly understand ourselves? Knowland, by Cendyn, is returning to Europe and will begin in London. Hoteliers can empower their teams to make data-driven decisions and gain an advantage in the MICE sector. Together, we’ll increase our data and knowledge to help hotels take a healthy share of the MICE segment.
London calling
London is the first stop because it has always been a major MICE market in Europe. That’s because of its location, connectivity, and the legacy of the London 2012 Olympics – where planners really cemented London as a MICE destination. The city will remain the go-to location for major events.
London hotels – and many hotels across Europe too – lack the data and information needed to stand out in the MICE market. Since the pandemic many hotels do not know exactly how to segment. Hotel employees are not equipped to handle MICE business due to the talent shortage in the industry. All of these factors mean that hotels are relying on luck and fishing in the pond.
Data and technology can help us turn things around. This can help to verify or challenge assumptions, set up a successful strategy, and allow you to be flexible throughout the year in order to succeed with MICE.
Own your identity
The time is now to seize your share of MICE business as a hotel. In just 10 years, this sector will double in value to $2 trillion. You need to be a hotel where MICE clients gravitate to if you want to find your place in the MICE sector, get them to book, and grow a reliable MICE revenue stream.
It’s not about image or potluck. Knowing your stuff and relying on data, trends and knowledge is key. Successful commercial teams – whatever the industry – are 3.5x more likely to use analytics. Why would a hotel not do the exact same? It is the foundation of your brand. Once you have a clear idea of your identity, it is possible to set up a marketing strategy and make decisions commercially that are as well-suited as the blazer worn by a MICE delegate.
Erika Bucsi – Enterprise Director, EMEA, APAC. Erica Bucsi is on Facebook. LinkedIn.
Cendyn
Cendyn Is a global cloud-based hospitality technology company. Its integrated solutions enable hotels to maximize profits, drive revenue and build deeper relationships with their guests.
Cendyn has been a trusted partner of hoteliers for over 30 years. Find out how to find the right person, Book, You can Grow promise: Find out how to pronounce The right guests, drive them to Book direct. Growing up Digital guest interactions across the spectrum can drive revenue and loyalty.
Cendyn has over 32,000 customers worldwide in more than 150 countries – including brands such as Outrigger Hospitality, Hyatt, IHG, Aman Resorts & Hotels, Relais & Châteaux, Highgate, Banyan Tree Hotels & Resorts, Coraltree Hospitality, and Onyx Hospitality Group – generating more than $20 billion in annual hotel revenue. The company provides support to its expanding customer base in locations around the world, including the United States and France.
