Module 3: MICE Venue, Logistics, and Management Lesson 8: MICE Organization Management Objectives: By the end of Chapter 8, the students should be able to: - Explain the appropriate organizational structure according to business size of MICE. Explain and evaluate the structure of responsibility and duty of MICE Organizer Identify the qualifications of MICE Organizer. Determine the components of MICE and the steps on MICE proposal. Time frame: 9 hours (in total) Introduction: Welcome to Module 3 of Introduction to MICE! In this module we will unravel the inner workings of MICE Industry that influence not only the conduct of activities for MICE Organizations but also the environment of the totality of the industry. This is designed to be remotely-learned and self-paced. Good luck and have fun! Activity and Analysis: Instruction: Fulfil with data that is being asked for below. a. Research about a MICE Event that had been specifically held in the Philippines. What was the name event? What was it all about? Who were the delegates/attendees? Where were they housed to stay? What were the objectives of the event? Was the event successful? How could you say so? b. In your own words, what was the process that your chosen event had gone through, from conception of the idea up to the end of the event? Write the steps on the space provided. Write as many/as specific as you can. Name of the MICE undertaking: Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Abstraction As per Eunice Gan (2005), the important parts of organizing meetings and exhibitions are coordination and paperwork. Thus, strategic management has to be in line with these trends: 1. Quality Suppliers - Known as outsourcing, the host or organizer is responsible for finding specialists from different places to work on a project. For example: An International Conference The organizer must act as coordinator for the different people specializing in their works such as: venue preparation, modern audio system installation, car service, food and drink source and others. These people specializing in different has to work together. 2. Strategic Alliances - These are connections that can be useful to the management of event. 3. Creative Thinking - To differentiate the event from others, creating thinking has to be applied in every level of operation. 4. Knowledge worker - As MICE businesses are reliant on accurate and timely decision making, people working behind event should have adequate knowledge on the things about and beyond the event. 5. Small Flexible Company - Should be small and flexible to minimize spending on full-time workers. People assigned should be able to multitask. 6. Teamwork - Everyone working in the team should have a uniform goal. Cooperation and communication should always be employed in the process. 7. Strategic thinking - The top management of the company should be able to have visions and lead the workers to highest possible benefit, for them and the company. They have to look for business opportunities and learn when to move forward, back away or expand. Appropriate Organizational Structures for Different Business Levels Mice organization should be based on decentralization. Employees in the business must have expertise as their tasks involve analytical thinking, problem solving and being responsible for complicated tasks. The MICE Industry consist of 4 main businesses. They are as follows: 1. 2. 3. 4. Professional Conference Organizer (PCO) Professional Exhibition Organizer (PEO) Event Management Company (EMC) Destination Management Company (DMC) MICE organizing businesses consist of few employees. A professional conference organiser, or conference company specialises in the organisation and management of congresses, conferences, seminars and similar events. The Structure of Responsibility and Duty Altogether, the main businesses specialize in planning and executing conferences on behalf of academics, researchers and associations. Conference planning is hard work and you need a broad set of shoulders. Ensuring your conference goes smoothly means you need to have a firm grasp on all the little details, but also a stable understanding of the underlying principles that come into play when you’re making an event work. From plenary speakers and delegates to sponsors and exhibitors, a lot of people count on you to successfully plan, promote and host your conference. But what happens when your plenary speaker pulls out the week of your conference? Or your AV supplier goes AWOL the day before? A professional conference organiser has seen it all before and, crucially, knows just what to do to keep things on track. Here are some of the services a typical professional conference organiser might offer. Many of them will manage more or fewer aspects of the conference depending on your needs and their particular services. - Negotiating contracts with suppliers - o Can you go through venue contracts with a fine-tooth comb, spotting problematic words like “exclusive” (which means you can only use potentially expensive in-house suppliers)? Do you have strong negotiating skills and solid relationships with event suppliers built on previous experience and mutual trust? o A professional conference organiser can research solid conference suppliers, compile quotes and then supply this information to your organising committee for a final decision. This will save you from endless online searches trying to spot the reputable-yet-cost-effective supplier who can meet your needs. The PCO acts as the main point of contact for