In 2022, the global MICE market had a value of USD 876.42 billion, according to a report by Research and Markets. Furthermore, the same study predicts that the MICE (meetings, incentives, conferences, and exhibitions) market will likely register a CAGR of 7.5% from 2023 to 2030, reaching a total value of USD 1,563.29 billion .
But, while the market grows and significantly benefits the hospitality industry, one must overcome many challenges and barriers to take advantage of MICE's potential for boosting hotel occupancy and ancillary sales.
MICE Challenges and Barriers
Travel and meeting restrictions impacting MICE events: While lockdowns are no longer in effect, the COVID-19 pandemic caused severe worldwide economic disruption. The travel sector was affected by restrictions, lockdowns, and business closures. In addition, because social distancing and lockdowns were in effect, meetings - including seminars, conferences, exhibitions, etc. - were canceled or postponed.
The restrictions led to new formats for MICE events, including virtual and hybrid meetings, which became an industry norm, as they offered organizers and attendees significant benefits:
- Time and flexibility: Organizers can schedule virtual and hybrid meetings based on resources, travel time, and the attendees' preferences.
- A better work-life balance: Organizers and attendees have more time to spend on self-care and family connections while reducing money and time spent commuting and reducing the stress associated with public transport and financial concerns.
- Increased productivity and connectivity: By reducing time spent on travel, research, and organizing, all participants can focus on more profitable tasks. Moreover, they can rewatch and share virtual meetings, enhancing connectivity with peers and collaborators.
Low attendance: Because hybrid and virtual meetings became more popular and an industry norm in many instances, on-site MICE events could face low attendance issues and, in some cases, even cancelation risks.
Rising costs: Inflation and other factors (like, for example, currency exchange rates) may lead to rising costs for event production, thus posing new and unexpected challenges for organizers. Inflation may affect everything from travel prices to accommodation, food, and even resources like audio-visual equipment, energy, etc.
Inflation may also affect guest speakers, who will likely demand higher fees for their expertise, as well as travel, accommodation, and food expenses. According to the AAE Speakers Bureau:
- 53% of speakers will increase their fees in 2023;
- 88% expect the conference or event organizer to cover the cost of their hotel, air travel, and ground transfers;
- and the average speaker fee is USD 15,551 for in-person events.
With the cost of travel increasing, all MICE event attendees face challenges in finding reasonably priced or affordable transportation and accommodation. In addition, time spent on the road reduces productivity for organizers and participants alike.
Because of rising accommodation costs and higher travel and catering prices, organizers find it harder to maintain their attendance rates.
MICE venues face increased costs because of inflation, too. Therefore, many raise their prices, sometimes leading to fewer bookings and decreased revenue. With all these challenges, organizers find it increasingly difficult to plan events and justify costs.
Lack of skills for new MICE formats: With virtual and hybrid meetings coupled with emerging technologies (AI, AR, VR, etc.), organizers may find it challenging to hire skilled staff. Even attendees need help adapting to and/or adopting these technologies.
Challenges for MICE Booking Engines
Inflation is one of the factors presenting challenges for all players in the MICE industry, including online services like MICE booking engines. For example, when venue operators raise prices, booking engines may record lower ROIs as website visitor conversions and bookings decrease.
MICE booking engines have an extensive database of offices, meetings, events, and conference rooms. Venue operators submit their listings to MICE booking engines to maximize revenue by making use of empty or unused spaces.
One of the main challenges for emerging MICE booking engines is competing in a market already served by OTAs and niche-specific operators. Also, many booking engines don't offer flexible booking options at convenient locations and advantageous prices.
With flexible co-working spaces and amenities becoming a norm, MICE booking engines must expand their databases to appeal to new demographics - including organizations and their employees. Here, the challenge is to enable users to refine their search based on the day of the week, number of hours, room type, number of participants, amenities, catering needs, etc.
An example of a booking engine with a solid database and all the features venue providers and their customers need is Book a Space, which manages to satisfy these requirements with a scalable, on-demand hybrid platform featuring spaces to work, meet, and connect.
Book a Space connects property owners with people looking for workspaces, offices, conference halls, meeting rooms, etc., in private offices, hot desks, and hotels. Book a Space users can refine their search by geolocation, date, hour, number of participants, and activity type (for example, business brunch, brainstorming, board meeting, business reception, workshops, seminars, team meeting, exhibition, conference, daily office, and more). The search engine regularly updates its database, algorithms, and search parameters to meet customer expectations, demands, and emerging trends.
Emerging trends within the MICE industry can present a challenge for booking engines without a flexible, scalable platform, where venue providers can list all the relevant services and amenities for their spaces and users can tailor their searches based on their needs: convenient location, flexible timeframe, event type, and perks.
While challenges usually lead to progress, not addressing them may result in barriers that will reduce user engagement, customer satisfaction, and eventually ROI.