Introduction to MICE Industry
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Foreword
Introduction to MICE industry
MICE, short for Meetings, Incentive Travels, Conventions, and Exhibitions, is one of the fastest
growing industries in Thailand and contributes enormously to the travel and tourism industry
which is one of the country’s most prominent sectors. After recording double-digit growth in
consecutive years, the MICE industry, in 2011, generated more than 53,000 million baht in value
for the Thai economy. It is clearly an industry that cannot be overlooked.
Thailand Convention and Exhibition Bureau (TCEB), a public organization which is a core
facilitator of Thailand’s MICE industry, has recognized an opportunity for further improvement
via enhancing the capabilities of people currently in the industry as well as those young
individuals with potential to enter the industry. It is obvious to both Thailand Convention and
Exhibition Bureau (TCEB) and private sector players in the industry that undergraduate students
are the building blocks of the future MICE industry. Reaching out to these students thus can
enhance the competitive edge of Thailand’s MICE industry ahead of the consolidation of
ASEAN member countries into the ASEAN Economic Community (AEC) in 2015.
Thailand Convention and Exhibition Bureau (TCEB), the Thailand Incentive and Convention
Association (TICA), the Thai Exhibition Association (TEA), and the Business of Creative and Event
Management Association in collaboration with Sasin Graduate Institute of Business Administration of Chulalongkorn University, Thailand’s first and only internationally accredited business
school through Sasin Management consulting (SMC), have together developed this textbook,
Introduction to MICE Industry, for undergraduate study in Thailand. SMC is a valuable
candidate to take part in increasing the industry’s competitive edge owing to its in-depth
understanding and knowledge of the MICE industry and previous collaboration with Thailand
Convention and Exhibition Bureau (TCEB) in developing a 5-year corporate strategy and an
action plan.
By reaching out to undergraduates with a solid foundation of knowledge and information, this
textbook represents one of the first comprehensive textbooks about the MICE industry and will
only strengthen Thailand’s position as a leader in Asia.
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Acknowledgements
This book is a project funded by Thailand Convention and Exhibition Bureau (TCEB). The book
is, in many ways, the product of collaborative efforts from many individuals and organizations.
Thailand Convention and Exhibition Bureau (TCEB) would like take this opportunity to express
our greatest gratitude to the people who have been instrumental in the successful completion
of this book.
First and foremost, the president of Thailand Convention and Exhibition Bureau (TCEB)
and Ms. Nichapa Yoswee, Director of MICE Capabilities Development Department,
for their visions and beliefs in the development of the MICE industry especially through
an education for the next generation entering the industry. Thailand Convention and
Exhibition Bureau (TCEB) is also grateful to our team consisting of Ms. Nuanrumpa
Ngambanharn, Mr. Takerngsak Chaiyakarn, Ms. Arisa Anarnkaporn and Ms. Areerat
Montreepreechachi. This book would not have been possible without their immense
help and support.
Significant contributions from the MICE101 Course Board. This includes Mr. Sumate
Sudasna, President of Thailand Incentive and Convention Association (TICA);
Mr. Pravit Sribanditmongkol, President of Thai Exhibition Association (TEA);
Mr. Sermkhun Kunawong, Chairman of Business of Creative and Event Management
Association (EMA); Ms. ChooLeng Goh, Chairperson Services Development
Committee of Thailand Incentive and Convention Association (TICA) ; Mr. Panithan
Bumrasarinpai, Co-Chairperson, Services Development Committee of Thailand
Incentive and Convention Association (TICA); Ms. Kritsanee Srisatin, Services Development Committee Member of Thailand Incentive and Convention Association (TICA) ;
Ms. Prapee Buri, Vice President & Treasurer of Thai Exhibition Association (TEA);
Ms. Premporn Saisaengchan, Chaiperson-Education and Development Committee of
Thai Exhibition Association (TEA); Ms. Sumalee Noppakao, Chairperson Marketing and
Public Relations of Thai Exhibition Association (TEA); Ms. Woraporn Treesirikasem,
Committee of Business of Creative and Event Management Association (EMA);
Mr. Ittipol Sureerat, Committee of Business of Creative and Event Management
Association (EMA); and Ms. Kingnabha Amratisha, Committee of Business of Creative
and Event Management Association (EMA).
Their support and valuable comments dramatically improved the manuscript and
content of this textbook. Without them lending their collective experience and time,
this book would not have the relevance to real business that was wished for.
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Introduction to MICE industry
Introduction to MICE industry
Special Thanks to team from Sasin Management Consulting (SMC) unit of Sasin Graduate Institute of Business Administration of Chulalongkorn University, Thailand’s first and
only internationally accredited business school. Sasin Management Consulting (SMC)
has taken part in developing this textbook through hours of researching and analyzing vast arrays of data in MICE industry then formulate them into a comprehensive
text in both languages, English and Thai.
There are many people to whom our thanks are due. Thailand Convention and Exhibition Bureau (TCEB) owns a great debt to many other who shared their experience,
gave us time to interview and reviewed this book. This project has been an incredible
learning experience for all of us.
Thailand Convention and Exhibition Bureau (TCEB)
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Content
Chapter 1 Introduction to MICE Industry
Business Travel and Tourism
Meetings, Incentive Travels, Conventions and Exhibitions (MICE)
Economic and Social Impact
Direct Contributions
Indirect contribution
Negative Impacts
Current MICE Industry
Meetings
Incentive Travels
Conventions
Exhibitions
Factors Influencing Future MICE Industry
Economic Downturn
Technology
Sustainability and Green Meetings
Key Stakeholder Introduction
Chapter 2 Meetings
Definition
Purpose of Corporate Meetings
Goals and Objectives of Corporate Meetings
Meetings Industry Value
Industry Trends
Corporate Meeting Categories
By Objective
By Geographic Region
By Agenda
By Type of Corporation
Corporate Meetings Value in Thailand
Corporate Meetings Value Chain
Key Stakeholders in Corporate Meeting Industry
Chapter 3 Incentive Travels
Definition and Concept Clarifications
Incentive Travel Programs Types
Closed-ended Programs
Open-ended Programs
Incentive Travels Importance
Key Success Factors
Incentive Travel Industry Value
Incentive Travels in Thailand
Thailand Statistics
Top Destinations in Thailand
Incentive Travel Trends
Incentive Travel Value Chain
Key Stakeholders in Incentive Travel Industry
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Introduction to MICE industry
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Introduction to MICE industry
Chapter 4 Conventions
Terminology
Convention Industry History
Recent Conventions Trends
Convention Trends
Conventions Categorization and Measurement
Conventions in Thailand
Convention Value Chain
Key Stakeholders in Convention Industry
Chapter 5 Exhibitions
Definition
Exhibitions Purposes and Objectives
Evolvement and Significance of Exhibitions
Exhibitions in the Past
Modern Day Exhibitions
Global Exhibitions Statistics
Exhibitions Outlook
Exhibitions Categories
Exhibitions in Thailand
Exhibition Industry in Thailand
New Initiatives in the Thai Exhibition Industry
Exhibition Value Chain
Key Stakeholdersin Exhibition Industry
Chapter 6 Organizer and Attendee Decision Making Criteria
Destination Selection
Meetings and Incentive Travels Decision Criteria
Convention Organizer (PCO) Decision Criteria
Convention Attendees’ Decision Criteria
Exhibition Organizer Decision Criteria
Exhibition Attendee Decision Criteria
Service Providers Selection
Thailand MICE Brand Study by TCEB
Chapter 7 Special Events
Definition
Characteristics
Leisure Events
Personal Events
Cultural Events
Organizational Events
Special Event Component
Social and Economic Impact
Social Impact
Economic Impact
Roles and Importance ofEvent Management Companies (EMCs)
Event Planning
Preparing and Operating Event
Marketing the Event
Evaluating Events
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Content
Chapter 8 MICE Event Management
Project Management Importance
MICE Event Management with the PMBOK Framework
1. Project Initiation
2. Project Planning
3. Project Execution
4. Project Monitoring and Control
5. Project Closing
Chapter 9 Venue Management
Venue Types
Hotels & Resorts
Convention/Exhibition Centers
Multi-purpose Facilities
Other Venues
International Venues
Venues in Thailand
Compositions of Venues Inducing Venue Selection Decision
Venue Size
Venue Location
Venue Layout
Venue Infrastructure
Transportation Access
Venue Management
Chapter 10 The MICE Industry Logistics
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Logistics and Transportation
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Transportation Modes
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Air Transport
Land Transport
Water Transport
MICE Industry Logistics
Related Stakeholders in Logistics and Transportation
Chapter 11 Service Providers in MICE Industry
Key Stakeholders’ Roles and Responsibilities
Travel Management Company (TMC)
Destination Management Company (DMC)
Incentive Organization / Incentive House
Professional Convention Organizer (PCO)
Professional Exhibition Organizer (PEO)
Convention and Visitors Bureau (CVB)
Roles and responsibilities of other service providers
Supporting Governmental Organizations Roles and Responsibilities
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Introduction to MICE industry
Chapter 12 Standards in MICE Industry
International Organization for Standardization (ISO)
ISO 20121/BS 8901
ISO 50001: Energy Management Systems
ISO 22000: Food Safety Management System
ISO 25639: Exhibitions, Shows, Fairs and Conventions
ISO 14000: Environment Management System
National-level Standards and Guidelines
TISI 22300 MICE Security Management Standard (MSMS)
Green Meetings Guideline (TCEB)
Quality Tourism Services (QTS)
The Singapore Service STAR (STB)
European Training Certificate - Access for
All in the Tourism Sector (ETCAATS)
T-QUAL Accreditations (Australia)
Standards and Guidelines
APEX/ASTM Environmentally Sustainable Meeting Standard
GRI Sustainability Reporting Guidelines
Destination Marketing Accreditation Program (DMAP)
Certified Meeting Professionals (CMP)
Exhibition Management Degree (EMD)
Standards Guiding Sustainable Event Management
Planner Perspectives
Chapter 13 Ethics for MICE
Negative Impact
Ethics
Work Ethically
MICE Industry Code of Ethics and Code of Conduct
Preferred Attitudes working in the MICE Industry
Consumer Rights and Consumer Protection
Case Studies
References
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Chapter 1
Introduction to
MICE Industry
8
Introduction to MICE industry
Business Travel and Tourism
Tourism is “the activities of persons traveling to and staying in places outside their usual environment
for not more than one consecutive year for leisure, business and other purposes” (International
Tourism: a Global Perspective).
Rob Davidson’s groundbreaking book Business Travel defines business travel and tourism as:
Business tourism is concerned with people travelling for purposes which are
related to their work. As such it represents one of the oldest forms of tourism,
man having travelled for this purpose of trade since very early times.
(Davidson, 1994)
The terms business travel and business tourism are commonly used interchangeably due to an
overlap in their definitions. Business tourism offers a broader definition of the total business-travel
experience.
On the other hand, business travel seems to include only the trip itself from one place to another, which may include only travelling to work and not tourism activities. In this textbook, business
tourism is the main term employed to convey the idea of both business travel and tourism.
Business tourism was outlined in John Swarbrooke and Susan Horner’s Business Travel and Tourism
as a broad term that encompasses different aspects:
Daily commute to work
Individual business trips
Government employee travel
Delivering goods for customers
Moving goods to market
Short-term employment migration
Off-site training courses
Incentive travel
International congresses and conferences
Local, regional and national meetings
Exhibition and trade fairs
Spending in business tourism has gained momentum over the past decade and continues to
show a potential to grow into the future. Illustrated in Figure 1-1, business tourism trends have
shown an overall growth since 2006 with a 1.5 per cent compounded annual growth rate
despite a slump in 2009 due to the financial crisis in the US.
9
Figure 1-1: Global Business Traveling Spending
950
US Billion Dollars
909
900
875
838
850
800
791
780
750
700
2006
2007
2008
2009
2010
Source : World Travel and Tourism Council
Meetings, Incentive Travels,
Conventions and Exhibitions (M-I-C-E)
The origin of meetings is traceable back to the beginning of recorded history and has ranged
from discussions about hunting plans to planning wartime defenses. Since then, its development
has mainly been possible through the establishment of trade, fraternal or religious associations
and advancements in transportation systems.
The growth in hotel & convention facilities, the emergence of professional meeting organizers
and the rise of central associations in promoting cooperation among industry players grew
hand-in-hand with the growing popularity of this industry as more and more players emerged
to meet industry needs and benefit from the opportunities it has to offer.
In the US, the rise of association activities in the early 1900s led to the creation of its first convention
bureau. Today, the MICE industry has grown to become one of most important contributors to
travel and tourism industry revenue and national GDP throughout the world.
‘MICE’ has a number of definitions varying on the source and, in fact, proves to be somewhat
problematic when examining the various ideas originating from varying sources. In the following
paragraphs, each component will be examined before providing an all-encompassing definition.
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Introduction to MICE industry
Meetings (M-I-C-E)
A meeting is the coming together of a group of people to discuss or exchange information.
In some regions, what might be seen as a meeting may be seen as a small-scale conference
in another.
Source : Thailand Convention and Exhibition Bureau (TCEB)
The Convention Industry Council (CIC) as a collective body of professionals involved in the
meetings, conventions and exhibitions industry has developed common practices
(APEX Accepted Practices) to set standards and to promote efficiency within the industry.
In their collective glossary, the following definition is offered regarding meetings.
An event where the primary activity of the attendees is to attend educational
sessions, participate in meetings or discussions, socialize, or attend other
organized events. There is no exhibit component to this event. (Convention
Industry Council, APEX Industry Glossary)
The International Association of Professional Congress Organizers (IAPCO), an organization
representing professional organizers, meeting planners and managers of international and
national congresses, conventions and special events, has also compiled a list of terms and
definitions from within the industry.
A meeting is a general term indicating the coming together of a number of
people in one place, to confer or carry out a particular activity. Frequency:
can be on an ad-hoc basis or according to a set pattern, as for instance annual general meetings, committee meetings … (IAPCO, Meetings Industry
Terminology)
11
A meeting, in this sense, has also been referred to as a corporate meeting with a generic
definition provided in the International Encyclopedia of Hospitality Management based
on The International Dictionary of Event Management by Goldblattb and Nelson (2001),
A corporate meeting is an officially sanctioned and required meeting for
employees of a specific corporation… often held off-site and required employees
to travel to the meeting. Expenses associated with corporate meetings are paid
by the corporation. Corporate meetings differ from association meetings in that
attendance is required. (Pizam, 2010)
Incentive Travels (M-I-C-E)
Incentive travel includes leisure trips emphasizing pleasure and excitement and may appear to
have little or no connection to business. However, when offered to employees, they become
incentive travel. Often associated with hard work, business objectives and corporate effectiveness;
however, unlike other types or reasons to travel employees on incentive travel do not need to
pay as the company will do so on their behalf.
The Society of Incentive & Travel Executives (SITE) offers one of the most cited definitions for
incentive travel:
Source : Thailand Convention and Exhibition Bureau (TCEB)
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Introduction to MICE industry
Incentive travel is a global management tool that uses an exceptional travel
experience to motivate and/or recognize participants for increased levels of
performance in support of the organizational goal (SITE)
Incentive travel destinations and itinerary
are usually pre-determined with the
campaign itself designed specifically to
be an ‘incentive’ to perform. Clear
objectives, measurement and a
qualification process are planned and
agreed upon among those participating
and top management.
Often these trips are given as recognition
for employee effort and performance
and, as such, are considered a reward,
not an incentive. Although theoretically a distinction in definition exists between incentives and
rewards, the two terms are frequently employed interchangeably. For example, firms may use
the term ‘incentive trip’ while in reality the trip is a ‘reward.’
Conventions (M-I-C-E)
The term ‘convention’ is
frequently employed
interchangeably with other
terms such as ‘conference’ or
‘congress’. Different interpretations
given to these three terms have
blurred their definitions. In addition, while ‘conference’ may
be a preferred term in a certain
region, other regions may prefer
to use ‘convention’ or ‘congress.’ Some industry experts
define conventions as a group
of people in the same industry
but not from the same organization. There is no relationship to
the number of attendees.
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An event where the primary activity of the attendees is to attend educational
sessions, participate in meetings/discussions, socialize, or attend other organized
events. There is a secondary exhibit (exhibition) component. (Convention Industry
Council, APEX Industry Glossary)
Exhibitions (M-I-C-E)
According to Exhibitions Liaison Council (1995), exhibitions can generally be portrayed as
“presentations of products and services to an invited audience with the object of inducing
a sale or informing the visitors”.
Exhibitions are an effective marketing tool for many firms as they offer three-dimensional product
advertising in that goods can be seen, touched and assessed. Participating in exhibitions can
boost sales and allow exhibitors to present products or services directly to the public who may
be both consumers and business owners within the same industry.
The general definition for ‘exhibition’ by The Global Association of the Exhibition Industry (UFI),
an association of trade show organizers, fairground owners, national and international associations
of the exhibition industry and its partners, states that
Source : Thailand Convention and Exhibition Bureau (TCEB)
Exhibitions are market events of a specific duration, held at intervals, at which
a large number of companies present a representative product range of one or
more industry sectors and sell it or provide information about it for the purposes
of sales promotion. Exhibitions predominantly attract the general public. (UFI)
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Introduction to MICE industry
Business Events
‘Business event’ is another term for MICE and
has been used primarily in Australia to cover a
wide array of meanings for this industry.
Any public or private activity consisting of a minimum of 15 persons with
a common interest or vocation held in a specific venue or venues and hosted
by an organization (or organizations). This may include (but not limited to):
conferences, conventions, symposia, congresses, incentive group events,
marketing events, special celebrations, seminar, courses, public or trade shows,
product launches, exhibitions, company general meetings, corporate retreats,
study tours or training programs.
Meetings
The word meeting used in this sense does not represent the ‘M’ in ‘M-I-C-E’. ‘Meetings’ in this
sense represent a collective meaning for the MICE industry corresponding to a widely held
view among professionals that all MICE activities share a common trait, that is, they describe an
opportunity to ‘meet.’ According to the World Travel Organization (UNWTO), the International
Congress and Conferences Association (ICCA), and Meeting Professionals International (MPI),
meetings are defined as:
Activities based on the organization, promotion, sales and delivery of meetings
and events; products and services that include corporate, association and
government meetings, corporate incentives, seminars, congresses, conferences,
conventions events, exhibitions and fairs.
Keeping in mind minor definition discrepancies and although business events, meetings and
MICE are increasingly used interchangeably, in this text, the term, MICE, will be used as the core
term for this industry.
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Economic and Social Impact
The MICE industry has grown and has become a key contributor to many economies and as
such, it is important to explore, in detail, the influence it has on both society and the economy.
Direct Contributions
Direct Revenue
The MICE industry or ‘business tourism’, is known to generate higher spending per head compared to leisure tourism. Realizing this benefit to their economy, many countries have geared
up development to support MICE industry growth and to reap the benefits as money spent
by delegates helps the economy by distributing revenue to service providers including hotels,
transportation contractors, convention & exhibition venues, event management companies
and tour agents. Furthermore, the industry guarantees employment for those working in this
sector.
Source : Thailand Convention and Exhibition Bureau (TCEB)
A full-scale research conducted in the US by the Convention Industry Council (CIC), provides a
general idea of the significant role played by the MICE industry. The findings include revenue
streams for MICE service providers and employment statuses in one of the largest MICE industries. Prior to making any estimate as to what MICE may contribute to the US economy, the
report attempted to define each term for proper data collection and results measurement.
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Introduction to MICE industry
The Economic Significance of Meetings to the US Economy released by CIC defined the meeting industry in accordance with a previous research framework published by the United Nations
World Tourism Organization (UNWTO). Undertaken in collaboration with the International Congress
and Convention Association (ICCA), Affiliate Members Reed Travel Exhibitions and Meeting
Professionals International (MPI) Meetings, the report suggested that
… conventions, conferences, congresses, trade shows and exhibitions, incentive events,
corporate & business meetings and other meetings that meet an aforementioned
criteria. Meetings, in this context, excluded social and recreation activities, certain
educational and political activities and gatherings for sales of goods/services such as
consumer shows.
Direct spending, defined as “spending within the US economy from purchases of goods and
services attributable to the activity from each MICE trip” is the first building block in understanding
its economic significance. In 2009, with almost 1.8 million meetings taking place in the US and
an estimated 205 million participants, total spending by delegates was valued at USD 907M of
which direct sending represented over USD 263M.
According to this research, only 43% of this direct spending went to travel and tourism commodities - food & beverage and air transportation. The remainder, 57%, went to meeting-related
expenses including venue rental, meeting planning and production.
Seasonality Control and Employment
Apart from direct revenue to service providers and labor income, many observations also conclude that the MICE industry generally reduces seasonality within the overall travel and tourism
industry, as MICE volume usually occurs during the off-peak season. An ICCA statistical report
on international association meetings, by far the most useful information source for the global
convention industry, showed that international association meetings were mostly held in the low
season.
The exhibition industry’s global association (UFI) a well-accepted association who represents
and provides support to the exhibition industry, another MICE industry component, also
concluded the same in that “exhibitions combat seasonality as they are generally held in
low … seasons.”
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In 2010, of 9,030 recorded meetings, over 30% of all global international association meetings
were held from April to June with another influx in September easing off until November
representing another 38% of the meetings held that year.
Considering seasonality in the MICE sector, service providers, especially those who can
accommodate both leisure travel programs as well as MICE events, will be able to manage
their revenue streams. Resource planning will also be easier as they can plan according to a
balanced year-round demand for both leisure and business trips.
The benefit also moves downstream to suppliers who can plan to have inventories available
during the low season as well. Continuous demand for service providers within the MICE industry
can simplify resource planning and lead to the creation and support of permanent positions
throughout the year rather than just adding part-time jobs during the high season.
Indirect contribution
Indirect contributions are intangible and include foreign direct investment, partnership
opportunities, innovation and technological advancements and knowledge dissemination.
Striving for economic development, effective modernization and employment creation,
emerging countries are attempting to attract more foreign direct investment (FDI) by
liberalizing investment policies and tax schemes related to core industrial sectors along with
improving logistics, supporting infrastructure and expanding human resource capability.
Once an investment turns into products and services ready to be promoted and marketed,
hosting exhibitions is one medium that can channel products and services to potential buyers
on a regional and global scale.
Attending conventions can also expand the partnership pool for delegates who usually come
from the same industry. Ultimately, MICE, or in particular conventions and exhibitions, are a
means to generate sales, to increase profitability, to build long-term partnerships, to form
strategic alliances or to increase foreign direct investment.
Survey results of business travelers conducted by the World Travel and Tourism Council (WTTC) was
published in Business tourism: a catalyst for economic performance. This survey distinguished
different purposes for business travel including work on client sites, internal company meetings,
supplier or partner meetings, sales or marketing meetings, external conferences & conventions,
external trade shows & exhibitions and incentive travel.
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Introduction to MICE industry
The WTTC survey concluded
that important benefits from
business travel include an ability
to increase sales & profit, develop
partnerships and enhance
innovation. From responses
provided by business travelers
surveyed, approximately 50%
stated that face-to-face meetings
convert into sales. Moreover, on
average, 15% of their annual
sales depended on trade shows
Source : Thailand Convention and Exhibition Bureau (TCEB)
and exhibitions.
Realizing that relationships are important to company performance, business travelers seek
opportunities to create and retain business partnerships through attendance at conventions
and exhibitions. According to the WTTC survey, 72% of global business travelers found conferences
and conventions have a ‘significant’ or ‘high’ impact in developing partnerships.
Well over half of the respondents also indicated that meetings with partners was ‘very’ or ‘extremely’
important in expanding or investing in new markets and managing company supply chains.
Furthermore, 64% of those participating in trade shows believed it had a ‘significant’ impact on
building partnerships, professional development and career development.
Countries attempting to promote the MICE industry must strive to develop or at least encourage
necessary development to keep national technological offerings on par with global standards.
Trends and needs must be thoroughly identified to promote direct development where most
needed. Technological trends within the industry, such as social media, virtual events and
Wi-Fi coverage need to be incorporated into plans. MICE service providers must improve their
services to meet what MICE travelers are seeking. In short, they must improve their effectiveness
through innovation and technology to tap into this ever-changing market.
MICE events have proven to be very useful in bringing new ideas, knowledge and insights to a
country, service providers and attendees. The MICE industry has become a channel for information
or knowledge to spread wider and faster, especially in this era of globalization. Local providers
get to learn new and innovative approaches in handling MICE events. In turn, because of an
increased exposure to foreign service-providers not only can they increase business opportunities
they can also enjoy a chance to share and exchange ideas.
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Likewise, convention or exhibition attendees can create new business partnerships and increase
their industry knowledge and professional development through meeting with other delegates,
buyers or sellers. Moreover, convention themes, often based on concerns or latest innovations
within a particular industry, are useful in enhancing the capability of a community to provide a
solution for an issue being faced.
The MICE industry can influence local business climate, which in turn, can directly influence the
strategic direction of an industry. Moreover, growth in the industry can also help to improve local
business in procurement and manufacturing standards. Once policy is established to support
the local MICE industry, infrastructure development will eventually follow including additional
venue investment, sophisticated and cheaper logistics systems and tax incentives.
Apart from the benefits mentioned above, the MICE industry also provides exposure to local
ways of doing things, and creates
cultural understanding of the host’s
domestic culture.
Negative Impact
Although there are numerous
benefits associated with the industry,
its negative impact on the
environment must also be considered.
Pollution and greenhouse gas
emissions trail after every delegate
and the products shipped to meeting
Source : Thailand Convention and Exhibition Bureau (TCEB)
venues or exhibition halls. Hotels and
meeting facilities are often forced to leave behind piles of waste consisting of plastic, paper,
food, drink related waste, toiletries, along with unwanted or unused promotional giveaways.
In response to an enhanced awareness of environmental conservation, many countries have
started to offer niche tourism programs, ecotourism, both as traditional leisure tourism programs
or as a supplement to MICE programs. Defined as “a program that provides a first-hand active
experience of a place, ecotourism provides an educational experience that can help to develops
visitor understanding and appreciation of the place visited and promotes appropriate behavior
and a conservation ethic”, employing various strategies to minimize negative impact and maximize
local economic returns.” (Bottril & Pearce, 1993; Scace, 1995)
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Introduction to MICE industry
Within the MICE industry, a number of convention bureaus, corporations and MICE service
providers have started to take action in creating a new industrial norm with ‘green or sustainable’
meetings becoming a major change in terms of practices. According to the Convention Industry
Council (CIC), a collective body of firms associated with the meetings, conventions, exhibitions
and events industry, green or sustainable meetings is when
Sustainability takes a triple bottom line approach that seeks to balance the
social, environmental and economic concerns against business needs
Many organizations have taken a stand in raising awareness among MICE travelers, setting the
standard for hosting MICE events together with educating service providers. For instance, the
Convention Industry Council (CIC) set standards and minimum best practices for each type of
service providers in the industry.
The Green Meeting Industry Council (GMIC), another important source of knowledge and expertise
in sustainable meetings, aims to educate, promote and standardize practices associated with
sustainable meetings. Other major organizations including Meeting Professionals International
(MPI) and International Association of Convention and Visitors Bureaus (IACVB) are also dedicating
their resources to stress the importance of sustainable meetings.
Current MICE Industry
This section provides a global overview of the MICE industry and provides an overview of where
the industry is in terms of value and volume.
Meetings (M-I-C-E)
The International Association of Professional Congress Organizers (IAPCO) conducted research
based on their 110 members to measure volume and trends in the corporate meeting industry.
The findings, limited to corporate meetings organized by its members, mainly took place in
Europe. In 2010, IAPCO members organized 3,454 corporate meetings both domestically and
internationally and in 2009, 3,140 meetings.
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Incentive Travel (M-I-C-E)
The Market for Incentive Travel, Motivational Meetings and Special Events published by the
Incentive Research Foundation offers some insight into the size of the industry. In 2006, the market
for incentive travel spending was valued at USD 13.4B. Most executives acknowledged the
importance of incentive travel seeing benefits in terms of increased efficiency or an improved
bottom line.
About 85% of management surveyed perceived incentive travel as an investment rather than a
cost with an annual budget set aside for incentive travel averaging USD 164,000 per company
surveyed. Moreover, three-quarters of the companies surveyed, reported an involvement in
incentive travel in the USD 100,000 to USD 500,000 range.
Driving our Future: the top 11 incentive trends for 2011 published by IRF mentioned that confidence
in incentive travel remains intact, as many studies have stressed its power to drive employee
engagement and promote company performance; yet fragile since it can crumble as soon as
the market is hit by negative news.
Many who are optimistic about the market believe corporations will adapt to budget constraints
and will eventually work incentive plans around existing funding. In addition, as Corporate
Social Responsibility (CSR) is becoming widely accepted and added as an element to many
incentive programs, travelers expect more in terms of unique experiences and a reduction in
lavishness and therefore, to some extent, help to stretch incentive budgets.
Conventions (M-I-C-E)
Data concerning conventions is published annually by the International Congress and Conventions
Association (ICCA) and the Union of International Association (UIA). While assumptions and
methodology in collecting data vary across organizations, data collected by ICCA best illustrates
the current state of the convention industry.
It is important to point out that ICCA data takes into account international meetings segmented
into corporate or association meetings. International corporate meetings consist of internal
and/or external meetings. On the other hand, association meetings, sometimes called conventions,
include international governmental association meetings and international non-governmental
meetings (association meetings). ICCA data collection criteria are meetings that occur on a
regular basis, attract a minimum of 50 participants and rotate between at least three countries.
It can be seen that the international association meetings industry has enjoyed an upward
22
Introduction to MICE industry
trend (approximately 3% compounded annually) even though it faced a severe drop in 2009
due to the economic downturn in the US.
Figure 1-3 highlights the fact that the majority, albeit a small one, of major association meetings
Figure 1-2: International Association Meetings (2006-2010)
9200
9,120
9000
8,715
8800
8,586
8600
8400
8200
8,294
8,094
8000
7800
7600
7400
2007
2006
2008
2009
2010
Year
Source : ICCA Statistical Report 2006-2010
Figure 1-3: International Association Meetings by Continent (2010)
North America
11%
Other
16%
Europe
54%
Asia
19%
Source : ICCA Statistical Report 2006-2010
23
are held in Europe, which represents 54% of the total number of association meetings held globally in 2010. Asia ranked second with 19% followed by Oceania, Latin America and Africa.
Exhibitions (M-I-C-E)
Within the exhibition industry, the best-known and most reliable information source is the Global
Association of the Exhibition Industry (UFI), an association of trade show organizers, fairground
owners, national and international associations of the exhibition industry and its partners. UFI
published statistical data offers an insight into the global supply in this industry. Note that UFI
cross checks with press, media, members, national association and key operators within each
country to verify data validity.
Figure 1-4: Global Share of Exhibition Space (Million square meters)
35
30
31.2
27.6
25
20
15
10
5
0
2006
North America
2010
Europe
Source : UFI Global exhibition industry statistics
Others include Oceania, Middle East, Africa and Latin America
24
Introduction to MICE industry
Asia
Other
Growth in global exhibition space has been quite significant, expanding from 27.6 to 31.2 million
square meters. By exhibition space, UFI refers to “the amount of gross exhibition space in the
venue regularly marketed and rented/licensed /used for exhibitions, trade fairs or consumer/
public shows.” This research was completed before the end of 2010, therefore; the 2010 figure is
an estimated value.
Europe held the largest share of exhibition space available growing from 14.3 million square
meters in 2006 to approximately 16.2 in 2010. In contrast, Asia, which had only 3.9 million square
meters in 2006, had grown to around 4.6 million in 2010. Net exhibition space in Asia experienced
a compound annual growth rate of 20% compared to 13% in Europe thereby pointing out the
significant increase in supply within Asia, a promising sign of what Asia can offer in the future.
Factors Influencing Future MICE Industry
Economic Downturn
During the past few years, both the US and EU economies have been experiencing a persistent
global economic slowdown that has had a direct impact on every facet of the corporate world
and associations.
Spending on scheduled meetings is now used to its fullest benefit through negotiations for the
best deal combinations, by avoiding costly amenities and by offering less lavish meetings.
International association meetingshave also seen a slump in terms meeting numbers since the
economic downturn started in 2008. Incentive travelers are also willing to undergo local
experiences rather than partake in extravagant programs. In short, costs have become a
leading priority when organizing MICE events.
Corporate and association meetings have started to rotate around the same region reflecting
a demand for more short-hauls trips. Association meeting attendees are now seeking enhanced
educational and informative content with less interruption from non-necessities. Future Watch
2011 survey by MPI pointed out an emerging trend in which corporate meetings will be held in
the same country or if truly necessary, the same continent.
Return on investment (ROI), measuring benefit against meeting cost, is now required for most
meetings. However, as no standardized method has been accepted, efforts are underway
to standardize ROI calculation for each meeting type. This overriding concern about ROI has
become prevalent leading to the elimination of unnecessary activities when planning meetings
and cost reduction for both planners and attendees. Increasingly meetings must have a direct
bearing on company performance or meet specified association purposes.
25
Technology
Video Conferences and Virtual Events
As budgets become tighter, incorporating technology that allow for video conferencing and
virtual meetings are increasingly seen as a cost effective option when holding MICE events.
In an effort to cut costs, but maintain a personal feel, the industry is experiencing a rapid
growth in hybrid meetings (combination of traditional face-to-face meetings and video
conferences). The MIA Pathfinder Report conducted in 2010 noted that there had been a slight
increase in video-conferencing usage and that just over 50% of the survey respondents stated
that they planned to invest in this technology.
Meetings and conventions that do not require being present at a physical location are easy to
imagine, but possibilities also stretch to trade shows and exhibitions as ‘virtual events’. In virtual
events, attendees can interact with sponsors through real time chats similar to being in
exhibition halls and serve as a substitute for recession-prone exhibitors and attendees.
The growth in e-commerce and advancements in payment security for internet-transactions
ensures that virtual events can generate sales safely and conveniently thus increasing their
popularity. Virtual events can also improve data collection and customer relationship management. As everything is undertaken online, exhibitors can track and monitor attendee interests,
content downloaded and level of engagement to the exhibition to cater marketing efforts to
different types of buyers. With virtual exhibitions, exhibitors can attract a larger pool and variety
of attendees since they do not require a physical presence at a location, increasingly perceived as a huge selling point for ‘virtual’ exhibitions.
Source : Thailand Convention and Exhibition Bureau (TCEB)
26
Introduction to MICE industry
The report, The Practicalities of Virtual Events presents an overview by Marketing Profs, ON24
and Trendline Interactive, two main players among marketing experts, web-based service
providers and marketing consulting. The survey shows that in 2010-2011, half of the 187 surveyed
attendees planned to attend a virtual trade show, in other words, virtual exhibitions have
gained momentum over the past few years.
However, some business travelers still believe that video conferences cannot completely
replace face-to-face meetings. Although video conferences add values in the sense that they
expand meeting options, many continue to believe that face-to-face is still better in creating ,
building and retaining relationships.
Social Media, Mobile and Tablets’ Apps
Use of social media has become so commonly used in marketing for almost every type of products and services that it cannot be overlooked as it remains one of many underlying factors
that has shifted behavior and challenged traditional marketing campaigns. Blogs, Facebook,
LinkedIn and Twitter are on top of any list of social networks being used to create exposure,
increase levels of engagement from attendees both before and after the event and as a medium for communication.
IMEX 2011 in Frankfurt, the worldwide exhibition for meetings and incentive travel organizers,
conducted a survey of agencies, corporate and associations. The survey revealed that professional
usage of Facebook and Twitter had risen 60% and 27% from 2010 to over 71% and 41% in 2011,
respectively.
In addition, many exhibitors believe social media usage has grown and can increase levels of
penetration with prospective attendees. Research from FastFurture presented in Convention
2020 Seminar at IMEX in Frankfurt 2011 stated that 62% of event organizers see the need to
extend the use of social media around events.
Popularity in the use of smart phones and tablets has led to the need to support mobile applications.
Organizers can employ mobile apps as a way to provide and update information for delegates
and other exhibitors. It also increases the level of engagement and eases data exchange
among delegates and organizers as it has the ability to provide on-the-spot data.
27
Internet Access
Internet access within meetings facilities is among the top requirements for delegates attending MICE
events. Research from FastFurture presented in 2011 also pointed out that 73% of the exhibitors
and delegates surveyed strongly agreed that meeting facilities should provide free access to
Wi-Fi service and considered one of the main criteria in venue selection.
Sustainability and Green Meetings
Persistent global warming concerns
and potential environmental impact
caused by hosting MICE events has
intensified during the past decade,
raising an awareness of the need
to promote sustainability among
those involved. Sustainable meetings
balance three objectives: delegate
needs, profit generation and avoiding
environmental damage.
In line with these concerns, is the
fact that cost is now a primary factor
Source : Thailand Convention and Exhibition Bureau (TCEB)
influencing the decision of whether
to hold meetings or exhibitions and as such, most companies and associations are turning to
green meetings to save budget. Furthermore, green meetings promote corporate social
responsibility (CSR). Increasingly delegates see themselves connecting to society in a
sustainable and meaningful manner, according to President and CEO of Orlando/Orange
County Convention & Visitors Bureau.
Apart from organizing sustainable events, upcoming plans in building new environmental
friendly meeting facilities through solar cell technology, innovative designs and other state-ofthe-art technologies will ultimately reduce carbon footprints. For existing facilities, planners
and venue owners are moving toward using green products, recycling initiatives and providing
other green services.
Research from FastFuture at Convention 2020 and Hotel 2020 Seminar in Copenhagen 2011
showed that out of 606 survey respondents, 83% ‘strongly agreed’ or ‘agreed’ environmental
considerations play a major role in the choice of a business or leisure hotel. Most hotels, therefore, stress their ability to provide a variety of ‘green’ services that align with MICE delegate
needs.
28
Introduction to MICE industry
Key Stakeholder Introduction
Similar to any industry, the MICE industry has both a demand and supply side. The need for
meetings or incentive programs for employees derive from corporate needs. Associations need
to fix schedules to hold conferences on a timely basis and require outsourcing or external
service providers in orchestrating events. Service providers on the supply side include
Professional Exhibition Organizers (PEO), Professional Convention Organizer (PCO) and
Destination Management Companies (DMC).
Convention and Visitors Bureau (CVB) within a country are one of the most important organizations
that facilitate and coordinate with MICE organizers to provide smooth service. In addition, they
also promote the country and attract more MICE events.
Convention and Visitors Bureaus (CVB)
As the MICE industry grows, every country faces intense competition from both mature and potential emerging markets. The Creation of a Convention and Visitors Bureau (CVB) has become
a priority for countries that seek to promote their MICE industry and usually act as a central
body to facilitate growth. Generally, a CVB has four main purposes:
1. To encourage groups to hold MICE events in their region or country
2. To assist groups with preparations; to give advice, to solicit the support of service
providers and to liaise between local service providers and MICE visitors
3. To be a hub for information and to stand ready to provide it whenever needed
4. To market the country or region it represents
CVB play as an intermediary between MICE visitors or organizers and qualified local providers.
A CVB’s role is to represent its territory by investing in marketing efforts to support the MICE
industry it represents. However, different CVB may play different roles depending on the
authority it has been given.
In Thailand, the Thailand Convention and Exhibition Bureau (TCEB) was founded as a public
organization in 2004 and has been the sole body representing the MICE industry in Thailand.
According to TCEB, its roles consists of
29
To set policies and standards for Thailand’s MICE industry
To promote and publicize Thailand’s MICE industry
To represent Thailand in submitting proposals/bid to host events
To act as a hub for information and services, including professional consultations
regarding domestic and international MICE business
To support and arrange professional seminars and training to develop the professional
skills of MICE personnel in Thailand
To set standards for services and certify qualifications of Thai MICE operators
To act as a coordinating center for MICE events in Thailand
To develop projects to inspire the MICE industry in Thailand under the sponsorship of the
Royal Thai Government
To support organizations involved in Thailand’s MICE industry
To carry out missions that will help TCEB to achieve its major roles and objectives
Associations
Associations are usually not-for-profit organizations and can be formed at a national, regional,
or even international level. Association can be segmented into two broad categories: trade
or professional. Their purpose is to provide services for their members and to the community at
large. Once an association schedules a conference, related work is often delegated to specialized
service providers called Professional Convention Organizer (PCO). Association conferences
tend to follow a predetermined rotation schedule and have a much longer lead-time when
compared to corporate meetings.
Corporations
Corporations are organizations established to generate profit and provide financial return to
their owners. Corporate meetings come in many types and forms but the main purpose is to
communicate with employees or clients. Lead-time to organize meetings is often much shorter
than association meetings. Normally, companies do not invest in an event or conference
management division, but solicit this expertise from external service providers e.g. event
organizers or destination management companies (DMC).
Professional Convention Organizers (PCO)
A Professional Convention Organizer (PCO) specializes in planning and managing congresses
and conferences for associations that would like to hold a conference but do not wish to undertake
the bulk of the work. Typical PCO roles include:
30
Introduction to MICE industry
Selecting and booking venues
Managing delegate accommodation
Marketing the event
Designing programs
Designing promotional materials
Handling administration
Planning catering
Coordinating technical aspects
Preparing budgets
Recording expenses
The requirement of each association will determine the PCO role for any given conference and
as such, will not be the same with every conference.
Incentive Houses
Incentive houses usually coordinate with corporations in shaping incentive programs that can
help a company reach its goals. Incentive travel programs are invariably quite specific in terms
of size and program details that must be specifically provided. Usually, corporate buyers contact an incentive house in the same region and if the program requires travelling outside the
country, they may hire a Destination Management Company (DMC) to manage the program
at the destination.
Incentive house roles include identifying program goals and objectives and later plan and to
organize the program. Commonly, incentive travel requires a very specific set of outcomes,
motivating employees to enhance company performance; therefore, it is also an incentive
house role to find a method to track the success rate in a program.