your committee and can manage all communication and ensure each supplier provides their service to the agreed standard. This is especially useful around areas live AV, and the mobile app for your conference. Financial management o Once your committee has agreed on a conference budget, you can hand this over to your PCO and they’ll take care of budgeting each element of the conference. That means negotiating the best prices, managing expenses and taking care of bookkeeping and tax adherence. o - PCOs work every day to reduce costs and increase the efficiency of the conference they organise. They also have the knowledge to manage your budget effectively to meet committee objectives all while ensuring the quality of your conference isn’t compromised. This streamlines your conference financials and keeps them all in a centralised place (which will come in handy during the postconference evaluation). Marketing and promoting o Ask any newbie conference organiser and they’ll tell you that one of the biggest struggles they encounter is promoting their conference to interested researchers. A professional conference organiser will take care of marketing and promoting your conference to attract authors and delegates. The service may include website design and content maintenance, social media management, PR and media releases to relevant publications. Whether you want advice or marketing and promotion management, PCOs have the knowledge, skills, tools and contacts to create a successful conference. Tapping their skills can greatly assist in spreading the word about your conference. - Managing your conference management software o If you want them to, your PCO can also handle setting up and running aspects of your conference management software. Your committee will still be in charge of which topics authors can submit under, and how the review process works, but your event pro can do the more adminfocused tasks, like sending reviewer invitations, configuring your registration form and building your book of proceedings. So that’s more time for your committee to spend on ensuring your conference has a high-quality technical programme. - Managing your conference contacts o Almost every one of your conference contacts – from your plenary speakers to your reviewers – will have a long list of priorities that come ahead of your conference. People often don’t have time to fully read things. Or they park an important email and then it disappears down their inbox. o - If you’re organising the conference by yourself, expect that you’re going to have to walk people through a lot of stuff. (And sometimes you might just end up doing it for them – like selecting a reviewer’s speciality topics, or registering on behalf of a plenary speaker.) Here’s where a PCO can be invaluable in keeping on top of who’s been asked to do what, sending timely reminders, and stepping in and completing tasks when it’s appropriate. Reporting and evaluation o When your conference is over, it’s absolutely essential to complete an end-of-conference report and evaluate its success. This allows your committee to identify areas that are working well and areas that need improvement for next year. This hugely assists next year’s chair and can help ensure your conference continues to improve in the long term. o A PCO can provide you with data and an evaluation of each aspect of the conference. They’ll also likely give you their own feedback on how to improve next year’s event. Common Duties of Mice Managers 1. Be a consultant of those who want to organize events on sources of loans, advance funding, taxes, and international conference arrangement. 2. Responsible for all the paperwork, such as, bidding, inviting guests, issuing event-related letters. 3. Supervise the arrangement of conferences, fairs and exhibitions from project planning to project completion. 4. Planning projects and setting objectives. 5. Estimate event costs. 6. Determine registration fees. 7. Find suppliers to help organize the event in terms of electric system, safety, cleaning, food and beverage, stage decorations, and recording sounds. 8. Evaluate the result of events. 9. Decide marketing plan and attract attendees. Mice Managers Qualifications 1. Be a problem-solver who can fix problem promptly. 2. Be a planner who carefully plans the project from start to end. 3. Be a manager that can run the event successfully under time constraints and any other constraints. 4. Be a marketer who can attract attendees according to the target. 5. Be a PR officer who can provide basic and in-depth information to the public. MICE Components 1. Event Owner - The initiator of a MICE Event o International Organizations United Nations World Trade Organization o Government bodies organizing MICE for: Kick-off projects Serve political agendas Government policy announcements o International Trade and Professional Organizations Physicians Architects o o o Engineers Private sector organizers for: Meetings Updates Seminar for employees Educational Institutions Present research works Charity organizations Red Cross symposiums and workshops. 2. Delegates - Mostly association members or employees of a company. 3. Venue - 4. Airlines - Depends on the number of attendees, should include: o Wide variety of restaurants o Business Service center o Post office o Shopping area nearby o Sufficient number of restrooms o Modern phone systems o Mobile phone rental service o Translation and interpretation system o Satellite system o Email service o Video conference equipment o First aid room o Covid-19 isolation facility Can offer special ticket prices for MICE delegates. 