Module 8: The Mice Industry: Meaning and Importance PDF

NAGA COLLEGE FOUNDATION, INC. COLLEGE OF BUSINESS AND MANAGEMENT BACHELOR OF SCIENCE IN HOSPITALITY MANAGEMENT MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY Module No. 8 THE MICE INDUSTRY: MEANING AND IMPORTANCE...

NAGA COLLEGE FOUNDATION, INC. COLLEGE OF BUSINESS AND MANAGEMENT BACHELOR OF SCIENCE IN HOSPITALITY MANAGEMENT MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY Module No. 8 THE MICE INDUSTRY: MEANING AND IMPORTANCE LEARNING OUTCOMES: At the end of this chapter, you should be able to: a. Explain the meaning and importance of the mice industry b. Describe the evolution of the mice industry c. Clarify the difference between meeting, incentives, conventions and exhibitions d. Discuss the key players in the mice industry e. Describe the emerging trends in the mice industry f. Explain the employment opportunities in the mice industry The MICE Industry: Meaning and Importance The meetings, incentives, conventions, and exhibitions (MICE) industry is one of the fastest-growing and lucrative area of the tourism and hospitality industry. It includes different areas such as conferences, meetings, incentives, exhibitions, and trade shows. The MICE industry has been traditionally regarded as part of the tourism and hospitality industry with activities that involve both tourists and non-tourists. One of the significant features of the MICE industry is its potential to attract national and international visitors. Visitors to MICE events are considered participants, delegates, or attendees. MICE events provide additional benefits to the country in the form of business opportunities, education, and training. Many of these events on related to business and professional activities. MICE activities usually occur outside the peak season of leisure travel. Hence, they are advantageous to hotels, resorts, and restaurants in offsetting the low and off-peak business periods. The MICE industry today is recognized as an important business activity for corporations and associations. It is also an important market segment for suppliers of services to these customers. At present, the convention attendee spends appropriately 50% more than the leisure traveler. It is for this reason that great emphasis has been placed on attracting meetings and conventions to cities all over the world. More than one million meetings, conferences, and conventions are attended by 81 million people every year, contributing more than $50 billion annually to the economy. Even in a slow economy, companies continue to meet. The demand and spending by corporations does not decrease. The Evolution of the Meetings, Incentives, Convention and Exhibition (MICE) Industry The meetings, incentives, conventions, and exhibitions industry (MICE) is young, relative to the tourism and hospitality industry as a whole.  Prepared by: Ma. Danica Orolfo Page 1 Before 1960, persons traveling to conventions either drove or traveled by train. With the introduction of the Boeing 707 in 1958, the airplane provided an affordable and fast alternative to cars and trains. The "jet age" stimulated business and leisure travel. The intense construction of hotels and convention centers began in the 1970s. The features added to attract the convention participants were the removal of interior posts, barrier-free space, flexible walls, and improved lighting. In the 1980s, cities began to build convention centers to host large conventions and expositions. The largest convention center was built in 1989 with approximately one million square feet of flexible meeting space. Meetings, Incentives, Conventions, and Exhibitions Meetings are conferences, workshops, seminars, or other events designed bring people together in order to exchange information The following are forms of meeting: 1. Clinic – a workshop where attendees learn by doing. It involves small groups who interact with each other individually. 2. Forum-an assembly for a discussion of the group's common concerns, featuring a panel of experts who take opposite sides of an issue. 3. Seminar – a gathering of professionals who work together under the guidance of a discussion leader. 4. Symposium – a meeting where a subject is discussed by experts and a consensus of the group is gathered. 5. Workshop- a small group led by a trainer concentrating on skill enhancement. 6. Conference - a formal meeting of professionals for exchange of opinions and information. 7. Convention - a large meeting of people assembled for a common purpose. 8. Colloquium - an informal discussion on group-selected topics. 9. Panel - consists of two more speakers stating their viewpoints. 