Destination Management Companies (DMC)
According the Society of Incentive and Travel Executives (SITE),
“A DMC is a local service organization that provide consulting services,
creative events and exemplary management of logistics based on an in-depth
knowledge of the destination and the needs of the incentive and motivation
markets”
Since DMCs have very thorough knowledge of the destination and sometimes even rare access
to exotic and new locations within a country, which is why DMCs often work closely with incentive
houses from abroad in arranging meetings and incentive programs.
31
Professional Exhibition Organizer (PEO)
A Professional Exhibition Organizer (PEO) usually handles every aspect of hosting an exhibition.
Once they have accepted the task, they will be responsible for recruiting exhibitors and attracting
attendees, in other words, they need to promote exhibitions to a qualified public. A PEO is also
required to handle agreement contracts between exhibitors and sponsoring organizations if
they exist.
Another major role is to plan,
coordinate and manage exhibitions,
which may also include selecting
proper subcontractors and other
service providers to delegate the
tasks needed in organizing it. A PEO
will usually need to subcontract a
number of services for instance,
exhibit material handling, storage,
installation, maintenance and
dismantling displays, design and
constructions of displays, functional
Source : Thailand Convention and Exhibition Bureau (TCEB)
furniture within exhibition halls and
logistics.
Venues
Venues are now one of the most important factors influencing the decision to host a MICE
event and include conference hotels, conference centers and exhibition halls. MICE visitor
requirements dictate the facilities needed in any venue making important for venues to meet
visitor needs and to keep up with trends.
Hotels are now very active in the MICE industry. Firstly, they can provide the accommodation
for the meetings and incentive travels segment. Secondly, meeting and conference rooms are
now found in most hotels fully equipped to provide convenience and meet visitor needs.
Conference centers or conference hotels are the new players within the convention industry as
they can provide five-star hotel rooms together with spacious conference rooms and supplementary
facilities traditional hotels may not be able to provide.
32
Introduction to MICE industry
Other Supporting Organizations
Supporting organizations refer to
both national and international
organizations whose roles directly or
indirectly support the MICE industry.
In Thailand, many private
associations directly support the
local MICE industry such as Thailand
Incentive and Convention
Association (TICA), Thai Exhibition
Association (TEA), Thai Hotels
Associations (THA), and Event
Management Association (EMA).
These associations bring together
Source : Thailand Convention and Exhibition Bureau (TCEB)
related MICE industry service providers
to enhance collaboration and to set standards within the industry. They also aim to create
knowledge and share expertise and to align a unified strategic direction to promote the
domestic MICE industry effectively.
Apart from domestic associations, the MICE industry is also influenced by public authorities
such as The Tourism Authority of Thailand (TAT), the Board of Investment (BOI), the Department
of International Trade Promotion (DITP), the Revenue Department, the Airports of Thailand (AOT)
and the Port Authority.
Other international organizations or associations have been formed to support and assist
stakeholders within the worldwide MICE industry.
International Association of Congress Centers (AIPC)
Destination Marketing Association International (DMAI)
International Association of Professional Congress Organizers (IAPCO)
International Congress and Convention Association (ICCA)
Meeting Professionals International (MPI)
The Global Association of the Exhibition Industry (UFI)
Society of Incentive Travel Executives (SITE)
Green Meetings Industry Council (GMIC)
Their roles range from lobbying and representation, establishing codes of practice within the
industry and setting compatible standards for service providers to follow. Moreover, some of
these associations support human resource development by organizing training programs and
education courses.
A final area of interest is government conferences and the ways they differ from association
conventions and conferences and while they are not a major sector internationally, they are
very important in Thailand.
33
Chapter 2
Meetings
34
Introduction to MICE industry
Source : Thailand Convention and Exhibition Bureau (TCEB)
Definition
Meetings can be categorized as corporate, government or associations. In this chapter,
‘meetings’ only refers to corporate meetings as government and association meetings will be
discussed in chapter 4.
The first industry in the acronym MICE is meetings or, in this case, corporate meetings. Even
though it may be easy to visualize the concept of corporate meetings, the complexity lies in
the way this particular word can be defined and employed.
According to the International Dictionary of Event Management by Goldblatt & Nelson (2001),
and accepted by the International Special Event Society (ISES), meetings are defined as:
An assembly of individuals gathered to discuss items of mutual interest or
engage in professional development through learning activities.
From the definition above, it would appear meetings could come in many formats or forms
aligning with the definition by the International Association of Congress Organizers (IAPCO):
A general term indicates a coming together of a number of people in one
place to confer or carry out a particular activity. Frequency can be on an ad
hoc basis or according to a set pattern, as for instance annual general
meetings, committee meetings…
35
Both of these definitions could suggest that the term ‘meetings’ could be interpreted or seen
to be any association meeting, convention, congress or conference. However, the scope of
this chapter will be limited to corporate meetings defined in the International Encyclopedia of
Hospitality Management as,
…an officially sanctioned and required meeting for employees of a specific
corporation. Corporate meetings are often held off site of the corporate
location and required employees to travel to the meeting. Expenses associated
with the meeting such as, transportation, meals, and hotel accommodations
are paid for by the corporation…
Corporate meetings are the coming together of two or more individuals from ‘the same
organization’ but may come from different departments, branches or countries. Sometimes it
can be a local meeting, which may or may not involve overnight spending. In addition,
corporate meetings must be for attendees with a shared purpose, at a specified time & venue
and at company’s expense.
Purpose of Corporate Meetings
Corporate meetings are inevitable as some, for example, annual shareholder meetings by
public companies are required by law; while some are held for other purposes including press
conferences, product launches and new business plan announcements.
Goals and Objectives of Corporate Meetings
The two terms ‘goals’ and
‘objectives’, although
commonly used side-by-side,
are different in their underlying
definitions. ‘Goals’ are
long-term targets set by a
company. An example of
corporate meeting goals could
be for employees to bring
back what was discussed and
learned at a meeting to boost
sales and to become a market
Source : Thailand Convention and Exhibition Bureau (TCEB)
36
Introduction to MICE industry
leader.
On the other hand, ‘objectives’ are often seen as short-term targets set for each activity.
Corporate meeting objectives could be for employees to gain more understanding about the
direction the company is taking or an opportunity for employees across branches or countries
to meet, interact and discuss matters or issues.
Additional objectives for corporate meetings may include the need to:
Announce new initiatives
Create discussion opportunities
Build teams
Share knowledge
Increase efficiency
Corporate Meeting Categories
The criteria used to group the vast array of meetings organized is based on employing four
main characteristics: objective, geographic region, agenda and company type.
Source: Thailand Convention and Exhibition Bureau (TCEB)
By Objective
Seminar: This format involves professional trainers, primarily lecturing about a topic intended
for attendees to gain more knowledge and/or skills about the topic presented.
Workshop: Similar to workshops, this format creates a learning-by-doing atmosphere through
experiments, discussion and interaction among the attendees.
Brainstorming: Conducted with employees within the same or cross-department, the goal is
to find solutions for issues or to create new initiatives. Typical brainstorming sessions do not allow
attendees to discuss opinions at the time. However, after the session, recorded ideas and
suggestions will be evaluated and chosen as appropriate.
37
Panel Forum: This type of meeting includes professionals and experts who discuss particular
topics in an exchange of ideas intended to open new perspectives related to topics selected.
By Geographic Region
International Corporate: Attendees come from the same corporation on different continents
or countries of more than one continent. This type of meetings is usually organized by
multinational companies with branches around the globe.
Regional Corporate: Employees from one company within the same region or continent.
Typically, this type of meeting is held by a multinational company with branches in a number of
countries in the same region.
National Offshore: Employees from one company held in a country outside where the
company resides. For instance, employees of a consumer products manufacturing company
in Thailand attend a corporate meeting held in Australia.
Local corporate meetings: Closely related to a national offshore meeting, attendees are from
the same company based in one country although it might be held in a different town,
province or state than where the company is located, though in the same country. For instance,
a company located in Bangkok decides to hold its corporate meeting in of Phuket.
By Agenda
Executive/Management Meeting: Attendees from a management team and usually refers
to top executives. The purpose is usually to set company’s overall strategies or direction.
Shareholders Meeting: This type of meeting somewhat deviates from definition of Meetings
above. Attendees for this type of meeting do not necessary have to be employees or members
of the management team, they can be individuals that hold shares in the company.
The agenda of this meeting is to announce company performance and profitability and/or
to seek for consensus from shareholders on certain management issues. Although this type of
meetings can be domestic meetings, it can involve spending overnight
New Product Introduction Meeting: As the name suggests, the main purpose is to announce
a new product launch with attendees usually company employees, clients and the press.
Department Meeting: Meetings conducted among employees of the same department.
For instance, a sales department meeting at which the agenda is to set sales goal for the
upcoming fiscal year or to discuss and initiate new sales strategies.
38
Introduction to MICE industry
By Type of Corporation
Corporate Meeting: A private company meeting regardless of where it is located or the agenda.
Governmental Organization Meeting: Held by a governmental organization, for example a Thai
government organization holding a meeting in any part of Thailand or a governmental organization from abroad holding a meeting in Thailand. More on this in Chapter 4.
Industry Trends
Shifting Roles in Destination Management Companies (DMCs)
Corporate meetings, especially
those that require travel to
different countries are not usually
organized in-house. This is often
due to the various difficulties
encountered in a planning
process that has to deal with
many stakeholders in different
countries in terms of accommodation reservations, meeting
room preparation, plane
ticketing, travel insurance
arrangements, activity planning
and content design. Increasingly
companies outsource planning and organizing corporate meetings to external planners called
Destination Management Companies (DMCs) who specialize in the destinations they represent.
As more corporate meetings tend to be combined with incentive travel, companies are
increasingly looking for a one-stop service. SITE Global is one of the most renowned associations
representing meetings, incentives and events was created to maximize business results through
motivational tools. It periodically publishes its SITE Index, an up-to-date snapshot of the incentive
travel industry in which it was stated that DMCs are expanding their roles to provide one-stop
services so that companies no longer contact incentive houses, planners or agencies prior to
coming to DMCs. However, it goes on to state that even though companies are seeking a one-stop
service, many DMCs are not willing to increase their roles which may be due to proficiency
concerns in some aspects associated with organizing meetings.
39
Technology, Cost Savings and Green Meetings
With ongoing economic concerns, consumer confidence has declined leading to a decrease
in the bottom line for many companies, in turn, forcing many to tackle this decline in profitability
by cutting unnecessary costs of which budgets allocated to corporate meetings, especially
ones held abroad, are among the first to go. In a search for other cost-effective alternatives,
companies are employing tools such as web conferencing, VDO conferencing and virtual
meetings to compliment corporate meetings since they have proven to be effective options
that, at the same time, incur less cost.
Apart from adopting technology to avoid excessive cost in corporate meetings, energy
conservation is another trend in the industry. Fast Future Survey by Talwar (2011) surveyed 606
professionals in the industry from seven continents and concluded that sustainability and green
initiatives will continue to be another important factor employed by clients when choosing
meeting destinations and venues.
Figure 2-2: Sustainability and Green intiatives Importance
Unit : Percent
50
45
40
39
43
Green & Sustainability
35
30
25
20
15
15
10
5
0
2
Strongly agree
Agree
Disagree
Strongly disagree
Source : Fast Future Survey, Rohit Talwa (2011)
Companies are now looking towards technology such as Telepresence, developed by Cisco,
for cross-border corporate meetings with adoption sometimes employed as an initiative to
promote corporate social responsibility (CSR) in that the company has organized cost-effective
and environmentally friendly meetings.
40
Introduction to MICE industry
Figure 2-3 presents a graphic representation of TeliaSonera who used Telepresence in 464
meetings to save 500,000 Euros in traveling expenses, 40 months travel time spent on travel and
reduced their carbon footprint by 16,900 kilograms.
Figure 2-3: Reduction in CO2 Emissions by TeliaSonera
Unit : Percent
100
90
80
70
60
50
40
30
20
10
0
CO2 Reduction of TeliaSonera
after the implementation of
green meetings
76% Co2
Reduction
2001
2009
Source : TeliaSonera Company
The shift in demand for green or environmentally friendly meetings has also increased the demand
for facilities or meeting venues that can accommodate such needs, for example, venues that
pursue energy reduction and effective waste management. Taking into account the state of
the global economy and concerns over global warming, many professionals believe the industry
is headed in a direction that involves intensive use of technology and greener initiatives to save
corporate meeting costs, which will, in turn force organizers to shift their offerings in parallel with
changing corporate demands.
Increasingly, companies focus on CSR initiatives, which means they would prefer to choose venues
or locations that align with their CSR values or initiatives. In turn, this has led to many venues
adapting current practices and adopting others to respond to this industry trend and to serve
the needs of their clients.
41
Venue Finder
Venue finders are companies or independent sales representatives who maintain databases of
venues worldwide they have researched and present ideal venues based on specific needs.
They can then book venues and earn revenue based on commissions. HelmsBiscoe Associates
is a global leader in Meeting Procurement and helps to streamline the process needed when
delivering events for companies anywhere in the world. In addition, through their purchasing
power and industry relationships, venue finders can offer clients better availability and pricing.
A final concern in the industry is that many client companies are cutting unnecessary costs due
to the global economy and its slow improvement with corporate meetings previously held at
venues at distant destinations increasingly moved to nearer locations. This will lead to substantial
cost reduction in airfare, accommodation and other related expenses, which can be perceived
as both an upside and downside to Thailand’s corporate meeting industry and the MICE industry
as a whole. The downside is that this trend will obviously translate into reduced MICE travelers
from Europe and North America. On the other hand, it will increase the potential for Thailand to
capture new emerging markets nearby such as China and its Asian neighbors.
Meetings Industry Value
The United Nations World Tourism Organization (UNWTO), Meeting Professionals International
(MPI), the Convention Industry Council (CIC), PricewaterhouseCoopers LLP (PwC), and the US
Travel Association, provide corporate meeting data.
Table 2-1: The US MICE Industry Value 2009
Meeting Type
Number of
Meetings
Number of
Attendees
Share of
attendees
number
Corporate Meetings
1,266,200
107,187,000
52%
Conventions/conferences/congresses
269,800
51,104,000
25%
Exhibitions
10,700
24,800,000
12%
Incentive Travels
66,000
8,154,000
4%
Other Meetings
178,100
13,479,000
7%
Total
1,790,800
204,724,000
100%
Source : The economic significance of meetings to the U.S. economy study by United Nations World Tourism Organization (UNWTO),
Meeting Professionals International (MPI), the Convention Industry Council (CIC), PricewaterhouseCoopers LLP (PwC), and the US
Travel Association
42
Introduction to MICE industry
In 2009, corporate meeting participants represented 52% of the total number of MICE travelers
in the US with 1,266,200 meetings and 107,187,000 attendees. In 2009, the total direct spending
generated by the MICE industry was over USD 2.6 trillion despite the economic slump.
The International Association of Professional Congress Organizers (IAPCO) has also collected
and published its own statistical results related to this industry in which growth from 2006 to
2010 went from 1,154 meetings in 2006 to 3,454 meetings in 2010. These numbers might appear
low compared to those measured by the previous study as they are based solely on corporate
meetings organized by IAPCO members.
Figure 2-1: IAPCO Corporate Meetings 2006-2010
Number of corporate meeting organized by member of LAPCO
4,000
3,500
3,000
2,000
0
2009
2010
1,622
1,500
500
3,454
3,079
2,500
1,000
3,140
1,154
2006
2007
2008
Source : IAPCO Survey Press Release, May 2011
The result of IAPCO’s study is shown here to emphasize the upward trend and the importance
of this industry. In spite of the economic downturn during which companies cut back on
unnecessary costs, the growth in corporate meeting numbers remained constant making it
an essential income source for the US economy.
43
Corporate Meetings Value in Thailand
The Thailand Convention and Exhibition Bureau (TCEB) Thailand’s convention and visitors
bureau has collected statistical data concerning the volume and value of meetings held by
international organizations in Thailand.
Figure 2-4: MICE Industry Share
Share of revenue from MICE industry in year 2010
11%
Conventions
41%
20%
Corporate meeting
Incentive travels
Exhibitions
28%
Source : Thailand Convention and Exhibition Bureau (TCEB)
In 2010, the corporate meeting industry in Thailand (THB 14.9B) represented 28% of the total value
earned by the MICE industry (THB 53.2B). Despite the global economic slowdown, the number
of corporate meetings held in Thailand from 2008 to 2010 grew an average 4.05% annually
(Figure 2-5) while the value grew 4.66% annually (Figure 2-6). The reason overall value grew
faster than numbers was due to a significant increase in average spending per head rising from
THB 67,877 in 2008 to THB 76,442 in 2010 for a 6.12% average annual increase.
The number of attendees decreased slightly from 200,000 in 2008 to 194,584 in 2010 or an annual
1.38% decrease. In addition to this drop, another trend spotted during this period is that the
average number of attendees per meeting declined by 5.2% from 91 to 82 attendees per meeting.
44
Introduction to MICE industry
Figure 2-5: Corporate Meetings in Thailand 2008- 2010
Meeting
2,400
Number of corporate meeting held in Thailand
2,350
2,371
2,300
2,276
2,250
2,200
2,190
2,150
2,100
2,050
2008
2009
2010
Source : Thailand Convention and Exhibition Bureau (TCEB)
Figure 2-6: Corporate Meetings Value in Thailand 2008-2010
Value of corporate meeting in Thailand
Billion Baht
18
16
14
12
10
8
6
13.6
16.3
2008
2009
14.9
4
2
0
2010
Source : Thailand Convention and Exhibition Bureau (TCEB)
45
Value Chain
The steps needed to organize corporate meetings can vary depending on company culture,
structure, department and relationships with external service providers such as travel management
companies (TMC) or destination management companies (DMC).
This section will discuss in more detail the means by which corporate meetings come about
through a framework illustrated in the Strategic Meeting Management Process Handbook
(SMMP) developed by Meeting Professionals International (MPI).
Figure 2-7: Corporate Meetings Value Chain
Company
TMC
DMC
(Thai)
Hotel
Logistics
Other Service
Provider
1. Company intention to host corporate meetings
Corporate meetings cannot occur without a company identifying a purpose and inten
tion to hold them. Usually seen as a starting point, companies wishing to hold corporate
meetings invariably set clear objectives that can vary depending on the goals being
pursued.
In this way, corporate meetings should answer three goals. One, they should
compliment overall company goals. Second, they should foster corporate strengths
and help reduce weaknesses. Third, they should encourage staff to increase their
efficiency.
According to the SMMP Handbook, good meetings should go through planning, the
gathering of information and analyzing of a company’s operating environment, an
understanding of its priorities & current business practices to have a full appreciation of
its culture and strategies. This can be done through interviewing company stakeholders
including colleagues in meeting management, CEOs/CFOs, supervisors, customers,
in-house sales & marketing team, procurement & finance, human resources & training
along with other departments, divisions or business units within an organization. Parties
to be interviewed depend on meeting objectives.
46
Introduction to MICE industry
In general, points of consideration during stakeholder interviews are:
Identify both short- and long-term corporate strategies and goals
Categorize internal and external customers
Define the organizational culture or learn how people get things done
These interviews and other collected data help to conduct a SWOT analysis to provide an overview
of core strengths, weaknesses that remain unsolved and other pressing threats. This will help
management justify meetings as well as prioritize issues requiring solutions and setting of directions
to move forward.
Once their overall status is understood, companies can effectively set clear meeting objectives.
Once these objectives are set, companies can proceed to create a meeting in one of two
ways. First, companies with an in-house meetings department can plan a meeting to answer
previously determined objectives and while they may be able to handle all the tasks in making
meetings possible; some minor aspects may be outsourced to external service providers more
specialized in logistics arrangements and catering. The other option is to tender all planning
and organizing to travel management companies (TMC), destination management companies
(DMC) or professional meeting planners.
2. Travel Management Company (TMC)
When planning and organizing a corporate meeting with support from external service
providers, the first contact point is normally with TMCs known to a company or those
with a close relationship who will be asked to submit proposals for consideration.
Information needed in typical proposals includes:
Contact information
Meeting profile - event name, starting and ending dates
Other requirements - food & beverage, audio & lighting systems, venue
requirements, other activities
Past experience in corporate meeting organization
Budget required
47
It is important at this time to differentiate between traditional travel agencies and travel
management companies. The Association of Travel Management Companies (ATMC)
by Young (2005), suggests that,
… TMCs bring to business travel the core competencies of specialization and profes
sionalism and understanding. Without these three attributes, your TMC would just be
another travel agency.
TMCs understand the importance of corporate meetings and make it a priority to
provide such value. They are also more specialized and able to provide professional
services to meet every corporate meeting need.
After proposals are submitted by TMCs, the company will take into consideration the
following aspects prior to choosing the TMC responsible for the planned meeting:
Quality of work evaluated by examining past experience or references
Whether budget quoted is sound
TMC flexibility
Other value added services
History and relationship with the TMC
Criteria mentioned above are general criteria companies can take into consideration,
although each company may have its own specific ideas. The company can then ask
those short listed candidates to present their proposals prior to selecting the TMC to
render the services required.
Once selected, the next step will require the TMC to contact a destination management
company (DMC) and other service providers to submit their proposals. If the TMC has
experience and network coverage, relationships with DMCs and other service providers
should already exist at this point thereby shortening the time needed for them to select
DMC and service providers.
48
Introduction to MICE industry
3. Destination Management Company (DMC)
Once the selected destination for a corporate meeting has been decided and the
TMC has been contacted, the DMC at that destination will be asked to submit a
proposal. DMC can be expected to perform a range of services such as arranging
accommodation & transportation to planning and providing other activities following
the meeting.
That DMC can be asked to act as a hub for all services required or to become a
one-stop service provider allowing a TMC to have every meeting component handled
by one DMC. TMC will, therefore, remain as an intermediary between the corporate &
DMC and will act only as an administrator ensuring a smooth process.
4. Hotels
Nowadays hotels play an important role in organizing corporate meetings.
Companies prefer to choose 4- and 5-star hotels that match their needs and
expectations. Hotels can provide most if not all type of services related to organizing
corporate meetings on their own premise including food and beverage, transportations
from and to airport, entertainment and meeting facilities.
5. Transportation and others
Typically, a DMC will contact hotels in their network that meet both client expectations
& budget and can use their bargaining advantage to help secure services such as
catering, transportation, audio visuals and lighting at better rates.
DMC will often need to seek specialized services from other companies such as audio
visual & lighting system, registration, catering and printing. In this case, they will need
to act as a coordinator and an administrator for third-party service providers. Once a
corporate meeting is over, both the TMC and DMC will evaluate their work to identify if
and to what extent they achieved their objectives.
49
Corporate Meeting Industry Stakeholders
Organizations Related to the Corporate Meeting Industry
1. Travel Management Company (TMC)
A Travel Management Company (TMC) is a professional company that provides
services related to business travel. According to the Association of Travel Management
Companies (ATMC), three characteristics distinguish TMC fro m typical travel agencies.
These characteristics are specialization, professionalism and understanding.
Specialization: A TMC, in addition to providing tickets and itineraries for business
travelers, also delivers services that add value including negotiating with suppliers,
managing travel inventory and prices and updating clients on new developments
and policies in the local and international travel industry.
Professionalism: A TMC provides systems and processes to enhance its services
and must be equipped with the resources, skills and relationships with other travel
suppliers across the globe to ensure quality services that move clients a step closer to
their business goals.
Understanding: A TMC also needs to ensure the services offered are based on
under standing company goals and objectives as well as the goals of each
individual business traveler.
2. Destination Management Company (DMC)
Destination Management Companies (DMC) specialize in the location in which it
resides and is usually equipped with a full reference of locations, facilities and related
services provided. It also has the planning and organizing knowledge needed for
corporate meetings and special events. In addition, its understanding of a country’s
culture, traditions, rules and regulations can help it to provide services including:
50
Introduction to MICE industry
Provide one-contact, one-payment, one-stop services from booking a venue to
transportation arrangements, from activity planning to facilitating rules and
restrictions
Complete information regarding best services in the location including restaurants, hotels and other service providers, delivering the best experience
within a given budget
Leverage relationships with service providers to negotiate the most effective
service for their clients at best rates
Design creative and an innovative program to meet client needs
Once a destination is chosen, a DMC is usually sub-contracted to handle most tasks through
a TMC or company meeting department. Nowadays the DMC role in corporate meetings is
limited to large events with multiple functions and activities in scheduled or for special activities
that companies cannot hold them by themselves.
3. Convention and Visitors Bureau (CVB)
A Convention and Visitors Bureau (CVB) provides support for the MICE industry in the
country, region or city it represents. It is usually publically run and acts as a neutral
facilitator and promoter of their MICE industry by attending trade shows and road
shows to create awareness with companies, DMCs and TMCs.
The services provided range from providing monetary incentives, facilitating certain
restrictions, providing necessary information such as lists of DMCs, hotels & venues
and organizing familiarization trips for companies and organizers. Familiarization trips
are trips hosted by CVB to bring in companies, associations or MICE event organizers
into the region it represents to increase the potential to host MICE events in the future.
51
Associations
1. International Association of Professional Congress Organizers (IAPCO)
Formed in 1968, the International Association of Professional Congress Organizers (IAPCO) is a non-profit organization representing professional organizers of international
and national congresses, conventions and special events.
IAPCO has become known as one of the foremost associations representing this
industry with its extensive information, trend analysis and training courses. It also serves
as a stage for professionals to share and exchange information, personal experiences
and trends related to this industry.
2 Meeting Professionals International (MPI)
Meeting Professionals International (MPI) was formed in 1972 with the intent to build a
rich global meeting industry community. Currently, it has over 21,000 members from 86
countries and 71 associations and acts as a knowledge platform for members to build
networks. Headquartered in London, it now has local chapters in Japan and Korea.
MPI also grants awards called the ‘RISE Awards’ recognizing innovative initiatives and
positive impact on communities. The award recognizes members through three
different avenues organizational, individual or community achievement.
3. Thailand Incentive and Convention Association (TICA)
Established in 1984, the Thailand Incentive and Convention Association (TICA) is a
non-profit association to promote corporate meetings, incentive travels, conventions
and exhibitions. TICA’s members consist of destination management companies (DMCs), Professional Convention Organizers (PCOs), Professional Exhibition Organizers
(PEOs), service providers, convention centers, hotels and advertising companies.
52
Introduction to MICE industry
TICA’s objective is to promote the potential and capability of the Thai MICE industry by
publishing the Thailand Incentive, Convention and Exhibition Membership Directory,
organizing familiarization trips for MICE travelers and organizers from abroad and at
tending many important international trade shows.
Apart from creating awareness and increasing opportunities for members, TICA also
provides seminars and training programs to share knowledge and strengthen
capabilities and skills that can increase competitiveness in the global arena.
Source : Thailand Convention and Exhibition Bureau (TCEB)
53
Chapter 3
Incentive Travels
54
Introduction to MICE industry
Definition and Concept Clarifications
According to the Society of Incentive and Travel Executives (SITE), a well-known, non-profit association created to support the incentive travel industry, incentive travel is defined as
“a global management tool that uses exceptional travel experience to motivate and/or
recognize participants for increased level of performance in support of the organization goal.”
Pizam and Holcomb (2008) defined incentive travel as “travel provided to personnel by a
company in an effort to motivate them to increase and improve their performance.” Goldblatt
and Nelson (2001) defined it as “1) a corporate sponsored meeting or trip to reward effort and
create company loyalty, often build around a theme; and 2) a celebratory event intended to
showcase persons who meet or exceed sales or production goals.”
Finally, the Incentive Research Foundation (IRF) defined incentive travel as “a motivational tool
to enhance productivity or achieve other business objectives. Participants qualify for the travel
award based on achieving the level of performance required by the program.”
While varying in content, all these definitions portray distinct characteristics and functions
incentive travel serve.
First and most importantly, they serve as a
motivational tool for personnel.
Second, they function as motivation to perform and as a reward or recognition for achieving goals set forth by
management.
Third, incentive travel is sponsored by the
company although trip elements may be
similar to a leisure trip.
Finally, incentive trips must be predeter
mined for personnel s who perform to or above a given criteria with clear ob
jectives, measurements and qualification
process planned and agreed upon by participants and senior management.
It should be noted that more and more, pure
Source : Thailand Convention and Exhibition Bureau (TCEB)
incentive travel is rarely found. Increasingly, with
cost effectiveness a concern, companies attach other programs to incentive programs, for
example, corporate meetings.
Other recognition programs commonly used include cash, gift certificates, stock ownership,
meals, trips, time-off, plaques, trophies, personal praise, public recognition and merchandise.
55
According to survey findings as to employee effectiveness and recognition in the public
sector (Saunderson, 2004); employee recognition programs are used for different purposes,
to increase morale, to build a sense of belonging, to deepen employee commitment to the
organizations and to enhance employee retention. Saunderson also mentioned that employee
recognition programs could be a further divided into formal, informal or even everyday
recognition programs.
According to research conducted by the Incentive Research Foundation, methods employed
to determine who qualifies for incentive travel programs follow typical patterns. Perhaps the
most typical is tied to quantitative performance-driven programs in which employees are
expected to perform to a certain level by a certain date, with those who have achieved the
predetermined goal by the predetermined date automatically rewarded.
The nomination of qualified candidates is another popular format used to determine who gets
to go. This type of program is used primarily in department or firms where performance
evaluations are not based purely on sales or other quantifiable data.
Keeping employee morale high is valued by an organization in their efforts to maintain smooth
operations. Incentives of any kind are usually given as rewards, as a signs of recognition or as
tools to motivate employees. Originally, merchandise was given to employees as an incentive.
However, in quite an innovative move, in the 1900s, NCRCorporation in collaboration with the
Plaza Hotel in New York City offered, what was for the time, an innovative travel program to
New York City for top NCR management. Considered one of the earliest incentive travel
programs, it led to the growth of a primarily domestic incentive program tradition.
After the 1960s, incentive travel extended
to international trips thanks to rapid developments and availability in the aviation industry. This development offered
corporations lower cost for international
transportation and reduced travel time
marking the golden age in the incentive
travel industry as it expanded into business
across the US
Source : Thailand Convention and Exhibition Bureau (TCEB)
Incentive Travel Programs Types
In addition to these definitions and short history of the incentive travel sector, programs can be
separated into two specific types - close- and open-ended incentive programs.
56
Introduction to MICE industry
Close-ended Programs
Close-ended programs have a pre-set budget and a guaranteed maximum number of
qualified employees who will receive an incentive trip once the campaign ends. The benefit is
that companies who sponsor incentive programs can determine exact costs at the beginning.
While easier to budget, close-ended incentive programs can alienate employees who reach
their quota but have not yet reached the top of the group. Repeat winners may dominate
incentive programs, leaving average performers unmotivated to participate.
Open-ended Programs
Open-ended programs have no limit to the number of
qualified employees or the number of awards they can
accrue. The cost of organizing
a program will be based on the number of qualified employees. The advantage of open-ended incentive travel
programs is that they can be more motivating as anyone
who reaches a pre-determined goal will be able to receive the incentive trip. However, the company sponsoring the incentive programs cannot pre-set a budget or
cost of organizing it.
Source : Thailand Convention and Exhibition Bureau (TCEB)
Incentive Travel Importance
Regardless of how participants are chosen to participate (performance or nomination),
incentive travel programs deliver benefits to firms implementing them.
1. Drive desired outcomes
As incentive travel programs are usually planned ahead of time, companies need to set
out goals and objectives employees are expected to achieve. Via incentive trips as
rewards, companies should be able to persuade employees to produce desirable
results that match company goals and objectives.
2. Improve top performer retention
While incentive travel programs alone may not lead to the retention of quality
employees, offered as a reward, an appreciation or recognition as a top performer,
incentive trave programs can influence decisions to remain with a company.
57
3. Ensure positive organizational
culture
The most direct benefit from incentive
travel programs is to help enhance a
positive organizational culture. As intan
gible as it is, a positive organizational
culture is essential to a smooth working
environment, high morale and positive
employee attitude. Incentive travel can elicit the feeling that every contribution
is monitored and appreciated.
4. Provide networking
opportunities
Source : Thailand Convention and Exhibition Bureau (TCEB)
Incentive travel can also serve as a stage
for employees to mingle among them selves as well as with management and can
widen the perspectives of both employees and management. Through discussions, top
employees from different departments can share ideas about how they were able to
achieve their goals.
Conversations with top management that are both casual and constructive are rarely
experienced during normal working hours; therefore, an opportunity to share ideas,
contribute positive input and solicit feedback with top management can bring
beneficial changes and improvements to company operations.
5. Build motivation
Incentive travel is obviously a most effective motivational tool. An exotic, all-expenses
paid trip to far away and exotic countries can definitely provide a motive for employees
to perform to pre-determined goals.
6. Provide recognition
Only those who are qualified or who have performed at or above a set standard are
selected and rewarded with an incentive trip providing participants with a sense of
recognition and acceptance from the organization and among peers. Activities during
trips can allow individual performances to be announced such as award presenting
or casual praise by supervisors. These activities usually have a significant impact on
personnel emotions after the trip and with the anticipation for the next one able to mo
tivate employees throughout the coming year.
58
Introduction to MICE industry
Key Success Factors
To organize and host effective incentive travel programs, several key components contribute
to success.
1. Communication
Communication plays a key
role in smoothing out every
operation within a company
as well as in organizing incentive travel programs. Prior to an
incentive travel program taking
place in an upcoming year, top
management needs to communicate to all employees
details about the incentive plan
Source : Thailand Convention and Exhibition Bureau (TCEB)
and the destination to which
the company will be taking them.
The feeling of anticipation and excitement for an upcoming plan is desirable since it
can motivate employees to work towards the goal to earn a place on the trip.
A company can communicate to employees via different mediums, for example,
corporate websites, monthly postings and email, which should include all qualifying
criteria and periodic updates about employee performance.
2. Earning criteria and allocations
Rewards and recognition programs are very sensitive issues and can easily create
conflict and hard feelings among those who do not get them. The criteria for successful candidates must be clearly identified to everyone involved. Top management has
to keep in mind that the criteria must be realistic and attainable. Goals must be high
enough to keep employees motivated yet post a certain level of challenge at the same
time. With clear goals set, any potential ambiguity about criteria among employees
and management can be eliminated.
The composition of clear policies should, as a minimum contain details as to 1) how to
earn rewards; 2) overall qualifying criteria for all employees; 3) the awards; and 4)
specific criteria for each employee category within each division of the company.
59
In addition, documents should include additional information related to important
accompanying issues, including whether employees have met or exceeded their
annual target, achieved financial performance, provided superior customer services,
contributed beyond norms or achieved team success.
Overall qualifications for employees eligible to participate in a program may include
employee status from the beginning of the evaluation period to the end. Qualifications
should include items related to the need to maintain full-time status, full compliance
with company rules and regulations, terms that apply in case of position changes and
policies in case of an inability to participate in a reward.
The rewards and awards to be given during trips should also be clarified. If rewards are
financial, documentation should spell out the exact amount to insure a transparent
disclosure of rewards. Lastly, the eligibility criteria for each employee category in every
division must be described. This is the most important part as it is what will be evaluated
as employees decide whether to participate in the programs.
3. Incentive program design
Every incentive trip requires hours of program-design planning, as the quality of trips
largely depends on the efforts put into this process. Top management and planners
usually shape the program to promote synergy among top company performers via
sharing of knowledge, ideas, best practices, brainstorming sessions and interactive
activities. Through these activities, top management is expected to improve overall
operations and processes. Meanwhile, business goals the company would like to
achieve with incentive trips must offer certain levels of excitement and entertainment.
A challenging task for planners, there will be a need to create a different plan each
year for the company to maintain uniqueness and exclusivity.
Source : Thailand Convention and Exhibition Bureau (TCEB)
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Introduction to MICE industry
4. Host Roles
Minor details that are part of incentive travel can make or break the impact of trips and
employee feelings. Hosts in this case refer to the executive level management who are
expected to participate in events and mingle with employees. Their attendance is to
show how much they appreciate each employee’s outstanding performance.
Apart from a chance to extend their appreciation, hosts can also spend time to mingle
and get closer to employees, listen to their needs and gain additional feedback. Not
merely just an opportunity to build personal relationships and motivate employees,
issues discussed with top performers can help senior management improve operations
and processes that can ultimately move the organization forward.
5. Budgets
Budget can be viewed as either a key success factor or a constraint. The more budget
allocated to programs, the more amenities that can be added. However, once given a
budget, proper allocation and budgetary management in every trip element is vital to
its success. Among many different expenses, the following will certainly be included;
airfare, accommodation, production, web services, marketing, room gifts & prizes, awards,
transportation, hospitality staff, food & beverage, team building, excursions, award receptions & dinner, gratuities and site inspection expenses.
Incentive Travel Industry Value
The Market for Incentive Travel, Motivational Meetings and Special Events published by the
Incentive Research Foundation offered insight into the size of the industry in 2006.
Companies in the US that use incentive travel packages usually provide it to sales representatives,
according to United States Incentive Merchandise and Travel Marketplace Study by The Incentive Federation. In all, 81% of the 1,121 companies contacted and interviewed used incentive
travel in their sales department with approximately USD 6.6B of the USD 13.4B total amount
spent on incentive travel packages earmarked for sales representatives.
Average annual budget surveyed companies put aside for incentive travel programs was
approximately USD 164,000. Moreover, three-quarters of the companies surveyed, reported an
involvement in incentive travel in the USD 100,000 to as much as USD 500,000 range. The average
number of trips in 2006 was 3.6 with approximately 160 attendees per trip for large companies
with annual revenue over USD 100M.
61
Incentive Travel in Thailand
Thailand Statistics
Figure 3-1: Share of Revenue Generated by Thailand MICE industry 2010
Incentive Travels
20%
Conventions
41%
Meetings
28%
Exhibitions
11%
Source : Thailand Convention and Exhibition Bureau (TCEB)
In 2010, spending on incentive travel in Thailand, at over THB 10.5B, represented 20% of total
spending in the MICE industry, coming third after conventions and corporate meetings in terms
of contribution to total spending.
62
Introduction to MICE industry
Figure 3-2: Revenue from incentive travel industry and Numbers of inbound incentive travellers numbers
190,000
12.00
185,000
10.00
180,000
175,000
8.00
170,000
6.00
165,000
4.00
160,000
2.00
150,000
0.00
155,000
2006
2007
2008
Estimated Revenue
2009
2010
145,000
(people)
195,000
Number of Incentive Travelers
Estimated Revenue (Billion Baht)
14.00
Number of Incentive Travelers (persons)
Source : Thailand Convention and Exhibition Bureau (TCEB)
The revenue generated from the incentive travel industry in Thailand grew on average at a rate
of 4.3% from 2006 to 2010, while the number of incentive travelers grew on average by 4% annually
during the same period. The growth in this sector was moderate in spite of a hard slump in 2008
due to the economic downturn in developed countries.
In addition, it should be noted that spending growth lagged behind growth in numbers. First,
this lag was caused in part due to the fact that average spending per person only expanded
by 0.3% from 2006 to 2010. Second, the average length of stay has declined by approximately
4.2%. Even with a slight increase in spending per head, the decline in length of stay led to a
slow growth in terms of revenue generation.
Top Destinations in Thailand
A touch of modernization and rich culture infused in every destination make Thailand a
mesmerizing place to visit. Destinations popular among both leisure tourists as well as incentive
travellers include Bangkok, Chiang Mai, Phuket and Hua Hin; all destinations recognized by
renowned travel publications and magazines such as Conde Nast Traveler, the leading luxury
travel magazine, Business Traveller (Asia-Pacific), the leading magazine for frequent business
traveller and Travel + Leisure, a travel magazine with 4.8+ million readers.
63
Bangkok
Bangkok is regarded as a vibrant, fun and active city. It can offer travelers fast-paced and
city-style travel programs with better
value for money compared to other
cities in the region.
Although the city has a less religious feel compared to other Thai cities, temples are still very much
apparent in most areas, Bangkok
offers a balance of modern world development, shopping malls,
traditional attractions and lifestyle
locations. Conde Nast Traveler, Business Traveler (Asia-Pacific) and
Travel + Leisure, Bangkok have
given Bangkok different awards.
Source : Thailand Convention and Exhibition Bureau (TCEB)
• 1 in the top 10 “World’s Best Cities”
st
rankings for the second consecutive year by Travel + Leisure
• 2nd in Top Cities in Asia by Conde Nast Traveler Reader’s Choice Award
• ‘Best Leisure Destination in Asia-Pacific by Business Traveler (Asia-Pacific)
Source : Thailand Convention and Exhibition Bureau (TCEB)
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Introduction to MICE industry
Chiang Mai
Chiang Mai has been awarded recognition as the 4th Best City in Asia by Condé Nast Traveler 2011 Reader’s Choice Award. The city itself,
located in the Northern part of the country, is one of the most
attractive in Thailand. With its
amazing climate that varies from
season to season, a distinct culture
filled with individualistic, laid-back and highly artistic Thais, the city looks
and feels different. Compared to
Bangkok, Chiang Mai has more of a
religious feel balanced with modern
development and sparkles with
modern development while
maintainingits traditions, history and
culture.
Source : Thailand Convention and Exhibition Bureau (TCEB)
Phuket
Based on Condé Nast Traveler 2011 Reader’s Choice Award, Phuket was ranked The Third
Best Island in Asia. With its advanced infrastructures such as an international airport which
can support direct international flights not to mention great hotels, resorts and spas,
Phuket is one of the most popular islands in Thailand filled with lively, cosmopolitan and
colorful activities.
Turquoise-colored water laps
along miles of sandy coastline
stretching across the horizon
providing a delightful setting for
visitors and suitable for water sports
of all types. In Phuket, visitors can
find many vibrant areas to enjoy
activities and locations in the sea
breeze or they can escape to
remote and peaceful spots for
sweet little escapes.