5. Professional Organizers 6. Hotels -for welcoming MICE delegates. 7. Transportation 8. Tourist Attraction, Recreation and Culture 9. Suppliers or other contractors that include: - Advertising/Media Company - Audio-visual Equipment Suppliers - IT Companies - Electricity Equipment Contractors Souvenir Suppliers Entertainment Companies Restaurants and Caterers Security Guards Tour Operators Transport Service Providers Special Software Suppliers Printing Houses Cleaning Companies Furniture rentals Monetary agencies for currency exchange Event Hosting Proposal/Bidding Before discussing the administrative structure of conferences, exhibitions and incentive travels, we need to understand a significant step which is event hosting proposal. These are following steps that are followed: Step 1. The hosts selects the most reliable company to organize the event. The person taking part in the bidding process is usually assigned by the host as the organizer. Step 2. Upon the meeting of the host and organizer, the organizer will draft an outline or framework for the host’s approval and make adjustments based on the host’s recommendation. After, they will make a contract and leave suggested amount of deposit, which is usually 30-50% according to agreement. Step 3. The organizer creates a detailed work plan and convenes a meeting with selected suppliers. Contingency plan is also prepared by the organizer. Module 3: MICE Venue, Logistics, and Management Chapter 9: Venue Management Objectives: By the end of Chapter 9, the student should be able to: 1. 2. 3. 4. 5. Explain the roles and importance of venues to the MICE industry. Explain compositions of venues inducing venue selection decision. Explain roles, responsibilities and venue management. Explain the importance of organizing sustainable meetings and exhibitions. Identify national and International MICE venues. Venue Types 1. Hotel and Resort Over the past 10 to 20 years, hotels and resorts have positioned themselves as venues for MICE events apart from merely providing accommodations to MICE and leisure travellers. Several hotels and resorts have renovated facilities to support to support different assemblies of MICE events while many new hotels have included facilities built especially to host MICE events. Numerous hotels and resorts worldwide as well as in Thailand now see the meeting sector as one of their main targets as service hotels normally provided can be used to compliment services required in meetings such as caterings, guest rooms & suites and function & meeting rooms. 2. Exhibition/Convention Center These are designed especially to host MICE events and combine every necessary amenity. Convention centers, nowadays, include catering services that event organizers can use. Furthermore, centers previously used primarily to host exhibitions are now used for smaller-scale meetings with spaces arranged and segregated into smaller meeting room areas. 3. Multi-Purpose Facility (MPF) The newest concept in the venue business with their focus on customization and personalization of floor plan layouts and configurations to meet event requirements. Provided by its convenience and flexibility, MPF are believed to generate more income for owners when compared to traditional convention facilities. MPF facilities are intended to host several small or large functions simultaneously, while keeping each one private and independent. This trend suggests that the growth of multi-purpose facilities will become more apparent while conventional venues will slowly decline. An example is our very own SMX Convention in SM Lanang Premier where different events can be held simultaneously, conventions and expos alike. The whole area can be divided into parts by soundproof walls. 4. Other Venues Other than those venues mentioned, some serve different purposes and specific events. o Sports Facilities/Arena Are facilities intended to host indoor (swimming, boxing) and outdoor (baseball, football, motorsports) sporting events. Such spacious facilities can be perfect locations to host MICE events or a certain scale or type. o Music Venue/Theatre These facilities are designed especially for concerts and live performances. Just like Sydney Opera House, performing venues are segregated for different purposes such as concert hall, opera theatre or drama theatre with facilities especially lighting and audio systems designed especially to meet the function of each room. o International Venues Below are some examples of venues in different countries. MiCo/Milano Congressi (Italy) It is among the largest conference facilities worldwide, catering for up to 18,000 people in 70 so fully appointed conference rooms with permanent control booths. It has two plenary rooms, and auditorium and exhibition halls that can accommodate more than 5,000 people. The total area is 100,287 square metres. All of this in downtown Milan, with a parking lot for more than 1,100 cars, a heliport and direct access to Milan’s subway. Messe Frankfurt/Frankfurt Trade Fair (Germany) One of the largest exhibition halls globally with 578,000 square meters of indoor exhibition space. The hall can be separated into 10 exhibition rooms used for both meetings and conventions. Las Vegas Convention Center (The United States) It is one of the largest conventions and exhibition centers worldwide. Originally opened in April 1959. It has been renovating and expanding its facilities and now has over 975,000 square meters of available