10.Lecture - a meeting in which an expert speaker addresses an audience. Meetings are usually organized by corporations, associations, or social, military, educational, religious, and fraternal groups (SMERF). The reasons for holding a meeting can range from the presentation of a new sales plan to a total quality management workshop. The number of people attending a meeting can vary. Successful meetings require a great deal of careful planning and organization. Meetings are set up according to the wishes of the client. The three types of meeting setups are theater style, classroom style, and boardroom style. Theater style is intended for a large audience that does not need plenty of notes or documents. Classroom setups are used when the participants need to take notes or refer to documents. The boardroom setup is intended for a small number people. Expositions or exhibitions are events designed to bring together suppliers of product and services who will demonstrate their products and services to the attendees in order to make sales or establish contacts. Expositions need several hundred thousand square feet of space, divided into booths for individual manufacturers or their representatives. Prepared by: Ma. Danica Orolfo Page 2 Conventions are usually larger meetings which include some form of exposition or trade show. Several associations have one or more conventions per year. These conventions raised a large part of the association’s budget. A typical convention has the following format: 1. Welcome registration 2. Introduction of the president of the association 3. President's welcome speech 4. First keynote address by a speaker 5. Exposition booths open 6. Several workshops or presentation on specific topics 7. Luncheon 8. More workshops and presentations 9. Demonstration of special topics 10.Vendors' private receptions. 11.Dinner 12.Convention center closes Conventions are not always held in convention centers. Majority are held in large hotels for a three-to five-day period. Incentives are rewards for achievement used by corporations to motivate employee to higher sales efforts. It may be in the form of goods or trips to glamorous and exotic places. Incentive managers devise programs which involve employee competition and gives rewards to the highest achiever. Travel rewards are one of the best incentives. Merchandise is another incentive. Creativity is very important in the incentives business. Incentive managers must continuously come up with new ideas to motivate employees to improve their performances. Planning an incentive involves the following: 1. Setting specific goals 2. Measuring performance 3. Communicating standards to participants 4. Choosing rewards appropriate to the participants 5. Celebrating achievements Key Players in the MICE Industry The major players in the MICE industry are the convention and visitors bureau (CVBS), meeting planners and their clients, convention centers, specialized services, and exhibitions. Meeting Planners  Meeting planners may be independent contractors who offer their services to associations and corporations as the need arises or they may be full time employees of corporations and associations. The professional meeting planner makes hotel and meeting bookings, and ensures that the services contracted have been delivered. Prepared by: Ma. Danica Orolfo Page 3 The following are the activities of the meeting planner: 1. Plan meeting agenda 2. Establish meeting objectives 3. Predict attendance 4. Set meeting budget 5. Select meeting site 6. Select meeting facility 7. Select hotel(s) 8. Negotiate contacts 9. Plan exhibitions 10.Prepare exhibitor correspondence and packet 11.Create marketing plan 12.Plan travel to and from site 13.Arrange ground transportation 14.Organize shipping 15.Organize audiovisual needs On-site Activities 1. Conduct pre-event briefing 2. Prepare executive plan 3. Move people in/out 4. Troubleshoot 5. Approve invoices Post-meeting Activities 1. Debrief 2. Evaluate 3. Provide recognition and appreciation 4. Arrange shipping 5. Plan for next year The meeting planner has several interactions with hotels. These include negotiating the room blocks and rates. Escorting clients onsite inspections gives the hotel an opportunity to show their facilities and services. The most important interaction is with the catering/ bouquet/conference department associates especially the services manager and captains because these frontline associates can make or break a meeting. Convention and Visitors Bureau (CVB) The convention and visitors bureau (CVBS) is a major player in the MICE market. The CVB is a nonprofit organization that represents an urban area that tries to solicit business to pleasure-seeking visitors. It represents the various industry sectors transportation, hotels and motels, restaurants, attractions, and suppliers. It has the following responsibilities: 1. To encourage groups to hold meetings, conventions, and trade shows in the area it represents; 2. To assist groups with meeting preparations and give support throughout the meeting; Prepared by: Ma. Danica Orolfo Page 4 3. To encourage tourists to participate in historical, cultural, and recreational opportunities offered by the city; and 4. To develop and promote the image of the community it represents. The result of these four responsibilities is to increase the revenues of the city's tourist industry. Bureaus compete for business at trade shows where interested visitor ' industry groups gather to do business. Convention Centers Convention centers are large facilities where meetings and expositions are held. Parking, information services, business centers, and food and beverage facilities are included in the centers. Convention centers are usually corporations owned by the city or state governments and operated by a board of appointed representatives from several groups who have a vested interest in the successful operation of the center. The board appoints a president or general manager