Source : Thailand Convention and Exhibition Bureau (TCEB)
65
Source : Thailand Convention and Exhibition Bureau (TCEB)
Hua Hin
Within easy travelling distance to Bangkok, another spectacular beach destination,
Hua Hin is more serene and well preserved than its more famous sister, Pattaya. Activities
in Hua Hin include golfing and savoring seafood by the sea. In addition to typical beach
activities, resorts and spas in Hua Hin have continuously received awards from Conde Nast
Traveler
Pattaya
Pattaya is among top of the list of the most famous destinations popular with tourists and
expatriates. There are so many places and activities to choose from that it has become
the world’s leading repeat visitor resort.
Samui
Samui Island, in Surat Thani Province off the east coast, is Thailand’s second largest island
after Phuket. It is rich with natural resources, white sandy beaches, coral reefs, jungles,
mountains and fields of coconut trees. The island is a self-sufficient community having little
connection with mainland Thailand and is surrounded by about sixty smaller islands.
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Introduction to MICE industry
Incentive Travel Trends
The incentive travel industry does not deviate much from other industries as it is influenced by
the state of the economy, technology and CSR initiatives. Surveys from the Incentive Research
Foundation (IRF), “Driving our Future: The top 11 Incentive Trends for 2011” has identified the
factors seen to influence the incentive travel industry.
Although the economic downturn hurt the global economy, in 2012, optimism spread again
concerning the condition of the economy. However, such optimism is still subject to risk, as it is
widely accepted that the world economy remains fragile. Research also suggests that
organizations, especially in the US, are shifting into a ‘new normal’ stage which refers to less
spending, investment and consumption.
Considering this, many studies have shown that within the incentive travel industry,
organizations are trying to find ways to justify the importance of incentive travel programs while
undergoing budgetary constraints. This means organizations are finding ways to mold incentive
travel and to justify its importance and remain ready to adopt incentive travel as they see fit.
However, observations suggest that incentive trips over the past couple of years have seen
fewer giveaways, attendees and qualifiers.
The IRF pulse survey was conducted in October 2011 with 138 incentive houses, suppliers, meeting
and event planners and corporate incentive buyers and aimed to provide an understanding of
overall trends for the near future or until 2012. First, the result suggested that around 62% of those
surveyed suspected that the current state of the economy has had a negative impact on their
ability to plan and implement incentive programs; 45% stated incentive travel budgets set aside
would remain unchanged. Moreover, change in program offerings are directed towards reductions
in the number of days and less on-site offering for each participant.
Another apparent trend prevailing in the incentive travel industry relates to trip components.
The survey suggested that destinations are now moving from international to domestic
locations together with a reduction in trip length. Pulse survey by IRF pointed out that 67% of all
upcoming incentive trips are expected to remain unchanged while 16% of all trips are expected
to change from international to domestic.
67
Incentive trips also becoming increasingly experience-oriented as participants are looking for
unique experiences. CSR initiatives promoted over the past years are also expected to appear
in incentive travel programs.
Increasingly, technology has merged and affects whatever we plan and execute. Even incentive
programs are expected to incorporate technology in one way or another with social media
one of the most important. It can also be leveraged as a communication tool within firms as it
can conveniently reach every participant in the program instantaneously.
Individual incentive travel is one of the fastest growing trends in the incentive, rewards and
recognition industry – and for good reason. Instead of a certain percentage of the top performers
receiving the same incentive trip to a predetermined destination, the company can set special
customized rewards to be granted to each individual based on their needs and preferences.
A corporate-sponsored individual incentive travel award can come in many forms from a
pre-packaged travel certificate to a complete planned package. Individual incentive travel
can be scheduled so that top performers can leave at different time.
Individual incentive travel can offer attractive and flexible options that inspire and motivate the
most valued performers. This customized solution lets winning participants create their own
private getaway based on their interests and personal schedules. With individual incentive
travel rewards, there are many choices for a top performer, one may have dreamt of going to
Hawaii, while another would like to go to Europe and yet another to the Caribbean.
The Value Chain
Figure 3-3: Incentive Travels’ Value Chain
1
Company
2
Incentive
Organization
External Service
Providers
• DMC
• Hotel
• Airline
• Ground Transporters
• Other i.e. meeting planners,
tour operator, catering, etc.
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Introduction to MICE industry
A vital step in designing incentive trips begins when the scope and content particular incentive
trips are defined. As shown in Figure 3.3, the arrows show a back-and-forth communication
between the company and incentive organizations to indicate the steps required to plan and
execute incentive trips and the need for sufficient time to plan them.
More than likely, the company has already identified some, if not all, the goals and objectives
they would like to achieve with an incentive trip whether on their own or with the help of an
organizer who might be called in early in the planning stage to help clarify incentive strategies
along with qualifications and criteria needed to qualify.
Criteria will be specified in rules set forth by management for those who wish to participate,
pointing out what they must achieve to earn incentive trips and must be realistic, attainable,
yet challenging enough for employees to feel motivated. The criteria must also be clear,
exclude any all grey areas and close any possible loopholes. This earning criterion is the most
important part of the overall success.
Meanwhile, the company alone or with the help of an incentive organization must communicate
to all employees about the upcoming trip. This is important because it will help to build excitement
and anticipation. With various channels such as a corporate website, monthly postings and
email available, this process must clearly spell out policies and procedures as clear communication
can alleviate any difficulties that may occur by keeping everything transparent.
The company must then begin to design the program with organizers. Programs must be
designed to answer company goals and objectives while keeping employees morale and level
of motivation as high as possible. Everyone who attends must benefit from an incentive trip
in some way.
Budgeting amounts often arrive from a calculation based on the dollar-impact from the
collective achievement realized if the goals set for employees are reached. Once a lump-sum
budget is determined, it should be left to company discretion as to the breakdown for each
item making up a trip.
The preparation of the trip itself is usually in the hands of the incentive organizer who should
oversee all administrative aspects and ensure synchronization of all functions included in the
program. As mentioned earlier, most incentive organizers will coordinate and sub-contract
most tasks to dependable service providers such as hotels, airlines, ground transportation and
local tour operators.
69
Source : Thailand Convention and Exhibition Bureau (TCEB)
Key Stakeholders
Incentive Organizations/Incentive Houses
Incentive programs include a wide variety of incentive ‘tools’ including cash, merchandise,
travel, education and training, recognition programs, leadership and people management
improvement and employee empowerment. In many companies, these programs and tools
are managed by external sub-contractors to plan and run programs on behalf of the company
and usually further solicit different parts of services to other service providers.
1. Full-service incentive organizations: performs all related tasks for a company interested
in providing incentive programs for employees. They start with analyzing and determining
client core issues and later shape incentive plans that specifically match identified issues.
A company should start with a clean sheet of paper to arrive at the most specific and
tailor-made strategies for the situation it is facing at that time. Full-service incentive
organizations offer a variety of communication, training, measurement and reward
services with a consultative and solution-oriented approach.
Incentive travel represents the services this type of incentive organi
zation typically offers extending to a
full-scale travel program from initial
planning & designing to operating
and evaluating a trip specially
designed for a client.
Source : Thailand Convention and Exhibition Bureau (TCEB)
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Introduction to MICE industry
2. Fulfillment Service: offer a product or puts a pre-determined plan into place. It usually
specializes in the sales portion of incentive packages and provides administration and
logistics for travel and merchandise incentives. Fulfillment service companies do not
usually earn professional fees like full-service organizations but rather earn commissions
on travel services. They operate with low overhead cost by sub-contracting to
ompanies where each one takes on different necessary tasks to complete an entire
program.
Travel agencies are not classified as incentive organizations as the depth of their services is
limited to organizing travel arrangements and are seen to have the least involvement with
companies.
Service Providers
Services providers include hotels,
transport operators and airlines.
Essentially, they perform tasks they
are skilled or experienced at providing and are vital to incentive trip
quality and overall success. As such,
they must be dependable and able
to provide quality services under
time and budget constraints.
Increasingly incentive travel requires
more creativity and innovation
compared to typical leisure trips as
Source : Thailand Convention and Exhibition Bureau (TCEB)
incentive travelers expect exceptional experiences rather than
a ‘product,’ services providers need to offer travel experiences that reflect:
Uniqueness: No trip or event should be the same as any other or predictable. Itineraries should be fresh and ignite surprise from those participating.
Fantasy or exotic experiences: Traveling to new locations should be followed by
rare and exotic new experiences not easily available.
Exclusivity: Trips must give participants the impression they have been offered privileged access to exclusive places and opportunities to meet new and influential people.
71
Originality: Providers need to
create new ways of performing the
same task by providing programs that
create excitement.
Attention to detail: Perhaps the
most vital aspect to the overall
success of an incentive trip, any
little detail must not be overlooked.
Equality in Treatment: Providers
must make certain they treat every
participant equally as incentive
travelers can be sensitive to any
nuance in levels of treatment. For
example, accommodating
employees in different types of rooms
can cause unnecessary comparisons
and potentially lead to dissatisfaction.
Therefore, services must be
standardized across all participants
while maintaining exclusivity and
Source : Thailand Convention and Exhibition Bureau (TCEB)
uniqueness for the program.
Convention and Visitors Bureaus (CVB)
A Convention and Visitors Bureau (CVB) promote and facilitate the MICE industry within the
country or region it represents. Particularly with incentive travel, services provided vary; however, in general, these include:
Provide information and advice on destinations services, facilities and know-how
Give unbiased advice on how to choose destinations, providers and suppliers
Organize and support familiarization trips for corporate buyers and incentive houses
Provide brochures, teaser materials and maps
Offer on-site advice
Make available newsletters and market updates
Assist with customs, immigrations and tax rebates
Provide access to special destinations, venues and other facilities
Provide destination promotion and support
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Introduction to MICE industry
Other Associations
Thailand Incentive and Convention Association (TICA)
Established in 1984, the Thailand Incentive and Convention Association (TICA) is a non-profit
association to promote corporate meetings, incentive travel, conventions and exhibition.
The association is formed by all players in the Thai MICE industry including hotels, event organizers,
venues and contractors.
For incentive travel, TICA plays an active role in hosting and coordinating familiarization trips in
Thailand. TICA also plans and undertakes the sale of promotional trips and participates in trade
shows like Asia-Pacific Incentive and Meeting Expo (AIME), IMEX, Exhibition for the Incentive
Business Travel and Meetings (EIBTM), The Incentive Travel and Meeting Executive (IT&ME) and
Incentive Travel & Conventions Exhibition (IT&CMA).
Society of Incentive and Travel Executives (SITE)
Society of Incentive and Travel Executives (SITE) had their first meeting in 1973, which at that
time consisted of international and professional non-profit associations wanted to pursue
excellence in incentives. Membership grew significantly from 84 in 1973 to 2,035 in 1990.
SITE has played an important role in standardizing and improving the incentive industry by
starting the Certified Incentive Travel Executive (CITE) program as well as holding numerous
seminars to improve the professionalism within the industry. It is also instrumental in conducting,
collecting and disseminating industry research.
The Incentive Research Foundation (IRF)
Founded in 1987, Incentive Research Foundation (IRF) was established through donations from
SITE members. A private, non-profit foundation, it funds research studies and develops products
to serve all segments in the incentive industry. To date it has published nearly 50 research projects
highlighting the power and importance of incentive and motivational programs.
The foundation is seen as a global resource for independent, cutting-edge information and
analysis of incentive marketing practices and applications. Their research is intended to assist
professionals in this industry to cope with its dynamic nature and to improve their professionalism
as they experience shifts within the industry.
73
Chapter 4
Conventions
74
Introduction to MICE industry
Terminology
This chapter concentrates on the convention industry, described in Rogers’ Conferences and
Conventions as a young and dynamic industry growing at a rapid rate. Despite its size and
significance to an economy, the convention industry remains a sub-sector in the MICE industry.
Before beginning, it is necessary to review the various terms used to describe ‘conventions’ to
avoid confusion. For simplicity, ‘convention’ and ‘conference’ may be used interchangeably
while ‘congress’ is used in Europe and seen as similar in meaning to ‘conference.’
According to the glossary published by The Convention Industry Council (CIC) which is also
quoted by many renowned associations such as International Association of Professional
Congress Organizers (IAPCO) and International Congress and Convention Association (ICCA).
A convention is:
An event where the primary activity of the attendees is to attend educational
sessions, participate in meetings/discussions, socialize or attend other
organized events. There is a secondary exhibit component.
A conference is:
1) A participatory meeting designed for discussion, fact-finding, problem
solving and consultation. 2) An event used by any organization to meet and
exchange views, convey a message, open a debate or give publicity to some
area of opinion on a specific issue. No tradition, continuity or periodicity is
required to convene a conference. Although not generally limited in time,
conferences are usually of short duration with specific objectives. Conferences
are generally on a smaller scale than congresses.
A congress is:
1) A regular coming together of large groups of individuals, generally to discuss
a particular subject; a congress will often last several days and has several
simultaneous sessions. The length of time between congresses is usually
established in advance of the implementation stage and can be either
pluri-annual or annual. Most international or world congresses are of the former
type while national congresses are more frequently held annually. 2) Meeting of
an association of delegates or representatives from constituent organizations 3)
European term for convention
75
CIC also pointed out that meetings should be defined by its primary purpose.
A general term covering all non business-oriented gatherings of participants at
a predetermined site and time to attend an organized meeting in which they
have an interactive, debating, and/or competitive role and of which the theme
or purpose may be of any nature. These meetings are hosted by professional,
trade, or other non-corporate organizations. Conferences, conventions and/or
congresses may include seminars.
Although some overlapping in meaning remains, for simplicity, this book will regard ‘convention’
and ‘conference’ as closely related and interchangeable.
Source : Thailand Convention and Exhibition Bureau (TCEB)
Convention Categorization and Measurement
According to Global Meetings and Exhibitions (2007) by Krugman and Wright classifying
conventions, conferences and congresses can be organized in a number of patterns.
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Introduction to MICE industry
1. By purpose Conventions, conferences and congresses can be held for many different
reasons, to inform, debate, organize, motivate, educate, communicate, or to reach
decisions.
Congresses are usually to inform, communicate and provide opportunities to debate
different issues.
Conferences are used to inform and to reach conclusions or decisions for issues
introduced. Conventions, on the other hand, are mainly held to organize, inform,
motivate, communicate, debate or vote.
2. By participant numbers, Conferences are usually smaller in nature when compared to
conventions and congresses.
3. By frequency, Conventions are usually held annually, whereas congresses can be held
annually, semi-annually or even on an ad-hoc basis. Conferences have established
and fixed schedules with a frequency that varies depending on each association.
However, there is no consensus on how much lead-time it takes to plan each type of
convention, conference or congress. Conferences can be planned in a few weeks
while conventions and congresses usually require more time.
4. By attendee, ICCA classifies meetings into corporate or association. Corporate
meetings consist of internal and external company-based meetings and combinations
of both. Association meetings are sub-divided into governmental and non-governmental
associations meetings.
Several associations that collect and analyze meeting industry data make certain
assumptions to narrow down the meeting type included. ICCA focuses on non-governmental
association meetings attended by at least 50 participants, organized on a regular basis
(one-time events are not included) and move between at least three different countries.
The Union of International Associations (UIA) also collects information similar to ICCA
but excludes national meetings as well as those of a religious, political, commercial or
sporting nature and meetings with strictly limited participation. In addition, corporate
and incentive meetings are not included in the data. UIA includes international meetings
that meet one or both of these criteria.
4.1 Meetings organized or sponsored by international organizations such as non-
governmental organizations (NGOs) and intergovernmental organizations
(IGOs) that appear in the UIA’s yearbook of international organizations and in its
international Congress Calendar.
77
This includes:
Events of any size, though only meetings with at least 50 participants, or those
without information on the number of participants, are included in report
Events with a fixed city or country
4.2 Meetings organized by significant international character, such as those organized
by national organizations and national branches of international organizations.
This includes meetings that:
Last at least three days, or an unknown number of days and have a concurrent
exhibition or
Last at least three days, or an unknown number of days and have at least 300
participants
There are overlapping areas between ICCA and UIA data though the obvious distinction is that
ICCA require international meetings to rotate between countries while UIA allows meetings with
a fixed-location to be counted in the data.
Convention Industry History
Convention and Visitors Bureau Origins
Started in 1896, The Detroit Convention and Businessmen’s League was the first Convention Visitors
Bureau (CVB) and by 1897, the city has secured over 200 conventions.
At the time, many key national organizations were beginning to hold national conventions cities
were eager to host. However, as efforts to attract these conventions were being undertaken in
an unsystematic and casual manner, the establishment of the Detroit CVB became a model in
how a city could attract conventions in a systematic and focused manner.
In 1914, the first association of convention secretaries originated and later in 1920 changed its
name to International Association of Convention Bureaus (IACB). Its mission was “to promote
sound professional practices in the solicitation and servicing of meetings, conventions and tourism.”
The letter ‘V’ was added in 1974 becoming the International Association of Convention and
Visitors Bureaus (IACVB) to include organizations that focused on visitors as well. In 2005, IACVB
renamed itself again to the Destination Marketing Association International (DMAI).
Three underlying reasons let to the establishment of a central association representing local
CVBs.
78
Introduction to MICE industry
1. There was a need to share legitimate information among local CVB and potential
clients. IACB believed proper information could accurately represent the industry and
help local CVB and the industry as a whole.
2. There was a need to promote ethical practices. Standards and a code of practices
were distributed to all members who were encouraged to ensure local CVB worked to
a high level of ethical standards and integrity.
3. There was a need to develop proper and desirable practices for the industry, by
publishing and sharing knowledge about the industry to assist local CVB and other
stakeholders.
IACB continue to devote their resources to educate organizers in how to create their own
financial plans and how to make rational decisions during the planning process. IACB core
focus remains on developing educational programs, professional development, as well as
accreditation programs for its members through a destination marketing accreditation
program.
Recent Conventions Trends
The convention industry continues to gain popularity in developed and emerging countries
alike. Many countries continue to seek the significant benefits it brings as spending per
delegate is higher than with leisure tourists. In addition, as conventions usually have a
predetermined schedule, a constant stream booked within a country can promise employment
for those who work within the sector. Finally, they help to publicize a country overseas and to
encourage more inbound travel.
As optimistic as the industry could get, it experienced a hard slump in 2009 due to the economic
crisis in the United States at the end of 2008, which spiraled into a global economic crisis and
has proven to be a turning point forcing the previously high-spending industry into a much more
cost effective one. As a result, today fewer
conventions are being held characterized
by smaller, more precise sessions aimed
at a more highly selective delegate base.
Delegates are now looking for conventions
responding to their field and networking
opportunities. Convention results must be
measurable, as quantifying return on
investment has now become necessary for
any association hosting conventions.
79
Convention 2020, a global strategic foresight study sponsored by International Congress and
Convention Association (ICCA), publishes FastFuture Research and IMEX to help its members
in the meetings industry to prepare for the future and to ensure they remain competitive. The
study, 1,125 respondents from 76 countries, summarized findings about the convention industry
and its outlook. The survey highlighted main drivers and barriers to convention effectiveness
with top barriers being attendance costs, poor organization and a lack of design focus, while
main drivers were found to be the quality, technology and convention networks.
Approximately 19% of the respondents believed cost was the main barrier that hindered success
or the level of effectiveness conventions could achieve. Planning and organizing conventions in
a cost-effective manner is plausible although challenging for planners who need to come up
with new and innovative ideas to achieve the same level of effectiveness.
Another 14% said the quality of event organization could prevent conventions from being
effective. Organizers need to be able to keep up with industry dynamics as it matures by
keeping updated as to new trends. A lack of focus in design was seen as another factor hindering
effectiveness (circa 10%).
Approximately 20% said content was the most important factor in determining an effective convention. Another 13% believed an opportunity to interact among delegates and with speakers
were important. Finally, 10% stated that the use of technology and the quality of internet access
were crucial in effective conventions.
Source : Thailand Convention and Exhibition Bureau (TCEB)
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Introduction to MICE industry
Conventions have become increasingly delegate-oriented with success coming to those that
can organize conventions that meet requirements delegates are seeking. While past conventions
might have been held in a classroom-like atmosphere where speakers stood in front to present
content and provided minimum opportunities to interact, increasingly delegate demand for
change have change been felt. Increasingly, conventions have scheduled times for delegates
and speakers to interact with proper venues for them to do so. Furthermore, convention halls
are increasingly being arranged to help create active learning experiences.
Convention Benefits
According to A Scoping Study of Business Events: Beyond Tourism Benefits, conducted by the
University of Technology, Sydney on behalf of the leading Australian convention bureau,
convention benefits to the hosting destination come in the following areas:
Knowledge expansion
Networking
Educational opportunities
Fundraising and future research
Raising awareness
Destination reputation
Knowledge expansion comes through
discussion and dissemination of
information, ideas and technology.
Conventions bring together people
of different careers and background
within a sector, for example, researchers, academics, suppliers, practitioners and national &
international associations and offer an opportunity for these very different people to come
together, communicate, network and establish relationships.
Conventions can foster educational opportunities for delegates and members of the local
community to learn and gain exposure to professional knowledge and information within a
particular sector. It can translate into an enhanced reputation and lead to the belief that the
destination contains skilled, capable human resources. Finally, conventions can also improve
its level of attractiveness as a future leisure or business destination.
81
Global Convention Statistics
Statistical data presented here come from two main sources, the International Congress and
Convention Association (ICCA) and the Union of International Associations (UIA).
Figure 4-1: International Association Meetings 2006 - 2010
9,120
9200
Number of Meeting
9000
8800
8,586
8600
8400
8200
8,715
8,294
8,094
8000
7800
7600
7400
2006
2007
2008
2009
2010
Year
Source : ICCA Statistics Report 2008-2010
Figure 4-1 depicts an upward trend in convention industry until 2008 with a deep decline in
2009 due to budget cuts. Not only did the financial crisis affect conventions, but corporate
meetings and incentive travel also felt the economic downturn. However, the decision to cut
back on corporate meeting or incentive travel takes much less time and more readily responds
to shifts in social and economic changes. Conventions, on the other hand, normally have a
long lead-time, which is why there is a lag in the decline in conventions and not a sudden drop
once the economy enters into a recession. Despite the drop in 2009, the number quickly built
back up and reached an all-time high in 2010 reflecting a strong positive sentiment in the market.
Figure 4-2: International Association 2010
North America
11%
Other
16%
Europe
54%
Asia
19%
Source : ICCA Statistical Report 2006-2010
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Introduction to MICE industry
It can be seen that Europe remains the main location for conventions with 54% of the total held
in 2010, with Asia second at 19%. The most important message, however, lies in the growth in
the overall number of conventions growing from 5,262 in 2001 to 9,120 in 2010. With the highest
share, Europe faced a decline throughout from 56% in 2001 to 54% in 2010.
On the contrary, conventions held in Asia rose from 15% in 2001 to 19% in 2010. In Asia, 814
conventions were held in 2001 moving up 1,737 conventions in 2010 reflecting an approximate
9% annual growth. In Europe, 2,952 conventions were held in 2001, expanding to 4,921 in 2010
representing an approximate 6% annual expansion.
The numbers suggest a constant growth is visible in emerging markets especially in Asian, despite
the fact the European market still dominates the market. In addition, although there are some
countries in Asia in which industry has developed more than others such as Singapore, Hong
Kong and Mainland China, other emerging destinations are gaining force at a remarkable rate.
ICCA data gives rankings based solely on the number of conventions passing their criteria and
held within each country. Shown below in Table 2-1 are the top ten rankings in 2010, with the US
ranked first with 623 conventions. In 2010, Japan and China were the only two Asian countries
ranked among the top ten and reflected a new trend that for the first time since 2001 the top
ten destinations did consist of only European countries. Thailand was ranked 35th with 88
conventions in 2010 which was lower than Singapore, Korea, India and Malaysia.
Table 2-1: Global Ranking 2010
Ranking
2005
Global Ranking
2006
Country
Meeting
numbers
1
USA
2
Germany
3
2007
Country
Meeting
numbers
Country
Meeting
numbers
648
USA
415
Germany
645
USA
449
Germany
UK
389
UK
390
4
France
360
France
5
Spain
350
2008
2009
Country
Meeting
numbers
651
USA
525
Germany
UK
368
370
Spain
Italy
323
2010
Country
Meeting
numbers
Country
Meeting
numbers
507
USA
402
Germany
595
USA
623
458
Germany
Spain
347
542
Spain
360
Spain
365
France
451
334
Italy
350
UK
Italy
350
399
UK
322
UK
345
France
371
6
Italy
342
Spain
316
France
340
Italy
296
France
341
Italy
341
7
Netherlands
234
Netherlands
255
Japan
265
Brazil
254
Brazil
293
Japan
305
8
Japan
232
Japan
243
China
264
Japan
247
Japan
257
China
282
9
China
226
Austria
240
Canada
247
Canada
231
China
245
Brazil
275
10
Austria
188
Brazil
231
Austria
243
Netherlands
227
Austria
236
Switzerland
244
Source: ICCA Statistics Report 2001-2010
Ranking based on the total number of international association meetings held in each country
83
CCA also provided other useful and interpretive data such as average meeting length, average number of participants and common topics discussed at conventions. According to ICCA,
the top three topics in 2010 were medical science, technology and science respectively.
ICCA data also found a declining trend in meeting length, dropping from 5.1 days in 2001 to 3.9
in 2010 and participant numbers decreasing from 696 in 2001 to 571 in 2010. These numbers offer
a very crucial message to organizers and venues alike in that delegates now demand smaller
and shorter conventions with short, concise and straightforward programs.
Asian Conventions Statistics
Figure 4-3: International Association Meetings in Asia and Middle East 2001 - 2010
2,500
1,802
2,000
1,500
1,000
1,020
1,531
1,559
2004
2005
1,924
2,018
1,883
2,008
1,148 1,117
500
0
2001
2002
2003
2006
2007
2008
2009
2010
Source : ICCA Statistical Report 2001-2010
Figure 4-3 illustrates that the number of conventions within Asia and the Middle East has grown
from 1,020 in 2001 to 2,008 meetings in 2010, with Thailand ranked 9th in Asia (Table 2-2). In
addition, average participant numbers at conventions in Asia increased slightly in 2010 to 632
participants per meeting compared to 532 and 535 in 2008 and 2009 respectively. The length of
meeting has remained unchanged over the last five years at approximately four days.
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Introduction to MICE industry
Table 2-2: Asia Rankings 2010
Ranking
2005
Asia Ranking
2006
Country
Meeting
numbers
1
Japan
2
China
3
2007
2008
2009
2010
Country
Meeting
numbers
Country
Meeting
numbers
Country
Meeting
numbers
Country
Meeting
numbers
Country
Meeting
numbers
232
China
255
Japan
265
Japan
281
Japan
257
Japan
305
226
Japan
243
China
264
China
262
China
245
China
282
Australia
186
Australia
207
Australia
212
Australia
197
Australia
176
Australia
239
4
Korea
139
Korea
167
Korea
147
Korea
184
Korea
169
Korea
186
5
Singapore
117
Singapore
134
Singapore
140
Singapore
128
Singapore
119
Taiwan
138
6
Thailand
103
India
101
Thailand
115
Thailand &
Malaysia
100
Thailand
103
Singapore
136
7
Hong Kong
91
Thailand
100
India
112
India
99
India
96
Malaysia
119
8
India
76
Malaysia
98
Taiwan
105
Taiwan
89
Taiwan
91
India
100
9
Taiwan
68
Hong Kong
74
Malaysia
104
Hong Kong
67
Malaysia
67
Thailand
88
10
Malaysia
66
Taiwan
69
Hong Kong
81
Indonesia
46
Hong Kong
37
Hong Kong
82
ource: ICCA Statistics Report 2001-2010
Ranking based on international association meeting per country in Asia and the Middle East
Convention Trends
Factors affecting the convention industry’s future can be grouped into technology advancement
and sustainability. Changes in behavior especially in the era of rapid technological development
have developed alongside endeavors to maintain and promote sustainability as two major
forces driving the convention industry and influencing strategy in the years to come.
Technology
Mobile/Tablet apps and the extensive use of social media will intensify and shift traditional convention platforms. It will affect the way information is accessed by delegates and, as such, the
marketing strategies employed by venues and convention planners (PCOs.)
The increased popularity of smart phones has redefined needs within the industry as more
smart phones users enter the market, there is more demand for applications designed to fit different lifestyles. These same forces can be seen in the convention industry. Future Watch 2011 by
MPI indicated that more than 80% of meeting professionals use smart phones.
Mobile/Tablet apps are a major medium that can provide delegates with access to real-time
information related to the event at reduced cost. Having already passed through the early
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adoption phase for smart phones usage among meeting professionals, more free or low cost
apps are available for meeting planners to employ, either through apps creator companies or
via DIY (Do It Yourself apps).
Apps can also promote on-site networking as they usually include blogs or even real-time chats
among delegates. Apps also provide venues and planners a tool for inexpensive advertising
schemes as news and any updates can be constantly accessed by delegates through push
notifications before and after events. By using apps, planners and venues can track activities
delegates most often access, conduct feedback surveys and cater future promotional campaigns
fit to each target group and ultimately enhance CRM systems.
Social Media has become a cost-effective tool in spreading advertising or product buzz.
Facebook, LinkedIn and Twitter, the big three social media platforms, have gained immense
popularity and should continue to grow into the future. In the perspective of conventions, social
media can be used to increase participant engagement levels before, during and even after
events since the level of penetration to potential delegates through social media is very high.
As the future of social media is vigorous and rather unpredictable, planners and venues need
to remain highly attentive to trends and to adjust strategies accordingly. FastFuture, a study on
what delegates expect to see at conventions in 2020, reported that 70% believed visits to social
networks before, during and after an event would become the norm.
Social media can bring many benefits to conventions and convention organizers. First, it can
enhance the level of collaboration and sense of community. Convention organizers who
decide to integrate social media in the convention planning process can definitely leverage
the platform at a cheaper rate to boost connectivity and induce relationship building. Social
media also opens up many other opportunities including becoming an informal networking
environment, a peer-to-peer meeting center, a pool of resourceful information and an easy
access point.
Wi-Fi access is now a must-have at conventions with internet access viewed by attendees as a
necessary utility much like water and electricity. FastFuture research stated that 73% of delegates
expect meeting facilities to adopt the use of Wi-Fi within the next decade.
Virtual Conferences
Tighter budgets due to the economic recession in the US as well as the Euro zone debt crisis, has
altered typical meeting and convention operation. MICE visitors and planners have become
more scrupulous in their spending and budgeting for MICE events directly affecting the way
conventions are held. Although, this does not imply a lessened need for conventions, it has
redefined what is seen as typical.
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Introduction to MICE industry
The introduction of virtual conferences, conducted via the internet in the comfort of a home or
office, has become well accepted, as it saves time and cost for attendees especially those who
are recession-prone. Although face-to-face meetings remain highly valued by business people,
virtual meetings are seen to have their place as an important and economical means to create
and retain partnerships.
Realizing this, the growth of hybrid meetings, in which some participants remain at a distance
while others gather in a central location, has become very popular. FastFuture pointed out that
75% of the respondents believe conventions in 2020 will include technology that will allow live
video streaming to remote participants.
Sustainability
Sustainability and concerns
about carbon emissions, global
warming and other environmental
issues has affected many
industries. Integration of
sustainability measures into daily
operations and strategic
direction is crucial for the
survival of many industries,
including the MICE industry.
Sustainability issues have now
become major concerns in the
convention industry and planners in every area, including building operations & environmental
control measures, the design & construction of new facilities and even how planners market
& sell their services have changed (Green Meeting: does anyone really care?’ Conference +
Meeting Magazine, 2007)
1. Meetings are expected to show efforts to promote sustainability since meeting activities
are highly visible. Planners need to show concern and take sustainability measures seri
ously in return for community support and acceptance.
2. Corporate clients through the needs of their own members expect green service from
planners. Quoting from the article, Environmental concerns have gone from being a
cause to simply expectations (2007), “planners have to respond through being more se
lective. Venues and service providers must follow in incorporating sustainable services
to cope with the shift in the industry…”
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3. Sustainability measures can contribute to cost effective operations and if managed
with an ongoing perspective can help to reduce overall long-term operation costs for
attendees and planners in waste reduction and energy consumption.
4. Laws and regulations have now shifted towards integrating sustainability. Many
communities and government have now awakened to the environmental and social
impact; therefore, changing what was once considered good practices into actually
laws and regulations.
Source : Thailand Convention and Exhibition Bureau (TCEB)
The Economic Impact of Meetings and Events (2006) described green meeting opportunities as:
Increasingly, meeting professionals are recognizing that green practices like recycling and re-use can translate into lower on-site costs. On the facilities side of
the industry, a handful of trendsetters have achieved dollar savings by reducing
the energy and water they consume and the waste they generate – and have
gained a distinct marketing advantage by positioning themselves as green
venues.
Although sustainability concerns are gaining a foothold and merging into every facet of the
industry, they are recognized as a very new and vibrant initiative to be explored.
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Introduction to MICE industry
Conventions in Thailand
Figure 4-4: Thailand MICE Industry Revenue Share 2010
Incentive Travels
20%
Conventions
41%
Meetings
28%
Exhibitions
11%
Source : Thailand Convention and Exhibition Bureau (TCEB)
Revenues generated in 2010 from meetings, incentive travel, conventions and exhibition are
given in Figure 4-4. With the total revenue approximately THB 53B, the convention sector represented
the largest share (41%) of the total revenue generated by Thailand’s MICE industry.
30.00
25.00
330,000
27.9
24.8
23.6
320,000
310,000
24.4
21.7
20.00
300,000
290,000
280,000
15.00
270,000
10.00
260,000
5.00
240,000
0.00
250,000
2006
2007
2008
Estimated Revenue
2009
2010
230,000
(persons)
14.00
Number of Delegates Participated
Estimated Revenue (BillionsBaht)
Figure 4-5: Convention Sector Revenue and Delegate Numbers
Number of Delegates Participates (persons)
Source : Thailand Convention and Exhibition Bureau (TCEB)
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The number of conventions held in Thailand has increased since 2008 from 2,184 to 2,385 in 2010
but with fewer participants which dropped by 1.4% annually. The total estimated revenue from
conventions in Thailand declined moderately at around 2% annually, as depicted in Figure 4-5.
This was due to a decline in average expense (-0.7%) per participant.
Convention Industry Value Chain
This section offers a flow of the work and those involved in planning and organizing conventions
from initiation until the last delegate has returned home. The illustration below explains the full
process involved in convention organizing. However, in practice the process may be shorten or
manipulated according to requirements and needs of related parties.
Associations usually meet on a predetermined schedule ensuring a predictable starting point
Figure 4-6: Convention Industry Value Chain
Absolution
Core PCO
Destination
AMC
Local PCO
DMC
VENUE
Service
Provider
Source: Creating the Global Value Chain by ICCA
Etc.
for a convention timeline and can choose to organize the convention in-house or outsource it
to a Professional Convention Organizer (PCO). Associations that require services from a PCO will
prepare an ‘Invitation to Tender’ or detailed information about the upcoming convention and
expected services to be performed. Then, PCOs will develop proposals and budget required to
run the convention and submit them. According to IAPCO, a bid or a tender is defined as “an
invitation to host an international convention in a country.”
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Introduction to MICE industry
The role of a PCO includes assistance with bids, venue research and feasibility, advice &
consultancy services, project planning, meetings with organizing committees, delegate
management, marketing & public relations, staffing and event evaluation. In practice, a PCO
can be brought in anywhere in the planning process but are commonly brought in as early as
the bidding process. Lacking expertise, resources and experience in organizing conventions,
associations usually seek an external party that can render the professional management of
a convention.
In the next step, a call for proposals will be sent out to potential destinations asking them to
present a bid for a potential convention to be held in their jurisdiction. Initial responses from
interested destinations will be evaluated and those who are shortlisted will be given biding
manual and guidelines that include comprehensible details such as minimum requirements
to be qualified as bidders, timetable and important deadlines, convention history, objectives,
decision-making factors, decision-making process, format of bid documents and other
essential information.
Meanwhile, bidders should also analyze bid criteria and conduct in-depth research to ensure
whether their destination meets the specifications needed to go further in the bidding process.
Once a decision is made to proceed with a bid, a team or organizing committee needs to be
created. Bid teams usually include a local member or chapter of that international association
(usually a chair or ambassador); invited member from the same field, venue representatives,
local convention bureau, airlines and sponsor companies.
The committee will undertake necessary background research to prepare for the bidding
along with a SWOT analysis (strengths, weaknesses, opportunities and threats), project plans
and tasks, budget for bidding and funding to fit the guidelines and requirements. According to
ICCA, there are four underlying decision factors:
logistical criteria
financial criteria
internal association objectives
political and emotional criteria
Source : Thailand Convention and Exhibition Bureau (TCEB)
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Logistical criteria have to do with the level of destination accessibility, supporting infrastructure
around the venue, venue availability and the amenities provided.
Financial criteria include potential risks and returns from the convention, subsidies or support
from a local destination, airlines, hotel discounts and costs & revenues.
Internal association objectives spell out goals and objectives an international association might
have in holding conventions and aligning them with that of the community. For instance, if
convention content matches local demand, the community might offer a potential to expand
its membership base.
Political and emotional factors that influence the decision might include tourist appeal, cultural
appeal, links to the association’s culture or history, an anniversary of the association or the
destination, government support or an important bidding leader.
Regardless of the bidding process complexity, once bids from every destination are submitted,
potential bidders are shortlisted and site inspections have been conducted, the winning bid will
be announced.
The first step is to establish goals and objectives and in doing so distinguish between objectives
of attendees, meeting professionals and the host organization. The next step is to establish a
conference budget and registration fee structure to achieve the most benefit from the resources
available given the amount of time to put into planning and organizing the convention. Via
Source : Thailand Convention and Exhibition Bureau (TCEB)
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Introduction to MICE industry
documenting the entire costs and revenues structure, planners can estimate and control the
source of revenue and costs. In this stage, a certain amount of flexibility is required while being
conservative and realistic at the same time.
After establishing an overall plan, planners have to put all the details together, which might
include:
organize site infrastructure
determine marketing plan
produce promotional tools
estimate on-site staff
requirements
make other arrangements
With planning complete, the next step is to market the convention. This is the heart of the
convention and the key to success and must focus on targeting the right group of attendees,
speakers and sponsors by using the right approach in the right place at the right time. Marketing plans for conventions require extensive market research to shape a compelling action plan
geared towards delegates and potential sponsors, suppliers and exhibitors. Apart from sponsors
approached for seed money, marketing outreach can be designed to attract more revenue.
As such, sponsorship benefits should be clearly defined by planners for those who still would like
to support the convention.
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In addition to marketing efforts by planners, local CVBs are usually involved in the process
collaborating with bidders in providing promotional material or supporting campaigns to
maximize delegate awareness and attendance. Although convention bureaus usually take a
neutral position, local CVBs are considered crucial to any convention success, as they have
channels of communication that can directly access interested delegates, especially those
delegates who are local.
Pre-sales for conventions occur in this phase making-up the fourth value-added activity in the
value chain. As important as registration for conventions might be, organizers should also take
this time to finalize many operations prior to the actual convention. Materials needed, registration
packages, billing & receipts for registration, revision & adjustment of meeting room set-up,
accommodation & travel arrangements and other arrangements must be confirmed and
managed to a timeframe and plan to create a smooth, trouble-free convention service.
Key Stakeholders in Convention Industry
The purpose of this section is to review the roles and responsibilities of stakeholders that in many
ways through their daily operations either directly or indirectly affect the MICE industry, especially
the convention industry. The four key stakeholders are convention and visitors bureaus (CVB),
venues, domestic planners and international associations.
Convent ion and Visitors Bureau (CVB)
A CVB is important as it directs and promotes the development of the MICE industry in the area
it represents through two main roles and responsibilities specifically related to the convention
industry.
1. Assisting and co-working with planners and associations
2. Liaising between planners, venues and governmental authorities
CVBs usually work closely with planners or Professional Convention Organizers (PCOs) from the
initiation of a convention plan. In addition, they are often included in the bidding committee to
facilitate any necessary information needed in formulating the bid, to prepare letters to submit to
authorities, to provide promotional material, to assist with presentations and to coordinate site
inspections. CVB support is vital to decision-making since its full support symbolizes a smooth
convention process and strong backing from a body representing the host destination’s goodwill.
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Introduction to MICE industry
Local convention and visitors bureaus are often the best source to provide a full-scale directory of
venues, accommodation and transportation options needed in the initial research. Sometimes,
they can offer packages specifically catered to each individual convention. Finally, CVBs hold
the key to marketing the destination as they can use their outreach and resources to create
awareness among attendees through event calendars, websites and other marketing channels.
Not only do CVBs offer consulting services, but also coordinating services and often act as an
intermediary between planners and both the private and the public sectors involved in
organizing a convention. As a local body, CVBs may have the expertise and familiarity in dealing
with private service providers. They are usually the one clarifying paperwork to ensure all
attendees and exhibitors abide by the rules and regulations of government authorities.
Special permits and requests which can ease difficulty during conventions can by lobbied for
and facilitated to a certain degree by CVBs.
The Thailand Convention and Exhibition Bureau or TCEB, intensely promotes and gives full
support to the local convention industry in Thailand. It divides its services into three main areas,
bidding support, event support and government related activities. Bidding support covers
necessary help in planning and proposal developing required by PCO as mentioned above in
the bidding section.
In addition to bidding support, TCEB also provides event support and includes organizing
advice, marketing & public relation support, marketing and acting as a worldwide representative
for international outreach. Finally, TCEB can act as an intermediary in coordinating with
government authorities offerings fast track for delegates at the airport, coordinating with
customs, helping with security-related measures and other coordination as required.