space. Marina Bay Sands Expo and Convention Center (Singapore) Singapore’s newest, largest and most flexible exhibition and meeting venue standing in the middle of Central Business District. The venue has one of the largest ballrooms in South East Asia, able to accommodate up to 6,600 banquet diners or 11,000 delegates. Due to its central location, visitors and delegates can enjoy entertainment, shopping, dining, arts and culture and accommodation options under one roof after a day of work and meetings. Hong Kong Convention and Exhibition Center Opened in 1988, HK Convention and Exhibition Center is one of the two main convention and exhibition centers in Hong Kong. It is designed and built to be a multi-purpose facility to host and variety of MICE events since Hong Kong is among the top MICE locations in Asia. It has 91,500 square meters of indoor space, which it can be separated into 12 individual spaces. Abu Dhabi National Exhibition Center (The United Arab Emirates) ADNEC has been in operation since February 2007. It is the largest exhibition center in the Middle East with 73,000 square meters of indoor space. Shanghai New International Expo (China) SNIEC started operations in November 2001 and has become one of the most successful exhibition centers worldwide. Equipped with over 200,000 square meters MICE Venues in the Philippines From a Guest Post by Glen Dimaandal, CEO of GDI Online Marketing at Grit.ph. The Department of Tourism’s Tourism Promotions Board of the Philippines (TPB) has singled out Metro Manila, Cebu, and Davao as the capital regions for MICE events in the country. The province of Iloilo is also said to be a top contender. Luzon The island group of Luzon houses the MICE powerhouse of Manila, which many flock to for specialized seminars, conventions, and trade expos. The first MICE venues that come to mind when one brings up Metro Manila are the Philippine International Convention Center (PICC) and the SMX Convention Center. But if you want to escape the bustle of the city and conduct smaller, group-focused events elsewhere, you can look to the following destinations in Luzon. 1. Eagle Point Resort, Batangas Eagle Point Resort in Batangas is a well-known diver’s and snorkeler’s hub, but the resort also manages a private island that boasts a canopy of white sand facing beautiful blue-green waters—a perfect venue for team building activities. It also has 3 meeting rooms that can accommodate up to 200 participants. Its meetings package includes accommodation, meals, use of equipment like LCD projectors and flipcharts, and free-flowing coffee or tea. 2. Crystal Beach Resort, Zambales Crystal Beach Resort is a laid-back, family-friendly, and faith-oriented beach resort in Zambales. It is also host to some wild waves during the rainy season. The resort’s usual clientele is surfers and campers, but it is also a cozy and peaceful site for seminars and team building activities. There are two conference halls in Crystal Beach: the Hall of Moses, an open hall which can seat up to 100 people, and the Hall of David, which has a fully airconditioned theater setup and space for 40 guests. 3. Caliraya Resort Club, Laguna The lakeside Caliraya Resort Club in Laguna boasts hotel rooms and camping-style cottages, watersports facilities, and other outdoor attractions like a zip line, a climbing wall, and a rappelling bridge. It also has its own Team Building Venue that can accommodate as many as 1,500 guests, and as such it is a popular choice for company seminars, industry conferences, wedding receptions, and church retreats. 4. Club Balai Isabel, Batangas Casual guests and seminar participants alike will enjoy the breath-taking view of Taal Lake at Club Balai Isabel. The resort may be known as a picture-perfect destination for weddings, but it can also host up to 500 seminar or conference attendees in its Talisay Pavilion, up to 120 in its theater-setup Maharlika Hall, and 100 in its Rajah Hall, respectively. Visayas According to the TPB, two locations reign supreme for MICE events in the Visayas: Cebu and Iloilo. While Cebu has long been the site of one of the most agile and fast-moving business economies in the country, Iloilo has combined much of its old-world genteel with new infrastructure, improved transport systems, and upgraded commercial facilities to suit business and leisure travellers alike. For MICE events in Cebu or Iloilo, organizations can seek out the following accommodations. 5. Waterfront Cebu City Hotel and Casino The Waterfront Cebu City Hotel and Casino can still purport to be one of Cebu’s leading MICE resorts, as it features its own convention center with a 4,000-person seating capacity along with 4 function rooms and 2 ballrooms. Other amenities that support the Waterfront’s high-profile MICE events are a business center and an in-house team of convention and secretariat support. 6. BE Resort Mactan, Cebu The boutique BE Resort in Mactan shows off Cebu’s clear and sunlit waters on expansive grounds that include infinity pools, a private white sand beach, and Jacuzzis. Its accommodations for travellers on business include a business center, foreign currency exchange, a 300-seater grand ballroom, a boardroom, several function rooms, and poolside decks for cocktails. 