to run the center according to its mission, goals, and objectives. Convention centers have several exposition and meeting rooms to accommodate large and small events. The centers generate revenue from the rental of space which is divided into booths. One booth is about 100 square feet. Additional revenue comes from the sale of food and beverages, concession stand rentals, and vending machines. Many centers have their own subcontractors who handle staging, construction, lighting, audiovisual, electrical, and communications. An example of a convention center is the Rhode Island Conventions Center which is an $82-million center. A convention center can generate millions of dollars into the economy of the city in which it is located. Event Management The events in large convention center are planned many years in advance. The convention and visitors bureau is responsible for the booking of conventions more than 18 months ahead. The marketing and sales team of the convention and visitor’s bureau and the convention centers work closely with each other. As soon as the booking becomes definite, the senior event manager assigns an event manager to work with the client throughout the pre-event, event, and post event. A contract is written based on the event profile. It is the event document which stipulates in writing all the client's requirements and gives important information such as which company will act as decorator subcontractor to install carpets and set up booths. After the contract has been signed and returned by the client, the event manager will make follow-up calls for six months before the event to finalize security, business services, and catering arrangements. The event manager is the key contact between the center and the client. Specialized Services Several companies’ offer specialized services such as transportation, entertainment, audiovisual, escorts and tour guides, convention setup, and destination management. Prepared by: Ma. Danica Orolfo Page 5 Professional Associations Since the MICE industry has grown, several professional associations have emerged. These are the following: A. Convention Industry Council The Convention Industry Council (CIC) was founded in 1949 as an umbrella organization for four professional associations which represent hotels, convention centers, and association executives, Their purpose was to address the professional concerns of all industry groups and offer certification of meeting professionals or CMP. At present, the CIC members consist of 30 national and international organizations representing 81,000 individuals, as well as 13,000 companies and properties. B. European Meetings Industry Liaison Group It is also called the European Alliance of the CIC. It is composed of five groups, namely: International Association of Conference Interpreters, the International Congress and Convention Association, the International Association of Professional Congress Organizers, Meeting Professionals International, and the European Federation of Conference Towns. C. International Association of Professional Congress Organizers (IACPCO) The IAPCO was founded in 1968. Its headquarters is in Belgium. It has members from 52 companies as well as individual members. Majority of the members are from Europe but there are members from Australia, the USA, Canada, Latin America, and Middle East. D. International Congress and Convention Association (ICCA) ICCA was founded in 1963. Its headquarters is in the Netherlands. The ICCA has very strict guidelines which require members to conduct meetings in at least four different continents. It has members from 100 countries which include convention centers, travel agents, airlines, and other industry related services companies. E. International Federation of Conference Towns Like the ICCA, it has very specific membership guidelines which require cities to have: 1. Conference facilities that can accommodate at least 300 participants; 2. Proper equipment;  3. Traditional meeting services; 4. Satisfactory hotel accommodations for at least 300 participants; 5. Necessary transportation; 6. Team of experts in conference organizations; and 7. Proof that it has hosted at least five international conferences for the past three years. F. International Association of Convention and Visitors Bureaus (IACVB) Prepared by: Ma. Danica Orolfo Page 6 The IACVB originated in the United States. It has several international members. Their most common services are destination information services, supplies networks, and housing assistance programs. G. Professional Convention Management Association and Meeting Professionals International (PCMA and MPI) The PCMA and MPI are professional associations for industry professionals. They provide education programs and have excellent publications and resources. H. Foundation for International Meeting (FIM) The FIM was established in 1983. It is focused on MICE industry organizations which conduct international meetings. FIM offers several educational travel opportunities and a unique trade mission program that links members with their counterparts in other countries. I. American Society of Association Executives (ASAE) The ASAF was established in 1920. The headquarters is in Washington. It has more than 35,000 individual members who manage professional, trade and philanthropic