Thailand Incentive and Convention Association (TICA)
TICA is a supporting organization whose role directly or indirectly support the MICE industry. It
is a non-profit organization established in 1984 to help the growth of Thailand as a preferred
destination for MICE. TICA’s members includes key players in MICE industry, for example, hotels,
DMCs, PCOs, PEOs, convention / exhibition centers and advertising agencies.
Professional Convention Organizer (PCO)
There are four main PCO types as defined by IAPCO: commercial, non-commercial, single and
association management.
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Commercial PCOs are companies rendering convention-organizing services to create value
and operating profit for an association. PCOs contacted directly by an international association
are core PCOs and usually have a long-term contract with associations to manage conventions
wherever they may be. However, core PCOs may outsource some or most of the work to PCOs
with local experience and expertise to provide needed services including logistics coordination,
on-site management, special events and recruiting on-site staff.
Non-commercial PCOs are convention organizers that do not charge for services rendered
such as an in-house organizer of the United Nations. Single PCOs are individuals providing
consulting service for an association.
There are no fixed rules on the costing method though typically it depends on the extent of the
services required by the association. Common pricing structures include a fixed management
fee, a management fee per delegate, a management fee per abstract/paper handled, management fees (fixed or percentage) per square meter of exhibition space sold, management
fees for sponsorship sold, percentage of budget and profit sharing.
Flexibility in mixing and negotiating appropriate pricing models are up to associations and
PCOs to reflect their needs but invariably a combination of more than one of these pricing
structures is implemented. Some services such as consulting services or bidding support are
usually offered complimentary to associations to secure a guaranteed opportunity to provide
further services after the bid is won.
A final planner category is an Association Management Company (AMC), which have gained
in popularity with associations as it provides a full, cost saving operation service for associations.
AMCs provide management expertise and specialized administrative services for everything
such as executive management, financial management, strategic planning, public relations,
membership development, marketing, meeting & event planning for small and large associations
in a cost effective manner.
The AMC service model is meant to increase client management capability and resources
without capital investment through leveraging personnel resources from a pool of clients in the
AMC’s portfolio. Associations; therefore, receive professional services as needed and as appropriate
to the tasks required without having to hire full-time staff and incurring significant costs.
Venues
There are three main venue types: conference centers, convention centers and hotels. Conference centers are facilities specifically built to offer an atmosphere for people who meet to
exchange ideas with ease and comfort (Anthony, 1987). According to Professional Convention
Management Association (PCMA), a conference center is “a full-service hospitality entity that
specializes in accommodating small-to-medium-sized meetings as its first order of business.”
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Introduction to MICE industry
What often distinguishes conference centers from hotels can be determined by the dedicated
facilities for meetings, advanced audiovisual capabilities, oversized guestrooms with well-lit
workspaces and conference service personnel. In the past, conference centers simply met
needs hotels did not provide for larger meetings and conferences. However, modern hotels
have blurred this small distinction as they now offer as many facilities to host meetings as
conference centers.
Convention centers, on the other hand, are facilities for meeting and expositions without sleeping
rooms. (CLC Glossary, 1986) In the past, convention centers were usually designed for large
meetings with spacious exhibition areas. However, convention centers nowadays are able to
provide a high level of flexibility in terms of meeting space options. The fact they do not provide
accommodation induces them to settle close to large hotels and other amenities to provide
convenience.
Hotels provide accommodation, meeting spaces and function rooms, food & beverage and
other amenities, but often not all the services a conference might need, as its core driver is
room sales, not meeting spaces. However, the compensation is that the amenities and hospitality
services may be superior to that of a conference or convention center.
Source : Thailand Convention and Exhibition Bureau (TCEB)
International Associations
International associations representing many areas within the convention industry are vital to
its global development. Representing different aspect of the convention industry, each
association is a collective body of convention practitioners within each country. Some create
standards of practice, some initiate common ground for industry knowledge and some create
awareness of new trends & maintain best practices for others.
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Important international association roles and current milestones in developing the industry
include the International Congress and Conference Association (ICCA,) Meeting Professionals
International (MPI,) the International Association of Professional Congress Organizers (IAPCO,)
and the Convention Industry Council (CIC.)
ICCA one of the most renowned associations in the industry with over 900 suppliers from 86
countries with offices based in the Netherlands, Malaysia, the US and Uruguay. Founded in 1963
by a group of travel agents, their initial aim was to get the travel industry involved in the
international meetings market and to exchange information related to this industry. Its
membership has grown and today represents service providers from various sectors, mostly
specialists in handling international events.
Its objective is to support
international meetings via
creating business opportunities
and knowledge for members.
ICCA also establishes networking
platforms for its members to
enhance knowledge and
information transfer via a two-way
communication channel between
members and the thousands of
international associations in its
database.
MPI was founded in 1972 to create a community for the meeting and event industry. In helping
its members to create this community, MPI offers a knowledge and ideas platform, opportunities
to create relationships and a marketplace to support interaction among players in the industry.
MPI also offers a Certification in Meeting Management (CMM) program that focuses on selecting,
educating and certifying management-level meeting professionals and provides intensive
learning to enhance strategic decision-making and quality service offerings. MPI also publishes
FutureWatch and Business Meeting Barometer to share new ideas, new initiatives and current
issues within the industry for members to learn and adapt.
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Introduction to MICE industry
IAPCO is a non-profit organization founded in 1968 to represent professional organizers, meeting
planners and managers of international and national congresses, conventions and special
events. With more than 100 members from over 35 countries, its main role is to raise standards of
practice in service among its members through education programs, setting codes of quality
control and promote interaction among members.
Realizing the importance of Professional Convention Organizers and their significant role in the
industry, IAPCO offers studies related to theoretical and practical aspects of international
congresses through its training center recognized as one of the leading centers for an education
in congress organizing.
CIC, previously Convention Liaison Council, was formed in 1949 by four organizations to facilitate
the exchange of information within the industry. Now called the Convention Industry Council,
it represents more than 19,500 firms and properties involved in the industry. It offers programs to
support the industry, to facilitate the exchange information & ideas and to educate the public
as to the industry’s importance.
CIC offers Certified Meeting Professional (CMP) a certification recognizing professionalism in
providing service within the meeting industry. The certification raises proficiency and know-how
of professionals in the industry through identifying a core body of knowledge, establishing levels
of knowledge necessary for certification, stimulating advancement in meeting management,
increasing the value of practitioners, recognizing industry standards, practices, ethics and
maximizing the value received from products and services provided by these professionals.
In addition, it works to bring together people from various areas within the industry to promote
the development and implementation of publicly accepted practices designed to enhance
efficiency.
This initiative is called Accepted Practices Exchange (APEX,) which to date has published reports
on seven core areas that have been developed and made available: APEX Industry Glossary,
APEX Request For Proposal (RFPs) Forms, APEX Event Specifications Guide, APEX Housing &
Registration Accepted Practices, APEX Contracts Accepted Practices, APEX Post-Event Report
and APEX Meeting and Site Profile Report.
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Chapter 5
Exhibitions
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Introduction to MICE industry
Source : Thailand Convention and Exhibition Bureau (TCEB)
Definition
“E” as in exhibitions is the last and perhaps the most important element in the MICE Industry,
as they are often seen as having more influence on the economy of a particular country than
the other MICE industries.
Exhibitions mean different things to different people in different parts of the world and can
include fairs, trade shows, expositions, trade fair expos and exhibitions; all terms that are often
used interchangeably. However, they are all employed to describe an event designed
specifically to display and sell goods to end users.
For simplicity, the word ‘exhibitions’ will be used as the generic term to include all types of
exhibitions, expositions, expos, fairs, trade shows and trade fairs expos.
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Exhibitions Purposes and Objectives
The main purposes for exhibitions are to act as place for buyers and sellers to trade goods &
services or to display goods & services for future sales and to allow for interaction on a grand
scale. As stated by Luckhurst (1951), an expert in the exhibition industry,
Exhibitions are not just collections of interesting objects brought together at
a certain place and time. They are human activities, human enterprises and
some of them very great and courageous activities, undertaken for definite
reasons and to achieve specified results. They are a form of human intercourse,
whereby the promoters and exhibitors on the one hand communicate with the
visitors on the other and their results can only be told in terms of further human
thought and activity…
This statement holds true today, as exhibitions remain one of the most effective mediums
for establishing and maintaining customer relationships and offer a unique mixture of
information, communication and entertainment.
They also allow for the use of all five senses in an atmosphere of face-to-face contacts. In
an increasingly digital age, exhibitions are often the only event where buyers and sellers
physically come together – resulting in a potent force for business.
Apart from the objectives mentioned above, exhibitions perform seven key roles that stress
the important advantages they have over other marketing tools. (The Art of Show, Morrow,
2001)
1. Buying of goods and services
2. Selling of goods and services
3. Introducing new products
4. Soliciting media coverage
5. Gaining competitive intelligence
6. Updating industry developments and trends
7. Networking and problem solving
1. Buying: This is a core objective when hosting exhibitions since they are designed to
bring prospective buyers to meet sellers and exhibitors. 30 Staggering Stats (2008), published by the Center for Exhibition Research (CEIR), the leading association in global
exhibition industry research, found that 82% of visitors and attendees have a net buying
influence (NBI) on the purchase of the products being exhibited.
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Introduction to MICE industry
2. Selling: Based on CEIR research, approximately two thirds of visitors placed high
importance on face-to-face interaction during the pre-purchasing stage leading to a
greater chance for exhibitors to sell their products and services (CEIR, 2003). In addition, their research found that visitors spent, on average, 8.3 hours on the exhibit show
floor, a window of opportunity for exhibitors to show, promote and sell products and
services to these potential buyers (CEIR, 2008).
New product introduction: Most attendees and visitors participate in exhibitions to
search for new products and service developments in their industry. Exhibition visitors
can provide the best prediction of demand and interest in new products or services;
exhibitors can test new products, both conceptual and real ones.
Moreover, there are five additional reasons why manufacturers and exhibitors use exhibitions to introduce new products. First, buyers expect to see them. Second, exhibitions
tend to attract specific customer groups who match a company’s core and potential
target markets. Third, exhibitions present a stage that promotes transactions among
buyers and sellers. Fourth, they provide one of the most cost effective ways to reach
a mass target market in a specific timeframe. Finally, exhibitions can act as a tool for
new product introduction strategies along with promoting exhibitor companies to their
industry.
All these opportunities as well as the chance to provide a hands-on, three-dimensional
environment for visitors to test products and services allows exhibitors and manufacturers to gather realistic feedback to predict how well their products or services will
perform.
3. Media coverage: Exhibitions tend to attract attention not only from stakeholders
in the industry but also from various media, especially trade and local media. Many
publications also work closely with professional exhibition organizers (PEO) to stimulate
excitement and awareness via magazine and mass media as a preview vehicle for
upcoming exhibitions, which can translate to higher visitor numbers.
4. Gaining competitive intelligence: With a high concentration of manufacturers and suppliers in one place, it is convenient for visitors, attendees and buyers to
compare products and services from various sellers. It is also easy for manufacturers
and suppliers to see their competitors’ status and progress. Comparative information
gained from exhibitions is important as it can help companies to understand elements
such as pricing, sales terms, promotion and delivery procedures.
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Source : Thailand Convention and Exhibition Bureau (TCEB)
5. Updating industry trends and development: This temporary marketplace
provides a chance to view and evaluate new products, meet with manufacturers and
compare new products from various companies.
6. Networking and problem solving: Exhibitors and buyers use exhibitions to
create networks to help solve issues and problems either by companies attending or
from knowledge gained during training sessions.
Evolvement and Significance of Exhibitions
Exhibitions in the Past
The history of exhibitions can be traced back to ancient times when humanity first wanted to
exchange products and services. In the Bible, a fair taking place in the town of Zor, now part of
Lebanon, is mentioned in the Old Testament.
Exhibitions were used by civilizations such as the Egyptians, Romans, Phoenicians, Greeks and
Chinese as a medium to exchange products. They would hold exhibitions in the market squares
and bazaars where tradesmen would travel to meet with the makers of cloth, dye, jewelry and
silverware.
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Introduction to MICE industry
Based on excavated remains found on the East Mediterranean coast, archaeologists believe
the first exhibition was held around 2,500 years ago. Artifacts such as coins from many different areas have been found, suggesting that trade was carried out across a large area of the
Mediterranean. As time passed, trade spread from the East Mediterranean coast as civilization
expanded westward and northward in Europe to countries such as Spain, Portugal, France,
England, Germany and the Netherlands.
The word fair is derived from the Latin word feriae and developed into the word feire in Middle
English to describe ‘a gathering of people held at regular intervals for the sales of goods.’ The
first fair, which offered cash-and-carry products and a production sector, was the Leipzig Fair
(Germany) held in 1165.
New markets developed and evolved as the expansion of trade throughout Europe increased
interaction between countries. The shift induced higher demands for new and interesting
products and services from different countries, business sectors and end users. New distribution
routes for products and services manufactured in distant countries became a necessity and led
to the industrial revolution, which dramatically changed the way business was conducted.
During the 18th and 19th centuries, exhibitions evolved from sites intended to promote direct
sales to sites for displaying a broad range of available goods or samples of a much more diverse product range.
A leap in convention history occurred in Victorian England with the ‘Great Exhibition’ held in
1851 at Crystal Palace with the theme ‘Works of Industry of all Nations.’ Attended by 6,200,000
visitors with 13,000 items on display, it was considered a marvel of the industrial revolution. A
huge success in terms of attendance and in revenue, it created and became an inspiration for
many countries to host exhibitions hoping to seek the same benefits.
With the Great Exhibition, purposes for holding exhibitions expanded from a place for buyers
and sellers to meet and promote transactions to a place to symbolize the industrial, military and
economic superiority of a country in the eyes of other nations. Exhibitions also allowed people
to explore the world outside of their experience & culture, to learn about new scientific advancements and to view new inventions.
As time passed, exhibitions adjusted to fit the needs and wants of the exhibitors and attendees.
However, the main elements of modern day exhibitions continue to reflect the commercial
needs of all stakeholders while presenting the ideals, hopes and aspirations of those involved.
105
Modern Day Exhibitions
Exhibitions continue
to grow and expand
in line with the everchanging marketplaces and industries
they represent.
However, with fast
changing technology combined with
a more competitive
environment from
competing exhibitions and a changing
economic environSource : Thailand Convention and Exhibition Bureau (TCEB)
ment, holding exhibitions has become much
more complicated. In addition, exhibitors and
attendees have become more sophisticated
with higher expectations as to what they want in return for the time and money needed to
attend.
Global Exhibitions Statistics
Exhibitions act as a market place for buyers and sellers to meet and to create direct and indirect benefits for other stakeholders in the host destination, which is why developed and developing countries are now focusing increased attention on attracting exhibitions.
Based on UFI statistic, the number of venues in 2011 stood at 1,197 representing a total indoor
exhibition space of 32.6 million square meters up from 29.2 million square meters in 2006 at an
average 2.3% annual growth. In 2010, approximately 30,700 exhibitions were held corresponding to 103 millions square meters of total net exhibition space used and welcomed 260 million
visitors. UFI numbers do not represent the entire industry as it only included events with a minimum 500 square meters of net exhibition space and only direct exhibitors.
(UFI publishes Global Exhibition industry Statistics, research about leading trade show organizers
and fairground owners along with major national and international exhibition associations.)
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Introduction to MICE industry
Figure 5-1: Regional Indoor Exhibition Space Available 2011
Scale
496 venues
15.6 million sqm
(48%)
5 million sqm
389 venues
7.9 million sqm
(24%)
70 venues
1.3 million sqm
(4%)
33 venues
0.8 million sqm
25 venues
(2%)
0.5 million sqm
(2%)
184 venues
6.6 million sqm
(20%)
Source :UFI-World Map of Exhibition Venues
According to Figure 5-1, the UFI-World Map of Exhibition Venues: Regional Indoor Exhibition
Space Available in 2011, Europe hosted the most indoor exhibition space with over 48% in 2011
with 496 venues and 15.6 million square meters. This was followed by North America with 24%
representing 389 venues and 7.9 million square meters and Asia with 20% of total indoor space,
184 venues and 6.6 million square meters.
The top five countries accounted for over 64% of the global indoor exhibition led by the USA
with 6,712,342 square meters and 21%, followed by China with 4,755,102 square meters (15%),
third was Germany with 3,377,821 square meters or 10%, Italy came fourth with 2,227,304 square
or 7% and finally France with 2,094,554 square meters or 6%.
Figures 5-2 and 5-3 show the regional market share in 2010 for the global exhibition industry
in terms of space rented by organizers. Europe remained the leading region with 47% of total
global space rented and 47.7 million square meters followed by North America with 26% of total
space rented and 26.3 million square meters. However, the significant change was the 2% shift
in global market share from Europe to Asia Pacific with space rented in Asia Pacific increasing
from 18% in 2008 to 20% in 2011 or 20.6 millions square meters. Even with this change, the
European market was still more than double Asia Pacific.
107
Figure 5-2: Total Market Share of Space Rented 2010
North America
11%
Other
16%
Europe
54%
Asia
19%
Source :UFI-Global Exhibition Industry Statistics-December 2011
Figure 5-3: Net Exhibition Space 2010
Source :UFI-Global Exhibition Industry Statistics
While key attractions at conventions are related to themes and related speaker expertise, the
key attraction at exhibitions remains market opportunities.
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Introduction to MICE industry
Exhibitions Outlook
Recovery Is Underway But Not Soon
and confidence in the market, which means that if the economy is uncertain, buyer confidence
and exhibitor willingness to participate will be negatively affected.
UFI research Global Exhibition Barometer gauges trends and attitudes of its members in 84
countries regarding the impact of the economic downturn on the exhibition industry. The
survey has been conducted since 2009 and published bi-annually. The latest round conducted
in December 2011, (172 members including event organizers and exhibitors from 49 countries)
confirmed a negative impact due to the global economic downturn in 2008.
Figure 5-4: Continued Economic Crisis Concerns
63%
June 2011
December 2011
46%
27%
15%
14%
4%
2011
14%
9%
2012
2013
2014
8%
0%
2015
Source :UFI-Global Exhibition Barometer (2011)
Data collected in June 2011, suggested 63% believed the crisis would end in 2012, although
six months later in December 2011, the number had dropped to under 50% who considered it
would end in 2013. The reason given was that confidence in an economic recovery had deteriorated due to the Euro Zone debt crisis. Looking further into the future, a lack of confidence by
respondents showed that 14% believed the end of the global economic crisis would be in 2014
with 8% believing it would not arrive until 2015.
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Shift of the Power in Global Exhibitions
According to these statistics, combined with trends in emerging markets, the shift in terms of
location and growth of the exhibition industry from developed countries to emerging countries
such as China, India and Brazil can be noted. This is because economic growth is increasingly
concentrated in Asia while developed economies such as America and Europe are stagnate in
economic terms due to the global financial crisis and Euro zone debt concerns.
China is also focused on promoting its exhibition industry since manufacturing has located to
China in search for cost-effective solutions. With most of the value chain from upstream manufacturers & global suppliers to downstream manufacturers & end users in every major industry,
ranging from electronics to textiles from agriculture to aerospace, mainland China has become
an attractive source of products and services. With vast business opportunities and with exhibitions seen as serving as an important marketing tool and a place to generate transactions, the
Chinese exhibition industry has grown rapidly and is becoming a leader in the global exhibition
industry.
Based on UFI’s World Map of Exhibition Venues, China was ranked second worldwide in terms
of exhibition space available in 2011 with over 4.7 millions square meters, a 48% increase since
2006, and represented 15% of the global exhibition indoor space. The significant expansion in
exhibition space rented in Asia came mainly from mainland China, which from 2006 to 2011 saw
a 1,500,000-square-meter increase in exhibition space through new venue construction and
venue expansion.
Table 5-1: National Markets 2010
Rank
Country
Space Rented (Milion Sq. Meters)
1
US
23.3
-7%
2
China
13.0
+6%
3
Germany
8.8
-5%
4
Italy
6.2
-5%
5
France
5.4
-8%
6
Spain
3.5
-24%
7
Japan
3.2
-3%
8
UK
2.8
-6%
9
Russia
2.6
-13%
10
Brazil
2.6
+4%
Source : UFI-Global Exhibition Industry Statitics-December 2011
110
Changed from 2008
Introduction to MICE industry
As of 2011, China accounted for 46% of the global increase in space for indoor exhibitions. Even
with the world economic downturn in 2008, the Chinese exhibition industry remained strong
with total net space rented at over 13 million square meters.
Even though many economists and policy makers remain concerned about inflation and the
over expansion of China’s economy, many believe that over the next couple of years China will
remain a factor driving exhibition growth globally based on its massive domestic purchasing
power and as a hub for global manufacturers.
Technology and Virtual Trade Shows
Apart from holding exhibitions the traditional way, a growing number of companies are shifting
to online exhibitions referred to as ‘virtual exhibitions’ as they provide a cost saving option for
hosts. Visitors, buyers and attendees can view what companies have to offer without spending
time and money to attend exhibitions half way around the world.
The word ‘virtual exhibition’ was first described and presented publicly in Convention View at
the Waldorf Astoria Hotel in New York City in April 1993 by Saperstein and Selman from Visual
Data Corporation. At that time, their virtual exhibition was simply a videotaped trade show of
exhibitor booths attached to an HTML floor map and layout. Unfortunately, it was not very successful as technology at the time was lacking.
The main elements of typical virtual exhibitions are virtual exhibition halls usually restricted to
those who receive specific permission from organizers. Same as with traditional exhibitions,
exhibitors who decide to register and attend are required to build their booths, or in this case
virtual booths, to exhibit their products and services and to provide other relevant information.
Visitors attend to gather information and view virtual exhibits. In some case, exhibitors and visitors create avatars as a visual representation of themselves.
Visitors at virtual trade shows usually fill out an online registration form to create an online
badge and then enter virtual exhibitions hall as illustrated in Figure 5-5. Most of the time, virtual
booths reflect the imagery of real-world exhibitor booths with desks and displays as exhibitors
tend to create virtual booths similar to actual booths to help visitors relate more readily. Instead
of reaching out to interact with an exhibitor, a virtual booth typically has several icons that can
trigger different responses with a click of the mouse. For instance, visitors can communicate
with the exhibitors via an instant message, email or a voice-call. Icons might also deliver multimedia messages such as videos and audio messages or slide-show presentations.
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Figure5-5: Virtual Trade Show
Figure 5-6: Virtual Trade Show Booth
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Introduction to MICE industry
As with traditional exhibitions, virtual exhibitions usually include similar components found in
web conferences and other educational presentations. Combined with the visual space, a
virtual trade fair can provide live interaction between users one-on-one, one-to-few, one-tomany and many-to-many.
With today’s technology, the concept of online events are not limited to virtual trade shows and
consumer fairs, and have expanded to host international trade shows and other virtual electronic events such as business match-making, procurement fairs, product launches, distributor
fairs and venture capital fairs. And while some exhibitions are only organized online, virtual
exhibitions can also run in conjunction with real-world trade shows, creating what is called a
‘hybrid event’.
With fast changing technology and the 2009-2010 recessions causing many businesses to
pursue cost-cutting measures, virtual platforms seem to provide a great opportunity for many
businesses to attend exhibitions, as virtual trade shows typically cost much less than traditional
trade shows. Since virtual trade shows can be conducted from a person’s desk, transportation
costs, accommodation and physical construction of a trade show displays is eliminated although exhibitors will usually be charged for the privilege of having an online stand at a virtual
trade show.
According to a Champion Exposition Services study (2008), 70% of respondents were actively
producing, considering or interested in pursuing virtual events. A key conclusion was that
there would be an increase in organizing exhibitions through virtual technology as long as the
economy in developed countries remained troubled.
Green and Sustainability Concepts Stay Strong
The green and sustainability trends have become very prominent and have permeated into
every facet of the MICE industry. A presentation by UFI member, Rashid Toefy, Chief Executive
Officer of Cape Town International Convention Centre (South Africa,) at the Open Seminar in
the Middle East 2010 Toolbox for Future Exhibition Management, stated that ‘green’ had been
the single most popular topic in the industry trade press since early 2007.
The concept of green and sustainability has been a topic of discussion at every MICE association annual meeting over the past several years. Exhibitions can generate a surprising amount
of waste; therefore, adopting green and sustainability concepts in exhibition industry is inevitable. As the exhibition industry is complex with multiple key players, organizers, exhibitors, attendees and even venue & logistic companies all need to respond and react in unison to meet
the changing needs of clients and society in general.
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Organizers need to organize
exhibitions that align with green
and sustainability standards to
reflect the concern it has for the
area in which it organizes exhibitions. Even though the green
checklist in choosing venues
might vary from organizer to
organizer or from industry to
industry, the list below, UFI Green
Checklist, provides a picture
of what clients look for when
choosing a green venue. The
checklist includes, but is not
Source : Thailand Convention and Exhibition Bureau (TCEB)
limited to
Energy Usage
• Lights can be switched off
• Air conditioning with natural ventilation
• Low voltage bulbs and energy saving devices
• Natural light in all public areas
Water Efficiency Usage
• Toilets with dual flush mechanism
• Drip irrigation system
• Separate drainage for storm water and sewage
• Biodegradable material and products
In addition to selecting how venues operate, organizers also need to consider other checklists.
• Organic food menu if requested
• Biodegradable cutlery and crockery
• Leftover food to charity
• Water jugs or bottled water
• Digital documents
Apart from organizers wanting to organize exhibitions in venues that directly respond to the
green concept, exhibitors also want to participate in green exhibitions as it can be used as a
good PR strategy. To adopt green exhibitions, exhibitors also need to create booths in alignment with green concepts such as using reusable or recyclable material.
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Introduction to MICE industry
The fact that an organizer is seeking to organize green exhibitions, directs it to choose venues
that can preserve and conserve energy and emit less greenhouse gas or burn less energy. In
turn, venues have to adjust the way they operate, for example with regard to waste recycling
programs.
In addition, new and upcoming conventions and exhibition halls will eventually incorporate
conservation and green concepts into designs not only in term of energy consumption, but also
in terms of materials used in venue construction. More details of how venues tackle green and
sustainability issues combined with international standards such as ISO are discussed in Chapter 9.
Although drivers of change are pushing all stakeholders to adjust the way they operate and
move toward green exhibitions including enhancement of corporate reputations, shareholder
advocacy and government regulations, many challenges could still prevent green exhibitions
from becoming the norm. First, being Green itself is not always practical as there is a trade-off
between Green and the look or atmosphere of a venue and safety.
While natural light and open blinds could reduce lighting facility usage, they produce heat and
therefore create discomfort unless air conditioning is intensified, which has a counter effect.
Less light or darkness when lights are turned down can create an unpleasant exhibition atmosphere. Natural ventilation could cause distractions, and some people feel it is safer to drink
water from capped bottle than sharing from jugs.
So being green may not always be practical. Second it will be necessary for exhibitors to find a
way to coordinate their efforts among many partners. In addition to the need for coordination,
a need to increase staff awareness and knowledge are also key success factors that must be
attended to as a lack of understanding of the issues by operators and their staff could affect
overall effectiveness in hosting truly green exhibitions.
Source : Thailand Convention and Exhibition Bureau (TCEB)
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Exhibitions Categories
The terms, such as fairs, expositions and exhibitions, introduced earlier, collectively represent
any events that temporarily brining buyers and sellers together and are used interchangeably.
However, based on experts in the industry there remain some differences among the three
terms fair, exposition and exhibition.
The root of the word ‘fair’ is actually the oldest of the terms and is derived from the Latin word
feriae, which means holiday, then evolved into the Middle English word feire, which means a
gathering of people held at regular intervals for the barter or sale of goods. Luckhurst defined
the word fair as “… essentially places to which merchants brought actual commodities in order
to sell them on the spot” (Luckhurst, 1951, 113)
On the other hand, the word exhibition is a relatively new term and based on the Latin word exhibitionem. Allwood, another exhibition industry historian and expert, described the difference
between the word fair and exhibition.
Whilst fairs were basically market places, exhibitions have always been primarily concerned with the display of goods. Fisher’s Accurate New Spelling Dictionary and Expositor of the English Language published in 1773, given the significant difference in a few words: Fair is defined as an annual free market’ whilst
an exhibition is only a displaying, a setting forth (Allwood, 1977)
To elaborate, Allwood stressed four differences between exhibitions and fairs. First, exhibitions
are usually a one-time event with no recurring life cycle. While fairs run for a short period, many
exhibitions run for months, some for a year or even longer.
Second, most exhibitions are held in permanent, designated facilities that have been built
especially to hold exhibitions. This leads to the trend starting in the 18th century that saw public
and private sector start to build exhibition and convention centers to meet demand.
Third, fairs are held regularly; and require less lead-time and planning, as they are not as complex. In contrast, exhibitions are particularly detailed events.
Finally, fairs and exhibitions are different in the way business is conducted on the actual days
they are held. Buyers can purchase goods and services instantly at fairs while exhibitions are
only intended to be a place for exhibitors to display products and services.
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Introduction to MICE industry
The words exposition and exhibition have been generally accepted and used in North America
more than the word fair. However, the usage of these terms differs from one region to another.
The word exposition came from an old French word derived from the Latin word ‘expositio’.
Findling, an exhibition industry expert, indicated that the word exposition was used for the first
time in the 17th century, “It was first used in 1649, with the meaning of displaying or putting on a
show” (Findling, 1990). Expositions, on the other hand, tend to share similar characteristics with
exhibitions since they tend to be held and organized by a government or the private sector
with governmental support.
Expositions are commonly organized in designated facilities. Moreover, similar to exhibitions,
expositions are organized to attract manufacturers, traders and wholesalers on a local, regional and international scale. In addition, expositions do not intend to create direct transactions
but only to provide an opportunity for exhibitors to display products to generate future sales.
In short, an exposition is a temporary market place where buyers and sellers interact for the
purpose of exchanging goods and services for consideration either at the time of presentation
or at some future date.
Exhibitions can be classified into four groups: trade fairs (business-to-business: B2B), consumer
shows (business-to-consumer: B2C), combined and international.
Source : Thailand Convention and Exhibition Bureau (TCEB)
Trade Shows
Trade shows, sometime categorized as a business-to-business (B2B) exhibition, have a distinctive character from other types of exhibitions such as consumer and combined shows. Most of
the time, exhibitors are manufacturers or distributors of products or services. On the other hand,
buyers are corporate buyers looking to purchase products and services in large quantities.
Most of the time, attendance is by invitation only often requiring pre-registration that may incur
registration fees prior to the event. Therefore, these exhibitions are not usually open for public
viewing.
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Trade shows can last from one to five days. This can be accomplished as invitations are sent
long in advance and visitors come to the location specifically for the event. Exhibitors are also
well prepared, taking along technicians, equipment, tools and all the goods required for the
exhibition. While some industries hold a trade show annually, others are once every two to
seven years. Apart from being a direct medium letting buyers meet sellers, trade shows nowadays have become a source of education for businesses, attendees and exhibitors.
Source : Thailand Convention and Exhibition Bureau (TCEB)
Consumer Shows
Unlike trade-shows which are more B2B, a key feature of consumer shows is that they are open
to general public viewing and as such can be called business-to-consumer (B2C) exhibitions
since sellers sell directly to consumers. This means exhibitors are typically manufacturers of consumer products while the attendees will be end users.
The Center for Exhibition Research (CEIR) noted that consumer shows play an important role in
testing new products and services directly with end users along with expanding positive public
relations with key, potential customers. This is possible, in part, as attendance, in an effort to
maximize numbers, is not restricted and does not require registration like that of trade shows.
Even though there is no registration process or registration fee, an entrance or gate fee is sometimes charged.
Based on the industry classifications in The Trade show Week Data Book, industries in this category include recreation, landscape & garden supplies, education, computer & computer
applications and lastly wellness & health care. The industry classification does not include
consumer shows for building & construction, engineering, telecommunications and industrial
supplies. However, gradually, the boundary between what is a trade show or customer show is
beginning to blur. Nowadays, some countries arrange an event with trade shows in the morning
and consumer shows in the afternoon.
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Introduction to MICE industry
Combined or Mixed Shows
Combined or mixed shows are exhibitions that combine trade and the public and are open
to corporate and public attendees. Exhibitors, manufacturers and distributors, will be similar
as with trade shows, while buyers will consist of corporate end users within the targeted industry and the public. Most combined or mixed shows will have different viewing times for each
group. To illustrate, some exhibitions held over seven days will have the first two days as trade
only which requires pre-registration and might incur some registration fees while the other five
days will be open to the public.
International Exhibitions/Expositions
International Exhibitions/Expositions, called trade fairs in some regions, act as a marketing medium for exporting countries intending to export products and services to targeted countries.
International exhibitions can serve as an effective and efficient tool for exporting products to
the regional and global markets. Exhibitors and attendees at this type of exhibitions tend to be
similar to trade shows; however, buyers are sometimes required to be members of an industry
and often must be prequalified to attend.
Exhibitions in Thailand
Benefits of exhibitions stretch far beyond being just a marketing tool that brings buyers and sellers together, but can promote a nation’s exports leading to higher employment in the manufacturing and service sectors. This is why many countries, developed and developing, invest in
infrastructure to support exhibitions and focus on trying to attract exhibitions.
Thailand promotes its MICE industry, especially exhibitions, led by the Thailand Convention &
Exhibition Bureau (TCEB), the Convention and Visitors Bureau (CVB) of Thailand. Another major
association providing support for the exhibition industry is the Thai Exhibition Association (TEA),
an association of organizers, centers, stand contractors, freight forwarders and related suppliers
dedicated to promoting and developing the exhibition industry in Thailand.
Although Thailand’s exhibition sector is experiencing a decline in terms of volume and value,
based on UFI statistics, it is still considered the top exhibition destination in South East Asia with a
sound volume of space sold in comparison with other surrounding countries.
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Figure 5-7: Share of Revenue Generated by Thai MICE Industry 2010
Incentive Travels
20%
Conventions
41%
Meetings
28%
Exhibitions
11%
Source : Thailand Convention and Exhibition Bureau (TCEB)
Exhibition Industry in Thailand
The exhibition industry has the smallest share of the total value of the MICE industry in
Thailand at around 11% or THB 6B out of total value of over THB 53B. The total number of
visitors in 2006 was 137,718 with 39,306 exhibitors and 120 exhibitions held. The spending
per head per trip by exhibitor was approximately USD 3,300. With an average exchange
rate at THB 38, spending per head per trip was approximately THB 125,000.
Despite the fact that 2010 saw a decrease in the number of exhibitions organized in
Thailand and a decrease in visitors to 79,836 and with only 8,279 exhibitors in 68 events,
spending per head per trip by exhibitors increased to around USD 4,000 per person.
Still with the strengthened Thai Baht, per head per trip spending growth was minimal at
around THB 129,000.
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Introduction to MICE industry
Table 5-2: Exhibition Value and Volume in Thailand
Rank
Thailand Exhibitions
2006
2010
1
Visitors
137,718
79,836
2
Exhibitors
39,306
8,279
3
Exhibitions held
120
68
4
Per capita Spending
USD 3,300
USD 4,000
Source : Thailand Convention and Exhibition Bureau (TCEB)
Despite some adverse signs in Thailand’s exhibition industry, the remains that with eight
international standard convention and exhibition centers and 212,000 square meters,
Thailand remains the fifth largest exhibition venue in term of space available in Asia and the first
in ASEAN. Moreover, experts along with stakeholders who work directly within this industry are
confident the strength of the exhibition industry will remain intact with considerable recovery in
the near future.
New Initiatives in the Thai Exhibition Industry
In 2015, Thailand will join the ASEAN Economic Community (AEC) whose main objectives are
to create a single market & production base, a highly competitive economic region, a zone of
equitable economic development and a region fully integrated into the global economy. Since
2007, the ASEAN countries have gradually lowered their import taxes and duties among member states.
By 2015, import taxes and duties for most important products and services will be fully eliminated. Recently, AEC economic ministers from member countries agreed to strengthen the position and increase the competitive edges of small and medium enterprises (SME) in the ASEAN
region.
In joining AEC, it is inevitable that the manufacturing and service sectors in Thailand will face a
shift in their traditional markets. Labor between member countries will be able to migrate from
one country to another more freely than before. Countries with better infrastructure, cheaper
labor costs, more policy consistency and political stability will be able to attract more investment not only from member countries but also from countries outside AEC. These factors will
have a direct impact on the Thai MICE industry, especially the exhibition sector with its direct
relationships to manufacturing. If most sellers and manufacturers relocate to other neighboring
countries, then Thailand might lose its attractiveness as the manufacturing hub for the region.
121
The Thailand Convention & Exhibition Bureau (TCEB), as the sole government organization that
can extend its full support to promote the MICE industry, will need to attract exhibitions related
to Thailand’s core strengths including agriculture, automobile parts and construction. Thailand
will need to focus on keeping market share in country while capturing a larger market share in
neighboring countries. In addition, the location for exhibitions in Thailand should not be limited
to the capital Bangkok but should look to other locations that can grow into strategic and logistic hubs so as to attract more exhibitors and buyers from neighboring countries.
With exhibitions shorter and more focused due to shifts in the economic environment as well as
the behavior of visitors and buyers, Thailand will have to adjust the way it organizes and provides support. However, with changes in the business environment in the near future or even
facing a decline, exhibitions still have the highest spending per head. In addition, Thailand remains a manufacturing hub for many sectors, including electronics, components, automobiles
and parts. Combining hubs of manufacturing sectors with continuous support from the government and private association, the exhibition sector in Thailand should be able to grow.
Exhibition Value Chain
Exhibitions tend to have different way of conducting business compared to meetings and
Exhibitions tend to have different ways of conducting business compared to meetings and
conventions, since they do not have clear-cut steps as to how to plan. Even though a general
guideline and a tentative time line for organizing exhibitions are available, organizing exhibitions tend to have various activities occurring simultaneously.
1.Buyers – Visitors and Attendees
Exhibitions are the best place for buyers to view and sample, in the same place and at
the same time, various mixes of new products & services that suppliers & manufacturers
in an industry have to offer. In addition to combining a mix of products and services,
due to rapid changes in
technology, buyers also
come with the expectation they can learn about
or acquire new technology
and ideas. Without buyers,
exhibitors and Professional
Exhibition Organizers (PEOs)
would not be able to sell
exhibition space and ultimately no exhibitions would
be held.
Source : Thailand Convention and Exhibition Bureau (TCEB)
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Introduction to MICE industry
2. Sellers – Product Suppliers and Exhibitors
Without exhibitors or sellers, buyers would have nothing to see. From an exhibitor’s perspective, exhibitions are places where they can display or demonstrate new product
features and show how new products or services can save time, money and effort.
Moreover, exhibitions are one of the best places for exhibitors to have an opportunity
to increase sales and attract new potential buyers, customers and clients as they offer
an effective and efficient method to promote transactions. Apart from an opportunity
to increase sales and test new products with potential customers, exhibitions provide
exhibitors with an opportunity to gather information about competitor products.
Finally, exhibitions are the best place for exhibitors to stay in touch with their existing customers and clients and as a way to develop new relationships since exhibition floors open up opportunities to initiate one-to-one conversations with exhibitions
participants. They can provide exhibitors an opportunity to assist customers in solving
problems along with gaining immediate feedback about their goods and services.
Regardless of the benefits exhibitions can provide, exhibitors have other criteria when
choosing whether to attend. One of these criteria is exhibition quality, which depends
solely on the organizer’s ability to convince exhibitors to attend.
3. Organizers (PEO)
Most large international exhibitions are organized by a Professional Exhibition Organizer
(PEO). A successful PEO can identify gaps in the market place before competitors and
create, differentiate and ‘spin-off’ new exhibitions. Successful exhibitions need a PEO
able to combine stakeholders, buyers, sellers and organizers into one event.
Roles and Responsibilities of PEO in Holding Exhibition
Although, three core stakeholders are involved in exhibitions, a PEO will handle most organizing
and operating tasks although exhibitions will differ based on clients. A PEO will need to create
exhibitions that meet international standards and at the same time satisfy the needs and wants
of attendees and exhibitors. How PEOs can be seen to interact with other stakeholders in planning and organizing exhibitions is illustrated in Figure 5-8.
123
Figure 5-8: Planning and Organizing Exhibitions
Surveys
Business
Opportunity in
Specific Industry
PEOs
• Venue
• General Service Contractors
• Logistics
• Other Service Providers
A PEO will be in the center of the value chain interacting and collaborating with stakeholders from the customer and supplier side. The customer side consists of attendees (visitors and
exhibitors), while the supplier side consists of the venue, general service providers, logistics companies and other service providers. For exhibitions to succeed, a PEO will move through each
phase, 1) initial planning 2) sales production 3) show production and 4) evaluation.
Phase 1: Initial Planning
This phase contains several elements necessary to create successful exhibitions. First, the development of a concept coming from answers provided to questions about the goals of upcoming exhibitions including attendee, exhibitor and sponsor numbers and sales space. Often seen
as the creation of a mission statement and vision, this step is to spell out the goals of upcoming
exhibitions leading to the creation of business plans based on these concepts.
A business plan is a process to determine goals and to design the necessary steps to achieve
them. It should consist of key elements including objectives, strategies and the organizational structure needed to organize the exhibition. Once objectives and structure have been
planned, the target market organizers need to capture and attract,
must be identified. This is important
as an organizer will not be able
to create a thorough plan until
the target market is identified and
segmented to assess the value they
can bring to an exhibition. As Dotson
(1995, 73), an expert in the exhibition
industry summed up,
Source : Thailand Convention and Exhibition Bureau (TCEB)
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Introduction to MICE industry
Another important element is to provide the organizer (PEO) with all the necessary financial
details of the budget and forecast. This should include, but will not be limited to start-up costs,
market research, the cost of promoting & producing the exhibition, a sales forecast and project
budget.