7. Goducate Training Center, Iloilo The Goducate Training Center in San Miguel, Iloilo offers multi-purpose venues that are lent to pre-nups, weddings, birthday celebrations, and educational tours. The lush facility’s function hall, gym, and outdoor field can accommodate up to 400 people for an event, and you can secure equipment such as a wide-screen projector and a fully operational sound system at the venue. The folks over at Goducate are also masters of team building, and they will be happy to assign competent team building facilitators to help at your office’s event. 8. Damires Hills Tierra Verde, Iloilo Damires Hills Leisure Farm showcases a beautiful, airy natural backdrop that is perfect for corporate retreats, seminars, and team buildings. They have packages for such purposes that include accommodation, tours, and outdoor activities such as zip lining and swimming. They also have a 200-seater function hall and a meeting room that can accommodate between 50 and 100 guests. Mindanao The home island region of the Philippines’ current head of state, President Rodrigo Roa Duterte, Mindanao is quickly evolving to welcome a lively business travel sector. Davao City, in particular, is a hub for both local and large-scale MICE events in the Southern Philippine islands. Below is a survey of two top MICE facilities in Davao. 9. Marco Polo Hotel, Davao City The Marco Polo brand is already known for world-class hospitality services and amenities, but the Davao location has made a name for itself in the sector of MICE events. It is well-equipped to host high-profile conferences and corporate meetings alike, with the most spacious of its 16 meeting rooms having a theater-style seating capacity of 600. 10. Grand Regal Hotel, Davao Davao’s Grand Regal Hotel is a four-star facility that is a short distance away from the beach, the city center, and other cultural landmarks. With 14 meeting rooms, the biggest of which has a theater-seating capacity of 360 guests, this hotel remains a top choice for MICE events held in Davao City. Venues in urban areas Disadvantages Can cause traffic congestion in the area Convenient for transportation Rush hours may cause inconvenience Close to where the attendees stay Limited space to host large events Advantages Takes less time to reach Venues in suburban areas Advantages Disadvantages Less traffic congestion Takes long time to commute Adequate parking spaces Inconvenient if there’s no public transportation Usually have spacious outdoor halls Transport maybe costly Venue Layout An event floor plan usually varies depending on event type as well as venue layout such as entries and exits along with barriers and utility ports. Venues with flexible layout are desirable to organizers as they can mold almost any floor plan on to an existing floor space. a. Hall Space - Hall size is a key determinant of whether a venue will be chosen by organizers. Venue operators must have all the information about every square-meter within the venue, as they need to know the actual area that can be used. b. Ceiling height - This is an essential consideration when it comes to exhibitions to accommodate tall booths as well as ease in construction and dismantling. Booth designs can vary, some maybe a double story to increase available space. Low ceiling can create discomfort to guests, while high ceiling takes a lot of energy to control temperature. c. Number of Entries and exits - Entrance and exit numbers will determine management of attendee traffic flow. Halls with single entry and exit can help organizers control the overall atmosphere of the event but can easily cause congestion. On the other hand, halls with multiple entries and exits can ease out crowding. d. Emergency Exits - There has to be a sufficient number according to the size of the venue. e. Location and size of restrooms - Location of restrooms should have convenient proximity to event spaces and must be proportionate to venue capacity. Venue Infrastructure a. Lighting System - It can enhance attractiveness by setting up the mood of the venue. b. Audio-visual Equipment - Can either be from the venue or event organizers can contact service provider according to their needs and discretion. There has to be proper acoustics to avoid discomfort. c. Internet Connectivity - The need to have internet connection, usually through Wi-Fi (Wireless Fidelity), is essential as people are now becoming more intertwined to what the internet has to offer, from news, entertainment and other forms media sharing platforms. d. Supporting Facilities - These are secondary considerations by organizers and depends on the need of the guests, these are: Muslim Prayer rooms, VIP Lounges, child-care rooms and others. e. Loading Area - Loading docks must have adequate space to move the facilities all around the area of the venue. There also has to be special entrances for loading and unloading big necessities needed in an event. f. Safety and Security System - These are important especially to events with important figures as guests. Venues should provide safety and security equipment that are well-maintained and ready to use like walkthrough metal detectors, handheld detectors and other tools. g. Waste Management System - Waste, water management and garbage management systems can add value to services venues can provide as well as support green meeting initiatives. h. Transportation Access - A venue located downtown or in urban areas may have little concern with linkage to transportation routes as convenience and coverage by transportation systems especially public transportation in urban areas is usually well-developed. - Countries with better transportation accessibility, therefore, can be at an advantage over less developed countries. - Another inevitable consideration is parking space with effective parking management