associations which serve more than 287 million people and companies worldwide. Convention and Special Events Manage There are several types of companies or organizations that provide special events management services. The following are companies which provide convention and special events management services: 1. Destination management companies 2. Independent meeting management companies 3. Travel management companies 4. Special events professionals, public relation firms 5. Government entities and tourism offices Destination Management Companies (DMCS) Destination management companies are private companies that offer services primarily for inbound customers. The corresponding European service provider is known as Professional Convention Organizer (PCO). The primary responsibility of DMCs is to expose their clients to opportunities available in the surrounding area, and prepare a proposal describing the preferred events and costs, selecting and organizing the special events for the convention attendees. As soon as they are selected as the DMC for the inbound group, they will organize the event, secure the site, obtain permits, and hire suppliers such as the caterer, decorators, bands, and entertainment. Independent Meeting Management Companies These companies provide services to outbound groups. When the independent meeting planner conducts a meeting away from the home city, he or she will hire the DMC in the host city because destination management requires experts from the local area. When the independent meeting planner is in his or her home territory, he or she will provide services to inbound groups to maximize profits. Prepared by: Ma. Danica Orolfo Page 7 Travel Management Companies Large travel management companies organize destination management companies as part of their larger travel services product offerings. Large travel management companies are similar to the national chain operations. Major Event Producers Major event producers are another type of destination management company. These companies produce sophisticated and highly technical events such as the Super Bowl and Olympics, and political events such as the Democrat and Republican National Conventions and presidential inaugurations. These are usually high tech and high visibility, and many have components that are dangerous without proper precautions. A high level of technical knowledge is required to organize this type of extravagant event. Special Events Market Special events are very important to the attendees of meetings, conventions, and programs. They encourage networking among attendees, build camaraderie within the group, and provide memories that last for years. Special events during a convention are the most memorable part of the program. It gives status to the sponsoring organization. Companies that provide destination services are very creative and imaginative. They focus on festivity and amusement. Types of Events in the Special Events Market The following are the types of events included in the special events market: 1. Corporate events – incentive programs, product introductions, building openings, recognition events, anniversaries, retirement, groundbreaking, and ribbon cuttings. 2. Meeting, conventions, expositions – opening ceremonies, gala dinner, dances, opening receptions, awards ceremonies, theme events, trade shows, and expositions. 3. Public events - parades, fireworks, displays, festivals, fairs, inaugurations/ swearing in ceremonies, holiday observances, military ceremonies, and sporting events. 4. Retail events – grand openings, promotions, celebrity appearances, and seasonal  promotions. 5. Social/private events - weddings, anniversaries, graduations, reunions, funerals, memorials, births, christening, charity balls, runs, and auctions. Emerging Trends There are many developments that will shape the MICE industry. Two of the leading factors are changes in communication systems, specifically the Internet and its diverse applications, and the changing character of nations into a global community. The Internet provides an accessible format for virtual meetings and exhibitions, video conferencing, and online education. This connection to the cyber world from the home or office makes Europe, Asia, and America accessible to the local tourist office. Many corporations have already started the process of globalization. At present, smaller organizations and individuals can equally participate in global integration Prepared by: Ma. Danica Orolfo Page 8 Employment Opportunities in the MICE Industry There are many employment opportunities in the meetings, incentives, conventions, and exhibitions industry. The main qualifications are education and practical experience. Persons who possess these qualifications will have no trouble finding a job in the MICE industry. The following are the job opportunities in the MICE industry: 1. Director of Convention Services 2. Convention Service Manager 3. Director of Group Sales 4. Director of Food and Beverage 5. Director of Catering Operations/Sales 6. Director of Marketing 7. Hospitality Coordinator (Room Service) 8. Director of Human Resources 9. Resident Manager 10.Director of National Accounts Reference: MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY Zenaida Lansangan-Cruz,Phd 2018 Prepared by: Ma. Danica Orolfo Page 9