Before you plan….you must know who will attend your event. Until you know this,
you cannot determine the objectives, design the program, select the site or
perform the many functions required for a productive event.
A sales forecast outlines expected performance, while a project budget singles out direct &
indirect expenses and an overhead budget. Start-up costs are the initial funding needed to let
a PEO get exhibitions started and is important as it makes known the capital needed. Market research is necessary to identify the target market in terms of potential exhibitors and attendees.
The last major financial component is to promote and produce exhibitions, as without a promotional and production budget set aside, it is unlikely to be successful.
It is also expected a PEO will use information based on previous exhibition experiences to
estimate potential costs that could incur. It can also contact a local convention visitor bureau
(CVB) for further information in case it is organizing exhibitions at new locations. Regardless of
the source, budget information will allow a PEO to estimate the capital needed.
Finally, a PEO should have a contingency plan or a risk management plan in place. In developing a business plan for an exhibition, a PEO needs to be prepared for the unexpected that
could affect success. Risks that need to be accounted for are not limited to macroeconomic or
political risks but include minor concerns such as technical issues or even missing documents.
A slip in any action can have a chain effect on other activities and upset the entire itinerary. As
such, a PEO needs to be prepared for unforeseeable circumstance and have alternate options.
Once objectives and a business plan are accepted, a timeline, sometimes called a critical
path, needs to be produced. Usually defined as the path of action and task throughout the
project, it indicates the date on which each action or task needs to be completed. It should
include actions and task as well as the tactics or strategies necessary to bring exhibitions into
reality such as site selection, housing, transportation and selecting & working with general service contractors. The timeline will vary from one exhibition to another and could be as long as
five years for a newly developed exhibition, while some repeated exhibitions might only require
a few years to complete.
After all plans have been completed, a PEO will need to perform several activities during the
bridge from the first stage into the second. These activities include listing and choosing service
contractors, requesting proposals from service contractors, performing site inspections, selecting a venue and coordinating with a local CVB to finalize details and to determine the support
the CVB will provide.
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Phase 2: Sales Production
Once the initial planning phase is completed, a PEO needs to market exhibitions in two, interrelated sales activities, exhibit space sales and attendance promotion. Both involve marketing
tools and activities and must be paid close attention because without exhibitors there will be
no visitors and vice versa. Even though a PEO should pay attention to both sides equally, in reality many place more emphasis in marketing and promoting exhibitor space sales while forgetting to do a proper PR and marketing campaign to attract visitors.
Exhibit space sales and attendance promotion include, for example, direct mail, advertising,
PR such as news releases, press kits, press conferences & newsletters, E-marketing tools such as
a website with on-line registration, direct sales, sales promotion for exhibitors and attendees. A
PEO needs to select the proper tools to employ based on research and information they have
about exhibitors and visitors. Often, this sales production starts 12 to 18 months prior depending
on the size and number of exhibitors and attendees needed.
During this step, a PEO will need to finalize budget and program & activity details for exhibitions
along with confirming guest speakers or key opinion leaders (KOL) in case it is any way educational.
Source : Thailand Convention and Exhibition Bureau (TCEB)
Phase 3: Show Production
The steps involved bring together the many stakeholders including venue personnel, general
service contractors, logistic companies and other service contractor and can be overwhelming.
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• determine all themes and functions linked to the exhibition concept
• produce preliminary attendance promotion material
• find a suitable venue with a site selection criteria
• print advertising for exhibit sales
• order brochures
• develop on-site registration kit
• order audio visual and finalize all over activities
• finalize staff delegation
• check hotel pick-up and final room assignments
• finalize audiovisual placements
• confirm move in times for exhibitors and conference room availability
• move in exhibitors
• preview media
• hold final staff meeting and brief all hired staff
This phase concerns bringing exhibitions to life and will need extensive collaboration between
all stakeholders involved ranging from logistics & transportation companies, from hotels & facilities for attendees, from local government officials to CVB staff, from general service contractors
& other specialty service contractors and media & press.
The actual production of exhibitions, often starting more than a year prior to opening date, is
the core process needed to bring together the various aspects from the planning stage and
putting them into production. Throughout this process, a PEO needs to continually revisit the
initial plan to ensure they are still on the right track, make any necessary changes and ensure a
forward movement towards the desired target.
Phase 4: Exhibition Evaluation
This phase consists of in-depth evaluations, grouped into three parts:
• Evaluate the planning and production phase: the level of success the PEO
achieved and includes whether exhibitions met the goals and objectives set
and what key improvement can be identified and evaluated.
• Exhibitor feedback and results: conducting an exhibitor survey to identify im-
provement areas and to highlight areas where performance was on par with
exhibitor expectations. A PEO may decide to outsource it to a professional
survey company that handles post-event survey production, distribution and
analysis of information.
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• Attendee feedback and results: Since attendees and visitors are fundamental
components at exhibitions, as they are the reason companies buy space, their
feedback is of paramount importance. They can be surveyed regarding their
attitude and satisfaction via on site forms & interviews, direct mail, telephone
follow-up, on-site focus groups and one-on-one random surveys. The result and
data will be analyzed and interpreted to illustrate attendee attitudes and profile
to conclude whether the attendees matched the anticipated target audience.
The result from the survey can be used to improve planning, sales production
and show production next time
Exhibition Industry Key Stakeholders
The purpose of this section is to describe the roles and responsibilities of stakeholders that in
many ways influence, either directly or indirectly, the exhibition industry. Key stakeholders for the
exhibition industry can be categorized into five main groups, Convention and Visitor Bureaus,
Professional Event Organizers, venues, service contractors and important associations in the
exhibition industry.
Convention and Visitors Bureau (CVB)
As mentioned earlier, a CVB is a key organization in the MICE industry as it supports and promotes the region it represents. This part will focus solely on how it can help promote and support
the exhibition industry..
• Provide information related to organizing exhibitions, since one country can vary in
term of rules and regulations, along with a list of venues and service contractors. A PEO
or association that would like to hold or organize exhibitions in a new country will need
to adjust the way they operate to comply with the host country’s rules and regulations.
As such, CVBs can help by providing fundamental information such as a list of general
service contractors, venues and, most importantly, the rules & regulation that might affect the way PEO conduct business.
• Facilitate collaboration between government and private sector in organizing exhibitions. Since organizing exhibitions is related to the display of goods and services along
with transportation of many people, an organizer must take into consideration the rules
and regulation for immigration and import & export regulations that can vary from one
country to another.
This means that interaction among government authorities, exhibitors, attendees,
visitors and PEOs is inevitable. A CVB, acting as the main supporting organization, can
facilitate and simplify the process to encourage PEOs and their customers to organize
and attend exhibitions in its region.
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• Facilitate and support the bidding process. As a main supporting organization in
promoting the MICE industry in the region, a CVB can assist the bidding process for
exhibitions. These activities include preparing the bidding proposal, facilitating site
inspection, promoting delegate attendance and presenting an overview of the market,
along with preparing necessary information when preparing proposals.
Source : Thailand Convention and Exhibition Bureau (TCEB)
As mentioned in the previous chapter, Thailand Convention and Exhibition Bureau or TCEB acts
as the Convention and Visitors Bureau (CVB) of Thailand. The role in promoting and supporting
the exhibition industry by TCEB includes preparing bidding support, facilitating site inspection
and providing any exhibition information. In addition, TCEB can provide financial incentive in
terms of subsidies. Lastly, TCEB acts as an intermediary in coordinating with government authorities such customs to speed up the process of importing goods that will encourage exhibitors to
attend exhibitions in Thailand.
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Professional Exhibition Organizer (PEO)
Professional Exhibition Organizers (PEO) usually conceive, organize and operate exhibitions.
Based on The Art of Show by Morrow (2001), PEO are categorized by ownership, in this context
interpreted as a party who has the right to hold and maintain particular exhibitions as an association or entrepreneur.
Association Ownership
The main reason associations would like to get into business holding and organizing exhibitions
is to service members. Since exhibitions serve as one of the best locations to attend professional
education sessions and technical forums to gain knowledge in terms of trends and market
competition, if they create revenue, exhibitions can be used to fund various services provided
to members or as a budget to organize the next exhibition.
Entrepreneurial Ownership
Entrepreneurial owners generate revenue from organizing exhibitions by selling space to exhibitors and creating a desire to attend in visitors. Entrepreneurial ownership can be grouped as
independent, corporate and multinational.
Independent Ownership
The word independent has various meanings in the exhibition context. However, in this text,
independent ownership identifies a corporate entity consisting of one to three principle owners.
Many PEO choose to operate as sole proprietorships or partnership; however, they are not small
as many host large exhibitions.
• Corporate Ownership
Recently, corporations have assumed a greater share within the exhibition industry espcially, in North America where many exhibition companies have gone through mergers and acquisitions allowing them to gain market share without having to create new
exhibitions or enter new markets.
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• Multinational Corporate
As the name suggests, multinational companies are made up of several smaller corporations that have merged or come together to gain strategic market advantage or to
increase market share in the global arena. Companies that own the rights to organize
exhibitions merge with another corporate that owns another exhibition, to form a new
multinational corporation that now owns the right to both shows.
Venue
Exhibitions would cease to exist without facilities in which to hold them, making venues a vital
stakeholder in the industry. As mentioned earlier, venues used to host exhibitions can be public
or privately owned. However, locations must match the concept, needs and wants of all stakeholders, while able to provide benefit to the region hosting. Six types of venues are commonly
used to host exhibitions.
1. Convention and Exhibition Centers
Convention and exhibition centers have been
a popular venue to
hold exhibitions since
the early 20th century.
Based on a definition
by Rutherford (1990),
a convention center
is, “a public assembly
facility that is designed
to host meetings and
exhibits under one
roof.” However, today,
Source : Thailand Convention and Exhibition Bureau (TCEB)
even though a venue
may state it is a convention center, most now provide every kind of product and service a PEO can think of
ranging from meeting rooms, large ballrooms, exhibition spaces with multi-use foyers,
to food and beverage catering services. This makes it difficult to differentiate between
exhibition and convention centers as most can provide space and service for large
conventions or international exhibitions.
Convention and exhibition centers are privately owned or government supported. In
the US, many local governments like to exercise control and promote tourism in their
administrative region. On the other hand, in Thailand, most convention and exhibition
centers are privately owned.
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2. Multi-purpose Facilities (MPF)
Multi-purpose facilities (MPF) allow layouts and configurations to be altered to provide a variety of spaces based on customer requirements meaning it can hold several
meetings and events simultaneously. To elaborate, imagine a hall or a room that has a
retractable ceiling that can adjust the height of the ceiling; movable walls and separate lightning controls that can allow a venue to host wedding receptions for 50 guests
to larger scale events and activities.
3. Multi-use Site
Multi-use sites have collections of facilities located within the same complex usually
favoring a variety of buildings that can be used as a stand-alone facility or open and
connected among each other. The distinction between multi-use sites and multi-purpose facilities is that multi-use sites consist of many buildings while MPFs are single building blocks with a flexible layout.
4. Hotel
Many hotels, especially in North America, have already built and incorporated space
for exhibitions into their floor plan. The benefit is that exhibitors and visitors do not need
to commute and can stay in the same place where exhibitions are held.
5. Downtown Facilities
Downtown facilities mean facilities located in the heart of major cities, either a convention center or a multi-purpose facility. The benefit of holding exhibitions in downtown facilities is that it can provide a ready-made attendee base in the area since hundreds of
thousands of people working in the buildings around the facilities can visit and attend.
In addition to a ready-made attendee base, downtown facilities benefit from the various types of accommodation available and public transportation to the venue. An
example of a famous downtown facility is Madison Square Garden in Manhattan, New
York. However, the benefit of holding exhibitions in downtown facilities comes with disadvantages, such as a lack of parking and traffic jams. Therefore, a PEO must weigh the
pros and cons in choosing venues before contracting for exhibitions.
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Introduction to MICE industry
6. Gaming Facility
A gaming facility consists of gambling along with exhibition space. Although gambling in Thailand is prohibited, Las Vegas, Macao or Singapore Marina Bay Sands are
exhibition centers with gaming facilities. Holding exhibitions in a gaming facility can
be attractive since visitors and exhibitors will have other to consider, although a PEO
needs to balance between program hours and the amount of free time. Without proper
planning, exhibitions in a gaming facility might affect attendee numbers at the various
activities. With this in mind, many companies avoid venues with gaming facilities, or at
distractions such as shopping malls, or even fascinating locations.
Service Contractors
Service contractors are individuals or companies that provide products and services used
to create the physical environment such as the exhibit floor, registration booths and security
systems. Based on the Exposition Service Contractors Association, (ESCA), the association that
represents service contractors and their partners in the exhibition industry in North America,
service contractors can be divided into three groups.
1. General exposition contractors (general service contractor or GSC): Full-service general service contractors own sufficient equipment to set up and service a minimum
200-booth trade show.
2. Specialty contractors: Provide a specific service for trade shows, including equipment,
floral arrangements, photography, PR, freight, exhibits, security, specialty furniture or
registration services.
3. Associates: Suppliers to general or specialty contractors.
Apart from service contractors, most PEO will work with contractors to construct exhibition
booths, while some exhibiting companies may have their own contracts with service contractors responsible for constructing or organizing booths and displays. This type of service contractor is an exhibitor-appointed contractor (EAC) and designs, constructs, installs and dismantles
displays or booths at every exhibition a company might attend. On the other hand, some venues have their own agreement with specific service contractors (exclusive contractors) which
every PEO needs to accept if they want to hold exhibitions at that particular venue.
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Major Associations in Exhibition Industry
While many associations are related to stakeholders in the exhibition industry in each region, a
few key global associations in the exhibition industry are listed below.
UFI
UFI is one of the most influential associations in the global exhibition industry. Established in 1925
in Milan, Italy, UFI now has 580 member organizations (301 Exhibition Organizers, 70 Hall Owner
Managers, 129 Exhibition Organizers & Hall Owner Managers, 51 Associations and 45 Partners of
the exhibition industry).
Present in 215 cities in 84 countries on six continents, UFI members own exhibition centers with
rentable space at more than 12 million square meters, organizing more than 4,500 trade fairs
and exhibitions around the world with over 50 million square meters of exhibition space rented
per annum. These 4,500 trade fairs and exhibitions translate into over 1 million exhibitors participating with more than 150 million visitors attending events every year.
Apart from providing training and education sessions to improve member efficiency and
competitiveness, UFI provides professional networks and public & private connections to help
members to exchange ideas and experiences with other stakeholders in related businesses.
UFI also promotes exhibitions organized by members via their effective marketing communication channels. UFI certified exhibitions can attract increased attention and improve the likelihood they will attract more exhibitors and visitors. Finally, along with other associations, UFI
provides in-depth research and data along with industry trends used widely by most, if not all
stakeholders in the exhibition industry.
Center for Exhibition Industry Research (CEIR)
Established in 1978, CEIR is a non-profit organization. It promotes growth and awareness of exhibitions and other face-to-face marketing events by producing and delivering research-based
tools that reflect the value and benefit of holding exhibitions by enabling stakeholder organizations in the exhibition industry to enhance and improve their ability to meet current and emerging customer needs.
Over the last 30 years, CEIR has actively participated in and supported the exhibition industry
via primary research studies that allow their members to understand the issues and changes in
industry trends and to be able to adjust their strategies accordingly.
Apart from providing research and data, CEIR also conduct their own presentations at industry events along with providing guest and industry speakers to transfer industry knowledge to
private groups.
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International Association of Exhibitions and Events (IAEE)
IAEE established in 1928, is composed of approximately 1,300 organization members and over
8,000 individual representative members. More than half of IAEE’s members are directly involved in planning, managing and producing exhibitions and buyer-seller events. IAEE has a
mission to support and promote membership by providing training and information related to
the exhibition and events industry.
The benefits of IAEE membership include professional training and development along with
leadership development and local chapter membership, industry news and publications, advocacy with government and the media that allow members to conduct business more efficiently.
Thai Exhibition Association (TEA)
Due to the fast growth in the exhibition industry in Thailand over the last several years, TEA,
founded in 1997, currently plays a major role in promoting and supporting the exhibition industry
in Thailand. Apart from providing members with training and insights regarding the exhibition
industry, TEA also works to increase the quality of their members by implementing international
standards to facilities and service sectors within their membership pool.
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Chapter 6
Organizer and Attendee
Decision Making Criteria
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Introduction to MICE industry
This chapter will identify factors that influence decisions by both organizers and attendees to
attend events and will explain perspectives from both sides.
From the organizers’ perspective, decision-making factors usually revolve around destinations
and service providers. The destination that best meets requirements of an organizer’s client and
has a suitable capacity will be the most feasible location.
Service providers that are able to provide and have proven records of professional services for
organizers will be considered. Attendees, on the other hand, pay more attention to intangible
factors that have an emotional impact along with other questions about whether attendance
will improve business.
Destination Selection
The decision criteria as to where to hold MICE events consists of two important elements, destination and other related requirements. In turn, these two elements consist of several aspects
MICE companies are looking for prior to short-listing suggested destinations.
Figure 6-1: Decision Making steps for MICE events organizers
Descision criteria in
selecting the
destination
• Destination
requirements
• Other related
requirements
Destination
requirement
• Supporting
infrastructure
• Rules and
regulations etc.
Selected / preferred
• The destination
that pass specific
requirements
Corporate Meetings and Incentive Travels Decision Criteria
Corporate meetings and incentive travel are somewhat similar, if not related, to leisure tourism.
The decision criteria, whether or not it is solely made by companies or through meeting planners (Destination Management Companies or DMCs), are usually based on the perspective of
those who will attend and what they need.
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To answer this question, it is necessary to examine the purpose for the event or the incentive
travel in terms of whether it is a reward for achieving goals or a motivational tool for future
performance. In either case, destinations chosen must provide an impeccable experience and
utmost comfort for attendees.
For destinations to be preferred, they have to be accessible and convenient. A highly accessible airport, well-connected transportation networks and modern infrastructure will give destinations an advantage. As both events and incentive travel are closely linked with leisure tourism, the attractiveness of the destination, tourist spots, leisure activities and exotic tour programs
must be reviewed, while not forgetting to take into consideration budget constraints. Location
attractiveness can be measured through scenery, culture, history and architecture with the
more unique and exotic the destination is, the more it will be preferred.
For corporate meetings, the availability of meeting facilities also comes into play. There must be
enough hotel rooms to accommodate every attendee and meeting rooms to meet all requirements. The level of technology, quality of services and expertise in corporate meetings can also
help to identify venues suitable to host meetings.
Finally, one of the most important factors that can influence the decision for hosting corporate
meetings and incentive travels is safety and security at the destination. The more a destination
takes this issue seriously, the more preferable it will be in the eyes of both meeting planners and
attendees.
With corporate meetings and incentive travel, most clients work closely with destination management companies (DMCs) and incentive houses to decide the locations at which they want
to organize meetings or reward as an incentive trip. While DMCs and incentive houses suggest
and provide suitable locations based on client needs, the client will be the one to select the
final location.
Source : Thailand Convention and Exhibition Bureau (TCEB)
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Introduction to MICE industry
Convention Organizer (PCO) Decision Criteria
Regardless of the nature of the decision making process in tendering destinations, sets of
qualifications each association is looking for must be fulfilled for a destination to be chosen. The
International Association Meetings: bidding and decision-making, an article published by ICCA
and Successful Conference Management: Choosing the Right Destination, an article published
by MCI Institute both stated very clearly factors that enter the decision-making process when
selecting a destination grouped into destination and convention requirements. Destination
requirements are factors that can identify the suitability of a location, while convention requirements are critical to convention success.
1. Destination Requirements
The overall qualifications of each destination also have a direct impact on the success
of conventions as well as the perception of those attending it. Listing the qualifications
of each destination can help an association compare the suitability of each destination
and finally choose the most appropriate. For simplicity, these qualifications are grouped
into three main factors as follows:
1.1 Supporting infrastructure and accessibility enhancement factors
Supporting infrastructure is a broad term to cover what has an impact on how easily
conventions can be held at destinations. The higher the complexity, the less likely a
des tination will be chosen. Supporting infrastruc ture and
accessibility
enhancement factors
include destination support, access, time
zones, language
barriers,
telecommunication
infrastructure,
economic
stability and local staff.
Source : Thailand Convention and Exhibition Bureau (TCEB)
The most important supporting infrastructure and accessibility enhancement factor should be destination
support. There is a positive correlation between the full support of associations and
organizations from a country and the likelihood that country will be chosen to hold
conventions. The extent to which each destination is willing to support conventions
varies across countries and can consist of:
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Financial support can come in the form of grants or sometimes low-interest loans. Finan
cial support can include discounts for accommodation and airfare. Finally, if
conventions reach a sales target, commission refunds or simple cash rebates may
be available.
In-kind support is offered at many destinations; are usually very flexible and provide
room for negotiation. In-kind support consists of free dinners for delegates, free maps,
free city-passes, free transportation costs and free advice and assistance in hosting
events of any kind.
Supporting infrastructure stretches from the capacity of airports, flights entering the country,
easy access and sophisticated transportation infrastructure, disabled-friendliness, Wi-Fi support,
safety and security measures.
Quality staff and low language barriers also contribute to infrastructure support. Quality staff
and suppliers are crucial to convention success. The ability to find efficient and effective service
providers and staff is also crucial. Language considerations also come in to play as it can save
time and effort in communicating with others.
Other supporting infrastructure and accessibility enhancement factors organizers take into consideration include safety and security, economic stability and medical facilities.
Destinations that are safe and stable both economically and politically obviously reduce the
risk of complications. A country with intense safety and security measures both at a macro level
and at venues and meeting infrastructure also adds to a promising destination since organizers can focus on delivering quality services without having to worry about what might happen
which could also drive up costs due to higher insurance premiums.
1.2 Rules and Regulations
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A second group of considerations includes rules and regulations within a destination
that organizers take into considerations when making decisions on the most suitable
locations. Desirable rules and regulations include trade union and labor relations, cus
tom regulations, visa requirements, VAT refunds and measures to tackle currency risks.
Introduction to MICE industry
Custom regulations and visa requirements are at the top of the list when organizers
look for suitable locations. Materials, products and stands that must be used at the
destination must arrive on time and be ready when needed. Countries with strict
regulations regarding taking items into the country may be at a disadvantage since
organizers will need to outsource some tasks to external service providers. Lenient visa
requirements serve as a plus for organizers as it will be convenient for attendees as
they save time in preparing, lead to a higher attendance rate and increase the
repeat rate for future events in the country.
VAT refunds and the time it takes for attendees and organizers to claim are vital in
the decision-making process. It can help organizers as well as attendees to save
money and provide an incentive for them to spend more. Consulting services and
a shortened process in reclaiming VAT is needed. The higher the efficiency, the more
benefit added to the destination in question.
1.3 Ambience and Appeal of the Destination
The last group of factors influencing convention organizers is ambience and
destination appeal that contribute to the total experience. Attractive destinations will
encourage higher attendance and the more exotic a site is with proper infrastructure;
the more attractive it will be to attendees as well as accompanying partners.
Famous tourist attractions, nightlife, shopping and other leisure facilities are always
desirable as they add value to the total experience. Tourism options a country can
offer with some exclusivity will make a destination even more attractive. A destination
should also promote its cultural appeal, food, quality of services or weather as other
selling points. These components all have an emotional effect on attendees,
which should shape the organizer’s final decision.
Source : Thailand Convention and Exhibition Bureau (TCEB)
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Often, if selected locations are asked to submit a bid, the decision as to who to ask to
prepare the bid is often based primarily on organizer experience. Invariably,
once bids have been submitted, locations will be shortlisted by the convention
committee who will then need to go for site inspections. A site inspection and
presentation have a direct impact on final decisions regarding destinations.
These decision makers range from association leadership or association executives,
board of directors, executive boards, and convention committees or even all
association or group members. However, the decision making process is usually
influenced by parties such as hired consultants, core PCO, Association Management
Companies, sponsors, business partners and past members of board of directors.
Even, politicians, news media or celebrities can have an impact on the decision as to
whether a destination will be chosen.
2. Convention Requirements
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The destination criteria discussed above are concerned with macro components of
a destination’s ability to support conventions. The next step is to look at other
components at a destination that specifically and effectively support particular
conventions.
A membership base in a country or city can augment attendance and revenue,
although this does not justify associations holding meetings in a country or city that
has the largest membership base. At times, holding conventions in an area low in
membership can be beneficial as it can increase the potential to expand chapters
and membership.
Delegates sometimes
attend conventions just
because of the
reputation of the
speakers or experts in a
particular topic.
Therefore, a location with more renowned
speakers in the field to be discussed will be
preferable. Local
speakers tend to provide new content,
which delegates may find intriguing and can
potentially create a stage for delegates to share research and findings. Moreover,
destinations with strong research, expertise and specialization related to convention
themes are desirable as they can broaden topic discussions and help to create research partnerships. Having quality local speakers can also lead to a reduction in
Introduction to MICE industry
Source : Thailand Convention and Exhibition Bureau (TCEB)
transportation and accommodation costs as well as the cost to hire speakers.
Local committees, as discussed in Chapter 4, will often act as steering committees for
conventions and go through the bidding process to decide the overall “look” of the
convention. These committees commonly consist of an initiator of bids, invited mem
bers in the same field as the convention, PCO representatives, the venue, CVB, airlines
and sponsoring companies.
The selection of this committee is important, as its ability and effectiveness in
organizing conventions, will influence the extent to which it will have an innovative
program and content. The more parties, associations or people in the field who on the
committee, the easier it will be to have conventions held in the city. In addition, the
strength of a region’s manufacturing or service industries related to conventions can
also be a plus since conventions can serve as a business, investment or collaboration
opportunity among convention attendees and business owners.
Looking at this from another perspective, an association can seek advantages from a
weak location as well as it can leave a social legacy with an impact on the
community. For instance, communities that suffer from specific challenges can rally
their issue more effectively or benefit from topics discussed at conventions. This can
become a PR device for associations by projecting their role as having responded to
local demand and can be portrayed as CSR initiatives.
As stated earlier, representatives from sponsoring companies are also often on
committees with their decisions vital to where conventions will be held. Therefore, a
destination that has adequate facilities and a level of assistance that meets the
qualifications of convention
sponsors will help to dictate
whether a particular destination
will be chosen.
Often there are discrepancies
in terms of venue facilities and
their offerings that can influence decisions when choosing
destinations. Venue availability
and suitability in different cities
varies yet can be found compatible to different convention
Source : Thailand Convention and Exhibition Bureau (TCEB)
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type. Therefore, destinations with the most suitable venues that have proven
professionalism records,
experience and can meet the needs of organizing committees tend to increase the
potential destinations will finally be chosen. Venue suitability will include sufficient
space, suitable layout and settings for the program, available catering options, quality
maintenance, proper internal infrastructure and support services.
Cost of renting venues, if not the most important factor, is a main factor that can in
duce a ‘yes’ or a ‘no’ from organizing committees. Suitability in relation to capacity,
price and experience are weighed to reach final decisions. Destinations that can
provide the most benefit to match event profiles given the budget constraint should
have the most benefit. Negotiability, flexibility and incentives venues offer can also
increase the potential they will be chosen.
Source : Thailand Convention and Exhibition Bureau (TCEB)
Convention Attendees’ Decision Criteria
The more delegates attending a convention, the more benefit it brings to the organizing association and the host location. High attendance translates into more income for organizing
associations and for local hosts. Not only do convention attendees generate significant income,
they help to spread out demand for tourist services during low seasons.
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Introduction to MICE industry
Several studies have attempted to examine the steps convention attendees go through to
make a decision to attend. Meant to be a guide or an approach, they suggest means for
convention organizers to attract a maximum number of attendees. Published in 2006, Zhanga,
Leunga and Qub refined a model of factors affecting convention participation decision-making.
Figure 6-2: Refined Selection Model for Convention Attendees
Source : A refined model of factors affecting convention participation decision-making, Zhanga, Leunga, Qub (2006)
Basing its framework on a previous model by Oppermann and Chon (1997), the model
suggests convention attendees walk through four stages in their decision-making, which consist
of personal & business factors, association & conference factors, location factors and total cost
factors.
First, personal and business factors have to do with the readiness of delegates in terms of
personal issues, like health, financial constraints, time availability, family, funding, opportunity to
seek professional development and a desire to learn about the event topic.
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Second, association & conference factors, delegates will turn to their relationships with associations or conventions. These factors include their involvement with associations, peer recognition, professional contacts, personal interaction and local communities. Those who commonly
attend conventions are professionals involved in several associations simultaneously. However,
their level of involvement may vary, which is another factor that has an impact on attendance.
Conventions that offer professionals opportunities to make personal contacts with influential
speakers, guests and experts are more desirable than those with less-qualified speakers.
Third, location factors are divided into two subcategories: attractiveness and accessibility. Attractiveness factors are what organizers are looking and cover many factors such as destination
image, safety and security, sightseeing, friendliness of the locals, language barriers, accommodation, entertainment and nightlife. Destinations considered accessible include calculations as
to distance, flight and airport capacity and visa requirements.
Finally, cost factors are related to expenses delegates have to incur both monetary and nonmonetary. Monetary cost factors are transportation, accommodation and registration. Nonmonetary cost factors are opportunity costs delegates have to calculate when attending
conventions when there are alternatives including other conventions, vacation, and time with
family or with friends.
It should be noted that convention content combined with destination attractiveness and
accessibility are among the most important factors organizers and associations focus on to
attract attendees. The perception by prospective attendees that conventions will offer quality
is influenced by convention content they see as being able to help them develop professionally. Additionally, personal experiences or a chance to have a memorable trip adds value to
destinations.
Exhibition Organizer Decision Criteria
In choosing destinations, there
are no clear-cut steps as how it
is actually carried out. Without
a solid framework, PEOs usually
base this procedure on previous
experience as choosing destinations is usually done by event
organizers and not by buyers
or sellers. Possible destinations
for events will be dictated and
confirmed by market surveys and
needs analysis completed earlier.
Source : Thailand Convention and Exhibition Bureau (TCEB)
Needs recognition and market
surveys are tools used to identify openings for exhibitions, which in the end, returns to the willingness of buyers and sellers to participate as well as the business opportunities available in different locations.
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Introduction to MICE industry
The Art of the Show by Morrow suggests that four general criteria tend to influence site
selection:
1. Attendance Marketing
Attendance marketing is a key factor with a direct impact on the choice of sites to be
selected. This includes everything that could affect a decision to attend the show.
Geographic location of the target market is the most important factor and is the most
significant determinant.
Exhibition location and
transportation networks
must be conveniently
accessible.Exhibition type and program
content also determine
the site that shouldbe chosen. Sites
with more entertainment
and tourism options may be best for
consumer expositions whereas trade shows more business- to-
business in nature, will require different supporting facilities.
For trade shows, airport accessibility, connected transportation networks, adequate
local accommodation and friendly policies are among the top requirements with
little focus on tourism and leisure options, although destinations that can offer
interesting leisure activities, tour options and entertainment will obviously be at an
advantage. Cost effectiveness should also be sound and match a desirable price
range for the exhibition’s target market.
Available facilities must meet every intended element in organizing exhibitions and
should be easy to control throughout the event from planning, organizing, operating
and dismantling. Moreover, venues that have hosted large exhibitions with proven
quality and high standards tend to be at the top of the list.
Major events that will be held in the same area also matter, as simultaneous major
events could be very damaging to exhibitions in terms of attendee numbers. In
addition, other events in the area may make traffic management more difficult and
can inconvenient for both exhibitors and attendees.
Source : Thailand Convention and Exhibition Bureau (TCEB)
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Countries with underdeveloped transportation infrastructure can obstruct planning
and the flow of both people and items coming in and out of exhibition sites.
Rules and regulations should be on top of the list as they can make or break the over
all operation of exhibitions in terms of import & export, taxes & customs, logistics &
exhibits and visa requirements. As exhibitions involve displaying products or exhibits,
countries with complex procedures at customs can slow down the process of setting
up and dismantling exhibitions. Therefore, leniency in terms of rules and regulations
is required to provide maximum convenience for planners and attendees as well as
promote future exhibitions.
2. Basic Facility Requirement
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The actual facilities to host exhibitions must comply with and provide the most
convenient option for organizers. Exhibition halls should have an appropriate amount
of total footage with proper ceiling height. Floor-load capacity must also be suitable
for the nature of the exhibits. Doors, blockages, poles, lodging docks storage,
ventilation system and utilities must be suitable for the exhibition type.
Communication systems within the hall must also be available and efficient. Rules and
policies for administrative purposes within the facility such as rules regarding sub-
contracting external service providers, procedures in case of fire, taxes regulations
and licensing regulations must all be considered.
Public service areas are
washrooms, ticket booths,
registration areas, food
service outlets and ancillary
services. Location and
numberof washrooms, ticke
booths andregistration
areas should be compatible
with visitor numbers to
provide maximum
convenience. Seating in
food areas, cleanliness,
as well as flexibility in menu
selection must be ensured
to comply with event
standards. Other services such as ATM machines and the proximity to medical and first
aid facilities are ancillary elements that will also need to be taken into account.
Introduction to MICE industry
Source : Thailand Convention and Exhibition Bureau (TCEB)
3. Event Value
Event value is another factor to take into consideration. Usually, exhibition impact on
the community hosting needs to be significant enough to allow exhibitions to be held.
As organizers may not be able to lease floor space due to local policies preventing
opening facilities to low-impact-events, PEOs must be able to document the esti
mated economic impact as a justified negotiating tool to secure the best facility for
exhibition success.
4. The Site Visit
The last factor that can influence site-selection is site visits. Site visits can help PEOs
identify the overall facility quality as well as a chance to interact and show interest
with venue operators. Overall status and facility appropriateness can be judged by
seeing it in person.
Details and information about events can be shared so venue operators can point
out necessary supporting amenities that can be delivered. Discussions may also be
required as to improvement or procurement of other amenities needed to deliver
successful exhibitions. Site visits for exhibition planning is a time-consuming process
requiring coordination among all parties involved in ensuring the adequacy of facili
ties to meet the requirements for all exhibition aspects.
Exhibition Attendee Decision Criteria
Berne and García-Uceda studied
the Criteria involved in evaluation of
trade shows to visit and according
to their research, variables can be
grouped into three main categories.
1. Perceptions and
Information about the
Exhibitions
As simply as it may seem,
one of the most important
determinants that can influence the decision of
attendees is how much they know about the exhibition. Information that can induce
attendance includes exhibition type, location, convenience, reputation and
management. In addition, attendees look to whether it is “a horizontally organized
trade fair with broad
Source : Thailand Convention and Exhibition Bureau (TCEB)
149
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grouping of companies or
industries engaged in the
same area of production
… or a “vertically organized
trade fairs … confined to
exhibitors representing one
type of industry or specific
market niche ...” (The Art of
the Show, Morrow, 2002)
Horizontal exhibitions
usually involve a much
broader range of products
and a much more diverse
audience. To give a clearer example, typical horizontal exhibitions such as the
National Design Engineering Show sees firms demonstrating products ranging from
mechanical components, electrical and electronic components, plastics, elastomers
to CAD/CAM systems.
Typically, vertical exhibitions involve a narrow range of products and attract visitors
specifically interested in those products. For example, at tendees at the Association
of Operating Room Nurses Show are primarily operating room nurses with exhibitors
displaying products used almost exclusively in operating ooms.
If attendees are looking for effective purchases of products and services, vertical exhi
bitions are better. On the other hand, if attendees are looking for vast amounts of
information in various industries and no purchasing is to be involved, then horizontal
exhibitions would instead be more advantageous.
Location, time and convenience can also influence decisions to attend. The schedule
needed and the time required to attend have to be appropriate. Access to
exhibitions has to be convenient enough to induce a positive decision. Moreover, the
quality of the services, a high level of professionalism and competency in organizing
exhibitions, also add to a total score as to why attendees visit particular exhibitions.
Reputation also plays a role in the decision making process as previous success can
enhance expectations and lead to higher attendance at future exhibitions. It is one
of the tools used to prove the success enjoyed by exhibition organizers. Exhibition
organizers can also promote and increase awareness about events using sponsorship,
endorsements or publicity through industry associations or public authorities, which
attendees usually take as an indicator of quality.
Introduction to MICE industry
Source : Thailand Convention and Exhibition Bureau (TCEB)
2. Marketing Objectives
Marketing objectives include distribution network objectives and product scanning
objectives for attendees. Attendees choose to attend exhibitions based on the avail
ability of information they want to gather. Exhibitions, apart from being a stage to
expose products and services to the public, also provide those who attend an oppor
tunity to meet new representatives from the same industry, expand their network and
connections, meet distribution partners and gather information about competitors.
Attendees can also use exhibitions as a chance to seek out new suppliers or evaluate
their existing suppliers and partners in comparison with others.
3. Perceived Costs Deriving from Attending
Perceived cost factors are divided into relative and differential costs. Relative cost
is the outlay needed to send personnel directly correlated to the position an attendee
has in company. The higher the rank, the higher the opportunity cost incurred in their
absence to attend. Differential costs come from transportation, accommodation and
complimentary leisure activities.
Service Providers Selection
Some tasks in MICE event management require a high level of expertise from external service
providers and may involve food and beverage, printing, florists, translators, entertainment and
audio & visual companies. Service providers to exhibition management share minor distinctions
compared to convention management providers. Exhibition management wise, service providers
or service contractors, are ‘any firm or individual who provides exposition management and
exhibitors with goods and/or services used to create the physical environment for the exposition
- the exhibit floor and all its related elements.’
According to The Art of the Show,
organizers can use seven general
criteria as reference when choosing service providers, past personal
experience, availability, referrals and
reputations, site familiarity, available
resources, cost and professional
affiliation.
Organizers should have personal
past experience with service providers
from many regions and can rely
on their previous experiences with
Source : Thailand Convention and Exhibition Bureau (TCEB)
desirable service providers. The next
concern with desirable service providers is availability. As choosing service providers must be
finalized as much as two to three years in advance, time is a critical factor.
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Conflicting schedules will limit allocated resources, thus lowering ideal outcomes expected.
Budget, having a level of importance goes hand in hand with time, and is another factor
organizers place into consideration when choosing service providers.
At times, organizers are required to operate in regions or areas in which they have no experience.
Feedback from other sources in referring dependable service providers may be needed and
can be sought through exhibitions managers who have personal experience with
service providers in the area. Another referral source is through evaluations and feedback from
exhibitors who have participated in the target area and can be attained through focus groups,
phone interviews and previous feedback surveys. Finally, referrals can come through local Conventions and Visitors Bureaus; however, they cannot recommend any particular service
providers for commercial purposes due to their need to remain neutral. They can; however
supply organizers with lists of all service providers in the area.
Service providers familiar with the site chosen by organizers can also be a plus. Their experience
with the site can increase effectiveness in operating and utilizing floor plans. They can also provide
organizers with creative suggestions and recommendations. However, service providers familiar
with sites can also lead to unsound assumptions; therefore, organizers should still pay close
attention to the information and ideas provided by these service providers together with their
experiences. Careful and thorough evaluation of each service providers is needed to prevent
potential bias and errors.
Organizers can also choose service providers through their subscription to professional affiliations
as members of these professional associations are usually subjected to codes of conduct and
ethics. Standards these service providers need to offer in order to comply with association rules
should give organizers some peace of mind in choosing unfamiliar service providers.
Apart from the criteria mentioned above, organizers can also evaluate certain personal
characteristics that can single out a service provider. Although there are many service providers,
those who can work in perfect synchronization with organizers are the most likely to be chosen.
Characteristics such as creativity, willingness to share expertise, team player, communication
skills and a service attitude are necessary. Evaluating these characteristics can be through
proposals submitted as well as personal interview sessions.
Decision criteria discussed above give an overall concept of what organizers and attendees
look for in choosing destinations or service providers. These qualifications and their importance
vary depending on each organizer and attendee. A collective consideration of all factors at
organizer and attendee discretion is definitely required to decide where the meeting, incentive
travel, conventions or exhibitions should be held as well as which service providers should be
allocated which tasks.
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Introduction to MICE industry
Thailand MICE Brand Study by TCEB
The Thailand Convention and Exhibition Bureau (TCEB) has conducted research on factors,
which affect MICE travelers when they chose destinations. The results give a clear picture of
what MICE travelers and organizers look for when choosing the right destination.
Based on a research survey by TCEB in collaboration with Nielsen, service is still the most important
factor, which represents 30 per cent of the reasons driving MICE companies and organizers to
organize an event. Service includes hospitality, language & communication capability of staff,
service (quality, speed, efficiency and flexibility a service provider can provide to clients) and
lastly staff competency and professionalism. In addition to service, value for money as well as
rules & regulations also play an important role in choosing the right destination since these factors
can increase the cost of holding an event. The factors, which affect MICE activity, are listed in
the figure below.
Figure 6-3: Factors in Choosing Destination
Important factors in choosing destination
11%
Service
30%
11%
Value for money
Rules & regulations
Environment
14%
17%
17%
Facility
Accomodation and transportation
Source : Thailand Convention and Exhibition Bureau (TCEB), Nielsen Brand Study
Looking closely at each of the six factors, based on the survey by TCEB, safety and security,
under rules & regulations factor is considered as a fundamental aspect for MICE companies
when recommending a destination to clients. Value for money also plays an important role
especially in times of an uncertain global economy and with many companies cutting back
on spending for MICE events.
However, due to political instability in the Thai capital over last few years, the survey also
showed that confidence in the safety and security in Thailand has fallen by 13 basis points.
The other challenges Thailand’s MICE industry needs to overcome lies in areas such as staff
competency and professionalism due to language barriers, lack of business transparency
along with a deficiency in green and CSR focused activities.