tools and systems to ensure full utilization of available spaces in an organized manner even with large number of attendees. Venue Management - Looking at venue management as a business, return for venue operators is the fees charged for services provided: Maintenance, Marketing and Public Relations, Box Office and Registration, Human Resources, Development, Safety and Security, Compliance, and Insurance. a. Maintenance - Maintenance should be regarded as one of the most important aspects of venue management to ensure a venue is kept at its best conditions to host MICE events of any kinds - Maintenance of venues includes maintaining cleanliness, conditions of facilities, renovating layouts and designs & renovating buildings - Venues make up of many facilities and equipment that must be maintained to prolong usefulness and preserve performance - Layouts and interior designs of venues must also be renovated as appropriate. Venue operators can schedule this process from time to time to control time and cost - Layouts and interior design have an impact on organizer decisions, as discussed earlier; therefore, venue operators should keep them modern and up-to-date. b. Marketing and Public Relation - Marketing products and services are essential every business owner. Likewise, venue operators must market their venues to target audiences who, in this case, are organizers. - Venue operators can use price incentives, additional services as methods to attract organizers to host MICE events at their venues. - Primarily, venue operators can promote venues through local CVBs. Trade and road shows provide an opportunity for venues to show case themselves and what they can offer to potential clients and as such, they must try to present themselves in a unique and attractive manner. c. Box Office and Registration - MICE events come in many forms, some are without entrance fees while some require entrance tickets to be purchased - Some events may require registration for attendees to receive a personal badge Venue operators must take into consideration these possible options and make certain they can provide facilities to support each activity - Fortunately, technology has become an important part of registration and ticketing services due to its ability to save time, cost and promote convenience. d. Human Resource - On MICE context, human resource is all about finding the right people at the right time and putting them in the right spot to avoid unnecessary costs. e. Development - As dynamic as the MICE industry is, venues as a key component contributing to the success of MICE events should keep track of any changes and development within the industry reflected in organizer and attendee requirements. - Apparent trends include an increase in technology requirements like Wi-Fi coverage, RFID, new registration systems, waste management and energy conservation f. Safety and Security - Safety and security is an important factor that organizers take into consideration when choosing venues - Especially after the most outrageous terrorist attack 9/11, safety and security and emergency tackling plans have become even more important especially for MICE events attended by many important figures - Emergency response plans vary depending on the type of MICE events, size, and number of attendees and location of the venue. - However, emergency response plan normally include these aspects: o Possible unexpected events o Direct supervisors authorized to handle each issue o Responsibility of each supervisor under each circumstance o Emergency contact point & location o Transportation access in case of emergency o Evacuation plan o Communication plan under emergency state g. Insurance - To ensure the smoothness of the event is through insuring over other possible risks. In most cases, venues usually insure against these risks: o Cancelations: With insurance, venue operators can hedge themselves against these risk. Venues will be compensated for cancelations upon previously agreed reasons of cancelations. o Attendees’ welfare: In case of accidents within venues on attendees, venue operators are usually liable to those damages on the attendees. o Buildings: In case of unexpected incidents that cause damages on any part of the building, insurance can be an effective tool to compensate for the damages. - Insurance is not mandatory for any venue operators, though having insurance can ensure venues over numerous risks. Module 3: MICE Venue, Logistics, and Management Chapter 10: MICE Industry Logistics Objectives By the end of Chapter 10, the student should be able to: - Define Logistics and Transportation in the context of Tourism and Hospitality. Analyze the considerations for the modes of transportation. Identify other different stakeholders of the MICE value chain for Logistics and Transportation. Logistics and Transportation - Logistics can be defined as management of the flow of goods or people from a point of origin to a point of destination This flow is managed while taking into consideration two factors time and cost Transportation is simply a movement of people or goods from one location to another There are three main components in transportation, infrastructure, vehicles and operations Transport infrastructure is a fixed installation required for transportations Vehicles are instruments that utilize transport infrastructures Operations are how these vehicles operate Modes of Transportation - Choosing a mode of transportation has become more complicated and requiring effective planning. The three main modes of transportation, air, land and sea each have advantages and disadvantages making it impossible to point out which one is the best. a. Air Transport - Considering time as the most crucial factor, air transport will definitely be the most effective mode of transport in transporting people and items from one place to another. - There are two main air transportation usages, passengers and freight. - Most commercial airlines service passengers who wish to travel from one location to another. - The other usage of air transportation is freight airlines that specialize in transporting goods, mail, cargo and other tangible items. - With air transportation, users usually have to bear more cost when compared to other modes of transportation. Apart from costs, the size of items to be transported is also limited those that can fit inside a plane. For commercial aircraft, plenty of time is typically spent before, during and after flights. b. Land Transport - Land transportation can be divided into two modes Rail Transport and Road Transport: o Rail transport can transport both people (passengers) and goods (freight). Passenger trains are used to transport people inter-city and intra-city transit. Inter-city service typically entails higher speeds with longer distance between cities Intra-city transit entails lower speed, shorter routes and more stops along the way Regardless of whether rail travel is between cities or within a single city, it can save significant travelling time and lessen pollution. The other type of rail transportation is freight trains used to transports cargos and goods. Freight trains offer an efficient way to move goods due to its lower price and loading capacity A major drawback with freight trains is that the network does not always allow for door-to-door delivery. o Road Transport Road transportation utilizes networks of highways and roads to transport people and goods from point A to point B. With modern highways that connect every city and important location within a country, transportation of people and goods is fast and more convenient as it can provide door-to-door delivery. Unlike rail transportation, road transportation does not require stations, ports or terminals to be able to operate making road transportation very flexible. However, road transportation is less efficient than the railway when load capacity or distance to cost is compared. c. Water Transport - The slowest method, yet one of the most popular, especially for cross-continental transportation, is by water and is probably the most suitable for moving goods over long distance - However, it may not be the most popular method to transport people except for recreational purposes Modern freight ships can be categorized according to their purpose; o Bulk carriers – transport bulk cargo items o Container ships – carry and transport truck-sized containers o Tankers – transport goods in liquid form o Reefer’ ships have a temperature-controlled compartment for perishable commodities o RORO ships, roll-on/roll-off ships, are specifically designed to carry cargo with wheels such as automobiles o With so many varieties of ship, logistic management companies need to select the most appropriate one for the products to be transported o Not only ships, but also route or shipping lanes have been developed to maximize efficiency and economy of scale that can drive the cost per unit down and has made water transport the bridge between other modes of transport in multi-modal transportation o One important disadvantage is that it depends on ports to have access to a certain location o Another limitation lies in operating speed MICE Industry Logistics - To ensure the success of the event, transportation methods and arrangements must be well planned. MICE events have specific requirements and precisions in terms of logistics and transportation. Six specific requirements organizers need to take into consideration when planning and selecting modes of transportation. a. Speed - The faster the journey and the shorter the time spent on transportation, the better it is for business travellers. - However, better benefits come with greater cost. It is necessary for organizers to balance between the two to get delegates to the destination in an appropriate amount of time at a reasonable cost. b. Comfort - The opportunity to sit comfortably and relax with minimum distractions are qualities for which people traveling for business purposes, even to attend MICE events, are willing to pay extra. - On the other hand, this factor may not be of much importance when it comes to transporting goods, as organizers simply need to ensure their condition is maintained at all times. c. Reliability and Punctuality - As time is one of the most vital matters for business travellers and to MICE attendees, reliability and punctuality of any transport services must be ensured to mitigate risk. - Organizers and exhibitors also need to stress reliability and punctuality qualities in the services rendered by transportation service providers. - To ensure everything goes according to plan, organizers should take into consideration not only the time required for transportation but also time required for clearing goods through customs. d. Convenience - Convenience is linked with many business travellers need for speed and is not limited to location or public transport networks, it can be incorporated into the services designed to save time or prevent frustration. - For transporting goods and equipment, convenience may be less important when