Despite these drawbacks, Thailand’s MICE industry still has strengths in terms of proximity &
accessibility, value for money, accommodation convenience & capacity and lastly reputation
as a leisure destination. With TCEB support in promoting Thailand’s MICE industry as a safe
destination along with improving human resources, Thailand’s MICE industry has the potential
to grow in the future.
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Chapter 7
Special Events
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Introduction to MICE industry
Definition
The term ‘special event’ has been used widely among public organizations, private
corporations and specific groups of people with varied definitions and for different purposes.
To help understand the context and components discussed in this chapter, the term needs to
be clarified.
Goldblatt (1990) defined a special event as “a unique moment in time with ceremony and ritual
to satisfy specific needs”. Getz (1997) suggested two definitions,
A special event is a one-time or infrequently occurring event outside normal
programs or activities of the sponsoring or organizing body.” and to the customer or guest, a specific event is an opportunity for leisure, social or cultural experiences outside the normal range of choices or beyond everyday experience.
Shone (2001) defined the term special event and included significant characteristics.
Special events are that phenomenon arising from those non-routine occasions
that have leisure, cultural, personal or organizational objectives set apart from
normal activity of daily life, whose purpose is to enlighten, celebrate, entertain
or challenge the experience of a group of people.
Based on these definitions, special events can be summarized as non-routine events or
occasions that are not a normal activity, have various objectives and can be organized for
several purposes.
The opening ceremonies for the Olympic Games can be considered as an example of
a special event according to the explanations above as well as the annual Edinburgh
International Festival or even a private birthday party.
Characteristics
Special events can be classified depending on specific criteria, for example: size, organizer,
context, complexity or objective. However, according to Shone (2001), special events have typically been grouped into four categories (leisure, personal, cultural and organizational) based
on their main objective and context.
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Figure 7-1: Special Events Categories
Leisure Events
(leisure, sport,
recreation)
Personal Events
Special
Events
(wedding, birthday,
anniverary)
Cultural Events
(ceremonial, sacred,
heritage, art, folklore)
Organization Events
(commercial, political,
charitable, sales)
Source : Successful Event Management: a Practical Handbook, Shone (2007)
Leisure Events
Regarding the term ‘leisure’,
according to the Oxford
Dictionary, leisure means the
use of free time for enjoyment.
Therefore, leisure events are any
special event held for entertainment purposes or involving
recreational activities. They can
be organized in both commercial and non-commercial form
depending on the objectives.
An example of leisure events
Source : Renjith Sasidharan. (2010). Kingfisher Oktoberfest 2010 [Photograph].
Munich, Germany, from http://www.flickr.com/photos/renjithks/5114948443/in/
photostream
involving sport is the Olympic
Games. Another example of
leisure events is Oktoberfest, the
world-renowned beer festival
that takes place every year in
Munich, Germany.
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Introduction to MICE industry
Source : Digital Cat. (2011). Oktoberfest 2011 - der
Countdownläuft [Photograph]. Munich, Germany,
from http://www.flickr.com/photos/14646075@N03/6150688201
Personal Events
Personal events are held to celebrate or commemorate a communal, societal or life-cycle
occasion. Birthday parties, wedding receptions, graduation parties and anniversary celebrations are regularly classified as personal
events. In personal events, close people like
Source : Constant Progression. (2009). Oktoberfest
[Photograph]. Munich, Germany, from http://www.flickr.com
/photos/georgeyboy/3990701018
family and friends gather, mostly by invitation,
and a mutual feeling of belonging is shared.
Personal events can be arranged for limited
groups invited to a small private birthday
party or a many people invited to a large,
500-guest wedding.
Source : Kevin Coles . (2007).
New York Saint Patrick’s Day Parade
[Photograph]. New York, from
http://www.flickr.com/photos/
kcjc/427296189/in/photostream
157
Cultural Events
Cultural events are associated with ceremonies, traditions, art or religious celebrations, and are
usually a prominent part of a larger cultural event. For example, St Patrick’s Day’s Festival, held
every 17 March, the purpose of which is to celebrate Saint Patrick, the patron saint of Ireland. In
this special event, Irish culture, including Irish food, drink and music are presented and shared,
not only with the Irish people but also with people of other nationalities who join this cultural
event.
Source : CMO Public Company Ltd.
Organizational Events
Organizational events invariably include members of the same institution or in the same industry. Institutions can be royal, military institution, political, industrial or company orientated
in nature. Examples of this type of event range from Apple introducing a new product or the
International Robot Exhibition held by the Japan Robot Association (JARA).
Source : CMO Public Company Ltd.
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Introduction to MICE industry
Special Event Component
In organizing a special event, even though the components or stakeholders might vary from
one to the next, major components are similar.
Event Content/Main Activity
Special events have content or main activities that can be quite diverse depending on
the event type or purpose. In music festivals, for example, the major activity an organizer
and most participants will focus on will be the musical performance and what is needed
to present it and enjoy it.
Venue
Venues can be either a
public or privately owned
facility ranging from a hotel
meeting room to a public
square in a city center. To
decide which type of venue
is suitable, depends on the
objective and participant
numbers.
Source : Thailand Convention and Exhibition Bureau (TCEB)
Host and Organizer of Special Event
The term ‘host and organizer’ usually refers to those who initiate a special event.
While organizers may arrange and organize special events according to the needs and
requirements of a host, special event hosts can be an individual, a group of people or
an organization who would like to arrange a special event, such as, the Afro-Caribbean
communities hold the Nottinghill Carnival.
Event organizers that provide services in organizing an event are often referred to as either
‘event management companies’ or ‘event organizers’. According to Shone (2001), the
difference between the two lies in the scope of work they perform. Event management
companies are hired by a client to handle a specific scope of services for a given
special event. Event management companies perform these tasks as a profession and
may include all creative, technical and logistical elements. On the other hand, event
organizers are firms that organize a special event for a client or manage non-professionals
who organize an event on a voluntary basis.
Event Participants
Event participants or attendees, visitors or guests, are the most important component at
any special event and are the main target audience and reason why something is been
held in the first place. When thinking about who will attend, the owner of a special event
should have some idea as to their goals and objectives in terms of target participants and
numbers before hiring a host and organizer.
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Social and Economic Impact
Special events can create a positive social and economic impact that can benefit a community in terms of employment, revenue, cultural preservation as well as community development.
To give a clear picture of how special events can create a positive impact both socially and
economically, definitions for both must be clarified.
Social Impact
Social impact can be regarded as any consequence to societies, communities or individuals
that alter their lifestyle or living conditions. Social impact, then, can be both positive and negative for members of a society or in an area organizing a special event.
• Improve Social Interaction
All special events, large
or small, can enhance
social interaction among
people participating in
the event. For example, in
weddings, where guests
come together to enjoy
the atmosphere and
participate in common
activities such as dining,
chatting, playing games
and dancing, a social
event is shared.
• Develop Community
Source : Olga Pavlovsky . (2008). Notting Hill Carnival 2008 [Photograph]. London,
from http://www.flickr.com/photos/olenkaolja/2803987238/in/photostream
Cohesion
Special events also develop and increase cohesion within community members. When
special events, ranging from street parties to regional festival, are held in a community,
social interaction is encouraged by volunteering to help or by joining in on the day.
Moreover, these activities can also increase cultural and social understanding among
people in the society.
For example, the Notting Hill Carnival, originated by Afro-Caribbean communities, living
in Notting Hill area in London, is intended to celebrate their own culture and traditions.
This Festival, started by a small group of Caribbean people, has become the largest
street festival in Europe. It has become a prominent example of a community event that
has led to substantial community cohesion and improvement in relations between local
community members.
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Introduction to MICE industry
• Improve Community Identity and Pride
A tourism attraction promoted to gain recognition for an area or town based on a special local event can expand social impact in the sense that it creates pride within the
community. This impact can also lead to development in town facilities, infrastructure
and a better environment. This has been the case with Cannes, a seaside city in France,
which has become the second most famous city in France as the venue for the Cannes
Film Festival.
• Entertainment Variety
Another benefit for society includes providing entertainment options for residents of the
host region. By joining a special event, whether sport, music, art or any other type of
special event, participants can find new experiences and enjoyment. In Rio Carnival,
the world famous festival held every year, offers magnificent samba parades, street
band competitions and different themed balls.
Source : Left: Jakob Montrasio. (2005). Festival de Cannes 2005 [Photograph]. Cannes, France, from http://www.flickr.com/
photos/yakobusan/134693650/in/photostream, right: Jonas Lamis. (2006). Cannes Beach Panorama [Photograph]. Cannes, France,
from http://www.flickr.com/photos/jonaslamis/299181781/in/photostream
Even though special events can create a positive impact, they can also hurt societies
or communities, mostly in the case a special event is badly planned or managed. These
negative issues range from overcrowding, traffic congestion, noise pollution and access
restrictions.
Nonetheless, the majority of social impact studies related to special events along with
the public’s perception often see special events as beneficial to a community and not a
cause for concern.
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Economic Impact
Economic impact benefiting a host economy can be categorized into those having either a
direct or indirect impact. Direct or primary impact is a new economic gain that comes to the
host region and is directly attributed to the special event, while indirect or secondary impact is
income or economic gain earned directly, but then re-invested within the region.
• Revenue from Visitor and Organizer Spending
Special event income comes from tourist spending along with organizer and sponsor
expenditures. Visitors attending a special event spend on food and beverage, accommodation, tickets, transportation, entertainment and other spending as well. An organizer and sponsor will spend on set-up costs, marketing, employee wages, transportation and other needs associated with establishing an event.
Spring Break, a festival for college students held annually in late February, early March
in Daytona Beach, Florida creates a huge economic impact adding USD 196M to the
local economy annually (Soskin, 2001).
• Employment Opportunities
Special events create job opportunities such as sales, marketing, caterers, drivers, musicians, entertainers and photographers. In the case of Spring Break, this special event
generates 4,580 full-time jobs in the local economy (Soskin, 2001).
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• Infrastructure and Facilities
Hosting special event can stimulate investment in infrastructure and other facilities
beneficial to the community and economy and will vary based on event size. For Spring
Break, it might only relate to expansion in facilities such as restaurants and hotel; however, with a larger scale special event, such as Athens 2004 Olympics Game, huge
projects were undertaken including transportation network improvement, international
airport upgrade, stadium complex modernizing and athlete village construction.
Apart from these economic results, special events also generate a secondary effect or
indirect impact on a local economy as the income brought by hosting an event is often
spent within the host economy creating another round of economic activities. To give
an example, when firms make sales to visitors, they purchase goods or services from
other business operators, in turn, these other businesses use their income to purchase
goods or services from other firms and so on. In addition, a secondary impact happens
when employees in a host region spend their increased income on goods and services
within the area.
Overall, special events can bring considerable economic benefit to the host economy,
including generating income, creating jobs, attracting investment and increasing
spending within region. However, as with social impact, special events can also generate negative economic impact such as increased price of goods and services and a
trade-off in government spending between investments in facilities for special events
and other choices.
Source : Vlad Litvinov. (2008). Daytona Beach [Photograph]. Daytona Beach,
Florida, from http://www.flickr.com/photos/vlitvinov/5823573682/in/photostream
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Roles and Importance of
Event Management Companies (EMCs)
A clear, solid vision as to organizing a special event will not come about without an event management company to provide help in organizing an event from conceptualizing and planning
to completing an event.
The role of each event management company (EMCs) is diverse since their specialization can
be operating corporate events such as product launches, cooperate meetings, press conferences or personal events such as weddings, private parties or entertainment events – music
festivals or film premieres. Although objectives and context for each type may be different,
fundamental services EMCs provide will include: planning, marketing, operating and evaluating events.
Event Planning
Since organizing an event can be complex and interrelated to many groups of people and
activities, planning plays a key role. Before making any plans, precise aims and objectives have
to be defined, as they will become guidelines for planning and controlling other activities.
• Operational Planning
In this step, the number of potential attendees is estimated to aid in planning related
components such as tickets or invitations, food and beverage, along with the size and
place for setting the event. The next task is to manage resources, time, staff and equipment needed. An event organizer generally has to plan a time schedule, determine
the number and type of staff required, allocated people and sub-contractors to the
functions they serve, choose a venue, run activities and arrange for all supplies needed
for the event.
• Financial Planning
Financial planning and budget control are important since they are of significant concern to clients, organizers and other coordinators. First, the cost of operating an event
has to be estimated with some costs varying depending on attendee numbers. Then a
desirable profit will be set while considering a competitive price. These two factors are
taken into consideration to determine ticket price in case of a commercial event or to
estimate the budget or required sponsorship in case of a non-commercial event.
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•
Marketing Planning
Marketing an event is the key to making people want to attend. For events for which profitability is a concern, marketing is required to achieve goals. However, for a private event
such as wedding or birthday party, marketing is also an essential element as it makes
guests want to joy the party. A marketing plan has to cope with two issues, marketing budget and timing the campaign.
In event planning, operational, financial and marketing planning should be handled
simultaneously since they are interrelated. Even though this process is time-consuming,
coordination is regarded as a major requirement in organizing and managing a successful event if EMCs are to achieve an assigned goal, whether small or large, within a given
period and budget.
Another necessary element to help EMCs create an attractive event is creativity. However,
to be creative is much easier said than done, but remains important as many attendees
are looking to attend special events that are new, exciting and different from previous
events.
Preparing and Operating Event
In general, preparation and operation of events includes:
• Finding a Venue
Although it might be the
starting point in preparation, other operating
functions like logistics,
organizing food and
beverage, equipment
and people, should
be considered alongside finding the venue.
EMCs or event organizer
need to identify what is
required at a location to
Source : Thailand Convention and Exhibition Bureau (TCEB)
organize an event based
on the stated event objectives and other criteria. In most cases, site visits are necessary to check whether the
venue can provide what is needed.
165
• Logistic and Supply Function
Managing logistics and supply functions for an event involves planning, designing and
controlling movement of all the resources to the area where required. While the complexity of this process increases according to the size of an event, general logistic for
events include:
• Manage event supplies such as tickets, on-site flyers and signage
• Manage the arrival and departure of attendees, flow of people, equipment,
suppliers and artists
• Manage catering and drink services
• Manage technical facilities such as video projections, videoconferences and sound
reinforcement
• Manage backdrops, staging and lighting
• Manage sound and communications
In many cases, logistics and supply is allocated to specialists while an event organizers’
role is to remain in contact and provide a list of requirements to these specialists.
• Human Resource Management
Managing human resources may include wide-ranging activities, involving long-term
strategic development. EMCs and event organizers have to assess the labor market,
skills required and a possible integration process before performing human resource
management tasks which include: workforce planning, organizational design, contractor selection & management, volunteer planning, recruitment & selection, training,
occupational health & safety, uniforms, accreditation, meals & transportation, human
resources policy, job analysis, leadership & motivation and risk analysis.
To adopt an appropriate human resource management plan and implementation, all
the processes, starting from staff recruiting to designing human resource policies, have
to be consistent with the purpose and objective of the event.
The processes discussed above are general and fundamental key responsibilities in
the preparation and the operational phase in organizing a special event. However,
some special events may require more functions, for example, in an event where many
people are participating, security and attendee management should be applied.
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Introduction to MICE industry
Figure 7-2 : An example of an EMC Organization Chart
Managing Director
Deputy MD (Coporate and marketing)
Deputy MD (Creative and Production)
General Manager
Design
Department
Client Sevice
Department
Project & Production
Department
Creative
Department
Traffic
Chief of Design
Department
Senior Designer
Designer 2
Project
Director
Production
Director
Creative
Director
Project
Manager
Production
Manager
Senior
Creative
Production
Support
Creative
Client Service
Director
Account
Manager
Account
Executive
Designer 3
Project
Executive
Purchase
& Support
HR
Finance
& Admin
Operator
Project
Coordinator
Crews
Graphic
Designer
Messenger
Maid
Source : 100 Rivers Company Ltd.
Marketing Event
Another key function of an event organizer is to market the event starting from defining the target market, designing communication strategy and developing a marketing plan.
• Target Market
A first step in marketing events is to know and identify the potential target markets,
which refers to the people who will be attending. Target market information required
ranges from age & lifestyle, special interest groups and responsiveness to price
difference. Acquiring information about target markets will help event organizers or
marketers choose effective marketing tools and approaches that will attract the
correct target customers.
167
• Communication Strategy
Issues for event organizers include activities that will attract the target market, buying
habits and the benefits visitors will gain by attending the event. However, marketing
concerns might differ depending on the event type. For example; with a private event,
a marketing issue may be how to invite people; for a high profile or very popular public
event, the issue may be to control people getting in; for a charity or fund-raising event,
getting enough attendees to reach target amounts might be a major concern. The
difference in issues will lead to different tools and medium used to communicate with
target markets.
• Marketing Plan and Timing
In developing effective marketing plans, event organizers or marketers have to revise
event objectives from time to time and conduct an environment analysis on competitive events, stakeholders and circumstances ranging from local conditions to the global
economy. The next step is to prepare a summary of event components, a list of particular product or service mixes the event will need to attract different target market
segments.
For example, with a music festival, this mix may contain a main concert stage, subconcert stages, CD sales booths and mini theatres. A marketing budget will then be
prepared based on all the items required to do a proper and thorough marketing campaign and to allow organizers to estimate their total cost most effectively. The other element in a marketing plan is preparing a marketing schedule that will enable an event
organizer to know the lead times for various marketing activities.
• Evaluating Events
Once events are completed, an evaluation should be done shortly thereafter, usually
no more than one month after the event. In evaluating events, all available sources of
information should be considered such as opinions from organizers, visitor perceptions
and other parties involved in the specific event. To gain proper feedback, various information sources can be employed for event evaluation, for instance, visitor observations
and questionnaires, sponsor views of publicity, staff & volunteer views and comments,
coordinators observations, community views and specialist reactions.
To evaluate events, two key evaluation issues need to be addressed.
1. Did the event meet its objectives?
2. What can be improved next time?
Evaluating events enable event organizers to identify problems and learn what to improve for the next event.
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Success Case of Special Events in Thailand
Thailand has been host to a number of very successful events.
• Bangkok International Festival of Dance and Music
The largest performing art festival in Thailand, the Bangkok International Festival of
Dance and Music has been held annually for over a decade. Established in 1999, this
festival has grown in reputation and size to become the largest performing arts festival
in Thailand. It has also secured a reputation among theatergoers in Asia and as far
away as Europe as a few thousand overseas visitors fly into Bangkok each year to attend this event.
• 13th Thailand Asian Games
The 13th Asian Games was one of the largest sporting events held in Thailand. Held from
6 to 20 December 1998 in Bangkok and across many provinces from Chiang Mai, Chonburi to southern provinces such as Trang and Songkhla, the event had 41 nations participating and over 6,500 athletes. The event not only showed Thailand could organize a
large event, but it also had an economic impact and led to infrastructure development.
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Chapter 8
MICE
Event Management
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Introduction to MICE industry
For MICE events to be held successfully, a great amount of time and effort must be dedicated
to planning and managing the event. Without proper plans and management schemes, organizing MICE events can be quite troublesome and can impair the overall quality of the events
as well as attendee satisfaction. This chapter examines MICE event management as project
management to provide a foundation in planning and managing MICE events.
Project Management and its Importance
Multiple considerations must be planned and managed prior, during and after events with
levels of complication at each step amplified when it comes to convention and exhibition
planning.
Source : Thailand Convention and Exhibition Bureau (TCEB)
• Contact stakeholders from a multitude of perspectives
• Conduct market research on attendee demographics and demands
• Research rules and regulations related to the country hosting the event
• Arrange site visits
• Choose venues and accommodation
• Make travel arrangements for attendees
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Project management, central to MICE event management, is defined as a project that is temporary or has a definite beginning and ending period in which to create a unique product or
outcome. This fits closely with most MICE event in that they are temporary and have goals &
objectives that must be achieved. Therefore, project management can be seen as a beneficial
tool for event organizers who need to manage an event with given time and budget constraints.
Project management is a methodology used to describe each phase in managing events with
the various activities that must be planned and executed in a timely manner. The Project Management Body of Knowledge Framework (PMBOK) of the American National Standards Institute
(ANSI), one of the most accepted frameworks for project management, will be used in this text
to elaborate how project management applies in the context of MICE event management.
MICE Event Management with the PMBOK Framework
Project Management Body of Knowledge Framework (PMBOK) of the American National
Standards Institute (ANSI) suggests that their guide is generally a process-based framework that
requires three important components to achieve desirable results: input, tools & techniques and
output. Input has to do with what organizers must contribute to a project (documents, plans
and designs). Tools & techniques are mechanisms used to translate input into desirable outcomes. Output is the results of the input that has gone into and through the process. These three
components are depicted in Figure 8-1.
Figure 8-1: Project Management
●
Documents, Plan, Designs etc.
●
Mechanisms applied to input
Input
Tools and
Techniques
●
Output
Products etc.
Source: Project Management Body of Knowledge Framework (PMBOK) by American National Standards Institute (ANSI)
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In turn, these three components can be classified into five project management steps: initiating,
planning, executing, monitoring and closing with each one interrelated in such a way that the
output of one becomes input for further steps. These five steps are shown in Figure 8-2.
Figure 8-2: The Five Project Management Steps
Initiating
2
5
Closing
Planing
4
Monitoring and
Controlling
3
Executing
Source : Project Management Body of Knowledge Framework (PMBOK)
by American National Standards Institute (ANSI)
1. Project Initiation
Conceptually, a good beginning promises a
good ending with the same true for the first
Initiating
step in project management, project initiation, perhaps the most important and crucial
to project success or in this case MICE events.
Although in practice details pertaining to proj-
2
5
Closing
Planing
ect management for each stakeholder will be
different, this chapter is primarily interested in
project management concepts as applied
to or undertaken by professional MICE event
organizers.
4
Monitoring and
Controlling
3
Executing
1.1. Initial contacts with clients: MICE
events need clients - companies,
associations, exhibitors and attendees. Initial contact with potential clients can be
through various methods with different lead-time depending on event characteristics
in terms of sector, size and client experience with event planning.
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1.1.1. In organizing corporate meetings and incentive travel programs, organizers will
use much less time compared to conventions and exhibitions, as the complexity
of organizing corporate meetings and incentive travel is often markedly simpler.
1.1.2. For conventions, Professional Convention Organizers (PCO), especially a core
PCO, usually starts contacting clients or international associations three to five
years prior to actual convention dates. This longer lead-time is required due to
the time consuming initial process that includes the bidding process described
in the previous chapter. However, a core PCO who has maintained a strong
relationship with an association, could require less lead-time and effort or could
have been contacted directly to organize an upcoming convention.
1.1.3. Similarly, Professional Exhibition Organizers (PEO) must initiate contacts with their
clients, trade association representatives and potential exhibitors, three to five
years prior to an exhibition. The lead-time seems long but it is needed if a PEO
is going to develop a level of interest that ensures exhibitors and sponsors will
join an exhibition. In case of new exhibitions, a PEO will also need to conduct a
detailed gap analysis between buyers and sellers within a particular industry to
shape exhibitions that respond precisely to the most unmet needs it can
identify.
1.2. Pre-event meetings: After contacting clients, organizers must clarify goals & objectives, event size and other requirements with clients through pre-event meetings,
conference calls and video conferences. These meetings can also be a good opportunity for clients to provide organizers with a Request for Proposal (RFP). RFPs usually
contain specific requirements that must be disclosed and identified in proposals to be
submitted by organizers and are different for each type of MICE event.
1.2.1. Corporate meetings and incentive travel RFP usually require:
• Organizer information
• Event profile: name, duration and itinerary
• Additional requirements: staffing, meet & greet, transportation, on-site events,
off-site events and theme & décor
• Proposal profile: format to be submitted, important dates and timeline:
published date, due date, proposal presentation date and decision date
• Planner content: experience with similar type of event, number of events,
years of operation, insurance coverage and other references
Requests for proposals and proposal submission exchange between DMCs/
incentive houses and companies and between client-hired DMCs/incentive
houses and DMCs/incentive houses at selected destination as well.
1.2.2. Generally, in organizing conventions, a core PCO who works closely and
directly with clients submits proposals.
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In the event the exact location for a convention has not been finalized, a PCO
and client will work together to shortlist possible locations with requests for
proposals sent to locations selected. Countries or cities with an intention to host
a convention will form a bidding committee to generate and submit proposals
back to the PCO.
Local bidding committees usually consist of a Conventions and Visitors Bureau
(CVB), local Professional Conference Organizers (PCO), venues and airlines.
Local PCO in this context refer to companies that will perform different tasks.
Requirements for each type of service contractor will vary depending on the
type of products or services provided. Proposals selected by the bidding committee will then be compiled to create a destination proposal.
Figure 8-3: RFP Dissemination
1.2.3. Professional exhibition organizers (PEO) with the central role in putting together
exhibitions will start with a primary analysis of the potential market assessing
existing gaps among buyers and sellers within a particular industry. Therefore,
this communication with exhibitors and buyers will usually take place anywhere
from three to five years in advance. This is to measure the level of interest by
these parties to exhibit their products and services at exhibitions and/or to
attend. Once a PEO is certain an exhibition is feasible, meets sufficient potential client needs at an acceptable destination; they will send out request for
proposals (RFP) to both general service and specialty service contractors. All
proposals submitted by these service contractors will be evaluated to select
those who can offer the best services.
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Figure 8-4: RFP Dissemination to Organizers and Service Providers in Exhibitions
2. Project Planning
Project planning success depends on the
amount and quality of information gathered
at project initiation. The more information
organizers can gather to plan events, the
more effective they can become. Common
steps in planning MICE events will be
discussed in this section.
2.1. Event scope: Initializing projects
Initiating
2
5
Closing
Planing
4
3
Monitoring and
Executing
serve as an opportunity for orgaControlling
nizes to gather information regarding attendee numbers, total area
required, hotel rooms needed and
transportation services required which is then used to estimate project-planning
scope. Regardless of event size, scope planning is necessary, as it sets boundaries for
activities while balancing client needs with budget and resource constraints. Generally, larger events (conventions and exhibitions) require more resources and budget
compared to smaller events (corporate meetings and incentive travel). However,
scope planning is vital and should be closely monitored at all times as any minor
change prior to an event can potentially alter operations and harm the initial budget
and resource allocation.
2.1.1. Scope planning is the first step and creates a plan of how event scope will be
defined, verified, controlled and how the Work Breakdown Structure (WBS) will
be defined and created.
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2.1.2. Scope defining is a statement of what is expected of a particular project and
can vary. The following examples should provide a clearer idea as to what
scope defining might include.
• Corporate Meetings: The organizer will prepare meetings with facilities to
host 50 people with accommodation by arranging transportation, preparing meeting-related documents, organizing food & beverage and procuring
necessary audio & visual equipment.
• Incentive Travel: The organizer will put together an incentive trip for ten (10)
employees able to perform at or above predetermined criteria. Activities on
the trip are… This trip will include five nights at a five-star hotel. Qualified
employees are expected to resume their tasks after the trip with a higher
level of effectiveness and motivation.
• Conventions: The organizer will prepare a convention for Professional Cardiologists consisting of 300 representative surgeons and specialized cardiologists from 80. The convention will be a three-day event at… The organizer
will administrate pre-registration, plane tickets and ground transportation.
The organizer will prepare necessary documents and presentations for attendees & speakers to ensure their full access to information and create an
atmosphere that encourages attendees to mingle and share knowledge.
• Exhibitions: The organizer will organize a 100,000-square-meter exhibition
for the automotive & parts industry with exhibitors from over 60 companies.
This ten-day exhibition will bring in over 200,000 attendees. The organizer will
also arrange appropriate logistics for both exhibits and attendees to ensure
a smooth exhibition experience.
After defining project scope, a statement of intent by a supplier, the next step
for organizers is to prepare the following:
•
•
•
•
List all tools and resources, procedures, time and money needed to
complete the task
Seek input from professionals with experience in the event type being
organized
Create various plans to help effectively and efficiently achieve goals
List factors that can limit event size such as budget or space availability at
the desired destination
• List all assumptions imposed on the plan; potential risks and uncertainties
that may occur
2.1.3. Work breakdown structure involves breaking down the entire event into smaller
activities, which serves as a checklist to ensure the completion and quality of
each task. These include contacting and coordinating with customs to facilitate
shipping and transporting exhibits or contacting service providers in setting up
stage designs.
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Work breakdown structure can be presented in various formats: as bullet points,
graphical representation or detailed spreadsheets list of tasks. With a WBS,
organizers can prioritize tasks they need completed. Figure 8-5 and 8-6 illustrate
the concept of work breakdown structure on a simple task, setting up a
loudspeaker and projector.
Figure 8-5: Bullet work breakdown structure
Loud speaker and projector setup
1. Assemble all equipment stands
2. Assemble the projection screen
3. Place the loundspeakers and projector on the stand
4. Connect all cables and power cords
5. Properly align the projector and speaker
6. Properly gaff all cables
7. Test the signal
Source: Live Events Project Management and Budgeting, The Business of Event Planning by InfoComm International
Figure 8-5 represents one type of work breakdown structure where organizers can list all
subtasks to complete the setup of a loudspeakers and projector. Organizers can also identify
budget, resources required, prior tasks dependencies, time required for each subtask and
budget required to complete each subtask.
Figure 8-6: Critical Path Diagram
Source : Live Events Project Management and Budgeting, The Business of Event Planning by InfoComm International
Figure 8-6 is another format of how work breakdown structure can be presented. Every node
marks the beginning and the end of an activity, while each task is identified on the arrow. This
diagram can effectively depict the dependencies of subtasks where organizers can clearly
spell out the steps of what must be completed before starting the next tasks.
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2.1.4. Scope verification, The Project Management Institute refers to scope verification as the process needed to confirm with clients plan correctness and
completeness and will vary in completion depending on internal procedures
followed by each organizer.
2.1.5. Scope control allows organizers to monitor actual progress of each task in comparison to what has been planned. Once a project starts, activities may be
added or removed that can have a potential impact on budget and resource
allocation. Therefore, organizers must consistently monitor and control progress
to make certain an event will finish on time in spite of any changes. This part is
considered phase four in project management (monitoring and control) and
will be explained later in this chapter.
Planning and monitoring project scope is crucial to event success. Consequently,
extensive experience and proficiency in the field are necessary for organizers to
manage a project in alignment with client needs while complying with budget and
time constraints.
2.2. Cost: With project scope in hand and known client expectations, organizers must
compose a cost plan that incorporates all expected costs and expenditures including staff, stage construction, space rental and other unexpected expenditures. A cost
plan must take into consideration a previously estimated budget to ensure expenses
are constantly under control.
There are three types of project costs according to Meetings and Conventions:
A Planning Guide (2006): fixed, variable and indirect and are employed to
categorize event costs.
Figure 8-7: Project Cost Types
Source : MPI Meetings and Conventions: A Planning Guide, Meeting Professionals International
179
According to the MPI Meetings and Conventions: A Planning Guide, fixed costs are those
that do not deviate with the number of attendees. Variable costs are, on the other hand, are
directly related to the number of attendees. The more people attending an event, the more a
variable cost will be incurred. Indirect costs are costs that are not tied to individual attendee
and they can be fixed or variable. Cost items are derived after organizers clearly identify
necessary tasks to complete the event.
Figure 8-8: Sample Revenue and Expense Statement
Source : MPI Meetings and Conventions: A Planning Guide, Meeting Professionals International
Figure 8-8 is a sample Revenue and Expenses Statement. An Income-Expenses Statement can
be customized depending on the type of event and organizer preference since there is no set
format employed.
This particular same statement can also be used throughout the project to update income
and expenses to date. This statement, therefore, is a very useful tool organizers can use to track
spending throughout the project timeline for cost monitoring and control during the project
control phase.
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2.3.
Staffing: Event size and a rough timeline starting from initial planning to the
actual event is a starting point in human resource planning. First, organizers
need to single out tasks and designate each of them an appropriate due date.
For instance, theme and concept identification are to be done 18 months prior
to the event; or PR materials must be ready 12 months prior to the event. Then,
organizers can identify the human resources and competencies needed for
each task to achieve on time completion. Once the total staff required is calculated by combining staff from each task or more than one task, organizers can
investigate how to source qualified staff internally or externally as organizers see
appropriate.
2.4.
Quality: A quality plan directly dictates service characteristics that will add
up to overall client satisfaction at an event and are usually interconnected
with staffing plans. Staff standards and professionalism levels needed to deliver
a promised event must be understood and fulfilled. For examples, attendees
should not take more than ten minutes to commute from hotels to the meeting
venue; or administrative staff must be able to answer inquiries within a specific
time.
2.5.
Communication: This plan spells out communication among related parties to
ensure every activity is performed by the due date and with the promised quality. It must also include every communication method in case of unforeseen
events. For example, if the audio and visual service provider cannot deliver on
time, what alternative company is to be contacted and how should they be
contacted must be identified in the plan to be able to solve problems without
impairing event flow.
2.6.
Risk Management: Risks and uncertainties including natural disasters, political turmoil & riots or as simple as undesirable weather conditions can have a
major impact on events. A risk management plan is created for organizers to
follow in case of an unexpected event to tackle the situation while continuing
to perform as promised. For example, in case of riots near a convention venue,
organizers must have a back-up list of venues available. A good risk management plan should clearly assign the probability for each unexpected events as
well as rank their potential impact. The accuracy of this assigned probability
is directly linked to the level of control organizers will have if an event were to
occur matched to the effectiveness in managing a risk. Steps in composing risk
management plan are:
• Risk identification
• Qualitative and quantitative risk analysis
• Risk response planning
• Risk monitoring and controlling
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2.7.
Procurement: Core organizers, that is, those with direct contact with a client,
cannot perform all the tasks and usually assign some or most tasks to external
service providers or externally seek resources that cannot be found in house.
External resources and services required include human capital, equipment,
accommodation and logistics. In procuring these resources and services, a
plan defining procurement procedures and qualifications is needed to ensure
product and service quality given budget constraints.
An appropriate procurement plan should clearly identify preparation steps,
procured products & services required and procedures to follow in obtaining
external resources.
Figure 8-9: Resource Planning
Source : Live Events Project Management and Budgeting, The Business of Event Planning by InfoComm International
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Introduction to MICE industry
2.8.
Schedule: Each type of attendee has unique conditions when participating
in events. These can include different arrival times for VIPs, guest speakers and
other attendees or overlapping timing when each exhibitor can ship in exhibits.
A thorough schedule should be developed so organizers can exercise complete control of the event by prioritizing each task to meet client expectations.
Figure 8-10: Sample of an Event Schedule
Source : MPI Meetings and Conventions: A Planning Guide, Meeting Professionals International
Figure 8-10 is a sample of an event’s schedule that spells out all the activities throughout the
event. This is for organizers to be able to keep track of the order of on-site activities.
In this section, eight plans that can bring about systematic organization of an event will be
examined.
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3. Project Execution
The completion of a plan marks the time
Initiating
when tasks must be put into action as clients
and other related parties expect to see tangible results. Therefore, organizers as administrators and intermediaries among stakeholders
must use this time to coordinate and execute
2
5
Closing
Planing
what has been planned.
Invariably, the success of this phase, project
execution, is dependent on planning accuracy and completeness. During execution,
4
Monitoring and
Controlling
3
Executing
continuous modification of initial plans will
occur based on changing client requests
and the unfolding of unexpected events or conditions. Therefore, a lack of thoroughness and
inclusiveness in an initial plan can complicate execution and cost organizers significant time to
revise plans.
Executing plans consists of three steps, information distribution, project administration &
modifications and procurement plan execution.
3.1
Information Distribution: Information distribution is concerned with communication among organizers, clients, staff and service providers and is intended
to update project progress, identify potential issues that may occur with each
activity and align expectations & desired outcomes with related parties.
Communication frequency, methods and tools applied by organizers depend
on the accepted communication plan. One of the tools used is a status review,
which updates the progress of each activity performed and calculates how
much time is required to complete.
3.2
Project Administration and Modification: During project execution, factors
may change at any time, requiring organizers to be ready to adjust an initial
plan to cope with the actual situation. This may include miscalculation of workload such as stage & pavilion design and construction delays; meeting documents not printed on time; or any other unforeseen event that may occur.
Apart from keeping the project current, organizers must closely and consistently
monitor progress by monitoring project milestones.
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3.3
Executing Procurement: Organizers need to have a fundamental understanding of the procurement process so they can monitor and evaluate each
procurement activity. In addition, they may need to procure additional
products or services not previously planned to ensure service quality and client
satisfaction.
During project execution, organizers should consistently monitor and control this
task until the event date to ensure they deliver a quality event that meets client
expectations and budget.
4. Project Monitoring and Control
Project Management Body Knowledge
Initiating
developed by American National Standards
Institute (ANSI) has defined project monitoring
and controlling as:
A project management function that involves
2
5
Closing
Planing
comparing actual performance with planned
performance and taking appropriate corrective actions (or directing others to take this
action) that will yield the desired outcome in
the project when significant differences exist
4
Monitoring and
Controlling
3
Executing
In reality, it is rare to find projects that run
exactly according to what was planned; therefore, it is important for organizers to closely monitor progress and carefully exercise control once the first activity begins. Factors that can make
plans get out of hand are all the risks that should be closely monitored and
controlled at all times.
4.1
Risk monitoring & controlling: In the planning phase, identifying risk factors is
typically based on past experience and available information, although, new
risk factors and other challenges may become apparent as the project
progresses. For example, weather may not be a key risk factor in the eyes of
organizers when planning the project, but, on the meeting date, weather
conditions can be so dramatic that transporting attendees becomes almost
impossible. Therefore, a risk response plan that contains initiatives and solutions
for a particular ‘emergency’ should be ready to reduce the impact of this
unforeseen weather condition.
185
Another important risk monitoring and controlling feature is to arrange frequent
risk meetings among project teams and other stakeholders to keep track of
possible risk factors and point them out before they arise. Complete risk identification and continuous monitoring can improve organizer effectiveness in running a project, especially larger events like conventions and exhibitions. Project
Management Methodology by Project Enterprise Program Management Office
of Department of Information System has divided risk meetings into three parts:
• Risk identification meetings aim to review and update risks, previously
identified in the planning phase, as to the extent to which they have developed
• Executive review meetings aim to summarize risks and their probability
of happening, possible solutions for each one and an update on project
status
• Project status meetings should be held on a regular basis to update and
report project risks and status. Together with this meeting, contingency
plans need to be prepared to ensure an ongoing operation even when
issues arise
Risk monitoring and controlling are only part of an organizers’ responsibilities,
they should also compose status reports that keep track of the progress of each
activity to update every stakeholder on current project status as well as the
challenges waiting to be resolved. Status reports should portray every activity
completed, ongoing and pending due to setbacks. Components of a status
report are:
• Current project status
• Significant accomplishments
• Scheduled activities to be started in specified timeline
• Issues arising
• Recovery plan for delayed activities
Source: Thailand Convention and Exhibition Bureau (TCEB)
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4.2
Scope: Scope changes have an impact on project elements such as cost, resources, budget allocation and project schedule. For example, a 300-attendee
convention that was agreed with clients earlier may need to be adjusted up to
500 or the concept of accommodation may change from what was accepted
earlier.
After changes are set, activities and timeframe need to be modified to cope
with scope adjustments. Then, organizers need to coordinate with clients to justify changes and request any increase in budget or an extension in timeframe.
Then, they must communicate changes in activities to those responsible such as
the staff handling an area changed.
4.3
Schedule: Schedule control is the hardest to manage and the most crucial to
event success. If an exhibition has been mismanaged and delayed, it will cause
significant damage to all those involved such as escalated costs for organizers
to reorganize or to compensate attendees.
4.4
Quality: Quality of each
activity being performed
must be carefully monitored and controlled to
ensure its compliance
with standards agreed
to by clients and organizers. Organizers who
are responsible for event
image should make
certain the quality of
each activity adds to
the overall quality of the
Source: Thailand Convention and Exhibition Bureau (TCEB)
event to maximize client
satisfaction. Again, every
service facet performed by organizers themselves or other service providers
such as preparation of food & beverage, quality of on-site staff, quality of audio
& visual equipment and the quality of hotel rooms must be carefully monitored
and controlled at all times.
4.5
Contract Administration: Core organizers usually solicit, assign or contract
tasks to external service providers invariably bound by contracts between both
parties. Therefore, organizers should examine whether the service rendered by
an external service provider is in line with what was agreed to in the contract. If
not, corrective action must be taken. At all times, staff responsible for procuring
and compliance assurance should work to inspect service quality before making payment.
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4.6
Cost: Any changes in plans, activities and timeframe can affect the budget
and costs. Therefore, once organizers have monitored factors that can induce
changes in the overall plan, they need to control costs from escalating via:
• Determine changes in the estimated budget
• Manage actual changes and take necessary corrective action
• Inform appropriate stakeholders to authorize changes
For-profit or public companies hosting MICE events will require precision and
care in the way organizers handle costs as a main concern is that profit be
gained from events. However, for conventions hosted by international non-profit
associations, main goals and objectives could be seen as the benefits attendees and association members gain from conventions and not solely profit.
Project monitoring and controlling extend far beyond making certain a project is completed
in time and under budget. This phase actually starts prior to the event date at project planning
and extends across time to the end of the event. This is to guarantee maximum service quality
and client satisfactions.
5. Project Closing
Completed programs and activities for
Initiating
MICE events mark the beginning of the
project-closing phase. Closing does not mean
organizers are entirely finished, as this stage
contains another set of activities that must
be done after delivering what clients wanted
2
5
Closing
Planing
and will vary with each type of MICE event.
Administrative closure
Administrative closure has to do with
4
Monitoring and
Controlling
3
Executing
preparing documentation as to the products
or processes delivered asking for approval,
recognizing these deliverables have been provided and redistribution of project assets that
were rented.
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5.1
Post implementation evaluation report (PEIR): In evaluating organized
MICE events, organizers must create evaluation tools and matrices to evaluate
all stakeholders involved in delivering events and will include hotels, venues,
logistics service providers, audio & visual service providers, exhibitors and onsite staff. Developed evaluation forms will be distributed to different assessors to
evaluate service quality provided from start to finish. Results will be summarized
and analyzed to identify successes and areas for improvement. Examples of
questions for different stakeholder are divided into five main groups based on
ideas found in Meeting and Conventions: A planning guide:
• Questions related to program and attendees
­ • Did attendees arrive on time?
­ • Did they stay until the end?
­ • Were speakers interesting and informative?
­ • Was the food well received?
­ • Has attendee characteristics changed from last year?
­ • Was the topic relevant to the industry and interesting to
the audience?
• Questions related to staff
­ • Was staff well briefed on roles and assignments?
­ • Was staff encouraged to interact and respond to attendee
requests?
­ • Was staff calm during mishaps or emergencies?
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• Questions related to exhibitors
­ • What was the exhibitors’ perception as to exhibition layout?
­ • Did attendees match exhibitor products and services?
­ • What was the attendance/traffic on each day of the exhibition?
• Questions related to meeting sites
­ • Where rooms set and decorated appropriately and on time?
­ • Was signage as anticipated and well placed?
­ • Were meals set and served on time?
• Questions related to special activities: These refer to other activities
not included in the categories above and can include transportation,
decoration, food & beverage quality and audio & visual systems. It
might also require self-observation by evaluators since some of these
tasks were performed and ended long before the ending of the
event.
­ • Were transportation arrangements adequate?
­ • Did lighting and audio-visual work as expected?
Evaluation tools and matrices for all type of stakeholders must be specific,
convenient for evaluators to complete, convenient to collect and carefully
designed. These four qualities will ease organizers in collecting and interpreting
results.
5.2
Post-event meetings: This meeting should be held after the event finishes and
attended by every party performing activities to summarize results of all activities and conclude achievements and issues that arose during the event. Moreover, this meeting can help organizers identify lessons learned and decide how
to tackle problems for future improvement. It can also serve as an opportunity
to review all bills and accounts payable.
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5.3
Measuring return on investment (ROI): Measuring ROI for non-profit associations is to compare results with initial investment. In case the actual outcome
did not meet expected outcome, organizers must be able to identify factors
that went wrong and the extent of their impact. Outcome examples for nonprofit organizations organizing MICE events include wider trade and business
network for association members or knowledge gained regarding the issues
discussed at the convention. On the other end of the spectrum, for-profit organizations can measure ROI by comparing costs with revenue such as, exhibition
space sold or tickets purchased.
5.4
Post-event report: Post implementation evaluation results and post-event
meeting are synthesized to compose a post-event report pointing out every
achievement and lessons learned from project initiation to the very end.
A post-event report should answer these questions:
• Did the event meet specified requirements and project goals?
• Were clients and attendees satisfied with the deliverables?
• Was the cost-budget met?
• Was the schedule met?
• Were risks properly identified and mitigated?
• What else could be done to improve the process?
5.5
Database preparation: Every document, planning information, meeting
information, and other technical information related to the event from
initiation to close should be properly organized and arranged into a database.
This database can be useful for the next event since information can be
referred to and leveraged for future events such as names and contact
information of attendees and exhibitors.
5.6
Other activities: Other related activities can be preparing thank you notes for
sponsors, guest speakers, VIP guests and volunteers. Moreover, organizers can
host functions to celebrate the success of the event among staff as well as use
this opportunity to present rewards for distinguished staff and top performers.
This chapter was an introductory reference for MICE event management through the perspective of project management and examined project management in five phases initiating,
planning, executing, monitoring & controlling and closing.
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Chapter 9
Venue
Management
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As every MICE event is hosted in a ‘venue’, it is clear MICE events and venues are inseparable.
Venues can either be single- or multi-purpose facilities that can effectively host MICE events.
Despite distinctions regarding settings and size for MICE events, similarities shared are:
• They bring in groups of people with similar interests to pre-arranged facilities.
• Attendee needs will be met by amenities available pre-arranged facilities or venues.
In this chapter, different types of venues commonly used for MICE events, factors that can induce decisions of organizers, as well as the concept of venue management will be discussed to
provide a background about venues from a venue-operator’s perspective.
Venue Types
Venues are constructed to host events with the purpose for which a particular venue is intended guiding its particular size. According to the APEX Industry Glossary published by The Convention Industry Council, a venue is
1. Site or destination of meeting, event or show
2. Location of performance such as hall, ballroom or auditorium
Different types of venues can be categorized according to their four main intended purposes:
1. Hotels & Resorts
2. Convention/Exhibition Centers
3. Multi-purpose Facilities
4. Other Venues
Hotels & Resorts
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 travelers. Many hotels
and resorts have renovated facilities to support different arrays of MICE events while many new
hotels have included facilities built especially to host MICE events.
Many hotels and resorts worldwide as well as in Thailand now see the meeting sector as one of
their main targets as services hotels normally provided can be used to compliment services required in meetings such as catering, guest rooms & suites and function & meeting rooms. Moreover, some hotels and resorts are able to host small exhibitions as a way to expand offerings,
increase revenue and enhance occupancy rates. According to Center of Exhibition Research
(CEIR), 39% out of 14,451 exhibitions and conventions in the United States, Canada and Mexico
were held in hotels. While another 41% were held in convention or exhibition centers.
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Table 9-1: Convention Center & Hotel Advantages and Disadvantages
Convention Centers
Hotels & Resorts
Advantages
• Designed especially to serve the purpose
• Accommodation rooms
• Usually operated by professionals
• Cheaper facilities rental
• Equipped to host any kind of MICE event
(off-peak season)
• Easier to move exhibits in-out
• Higher attendee capture rate
• Cheaper booth construction
• Usually higher quality catering service
• Adequate parking spaces
• Better overall atmosphere
Disadvantages
• No accommodation rooms
• Facilities not especially for MICE event
• Layouts difficult to organize in old centers
• May lack certain amenities
• Space may be unavailable
• Exhibits may be difficult to manage
• Tedious security measures on floor
• Limited parking spaces
For exhibition organizers, a major advantage in hosting exhibitions in hotels includes having
complete control over the event since every function under one roof. Moreover, hosting exhibitions at a hotel can also attract higher attendee numbers and capture their attention more
effectively since they will not be distracted with sightseeing and shopping. Having everyone in
the same facility, walking in the same hallways and dining in same restaurants, can create an
atmosphere conducive to networking. For small to medium-sized exhibitions, hotels are usually
cost-effective and easy-to-manage options since organizers do not have to transport attendees from one place to another.
Large congress and conventions may be another story, as they require large-scale facilities to
support bigger numbers. This includes having more areas dedicated to restaurants, meeting
rooms and lobby to name a few. This is not economical given that when there are no exhibitions
or events, a hotel will suffer a huge downtime. In turn, this will result in client fees being higher to
cover expenses.
Despite the many the advantages, hosting MICE events at hotels and resorts can be tedious.
One limitation is the size of the function rooms that may force events to be held in separate
rooms. Moving exhibits in and out could prove to be difficult due to limited space, limited loading area and other inconveniences typical to hotels such as limited time to assemble booths.
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Convention/Exhibition Centers
Source : Atlantic City Convention Hall [Photograph]. Atlantic County, New Jersey; Library of Congress, Prints & Photographs
Division, NJ,1-ATCI,18-11.
Convention/exhibition centers are designed especially to host MICE events and combine every
necessary amenity. In the US, over 80% of all convention centers are publicly owned and managed. 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. It is not uncommon to find both exhibitions and conventions together at one event or one venue.
Multi-purpose Facilities
Multi-purpose facilities are the newest concept in the venue business with their focus on customization and personalization of floor plan layouts and configurations to meet event requirements. By providing convenience and flexibility, multi-purpose facilities are believed to generate more income for owners when compared to traditional convention facilities. Modern layout
and facilities include adjustable floor space, arenas where seating can be added as needed,
meeting rooms with movable walls and separate control panels for lighting and audio systems.
Long Beach Convention Center is a good example of a multi-purpose facility with space on the
first floor separable into three small rooms or one large room.
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Source : JoAnn Miller. (2009). Long Beach Convention Center [Photograph]. Long Beach, Miami, from http://www.flickr.com/
photos/jabbusch/3571137081/
Multi-purpose facilities are intended to host many small or large functions simultaneously, while
keeping each one private and independent. In addition, as they can be hosted under one
roof, it is easier to manage the continuous flow of attendees.
Older convention centers have discovered their space and usage limitations and have now adopted the multi-purpose facilities concept as a starting point when renovating to answer MICE
requirements and to attract more events. The interior structure should be flexible enough to
allow changes in room or hall size, wall configuration and atmosphere. This trend suggests that
the growth of multi-purpose facilities will become more apparent while conventional venues
will slowly decline.
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Introduction to MICE industry
Other Venues
Apart from venues mentioned, others serve different purposes and specific events.
Sports Facilities/ Arena
Sports facilities, as the name suggests, 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 of a certain scale and type.
Source : Pittaya Sroilong. (2009). Rajamangala Stadium Panorama [Photograph]. Bangkok, from http://th.wikipedia.org/wiki/
Rajamangala
Rajamangala National Stadium located in Bangkok, Thailand is a good example for an
arena that has been used to host many other events apart from sports.
Source : Paul Lowry. (2008). Indy [Photograph]. New York City, from http://www.flickr.com/photos/paul_lowry/2550181810/sizes/z/
in/photostream/
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Source : Left: Lauren. (2010). Big-ticket Lighting [Photograph]. New York City, from http://www.flickr.com/photos/cuttlefish/
5117995306/in/photostream, right: Zach Klein. (2005). Madison Square Garden [Photograph]. New York City,
from http://www.flickr.com/photos/zachklein/64395749/in/photostream
Madison Square Garden can be considered a multi-purpose indoor arena even though
its main purpose is to host sporting events. Its layout can be adjusted to meet different
types of sports including basketball, boxing and ice hockey, as well as concerts. It also
has space to host exhibitions and is known to provide a very high level of flexibility and
able to attract different types of events (average 320 annually), which translate into a
constant income stream year round.
Music Venues/ Theatres
These facilities, on the other hand, are designed especially for concerts or live performances. Sydney Opera House is a good example of a facility intended solely for
performing arts.
Source : Wilson Afonso. (2006). Sydney Opera House [Photograph]. Sydney, Australia, from http://www.flickr.com/photos/
wafonso/161383654/in/photostream
Within Sydney Opera House, performing venues are segregated for different purposes
such as concert hall, opera theatre or drama theatre with facilities especially lighting &
audio systems designed especially to meet the function of each room.
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International Venues
The following are some examples of venues in different countries.
MiCo/Milano Congress (Italy)
Congressi is among the largest conference facilities worldwide, catering for
up to 18,000 people in 70 or so fully
appointed conference rooms with
permanent control booths. Featuring
two plenary rooms, one with seating for
4,000 and the other for 2,000 and an
Auditorium that seats 1,500, it is the ideal venue for large-scale performances
and international conferences requiring
a large number of rooms.
The exhibition halls offer 54,000 square
meters of exhibition space and can also
be set up as extra plenary rooms accommodating 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)
Messe Frankfurt is one of the largest
exhibition halls globally with 578,000
square meters of indoor exhibition
space. The exhibition hall can be separated into ten exhibition rooms used for
both meetings and conventions.
Source: Paolo Motta. (2008). Milano Congressi [Photograph].
Milan, Italy From http://www.flickr.com/photos/36372149@
N00/3062674001/sizes/z/in/photostream
Source : Christian Schmitt. (2007). Messe Frankfurt [Photograph]. Frankfurt, Germany, from http://www.flickr.com/photos/usiruk/6390281221/in/photostream
Las Vegas Convention Center
(The United States)
Las Vegas Convention Center is one of
the largest convention and exhibition
centers in the world. Originally opened
in April 1959, it has been renovating and
expanding its facilities and now has
over 975,000 square meters of available
space.
Source : IJammin . (2009) . Las Vegas Convention Center
[Photograph]. Las Vegas, Nevada, from http://www.flickr.com/
photos/ijammin/3255048816/in/photostream
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Marine Bay Sands Expo and Convention Center (Singapore)
The Sands Expo and Convention Center is Singapore’s newest, largest and most flexible exhibition and meeting venue standing in the middle of the Central Business District. It offers numerous options for meetings or events of any scale, with a huge 120,000 square metres of floor
space, able to host the largest conventions of up to 45,000 delegates.
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. It has flexible space which enables set-up of up to
2,000 exhibition booths and 250 meeting rooms. The space can be configured to fit various
group sizes. 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.
Source : Edwin. (2007). Hong Kong Convention and Exhibition Centre [Photograph]. Hong Kong, from
http://www.flickr.com/photos/edwin11/1330646432/in/photostream/
Hong Kong Convention and Exhibition Center (Hong Kong)
Opened in 1988, Hong Kong Convention and Exhibition Center is one of the two main convention and exhibition centers in Hong Kong. (The second is AsiaWorld-Expo.) This center is designed and built to be a multi-purpose facility to host a variety of MICE events since Hong Kong
is among the top MICE locations in Asia. Hong Kong Convention and Exhibition Center has
91,500 square meters of indoor space, which can be separated into 12 individual spaces.
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Introduction to MICE industry
Abu Dhabi National Exhibition Centre (The United Arab Emirates)
Abu Dhabi National
Exhibition centre or
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.
Source : Anthony DeCosta. (2007). Exhibition Center [Photograph]. AbuDhabi, the
United Arab Emirates, from http://www.flickr.com/photos/anthonydecosta/511114417
Shanghai New International Expo Center (China)
Shanghai New International Expo Center or SNIEC, started operations in November 2001 and
has become one of the most successful exhibition centers worldwide. SNIEC is equipped with
over 200,000 square meters of indoor space. One of the major events held at SNIEC was Tennis
Master Cup 2002, which saw exhibition space transformed into a temporary tennis court.
Source : Pyzhou. (2011). Shanghai New International Expo Centre [Photograph] . Shanghai, China, from http://en.wikipedia.org/
wiki/File:Shanghai_new_international_expo_centre.jpg
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Venues in Thailand
Thailand also has many excellent venues and facilities to host MICE and other special events. In
fact, when it comes to available floor space, Thailand has the most space to organize exhibitions and conventions in ASEAN with 212,405 square meters (based on data collected by UFI, as
measured 2011).
Bangkok International Trade and Exhibition Center (BITEC)
Source : Thailand Convention and Exhibition Bureau (TCEB)
Bangkok International Trade and Exhibition Center or BITEC is a convention and exhibition hall
with 50,400 square meters of available space. Starting operations in 1997, BITEC is located in
Bangna Bangkok. It is a good example of a multi-purpose venue and offers an event hall that
can be configured into six segregated rooms or a large hall along with 19 meeting room with
adjustable walls making it flexible
enough meet a variety of event
requirements. This makes BITEC
versatile and able to host many
MICE events simultaneously. Largescale events previously hosted at
BITEC include The Bangkok International Motor Show, Metalex and
the Thailand Industrial Fair.
Source : Bangkok International Trade and Exhibition Center (BITEC)
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Impact Arena
Source : Thailand Convention and Exhibition Bureau (TCEB)
Impact Arena is a multi-use facility combining several buildings in a complex that can be used
to host individual events independently or combined for one single event. Multi-use facilities
such as this are different from multi-purpose facilities and are a combination of several buildings in which each one can be used as a standalone facility or as a multi-purpose facility or
interconnected with others to form a large venue.
Impact Arena is located in Nonthaburi, Thailand and was first constructed as a stadium to host
the 13th Asean Games. After the Asean Games, the facility was renovated in 1999 and is currently one of the largest convention and exhibition centers in Asia with total available space at
140,000 square meters.
Source : IMPACT Arena, Exhibition and Convention Center
The beauty of this hall is that it can be separated into several smaller function rooms or combined as a single large space. This has made Impact Arena one of the most flexible and convenient facilities used to host small to large-scale MICE events along with other types of events
such as concerts, sports events or receptions & weddings.
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Queen Sirikit National Convention Center
Source : Thailand Convention and Exhibition Bureau (TCEB)
Queen Sirikit Convention Center was the first convention and exhibition center in Thailand and
started operations in 1991. With 65,000 square meters available floor space located in the heart
of Bangkok, its primary purpose was to accommodate the 46th International Monetary Fund
(IMF) meeting. Since this meeting, it has been used to host both international and local MICE
events. Main events held in Queen Sirikit Convention Center include the Miss Universe competition in 1992, Thailand Travel Expo, graduation ceremonies, exhibitions and trade shows for many
industries including furniture, electronic parts and computers.
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Royal Paragon Hall Exhibition and Convention Center
Royal Paragon Hall Exhibition and Convention Center sits on the fifth floor of Siam Paragon department store located in the heart of Bangkok. It started operations in 2006 with 12,000 square
meters of total space available. Its location offers maximum convenience with the tradeoff that
is unable to host large events. Royal Paragon Hall Exhibition and Convention Center has three
separate exhibition spaces that can alter layout to a certain degree to fit specific requirements
making the venue versatile in hosting exhibitions, conventions or even concerts.
Source : Thailand Convention and Exhibition Bureau (TCEB)
Pattaya Exhibition and
Convention Hall (PEACH)
Pattaya Exhibition and
Convention Hall or PEACH
is one of the most spacious
and high-standard facilities in
Thailand. Located in Pattaya
City, Chonburi, it has been
operating since November
2002. PEACH is different from
other halls in Thailand with its
modern designs and facilities
located on a cliff offering an
amazing view.
Source : Thailand Convention and Exhibition Bureau (TCEB)
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It is equipped with 4,851 square meters of indoor space has four surrounding hotels to accommodate attendees. PEACH can host all types of MICE events and special events whether meetings, conventions, exhibitions or banquets.
The venue can accommodate various events owing to its spacious and column-free halls making it easily adjustable to meet event requirements. The third floor can host four events simultaneously and can be divided into nine different small meeting rooms. Moreover, it also has 18
another meeting rooms with different sizes in other floors.
With its versatile facilities that provide convenience for MICE event attendees, PEACH has been
host to many international events such as the Cambodian Peace Talks in 1991 and the Thailand
Constitutional Convention 1997.
Source : Thailand Convention and Exhibition Bureau (TCEB)
Bangkok Convention Centre at Central World
Source : Thailand Convention and Exhibition Bureau (TCEB)
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Introduction to MICE industry
Bangkok Convention Centre is located at the heart of Bangkok on the 21st and 22nd floor of
Centara Grand hotel at Central World department store. It provides the very convenient facilities being connected to hotels and a department store. It can accommodate many types of
MICE and special events whether meetings, conventions or seminars.
Bangkok Convention Centre has over 5,400 square meters of indoor space and an extra-high
ceiling of 13.5 meters making it able to accommodate over 8,000 attendees at one time. An
environmentally friendly center, certified by EarthCheck Silver Status, it is managed by EC3
Global who provides an environmental management and consultancy services for travel and
tourism industry.
The 60th Anniversary of His Majesty the King’s Accession to the Throne
International Convention Center – ICC Hat Yai
The 60th Anniversary of His Majesty the King’s
Accession to the Throne International Convention Center belongs to Prince of Songkla
University. It was built to commemorate His
Majesty the King’s 60th anniversary of his accession to the throne. Built to host exhibitions,
international and domestic conventions, its
total space is 15,000 square meters. Located
in the province of Songkla, Southern Thailand,
the center has been widely used to host many
events on a regional scale.
Source : The 60th Anniversary of His Majesty the King’s Accession to the Throne International Convention Center – ICC Hat Yai
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Compositions of
Venues Inducing Venue Selection Decision
In organizing any MICE event, one of the main factors that can promote the success of an
event is the venue. Venues must meet event qualifications based on a number of factors including attendee number, event size, and attendee type. Therefore, it would not be an understatement to say that the venue is vital to the success of any MICE event. Realizing this, organizers will
dedicate significant time to make many site inspections to choose the most suitable venue.
Venue Size
Hall size is a key determinant that can sway a decision. With estimated attendee numbers
expected, organizers must look for venues that can accommodate the headcount. An imbalance can be problematic for organizers in managing attendee flow and can cause attendee
discomfort. While a hall that is too small can be overcrowded causing an ineffective flow of
attendees; a hall that is too large, however, can also leave an undesirable distance between
displays and people and disconnected attendees. Especially with exhibitions, hall size must be
appropriate to booth numbers and leave space open to accommodate sellers and buyers.
The space should be proportionate to the number of people to create an appropriate marketplace atmosphere.
Parking is as important as the size of the hall when it comes to why organizers choose venues.
Parking spaces are necessary and should be available in an amount proportionate with the
venue size. Large halls with inadequate parking spaces will always be at a disadvantage. Some
venues with less access to public transport may need to place more importance on having
enough parking. In addition to a car park, large spaces for coaches should also be considered.
On the other hand, if venues are conveniently connected to public transportation, parking may
have a lower level of importance.
Venue operators should carefully assess their target market as well as the average event size to
construct venues with the right amount and size of halls. However, the growth of multi-purpose
facilities has made it easier for venue operators since the interior can be specifically altered according to individual events maximizing utilization of each venue regardless of its size.
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Venue Location
Location is another factor that determines the size and capacity of venues. Usually, large venues are located in suburban areas since areas mid-town are limited. Queen Sirikit Convention
Center, despite its prime location downtown, cannot host large events due to limited space. On
the contrary, located in a suburban area, Impact Arena can host much larger events owing to
its spacious facilities and suitable parking. Table 9-2 summarizes the advantages and disadvantages between venues in urban and suburban areas.
Table 9-2: Advantages & Disadvantage of Urban & Suburban Venues
Venues in urban areas
Venues in suburban areas
Advantages
• Take less time to reach
• Less traffic congestion
• Convenient to reach the venues
• Adequate parking
• Close to where attendees stay
• Spacious halls to host large events
Disadvantages
• Can cause traffic congestion in the area
• Takes long time to commute
• Rush hours may cause inconvenience
• Inconvenient if no public transportation
• Limited space to host large events
• Transportation may be costly
Each type of event requires a different location. For example, conventions are typically hosted
downtown to be closer to where attendees stay making it easier and more convenient for
them to commute. However, some mid-scale conventions with attendees flying in from different
countries may require airport hotels or conventions located in suburban areas closer to airports.
Suburban area can be a good option due to less traffic and congestion provided that there is
good enough public transportation to access venues.
For exhibitions, the process of setting up booths, dismantling, as well as transporting exhibits
especially oversized ones usually requires a suburban area, as logistics for oversized exhibits are
often more convenient in suburban areas due to less traffic and easier access for large trucks.
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Venue Layout
An event floor plan usually varies depending on event type as well as venue layout such as
entries & exits along with barriers & utility ports. Venues with flexible layouts are always desirable
for organizers since they can mold almost any floor plan on to an existing floor space.
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.
Ceiling Height
Most of the time, ceiling height is an essential consideration when it comes to exhibitions to accommodate tall booths as well as ease construction and dismantling. Booth designs can vary,
some may be double-story to attract visitors and increase available space while some may like
to hang decorations and signs from the ceiling. Organizers need to consider design requests
when choosing a venue. In general, venues with low ceilings may create discomfort for attendees, while high ceilings can consume excessive energy to contain temperatures. Venues such
as hotels are suitable to host exhibitions that do not require high overhead spaces, but convention and exhibition centers may be more appropriate to host large sophisticated exhibitions
due to flexible designs that can provide maximum convenience.
Source : Thailand Convention and Exhibition Bureau (TCEB)
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Number of Entries and Exits
Entrance and exit numbers will determine management of attendee traffic flow. Halls with
shared single entry and exit can help organizers control the overall atmosphere of the event
but can easily be the cause of congestion. On the other hand, halls with multiple entries and
exits can ease overcrowding. Behavioral studies of attendees suggest that those participating
in an event for the first time usually turn right once they enter the event floor while attendees
who have participated in several events usually do the opposite. This finding can be used by
organizers to plan available entrance and exits accordingly. For safety purpose, hall capacity
should include the number of doors, emergency exits, and paths that lead to these doors and
exits.
Emergency Exits
Even though this is not a main factor that can hinder or help a final decision, venue operators
should design appropriate number of emergency exits according to the size of the venues and
local laws.
Location and Size of Restrooms
Even if restrooms are not a main decision influencer, venue operators should plan restroom
location within convenient proximity to event spaces. Apart from restroom locations, the
number available should also be proportionate to venue capacity.
Venue Infrastructure
Infrastructure considerations vary depending on the event type and the
level of importance placed on each
item by an organizer. Main infrastructure that should be provided and
managed includes:
Lighting System
A lighting system is a key component
as it can enhance event attractiveness. Different events seek different
lighting effects to create different
Source : Thailand Convention and Exhibition Bureau (TCEB)
atmospheres. Thus, lighting systems
must be adequate and adaptable to different requirements.
211
Audio and Video Equipment
For meetings and incentive travel, requirements for audio and video equipment may be basic
and probably able to work with what is provided at a venue, in terms of number & quality of
projectors, speakers and microphones.
Requirements regarding audio and video equipment become more complex when it comes to
conventions and exhibitions. Much the same as having an adequate lighting system, an audio
and video system is vital as it can enhance the overall atmosphere of an event. In most cases,
lighting and audio & video system management will be completed by the same provider.
Note should be taken, however, that equipment that produce special effects can be costly
and outdated very quickly. Decisions over whether basic or sophisticated equipment should be
used should be based on the event type being planned.
Usually, venue operators offer two options for audio & video system management to organizers:
1. Organizes are required to use a provider specified by the venue
2. Organizers can choose any service provider at their discretion
Acoustics
Acoustics is another factor that can influence the decision, especially in hosting meetings and
conventions. Lack of proper acoustics may cause hearing difficulty for attendees. Two factors
affect acoustic quality within venues, interior design and the material used for noise absorption. Carpets, insulating material, location of speakers, seating layouts all can be used to ensure
superior acoustics within venues.
Rooms or halls without proper acoustics can suffer reverberation or an echoing of sounds. The
lower acoustic quality, the longer sounds echo.
Venue operators should clearly identify the main purpose each hall is expected to perform
prior to designing for acoustics. To install an acoustics system, it is best to consult with consultants who can best design and install proper systems suitable with the purpose of the halls.
Internet Connections
Nowadays, most people are connected online to keep up with news, work and stay in touch
with loved ones. The need for an internet connection has become an inseparable part of daily
life. Therefore, venues must provide internet connections through Wi-Fi (Wireless Fidelity). Even
though Wi-Fi services may not be the most important factor that influences the decision to
choose a venue, it is a simple and essential service to have.
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Radio-Frequency Identification System (RFID)
Although RFID’s main purpose and primary use are not intended for the MICE industry, owing to
its versatile function, it is now heavily used in meetings and conventions as a tool for delegate
identification and registration.
Venues that have RFID systems can offer additional services, such as:
•RFID readers at every entrance can identify instantly and automatically personnel with
RFID-enabled badges as to areas through which they can pass. It is very effective in
zoning the event floor creating privacy and safety for VIPs, attendees and organizers.
•VIPs can be instantly identified with RFID readers; therefore, ushers can approach and
offer services especially for them without taking time in personally identifying each
delegate.
•Document receipts or fees paid can be easily tracked through registration with
RFID tags.
This trend suggests RFID systems will become even more important and be in most venue management especially once initial installation costs reduce.
Supporting Facilities
Other supporting facilities are secondary considerations organizers
take into account when selecting
venues. These facilities are essential
as they can complement organizer
plans and services provided to attendees and tend to include VIP
lounges, Muslim prayer rooms and
child-care rooms.
Loading Area
Source : Thailand Convention and Exhibition Bureau (TCEB)
For large events, especially exhibitions, sufficient loading area is a huge plus for organizers
when choosing a venue. Organizers must consider the average size of an exhibit and containers, whether 20-foot or 40 foot and compare it with the loading space available in different
venues.
Standardized loading docks must have the height needed to move containers in and out with
forklifts. In case of oversized containers, venues must also be equipped with special entrances
to unload and transport these exhibits into the venue.
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Interpretation System
At international conventions with
attendees coming from different
countries, a complete understanding of the content is required for all
attendees to be fully involved with
the program. Simultaneous interpretation can ensure this understanding when programs are running.
Simultaneous interpretation requires
experts who can interpret content
from a source language into target a
language as fast as possible leaving
the context unchanged.
Source : Thailand Convention and Exhibition Bureau (TCEB)
For simultaneous interpretation to
be effective, interpreters have to be in private and self-contained facilities for complete concentration. In case there is more than one target language, venues need to provide private
rooms for all interpreters. Attendees must also be provided with personal headsets that can be
adjusted to their preferred target language.
Safety and Security System
Safety and security is another important factor when organizers choose hosting venues. Venues with appropriate and effective safety and security measures is important for MICE events
especially for ones with important figures attending since these people usually require utmost
protection.
Venues should provide common safety and security equipment that are well maintained and
ready-to-use including walkthrough metal detectors, handheld metal detectors and other security check tools and measures. Venues should also offer several degrees of security measures
for different MICE events. While precautions must be taken, safety systems that are too stringent
may cause attendees undue inconvenience.
Waste Management System
Every MICE event generates substantial waste from organizers and attendees. Waste, water
management and garbage management systems can add value to services venues can provide as well as promote green meetings.
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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. Specifically in developed MICE destinations
such as China, Hong Kong and Singapore, public transportation systems are well-connected
making transportation easy and convenient. 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 numbers. Parking management tools include parking-sensor systems, clear signage and
parking-memorization tools.
Venue Management
Proper venue management will result in returns and profits that can be used to maintain and
renovate facilities. Looking at venue management as a business, return for venue operators is
the fees charged for services provided. This section will provide general ideas and aspects of
venue management.
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. Maintenance
includes maintaining cleanliness,
conditions of facilities, renovating
layouts & designs and renovating
buildings.
Cleanliness should always be on
Source : Thailand Convention and Exhibition Bureau (TCEB)
top of the list since organizers or attendees do not want to host or attend events in poorly maintained or dirty facilities. Cleaning
can be managed in-house or outsourced. In house cleaning services require hiring cleaning
personnel, which may be costly but more manageable when compared to other options. Outsourcing cleaning services to professionals can incur less labor cost for the operator but leads to
reduced manageability.
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Venues include many facilities and equipment that must be maintained to prolong usefulness
and preserve performance. Amenities such as light bulb, speakers, tiles, carpets, elevators and
escalators require in-house personnel since they require continuous attention on a case-bycase basis. Some tasks, however, can use external providers such as escalator and elevator
maintenance.
Venue layouts and interior designs 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; therefore, venue operators should keep them modern
and up-to-date to keep up with changes in the MICE industry and to remain profitable over the
long run.
Even though some historic, antique halls or palaces might appeal to certain type of events, for
convention & exhibition centers, buildings should offer a modern appearance. Venue operators
should consistently update with the newest trends in venue architecture and incorporate new
designs with existing facilities to increase attractiveness and keep pace with industry demand.
Marketing and Public Relations
Marketing products and services are essential to every business. Likewise, venue operators must
market their venues to target audiences who, in this case, are organizers. Venue operators can
use price incentives or additional services as to attract organizers to host MICE events at their
venues.
Primarily, venue operators can promote venues through local CVBs since they are the primary
contact point for many international organizers. Organizers from abroad usually seek CVBs for
information related to destinations and advice regarding venue availability. Moreover, venue
operators can also travel with their local CVBs to attend trade and road shows.
Trade shows and road shows provide an opportunity for venues to highlight what they can offer
to potential clients and as such, they must try to present themselves in a unique and attractive
manner. This includes proper presentation, thorough documentations, brochures and attractive
booths and visual aids. Personnel must be well prepared and knowledgeable about the nature
of the MICE industry, their target market’s decision making process.
To host MICE events, venue operators can also pursue an active sales strategy where they personally pitch for MICE events.
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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 option.
Especially large events must
be able to alleviate poten-
Source : Thailand Convention and Exhibition Bureau (TCEB)
tial congestion and chaos
during registration.
Fortunately, technology has become an important part of registration and ticketing services
due to its ability to save time, cost and promote convenience. With technology, attendees can
go through registration or prepay for their tickets online from an event websites. Those who
have gone through pre-registration or paid for their tickets can enter without having to wait. Organizers can also gauge the level of interest by potential attendees based on pre-registration
numbers.
Human Resources
Venues, just like any organization, require human resources to perform tasks including cleaning, technical support, marketing, PR and general management. Human resources is all about
finding the right people at the right time and putting them in the right spot to avoid incurring
unnecessary costs. Some tasks are also more cost-effective to outsource as mentioned earlier
and can include general cleaning, certain equipment maintenance and security.
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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.
The concept of green and sustainability has now become an inevitable part of the MICE industry and is a trend venue operators should not overlook. International associations and corporations are increasingly placing sustainability issues as a core business value and will affect how
the MICE industry operates in the future. For venue operators, keeping up with these continuous
and ever-changing trends is a challenge. Table 9-3 provides examples of key venue aspects
that can be modified, improved or renovated.
Table 9-3: Venues’ aspects and components that can implement sustainability concept
Promoting sustainability as venue operators
• Location selection with sustainable considerations as a criteria
• Consider switching to sustainable utilities sources such as solar cell panels
• Construction material and designs with minimal damage to the environment
• Zoning and add green areas
• Waste and garbage management systems to protect environment
Sydney Convention and Exhibition Centre was accredited by Silver Certified from Earthcheck which is one of the forefront
organizations certifying sustainable management in tourism industry
Source : Maxim75. (2010). Sydney Convention Centre at Darling Harbour [Photograph]. Sydney, Australia,
from http://en.wikipedia.org/wiki/File:Sydney_Convention_Centre_at_Darling_Harbour.jpg
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Introduction to MICE industry
Best practices for sustainable venue management have been set forth by the Convention
Industry Council (CIC) to be a guideline for service providers in the MICE industry when implementing sustainable policies. Published by CIC in the Green Meeting Report, it is divided into
two levels, minimum best practice and recommended best practice.
• Minimum best practices
• Establish detailed environmental policies as well as action plans in implementing
those policies. Consistently communicate these policies to all employees, clients
and venue suppliers.
• Establish an energy management program to reduce energy usage as well as appropriate action plans. This may require external energy auditors to identify processes that can further reduce energy consumption.
• Establish procurement policies to encourage recycling. This includes obtaining
equipment that can conserve energy certified by Energy Star, low volatile organic
compounds paints and cleaning materials, remanufactured toner cartridges, postconsumer, recycled content paper and recyclable plastics.
• Initiate and expand recycling process in typical venue operation to capture papers,
cardboard boxes, glasses, plastics and organic materials. Venue operators can
contact external recycling company in case a local government does not collect
recyclables.
• Recommended best practice
• In energy management, venue operators should consider these issues:
• Consider changing to fluorescent lighting that is more energy-efficient
• Install programmable air-conditioning systems in guest rooms and event areas
• Install motion sensors for lighting control for rooms that are not frequently used
• Install key-activation electricity in guest rooms
• Install water-efficient toilets and faucets
Best practices aim to promote events that can create the least impact on the environment.
Apart from environmental impact, venue operators can also save on organizing MICE events
that can ultimately generate a positive impact on the economy.
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Safety and security
As mentioned earlier, safety & security is an important factor organizers take into consideration
when choosing venues. Especially after 9/11, safety & security and emergency tackling plans
have become even more important especially for MICE events attended by many important
figures. Nowadays, venues are expected to have emergency response plans that can be instantly and effectively implemented whenever any unexpected situations occur.
Emergency response plans vary depending on the MICE event, size, attendee numbers and
venue location. However, emergency response plans normally include these aspects:
• Possible unexpected events
• Direct supervisors authorized to handle each issue
• Responsibility of each supervisor in each circumstance
• Emergency contact point & location
• Transportation access in case of emergency
• Evacuation plan
• Communication plan in an emergency situation
Compliance
Laws and regulations in every country usually contain sections that impose standards on buildings and spaces around them. These laws ensure buildings are carefully built and operated
in such a way that will not cause harm to people using them or the surrounding areas. Venue
operators must comply with these laws and regulations.
In Thailand, the law enforcing building regulations is the Building Control Act, which regulates
issues such as the strength and quality of material used to construct buildings, areas within
buildings, walkway width, surrounding spaces and security & safety issues including sufficient
ventilation, utilities, fire prevention, fire extinguisher systems and fire exits.
Apart from laws enforced directly on buildings, venue operators must also act according to
other civil and commercial codes directly related to their business. These laws include tax &
duty laws and labor protection acts and ensure taxes are paid on time; employees are protected and given primary rights; and that management complies with laws and operates with
maximum transparency.
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Introduction to MICE industry
Insurance
Complying with laws and regulations is the first step that can avoid potential risks. The next step
is to insure against other possible risks. MICE event type and venue location can determine the
type of insurance, the extent of coverage and the insurance premiums venue operators have
to pay. In most cases, venues usually insure against these risks:
• Cancelations: There is always a risk of cancelations that can lead to a significant loss in
income for venue operators. With insurance, venue operators can hedge themselves
against this risk and can expect to be compensated for cancelations based on previously agreed reasons or cancelations.
• Attendee welfare: In case of accidents, venue operators are usually liable to physical
damages. These risks can be avoided by having insurance to cover potential accidents.
• Buildings: In case of unexpected incidents that cause damage to any part of the building, insurance can be an effective tool to compensate for damages. Insurance usually
offers insurance coverage for buildings in case of fire, flood, earthquakes and terrorist
attacks.
Insurance is not mandatory, but having insurance can protect them from numerous risks. In
case that something happens, the insurer will be compensated according to the terms previously agreed with the insurance companies. In turn, venue operators, who are the insurers, must
pay premiums to insurance companies. Coverage terms and premiums are usually agreed on
privately and vary depending on requirements and conditions.
This chapter has offered general ideas associated with in managing venues from a venue
operator perspective and has covered the major areas of concern MICE industry venue owners
need to take into consideration.
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Chapter 10
The MICE
Industry Logistics
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Introduction to MICE industry
In the MICE industry, one important aspect that can contribute to success is logistics, the management of moving people and items from one place to another. This chapter will examine
logistics associated with and needed when holding different MICE events.
Source : Thailand Convention and Exhibition Bureau (TCEB)
Logistics and Transportation
Although logistics and transportation are similar in many ways, they do differ in ways that can
create confusion.
Logistics can be defined as the management of the flow of items or people from a point of
origin to a destination. This flow is managed taking into consideration two factors - time and
cost. Finding a balance between these two factors is crucial since there is always a trade-off
between cost and time as often, for example, the shorter the delivery time, the higher the cost.
Transportation is the movement of people or items from one location to another. The similarity
lies in the movement from one place to another but with transportation limited to being a step
in logistics as the means to move people or items to the planned destination or to complete the
logistics goal.
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There are three components in transportation, infrastructure, vehicles and operations. Lacking
any one will make transportation impossible. Transportation infrastructure is a fixed installation
required for transportations and includes roads, railways, airways and waterways. Transportation
infrastructure can also be terminals, structures intended for an interchange of items and people
and sometimes used for vehicle maintenance.
Terminals include airports, railway stations, bus stations, warehouses, trucking terminals,
seaports and fueling stations. Vehicles are instruments that utilize transport infrastructures and
include automobiles, buses, trucks, trains, ships and aircraft. Operations manage how these
vehicles operate and who will put them on the road or sea to complete the task.
Transportation Modes
Tracing back through time when technology was not as advanced, transportation was simple
and straightforward; however, making trips time-consuming and inconvenient. Fortunately,
transportation has evolved into a myriad of options making travel increasingly convenient.
We are now living in a world filled with cars, trucks, jets and trains.
Choosing the transportation mode has become more complicated and subsequently requiring
effective planning. The three main modes, air, land and sea each have advantages and
disadvantages making it impossible to spotlight which one is the ‘best’. It is also important to
understand that they are often interdependent and that in logistics management, optimum
transportation might require multiple modes of transportation (multi-modal) to deliver people
or items to a final destination.
Air Transport
When considering time as the most crucial factor, air transport will invariably be most effective
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. Since they first took off, airlines have attempted to provide full amenities for passenger including in-flight catering, entertainment and other services. Well-known airlines that still operate as full-service airlines include
Thai Airway, Singapore Airline, Etihad, Qatar Airway and Delta Airlines.
It is inevitable that as the cost to fly is continually increasing, low-cost airlines will continue to
enter the passenger market. Low-cost airlines are able to achieve efficient airplane usage and
arrive at lower tickets prices with any additional services required paid on demand. At the
other end of the continuum in terms of cost and convenience are private chartered airlines
that provide a niche service private individuals or companies can hire.
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The other type of air transportation is freight airlines that specialize in transporting items, mail,
cargo and other items. They offer services domestically and internationally with precise delivery
times. FedEx, UPS and DHL are among the top freight carriers that incorporate airlines and
ground transportations in facilitating a complete loop in transporting items.
Although air transportation is an effective method, it comes with a trade-off. With air transportation, users or travelers usually have to bear more cost when compared to other modes of
transportation. As mentioned, in general, the shorter the delivery time, the higher the cost. Over
the same route, air transportation while often the fastest way to transport people or items is also
the most expensive option. Apart from cost, the size of items to be transported is also limited to
those that can fit inside a plane.
Distance from a city to its airport is can also require time and money to travel to and from an
airport. Wait time for luggage loading and pick up before and after flights adds time. Therefore,
countries with high-speed alternative transportation modes like Japan and Korea often place
air travel at a disadvantage when travelling from one city center to another.
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Land Transport
Land transportation can be divided into two modes - railway and road.