compared to reliability and speed. e. Frequency - Another factor closely related to convenience is frequency. - An airline company with frequent flights schedules for each route will allow MICE attendees to tailor their itinerary according to their schedule. - For transporting goods and equipment for MICE events, most cargo airlines and shipping companies operate with regular intervals and schedules that are typically fixed. - This means that an organizer must decide on the mode of transport to use based on the scheduled delivery time and then work backward from there. f. Value for Money - Value for money is one of the most important factors for business travellers and MICE organizers. - A transport operator who can offer superior services with a competitive price will have a distinct advantage. When considering the mode of transportation for MICE attendees traveling from abroad, air transport should be the most preferable choice because it is the fastest way for attendees to get to the destination. However, once they reach the airport, they might require transportation to their hotel or to the venue. Exhibitions often require complicated logistics planning since they involve transportation of both people and exhibits. Organizing any successful exhibition relies on well-planned logistics in three phases: build-up, exhibit and dismantling. However, before anyone can create a flawless logistics plan, time & budget constraints as well as space limitations need to be analyzed and dealt with in the planning stage. Related Stakeholders in Logistics and Transportation a. Ports and Stations - Some types of transportation cannot take place without the existence of ports. Airports are locations where aircraft take off and land. Most international airports also offer space for aircraft to go through maintenance. - Seaports are locations where ships dock to transfer goods and resupply all needed resources. Port location is selected to optimize access between land and water for commercial usage, especially for large container ships due to their need for deep water. b. Immigration Bureau - The Immigration Bureau is responsible for granting visas to nonFilipino nationals who wish to come to the Philippines. - The connection to MICE industry lies in the leniency and simplicity of this process. c. Customs - The Customs Department is responsible for collecting tariffs for imports & exports passing through the borders of Philippines. As every exhibit going in or out of Thailand must pass the customs department, the customs department can be regarded as a gatekeeper allowing goods and equipment in and out of the country. d. Food and Drug Administration - Food and Drug Administration ensure the quality of food, drugs, medical devices, chemicals and cosmetics available in the country. - Rules and regulations set by Food and Drug Administration also play a role in the exhibition industry as some rules may apply to the quality of exhibition goods entering the country. e. Airlines - Airlines are companies commercially operate aircrafts for transporting passengers and goods. - Passenger airlines are those operated aircrafts for the purpose of transporting people to various destinations. - On the other hand, freight airlines are aircrafts operators specialized in handling and delivering of tangibles. f. Shipping Companies - A shipping company is specialized in transporting goods on ships. Example: 2GO g. Freight Forwarders - - Freight forwarders are companies that organize shipments of goods for individuals or corporations and will make contracts with airlines and shipping companies to facilitate the transport of goods. They act as an intermediary standing between those who need goods delivered and companies that can deliver those goods. Application Instruction: Answer each question in not less than 75 words each. a. What makes a good MICE Structure and how can it be measured? b. As a Tourism Management practitioner, what are the 2 most important qualities that a MICE Manager must have and why? Assessment Instruction: Answer in not less than 100 words per question. a. Establish a connection between the components of MICE and explain its significance. b. MICE sector is one of the fastest growing sector in the Hospitality and Tourism Industry, this not only boosts local economy in localities where MICE Venue are present, it also contributes substantially to local employment, tourism destination promotion, generates foreign exchange and increases trade and exchange. Today, Covid-19 pandemic has brought an immense disruption to the then well-performing MICE value chain. In the table below, identify at least four (4) MICE stakeholders and the respective losses incurred due to the pandemic along with recommendations on how to catapult back from the backlash of the pandemic. An example is given below. Stakeholder/s Ex. MICE Organizers Losses/Setbacks Loss of income source Re-establish operational procedures to fit with recommended guidelines. E.g. Guidelines set by the IATF. Recommendations Open the company/organization to new funding sources. E.g. Bank loans, Selling of shares to potential financers. Amidst the financial losses taken, purchase of Covid19-related facilities is still needed. E.g. purchasing of Thermal Scanners, Sanitizers, etc. 1. 2. 3. c. Without repeating what has been discussed in the module, think of other 2 stakeholders and briefly explain their essentiality to the value chain of MICE Logistics and Transport. 1. 2. End of Module 3 “Another word for compromise is failure.” Eudora, MLBB