Rail Transport
Rail transport can transport people (passengers) and items (freight). Passenger trains are
used to transport people inter-city and intra-city transit. Inter-city service typically entails
higher speeds with longer distances between stops, for instance, the Eurostar train service
or Japanese Bullet train.
Intra-city transit entails lower speed, shorter routes and more stops along the way. They
usually operate within a city or region for instance, the BTS and MRT in Bangkok and the
MTR in Hong Kong. Regardless of whether rail travel is between cities or within a single city,
it can save significant travel time and lessen pollution.
The other rail transportation is freight trains used to transports cargo and items. With lower
shipping costs and increased loading capacity, freight trains offer an efficient way to
move heavy items such as coal, iron and ore. However, a major drawback with freight
trains is that rail networks do not always allow for door-to-door delivery. This means that
once cargo reach a rail terminal, other transportation arrangements are required for final
delivery.
Road Transport
Road transportation utilizes highways networks
and roads to transport people and items from
point A to point B. With modern highways that
connect every city and important location
within a country, transportation is fast and more
convenient as it can provide door-to-door
delivery.
In transporting items, distance and weight of
items are factors that need to be taken into
consideration in deciding a suitable vehicle.
For short distances and lighter agriculture items
such as sugar and sugar cane, road transport is
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Introduction to MICE industry
often a better transport mode. Pick-up trucks are usually used for short distance with small and
light loads. Trucks, in this case 10 to 18-wheelers, are preferable for long haul distances.
Unlike rail transportation, road transportation does not require stations, ports or terminals to be
able to operate, making it very flexible. The simple availability of roads, allows trucks to travel
from one place to another and to customize routes, but less efficient than the railway when
load capacity or distance to cost is compared.
Water Transport
The slowest method, although
one of the most popular, is by
water, especially for cross-continental transportation. Probably
the most suitable for moving
items over long distance, ships
can accommodate massive
cargo with almost no restrictions
in terms of size or weight.
However, it may not be the most
Source : Thailand Convention and Exhibition Bureau (TCEB)
popular method to transport
people except for recreational purposes like cruises or ocean liners packed with luxurious facilities to generate pleasure rather than to transport people from one place to another.
Modern freight ships can be categorized according to their purpose such as bulk, container
and tanker. With so many varieties, logistic management companies need to select the most
appropriate one for the products being transported.
Despite the many benefits water transportation can offer, one important disadvantage is that
it depends on ports to access certain location. As ports are used to load and unload items,
resupply necessities and fuel, destinations without ports or with ports too distant from the final
destination may accentuate costs making water transport more burdensome.
Another limitation lies in operating speed. For example, to ship products from Japan to Thailand
via airfreight will take half a day with another half a day for customs clearance. On the other
hand, by ship it could take weeks just to arrive at the port in Thailand.
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The MICE Industry Logistics
For MICE events to take place, people and items need to be transported from many destinations to the event venue. To ensure success, transportation methods and arrangements must
be well planned, as inefficient transportation arrangements can cost organizers both time and
money. Six specific requirements to take into consideration when planning and selecting modes
of transportation are illustrated in the figure below. (Davidson, 1994)
Figure 10-1: Specific MICE Event Transportation Requirements
Speed
Value for
money
Comfort
Selected
Type of
Transport
Reliability
&
Punctuality
Frequency
Convenience
Source : Business travel by Rob Davidson (1994)
Speed
Benjamin Franklin, an American inventor, diplomat and the person on a US 100 dollar bill,
is quoted as saying “Time is Money.” This adage is clear to see as people traveling on
business constantly search for the most efficient mode of transportation to get them to
their destination as fast as possible. The shorter the time spent on transportation, the
better it is for business travelers. 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. One way this is
undertaken is that most MICE event dates are typically fixed and announced well in
advance before, especially for conventions and exhibitions allowing delegates the
opportunity to find the cheapest and easiest way to reach the event or to book early to
save budget.
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Comfort
Comfort is also a part of this equation when choosing the right transportation. With speed,
many also crave for a peaceful and quiet environment during a trip. Noisy and cramped
seats may not be the most suitable for delegates who usually use the time while in
transit for either business or leisure. The opportunity to sit comfortably and to relax with
minimum distractions is something for which people traveling on business are willing to
pay extra. Organizers, therefore, need to find a balance between comfort levels and cost.
Reliability and Punctuality
As time is one of the most vital concerns for business travelers and MICE attendees,
reliability and punctuality of any transport service must be ensured to mitigate risk.
For instance, a company sending employees to attend an overseas event is
required to book a plane ticket, reserve a hotel and rent a car.
With money paid in advance, if employees are unable to make it to the conference on
time due to a flight delay, a company will be reluctant to make similar arrangements in
the future. This is why many companies still decide to choose airlines known for their
commitment to punctuality.
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Organizers and exhibitors also stress reliability and punctuality as qualities they need in the
services rendered by logistics service providers. To ensure everything goes according to
plan and to avoid delays, organizers should take into consideration the time required for
transportation and the time required for clearing items through customs.
Items and equipment for exhibitions have to go through a process of declaration and
custom clearance that can take longer than expected. The time needed for customs
clearance will vary from one country to another based on import and export laws and
regulations and; therefore, requires organizers to have a thorough knowledge, or have
on hand a logistics service provider, to plan transportation arrangements from various
points of origin, through customs and to the venue.
Convenience
Convenience is linked with the 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 pre
vent frustration such as non-stop flights from one airport to another.
For transporting items and equipment, convenience may be less important when com
pared to reliability and speed. The concern is that they should be accessible by organizers
once they have arrived and passed customs clearance. Freight forwarders or logistics
service providers can offer door-to-door delivery for organizers resulting in convenience
being attributed to service-provider dependability.
Frequency
Another factor closely related to convenience is frequency. An airline company with
frequent flights for each route will allow MICE attendees to tailor their itineraries according
to their schedules.
For example, with frequent flights scheduled, business travelers can decide to fly overnight
out of JFK International Airport in New York to arrive at Sky Harbor International Airport in
Phoenix, Arizona in the early morning to attend a business meeting, then catch a flight
back to New York on the same day.
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In transporting items and equipment for MICE events, most cargo airlines and shipping
companies operate at regular intervals and with schedules typically fixed. This means an
organizer must decide on the mode of transportation to use based on the scheduled
delivery time and then work backward from there.
Value for Money
Value for money is one of the most important factors for business travelers and MICE or
ganizers. A transport operator who can offer superior services at a competitive price will
have a distinct advantage. However, it is important that dependability is not sacrificed
when trying to save money, as a few dollars saved is worthless if exhibition booths and the
content do not arrive in time.
Apart from these six specific requirements used when choosing the mode of transportation,
corporate meetings, incentives travel, conventions and exhibitions have their own
characteristics and requirements to be considered when choosing transportation. As such,
organizers, in coordinating with all parties involved, can design the most suitable arrange
ments taking into account the advantages or disadvantages of each mode of transportation
and an event schedule.
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When considering the mode of transportation for MICE attendees traveling from abroad, air
transport should be the preferred choice as 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 venue. Since meetings, incentive travel and conventions mainly focus on people; it implies
that transportation arrangements will revolve around moving people between airports, hotels,
venues and other local attractions.
Exhibitions often require complicated logistics planning since they involve transportation of
both people and exhibits. Exhibitors must transport exhibits from their countries to exhibition
venues that anywhere in the world and relies on well-planned logistics in three phases: build-up,
exhibit and dismantling.
Flawless logistics flow will pave the way to exhibition success. 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. In addition, the fact that MICE events are becoming shorter in duration, in turn posts a challenge for organizers to shorten the time for booth
build-up and dismantling.
Another aspect organizers should not overlook is traffic management especially when a venue
is located in locations where traffic congestion is inevitable. Organizers should make plans and
set procedures to manage vehicles entering and exiting venues. Parking must also be managed
to avoid on-site congestion.
Related Stakeholders in Logistics and Transportation
It should be increasingly clear that MICE events cannot be successful without smooth collaboration among numerous parties at each stage. In this section, the major stakeholders involved
throughout the logistics process in the MICE industry will be examined in more detail.
Ports and Stations
As mentioned earlier, some types of transportation cannot take place without the existence of
ports where vehicles, aircraft and ships, can dock or park to transfer people and items and to
perform other activities.
• Seaports allow ships to dock to transfer items and resupply needed resources.
Port locations are selected to optimize access between land and water for commercial
usage, especially for large container ships due to their need for deep water.
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Port Authority of Thailand (PAT)
The Port Authority of Thailand (PAT) is a state-own enterprise responsible for regulating ports in
Thailand. Laem Chabang and Bangkok, Thailand’s two largest ports are under PAT governance
in collaboration with other public companies.
Airports
• Airports allow aircraft to take off and land, with most international airports also offering
space for aircraft maintenance. Airport infrastructure consists of runways for fixed-wing
aircraft to take off and land, control towers to manage and communicate with aircraft
approaching and leaving, hangers to store and maintain aircraft and terminal
buildings to transfer people and items to & from aircraft. Within terminals, immigration
and customs perform screening duties in granting people and items entry to the
country.
Source : Thailand Convention and Exhibition Bureau (TCEB)
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Airports of Thailand (AOT)
The Airports of Thailand is a state-own enterprise responsible for regulating and operating
airports in Thailand including Suvarnabhumi Airport, currently Thailand’s main airport.
Thailand international airports servicing commercial airlines are located throughout
Thailand and include Chiang Mai International Airport and Phuket International Airport.
Immigration Bureau
The Immigration Bureau is responsible for granting visas to non-Thai nationals who wish to
come to Thailand. The role of the immigration bureau includes managing and governing
the process before granting entry to Thailand. The connection to the MICE industry lies
in the leniency and simplicity of this process since it is one factor that simplifies attendee
and organizer decision to choose MICE destinations.
Customs Department
The Customs Department is responsible for collecting tariffs for imports & exports passing
through the borders of Thailand. As every exhibit going in or out of Thailand must pass
customs, the department can be regarded as a gatekeeper allowing items and equipment
in and out of the country. As customs clearance procedures may require significant time,
logistics planning for exhibitions need to be very careful to plan for possible delays.
Food and Drug Administration
Food and Drug Administration ensure the quality of food, drugs, medical devices, chemi
cals and cosmetics available in the country. Their role is primarily associated with controlling,
monitoring and evaluating manufacturing facilities for selected product as well as their
quality.
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 items entering the country.
Any items that fall into product categories monitored by the Food and Drug Administration
that organizers wish to ship into Thailand must strictly abide by the rules and regulations set.
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Thailand Industrial Standard Institute (TISI)
Thailand Industrial Standard Institute (TISI) is an organization operating under the Ministry
of Industry. Its main role is to undertake standardization with a commitment to promote
and develop the industrial sector in Thailand. Implementation of standards developed by
TISI can be mandatory or voluntary.
TISI also participates in the development if international and regional standards with other
standard setting bodies such as the International Organization for Standardization (ISO),
the International Electrotechnical Commission (IEC) and the ASEAN Consultative Com
mittee for Standards and Quality (ACCSQ). These collaborations are to enhance the quality
of Thailand’s manufacturing process and products in alignment with other countries to
promote international trade.
Standardization in the quality of products and manufacturing process of electronics,
electronic parts and toys are the core TISI focus. In exhibitions, items shipped into the
countries may be under the inspection and authority of TISI to evaluate and ensure their
quality meets national standards. Therefore, organizers may need to declare and take
into consideration beforehand TISI rules and regulations to avoid potential complications
once those items arrive in country.
Office of Agriculture Regulations
The Office of Agriculture Regulations operates under the Thai Department of Agriculture.
Their role includes monitoring and controlling imports & exports along with the
manufacturing & sale of agricultural products. Merged to airport immigration and seaport
customs, they act as gatekeeper granting access to plants and other agricultural
products.
Meant to control hazardous and contagiousness diseases often found in natural products,
their authorization is limited to plants, seeds, fertilizers and agricultural products.
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Office of the National Broadcasting and Telecommunications
Commission (NBTC)
NBTC are responsible for a vast array of broadcasting and telecommunications products
and related services. This is to ensure equality of services and radio frequency throughout
Thailand. NBTC is a central body governing every aspect in this sector. Therefore, MICE
organizers must study the rules and regulations set forth by NBTC in case an exhibitor plans
to bring equipment related to broadcasting and telecommunications into Thailand.
Excise Department
The Excise Department, like Customs, collects taxes on items entering or sold within the
borders of Thailand. The difference is that these taxes are on special types of product
imposed with higher taxes and include liquor, cigarettes, gasoline, cosmetics, automobile
and boats.
MICE event organizers must declare every item entering the country. As each item will be
imposed a different tax rate, organizers need to make certain rates are checked with the
Excise Department and that a declaration of items and tax payment are transparent.
This process usually takes time, therefore, it should be planned ahead of time in ensure
on-time delivery at an estimated cost.
Airlines
Airlines commercially operate aircraft for transporting passengers and items. Passenger
airlines operate aircraft for the purpose of transporting people to various destinations,
while freight airlines operators specialize in handling and delivering of tangibles including
mail, cargo and other items.
Shipping Companies
A shipping company is specialized in transporting items on ships. There are many shipping
companies in Thailand, but mostly as branches of international shipping companies coor
dinating and scheduling shipments with their headquarters.
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Freight Forwarders
Freight forwarders organize shipments of items for individuals or corporations and make
contracts with airlines and shipping companies to facilitate transportation of items and
cargo. They act as an intermediary between those who need items delivered and
companies that can deliver those items. Freight forwarders usually provide a one-stop
service offering transportation from door-to-door.
MICE events cannot be achieved without good logistics and transportation planning
even though organizers, in most cases, lack knowledge and connections necessary to
complete all tasks. Thus, sub-contracting tasks to professionals, logistics companies and
freight forwarders, can promise greater effectiveness.
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Chapter 11
Service Providers
in MICE Industry
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Introduction to MICE industry
For MICE event organizers to compete and maintain competitiveness, it is essential to provide
impeccable and unforgettable services to MICE travelers. However, to provide this level of
service, the industry cannot operate without the involvement of other stakeholders. This chapter examines all stakeholders that are part of the MICE industry whether directly or indirectly
related.
Direct stakeholders include Travel Management Companies (TMCs), Destination Management
Companies (DMCs), Professional Conference Organizers (PCOs), Professional Exhibition Organizers (PEOs) and Convention and Visitors Bureau (CVB). Indirect stakeholders include insurance,
advertising, logistics, catering and other general service providers.
Other parties include organizations such as Thailand Convention and Exhibition Bureau (TCEB),
Thailand Incentive and Convention Association (TICA) and Thai Exhibition Association (TEA).
Key Stakeholders’ Roles and Responsibilities
Private organizations, companies or groups of people can have a direct impact on the MICE
industry as a whole or on any single MICE event.
Travel Management Company (TMC)
TMC core business involves
facilitating business trips and
includes all travel plans for
individual and group travel.
The name, Travel Management Company, may create a misconception, as it
sounds somewhat similar to
a tour operator or a travel
agency. The main distinction lies in a TMC’s understanding of a client’s business environment. Finally,
TMCs usually have knowledge about the industries in
Source : Thailand Convention and Exhibition Bureau (TCEB)
which their clients operate.
American Express and Hogg Robison Group are good examples.
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With their core business in providing business travel plans and corporate meeting arrangements, TMC are usually able to collaborate and negotiate more effectively with
their network providers and deliver the best services for their clients.
Destination Management Company (DMC)
A DMC is typically involved incentive travel programs, along with some corporate meetings and is usually an expert in the location it represents. They are equipped with information, connections and networks related to the MICE industry. Their services include venue
selection, ticketing, transportation arrangements, accommodation planning, travel plans
and other services and acts as an intermediary between a client and service providers
in shaping corporate meetings or incentive travel programs. Euromic and Ovation Group
are examples of well-known destination management companies in Europe.
Incentive Organization / Incentive House
Apart from monthly salaries and benefits as compensation, many companies provide
either monetary or non-monetary incentives to retain quality employees. Non-monetary
compensation is usually reflected in recognition, praise or a promotion. In addition, an
incentive travel can act as an incentive tool that can be administrated in-house or outsourced to professionals who are expert in linking incentive travel programs with client
goals and objectives. One of the most famous incentive organizations is Carlson Wagonlit
Travel.
Commonly called incentive organizations or incentive houses, they work closely with
clients in shaping programs that can motivate and enhance efficiency. To qualify for
incentive travel, criteria for qualifying must be set and communicated to all employees.
Incentive houses can be categorized into two groups: full-service incentive organizations
and fulfillment service organizations as elaborated earlier in Chapter 3.
Professional Convention Organizer (PCO)
A Professional convention Organizer
organizes conventions for interested associations. A PCO can be viewed using
two perspectives, core and local. A Core
PCO directly works with an association
wishing to organize a convention. In turn,
a core PCO often outsources logistics
to a local PCO and other tasks to other
service providers. Therefore, a core
PCO’s main role is to administrate and
steer work in the right direction. In short,
PCOs, whether core or local, are vital
to the smoothness and the success of
any convention. Most credible PCO are
ICCA and IAPCO members.
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Introduction to MICE industry
Source : Thailand Convention and Exhibition Bureau (TCEB)
Professional Exhibition Organizer (PEO)
A Professional Exhibition Organizer (PEO) organizes or facilitates exhibitions as an association itself. An association PEO’s
main purpose is not profit but is
to create business opportunities and information dissemination platforms through hosting
exhibitions. Examples of PEOs
are Reed Tradex and Imex
Management.
Convention and Visitors
Bureau (CVB)
Source : (NHSC. (2011). Exhibition Aisle [Photograph] From http://www.flickr.
com/photos/nhse/635319345)
A Convention and Visitors Bureau (CVB) is usually an organization centralizing support for
its regional MICE industry. A CVB is responsible to provide maximum convenience for attendees and support & increase local organizer capabilities. Privately or publicly run, roles
and responsibilities can vary from one to another. One CVB may have the authority to
create and enforce certain rules and regulations related to the industry; be the center of
information; and facilitate MICE events bids, while another CVB may perform other tasks
apart from what was mentioned. Despite discrepancies in terms of roles and responsibilities, CVBs are important organizations that represent and provide support for the local
MICE industry.
Association Management Company (AMC) had gained popularity with associations as
it provides a full, cost-saving service for associations. It provides management expertise
and specialized administrative services for everything such as executive management,
financial management, strategic planning, public relations, membership development,
marketing, meeting & event planning for small and large associations in a cost effective
manner.
AMC service model is meant to increase client management capability and resources
without capital investment through leveraging personnel resources from a pool of clients
in the AMC’s portfolio. Associations therefore, receive professional services as needed
and appropriate to the tasks required without having to hire full-time staff and incurring
significant costs.
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Roles and responsibilities of other service providers
Most MICE event organizers subcontract certain tasks to other specialized service providers.
While some of the service providers discussed in the following sections may not be directly related and operate around MICE industry, they perform operations help to bring success to MICE
events.
Venues
Venues are very important as they are constructed to host events. It is clear MICE events
and venues are inseparable. Each venue has different attributes and is good for different
purposes. Venues can either be single-purpose or multi-purpose facilities that can effectively host MICE events.
General Service Contractors
DMCs, PCOs and PEOs usually do not perform every task in organizing MICE events either
because a lack of expertise & personnel or to avoid excessive costs. This creates the need
to outsource some of the tasks to General Service Contractors, which, especially with exhibitions, perform every task possible including floor planning, preparing & administrating
the construction & dismantle of booths, arranging logistics for exhibits as well as preparing
an appropriate number of personnel to work on-site.
Creative Design and Advertising Company
Exhibitions, in particular, require advertising to create awareness among exhibitors and
attendees. This requires special advertising companies to design advertising campaigns
and materials for exhibitions to be
employed in different mediums,
for example billboards, television
and magazines. They are responsible for creating the overall
theme and applying it to every
component including promotional materials and banners. Often,
a central theme will influence the
overall tone of the event aligning
everything from color, fonts and
language used.
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Introduction to MICE industry
Source : (Remi Noyon. (2012). Dernier meeting de campagne pour
Jean-Luc Mélenchon [Photograph]. From http://www.flickr.com/photos/
remijdn/6948762580)
Insurance Company
Every MICE event involves lives and valuable objects. Damages from any unanticipated
event that might occur say fire, theft or earthquake can lead to massive monetary loss
when organizers are faced with the need to compensate for damages as well as opportunity costs such as loss of business opportunities for attendees or even death.
Therefore, to mitigate
these risks, organizers usually go to insurance companies to insure in case of
unexpected incidents to
cover and compensate
related parties as necessary. In short, insurance
companies will stand
ready to compensate for
the losses that may happen under unforeseen
circumstances in return for
Source : Thailand Convention and Exhibition Bureau (TCEB)
insurance premiums paid
by organizers.
Equipment Rental Company
MICE events often consist of a myriad of details that should not be overlooked as they
provide the final touch that can complement and complete the events. This also applies
to the wide array of equipment needed at an event including speakers, stage props,
lighting & audio control, equipment to facilitate simultaneous interpretation, matching
curtains & carpet and specific furniture.
Cleaning Company
At the end of each day of or at the end of each event, the space utilized needs to be
cleaned and readied for the next day or event. To return venues to their original condition prior to and/or after an event, organizers usually hire cleaning companies to clean
venues, as they, like many service providers, have the capability and tools to carry out
the task professionally.
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Security Company
MICE events often involve large numbers of people as well as valuable belongings and
exhibits calling for appropriate security measures to avoid theft, damage or risk to attendee lives and belongings. In most countries, laws and regulations are imposed on venues
and facilities to establish minimum safety levels and security measures operators must
maintain such as number of security guards per square meter and security tools in operation (metal detectors and security cameras).
These rules and regulations, apart from maintaining safety within the area, can foster attendee confidence in the venue and destination. Additional safety and security measures
and procedures are often outsourced to professional security companies.
Translators
Many MICE events are international and include attendees and guest speakers from all
over the world. This can create a language barrier between attendees that can prevent
a free flow of ideas and understandings. Therefore, translators are required at many MICE
events to ensure a full understanding of all information gets to attendees from every
nation. Even in corporate meetings and incentive travel, translators are important when
traveling in countries that do not use English or share a common language spoken by
those taking part.
Interpreter in MICE events, especially in conventions, include simultaneous interpreters
who are experts in interpreting content from the source language to the target languages
as fast as possible leaving the context unchanged. Simultaneous interpreters need to
have a full knowledge of both languages and the technical terms used in the topic
discussed to ensure the context remains similar to the original. Simultaneous interpreters
have to be able to listen, process, and speak all at the same time.
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Catering Company
Catering services are an essential factor
to complete MICE events, as attendees
need to be fed. Lacking expertise in
providing this service, organizers usually
bring this task to catering companies
who can manage large numbers of
snacks, meals & beverages efficiently
and at a standardized quality.
Tour Guides
Tour guides are essential to the MICE
Source : Adam Browning. (2007). Catering [Photograph].
From http://www.flickr.com/photos/abrowning/4353140974/
industry. With specific knowledge about
local areas, they can provide services to
MICE travelers by taking them to local attractions and by providing necessary assistance
along with cultural and historical information. With excursion programs and tours, guides
are the most important factor that can enhance attendee experience regardless of their
core purpose to attend a corporate meeting, visit a convention or take part in an
exhibition.
Logistics Company
Logistics is another MICE industry component crucial to the
success of an event. Logistics
includes transporting exhibits to
be used in exhibitions from their
origin countries to the destinations and transporting attendees from one place to another.
This must also be managed
under time and budget conSource : Thailand Convention and Exhibition Bureau (TCEB)
straints, restrictions and customs
& immigration processes.
The complexity intensifies with
an exhibition since it may involve more equipment, booths and exhibits that must be
transported and carefully handled.
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Professional Event Registration Company
MICE events commonly involve substantial numbers of people attending from across
the globe. Registration to attend an event can be complex and confusing, lowering the
working efficiency of organizers. To minimize complications in the registration process for
attendees and VIP guests, organizers often employ external service providers to handle
registration as they can provide efficient services based on expertise, software and technology designed specifically to support registration in an organized and simplify manner.
Commercial Bank
Commercial banks, even though they might seem to have very little relationship with the
MICE industry, provide another important function for MICE attendees and organizers.
Services performed by commercial banks that serve the MICE industry include currency
exchange services and letters of credit (LC) issuance. These services are required when
corporations, associations or MICE event hosts make payments to organizers or service
providers in different countries. In addition, commercial banks can act as facilitators for
transactions made among buyers, sellers and attendees.
Credit Card Company
For MICE events, online registrations and payments usually require maximum convenient
regardless of the attendee locations. Professional registration companies together with
credit card companies usually collaborate to provide credit card payment option for
attendees. Transactions on-site, especially in exhibitions, can also be done using credit
cards apart from wiring the money internationally. Credit card companies should stand
ready to facilitate these transactions for MICE event attendees.
Hospitals
Hospitals are important in case of health related emergencies that requires first aid. It is
necessary to prepare adequate facilities and to be able to transport patients to good
hospital that can provide quality care in a case of emergencies.
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Supporting Organizations Roles and Responsibilities
Apart from the above-mentioned private organizations that directly or indirectly provide services to complete MICE events, numerous organizations and associations also provide help.
These organizations are listed below along with their roles & responsibilities and their impact on
the MICE industry.
Thailand Convention and Exhibition Bureau (TCEB)
Thailand Convention and Exhibition
Bureau (TCEB) is a public organization
acting as the convention and visitors
bureau of Thailand. Its main role is
to provide support for the Thai MICE
industry and encompasses many
aspects:
• Set policies and measures to promote Thailand’s MICE industry
• Market & promote Thailand’s MICE
industry, organizers and service providers internationally
• Provide monetary incentives to
bring in more MICE events
• Act as the center for information
and guidance related to MICE industry
• Support organizations and associations wishing to bid for MICE events
• Develop and train MICE personnel
to enhance their capability and
competitiveness
Source : Thailand Convention and Exhibition Bureau (TCEB)
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Thailand Incentive and Convention Association (TICA)
Thailand Incentive and Convention Association (TICA) is a not-for-profit association whose
main purpose is to promote and support Thailand as a desired destination for MICE attendees and organizers. TICA is an association whose roles and responsibilities directly
and significantly enhance the MICE industry in Thailand. To achieve this goal, TICA focuses its efforts on many activities:
• Attend renowned trade shows and road shows for examples AIME, IMEX, EIBTM,IT&ME
and IT& CMA to promote Thailand’s MICE industry
• Organize familiarization trips for international DMCs, PCOs and PEOs to Thailand
• Develop member directory comprised of hotels, DMCs, PCOs, PEOs, service providers, venues
• Develop other promotional materials for Thailand’s MICE industry
• Organize training and seminar sessions to enhance MICE stakeholders’ knowledge
and capability related to MICE industry
Thai Exhibition Association (TEA)
The Thai Exhibition Association (TEA) is composed of every organization and business within the exhibition industry in Thailand. Its members consist of organizers, exhibition centers,
exhibition stand contractors, freight forwarders and other related suppliers in Thailand.
TEA supports and develops the capability of their members as well as Thailand’s exhibition
industry through:
• acting as a center of knowledge and information about industry trends
• collaborating and expanding networks with international associations to increase
the potential Thailand will be chosen as a destination for exhibitions
• arranging training sessions for their members to enhance the development and
competitiveness of Thailand’s exhibition industry in the global arena
Thai Hotel Association (THA)
Thai Hotel Association was established by the Board of Directors and their hotel owners. Its
objectives are:
• To foster the spirit of unity among members and support each other in the industry
• To support tourism in the country with cooperation from tourism organizations in Thailand and overseas
• To impart knowledge and coordinate among members without involving politics
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Revenue Department
The Revenue Department collects all taxes efficiently at an appropriate level. It assists in
the development of the economy through tax initiatives that enable Thailand to remain
competitive among economic counterparts. In terms of its role in MICE events, it plays a
secondary role in terms of tax on exhibition items.
Tourism Authority of Thailand (TAT)
The Tourism Authority of Thailand (TAT) is a state agency operating under the Ministry of
Tourism and Sport. Its main roles are to support, promote and develop tourist attractions in
Thailand and create awareness among international tourists. TAT can achieve this through
marketing and promotional campaigns of tourist attractions in Thailand using various
mediums including TAT’s regional and international divisions. Through marketing and promotional campaigns, awareness created among tourists can be leveraged by the MICE
industry especially in attracting corporate meetings and incentive travel.
The Customs Department
The Customs Department is a governmental organization that operates under the Ministry
of Finance. It is an import & export tax collector and a promoter of international trade
and exports of Thailand. The Customs Department and MICE industry link mostly through
the exhibition industry when exhibits are transported into Thailand or when Thai exhibits
are transported out of the country.
As customs is the gate letting these exhibits flow in and out of the country, their willingness
and ability to facilitate this process with simplicity and transparency, can increase convenience for exhibitors & organizers and help to promote the exhibition industry as a whole.
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Ministry of Foreign Affairs
Ministry of Foreign Affairs directly governs the macro policies of international relationships
and promotes relationships and cooperation with other countries. There are many sub-organizations operating under the ministry such as the Department of Consular Affairs and
Immigration. Their roles encompass issuing visas as well as managing and governing the
process before granting entrance into Thailand. The connection to the MICE industry lies
in the leniency and simplicity of this process since it is one factor that affects the decision
of attendees and organizers to choose a MICE destination.
Port Authority of Thailand
The Port Authority of Thailand is a state agency operating under the Ministry of Transport
to administrate all ports in Thailand. It is responsible for improving logistic routes and issuing and enforcing rules & regulations related to items that enter the country.
The Port Authority of Thailand has a direct influence on the industry specifically the exhibition sector since many exhibits are being transported by sea. Therefore, these exhibits will
be screened by the Port Authority of Thailand prior to entering the country.
Thai Airways International
Thai Airways International is the national airline of Thailand. It promotes the MICE industry
through collaboration with other organizations bidding for MICE events and providing
special prices and packages for MICE travelers.
Source : Thailand Convention and Exhibition Bureau (TCEB)
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Introduction to MICE industry
Airports of Thailand Public Company
Airports of Thailand Public Company manages many important airports in Thailand. Its
role and responsibilities include improving and managing air logistics routes, developing and improving services and other operations within airports. Since these services can
affect a first impression about Thailand. It also handles and manages exhibits and equipment used for MICE events when transported by plane.
Source : Thailand Convention and Exhibition Bureau (TCEB)
Immigration Bureau
Operating under the Royal Thai Police, Immigration bureau located at seaports,
airports and at every border crossing. Its roles and responsibilities include screening and
permitting entrance into Thailand based on visa acquired ahead of time or on arrival.
Fast, accurate and professional services at immigration desks as well as desirable policies
for MICE attendees can increase their satisfaction as well as promote Thailand as a
preferable MICE destination.
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Department of International Trade Promotion (DITP)
Department of International Trade Promotion (DITP) is an organization operating under
the Ministry of Commerce aims to promote exports, to expand new markets for Thai
manufacturing goods & services and to add value to exported Thai goods & services. It
has a close relationship with the MICE industry especially an exhibition sector.
DITP has often hosted exhibitions for various industries aiming to promote and create
opportunities for Thai manufacturers and service providers. DITP also organizes training
programs for business owners to improve their competitiveness and capabilities.
Ministry of Tourism and Sports
Ministry of Tourism and Sport directly promotes and supports tourism, sport and recreation
sectors in Thailand. Many sub-divisions under the ministry also work on many aspects of
tourism and the sporting industry. The ministry mainly focuses its efforts on setting macro
policy that has an effect on the travel & tourism industry as a whole. The policy also
guides the way the MICE industry is directed and promoted keeping in mind the close link
usually found between the MICE industry and travel & tourism industry.
Thailand Board of Investment (BOI)
The Thailand Board of Investment (BOI) is a governmental agency operating under the
Ministry of Industry of Thailand. Its main role is to promote more investment in Thailand usually through tax incentives to attract international companies and investors to do business
in Thailand.
Corporate meetings and other MICE events can serve as a means to demonstrate to
international corporations the business platform in Thailand as well as incentives that can
be attractive for long-term investment plans. With attractive incentives and more investments, BOI can promote Thailand as a center or market for particular products/services.
This can ultimately create opportunities and the need for exhibitions to expand markets
for international investors and their products in Thailand as well.
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Bangkok Metropolitan Administration
Bangkok Metropolitan Administration acts as a local government of Bangkok via formulating and implementing policies, rules and regulations for every aspect, which include
population & demographics, economy, education, health & sanitization and transportations.
To promote MICE industry and make Thailand a preferred destination, Bangkok Metropolitan Administration roles are, for examples, setting up an urban planning policy, investing
in public transport, roads and highways. Proper investments and policies can enhance
the competitiveness of Bangkok to support MICE events especially large ones such as
conventions and exhibitions.
Municipal Offices
Municipal offices located in every province in Thailand are authorized under the law to
exercise control within their geographic boundaries. Municipal offices and travel & tourism representatives in local areas can collaborate to facilitate MICE events and attendees
in order to provide the maximum convenience as well as exceptional experiences. This
can be done through setting rules and regulations, facilitating logistics arrangements,
safety and security measures or maintaining city’s attractions.
Regardless of their roles and responsibilities, service providers and stakeholders in the
MICE industry all contribute in some way to MICE events and the MICE industry as a whole.
The degree of involvement may vary but all are important in ensuring the MICE industry
can provide what it has promised to organizers and attendees.
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Chapter 12
Stanadrds
in MICE Industry
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Introduction to MICE industry
The MICE industry while it may appear fragmented can be seen as a combined whole when
guidelines and standards are put into place. As with many other industries, standards and
guidelines help those involved, either on the supply or demand side, to know what best practices are and how best to follow them.
Many organizations and associations have formed alliances to develop such standards and
guidelines relying on their expertise and desire to see the MICE industry move in the same direction in different countries developing at varying speeds.
Therefore, standards in place or being put into place are there to provide MICE industry professionals with means to control and ensure quality performance by and for industry stakeholders.
Stakeholders who have chosen to follow these standards and to become accredited have
increased significantly, as they see numerous benefits in doing so. Being accredited, especially
to be among the first, can increase competitive edge in a sector. In addition, some standards,
especially ones that guide stakeholder operations can potentially enhance credibility and be
used to build brand image.
Increasingly, many international organizations and associations are developing standards and
guidelines for the MICE industry including the International Organization for Standardization
(ISO), several national-level standards and accreditation organizations (British Standards and
the Thai Industrial Standards Institutes), international associations and organizations (Convention Industry Council, Green Meeting Industry Council and Global Reporting Initiatives).
This chapter will delve into each standard prevailing in the industry and conclude with the sustainability development concept that has shifted the industry so dramatically over the past few
years.
International Organization for Standardization (ISO)
ISO 25639: Exhibitions, Shows, Fairs and Conventions
Launched in 2008, ISO 26539 is the first International Standard for exhibitions, fairs and conventions and is expected to bring greater transparency and consistency to the exhibition industry.
ISO 25639 consists of two parts. The first part, ISO 25639-1, addresses terminology and definitions
frequently used in the industry while the second part, ISO 25639-2, provides standard measurement for statistical purposes related to exhibitions.
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ISO 25639-1 Part 1: Vocabulary
The first part contains a list of terms along with their definitions often used in exhibitions to be
used as universal definitions that will allow for objective comparisons as well as a clear visualization when used. The glossary also aims to promote professionalism and raise standards in the
exhibition industry and to serve as a guideline for stakeholders when publishing statistical data
related to the exhibition industry.
Terms related to the exhibition industry are specified and grouped into four categories:
• Individual and entity - lists and classifies people involved in the exhibition industry
including: exhibitor, co-exhibitor, representative company, visitor, trade visitor
• Event type - defines different exhibitions and related meetings including: trade or public
exhibitions, conferences, conventions, seminars and symposiums
• Physical item - describes various exhibition components and facilities including: booths,
raw space, contra booths and pavilions
• Miscellaneous terms – including build up, tear down and duration
ISO 25639-2 Part 2: Measurement Procedures for Statistical Purposes
Part 2 provides standard measurement procedures for terms commonly used in the industry
and defined in Part 1 and is intended to ensure and promote consistency in statistical interpretation.
According to Stephen Tan, ISO project committee leader, terminology and measurement standards defined by ISO 25639 will promote an international consensus as well as create a common reference. It will also encourage transparency and professionalism in the growing exhibition industry in the global arena.
With ISO 25639, stakeholders within the industry (exhibition organizers, contractors, venue operators, freight forwarders and auditing firms) will be able to communicate employing the same
definitions and statistical referencing.
This standard has been adopted by the Singapore Association of Convention and Exhibition Organizers and Suppliers (SACEOS) to develop the world’s first national standard for the exhibition
industry and is expected to raise the country’s profile as a leading MICE destination.
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Introduction to MICE industry
ISO 22000: Food Safety Management System
ISO 22000 is a globally accepted standard for food safety management (FSMS) launched by
International Organization of Standardization. It is designed with a tailor-made approach that
provides flexibility for all organizations in the food chain, ranging from producer, processor,
manufacture and service provider, to other related services including storage, packaging,
logistics and transportation allowing them to operate in compliance with shared set standards.
To ensure food safety along the entire food chain, ISO 22000 has combined four key elements:
HACCP principles, prerequisite programs, interactive communication and systems management.
The Hazard Analysis & Critical Control Points (HACCP) Principles
The HACCP principles1 along with its application steps identify and assess all hazards that might
be expected to occur in the food chain. The principles require an organization to conduct
hazard analysis (an analysis of food-safety hazard identification and safety level assessment),
identify hazard control measures and establish a plan that describes its food-safety hazard
management and control methods.
Prerequisite Programs
ISO 22000 also requires an organization to establish prerequisite programs (PRPs), the basic
conditions and activities necessary to maintain a hygienic environment. PRPs can vary for each
organization based on its position in the food chain, circumstances and capabilities. PRPs are
implemented in accordance with a HACCP plan to control hygiene in a processing environment and to reduce the possibility products will be contaminated.
Interactive Communication
Clear communication along the food chain, both upstream and downstream and within the
organization is required by ISO 22000 to ensure all relevant food safety hazards are identified
and adequately controlled at each step along the food chain. Communication of hazard
identification and control measures along with food processes is applied to customers and suppliers. This is essential since it allow a company to meet customer and supplier requirements. To
develop communication practices according to ISO 22000 requirements, an organization has
to establish, implement and maintain effective communication arrangements both externally
and internally.
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HACCP is a management system in which food safety is addressed through
the analysis and control of biological, chemical and physical hazards from raw
material production, procurement and handling, to manufacturing, distribution
and consumption of the finished product developed by the Codex Alimentarius
Commission. (US Food and Drug Administration, 2011)
System Management
ISO 22000 require an organization to design, establish, operate and update food-safety management systems (FSFM) within the framework of a structured management system. ISO 91000,
the international standard related to quality management systems and HACCP are integrated
in ISO 22000 to allow compatibility with different standards used by organizations outside the
food chain.
A food-safety management system (FSFM) includes four components:
• Management responsibilities
• Resource management
• Safe product planning and realization
• Validation, verification and improvement food safety management
System management in ISO 22000 is designed with a continuous improvement framework to
allow a company to perform revisions and improvements in system management plans and
operations.
ISO 22000 can generate benefit to organizations who adopt this standard by optimizing resource, by creating better communication throughout the supply chain and by providing
effective food safety control. However, apart from these benefits, this standard also serves as a
global international standard for food safety that can apply to all organizations in a global food
chain. With this feature, ISO 22000 not only benefits the food industry but also other industries
where the safety of food provided is a concern.
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ISO 22320: Requirements for Command and Control
ISO 22320 is an international standard launched by the International Organization of Standardization aimed to prevent and minimize the impact of disasters, terrorist attacks and other major
incidents by providing global best practice for preparing and implementing effective emergency management. This standard can apply to all types of organizations responsible for security and emergency management functions. Its emergency management coverage includes
command and control systems in an organization, information management and cooperation
& coordination with other organization & relevant parties.
Command and Control System
The objective of a command and control system is to enable the organization to operate efficiently during an incident. To meet this goal, ISO 22320 requires an organization to establish a
command and control structure, identify roles and responsibilities for handling incidents, categorize incident severity levels, establish a command and control process, establish command
& control resource and manage the human factor.
Information Management
The management of information that can be utilized by organization executives and staff
during an incident is required to manage awareness building, resource organizing and activity control. Information management processes consist of sub-processes to ensure quality and
efficiency and include establishing information management processes, collecting information, processing & exploiting collected information, disseminating & integrating information and
evaluating results.
Cooperation and Coordination
An organization is required to assess the need for coordination with other organizations and
other parties to establish essential and necessary cooperation between relevant organizations
or parties. The cooperation includes information gathering & sharing, planning & decision-making process and emergency management implementation.
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ISO 50001: Energy Management Systems
In June 2001, the International Organization for Standardization (ISO) released ISO 50001:2011,
the international standard for energy management, which provides the most robust framework
for optimizing energy efficiency in public and private sector organizations. The objective is to
assist organizations to establish systems and processes for improving their energy performance,
which will lead to reduction in energy cost, greenhouse gas emissions and other environmental
impact. This international standard is designed for all types and size of organizations with a customized approach and continual improvement framework or the Plan-Do-Check-Act System.
To certify ISO 50001, an organization has to meet requirements for developing an energy
management system (EnMS). EnMS implementation specified by ISO contains five parts: energy
policy development, planning, implementation and operation, performance checking and
energy-management system review.
Figure 12-1: ISO 50001 Plan-Do-Check-Act Framework
Continual
Improvement
Management
review
Energy pollcy
Energy planning
Implementation
and operation
Checking
Internal audit
of the EnMS
Monitoring
measurement and
analysis
Nonconformities,
correction, corrective
and preventive action
Source: International Organization of Standardization (ISO), 2011
The energy policy an organization establishes has to state its commitment to achieve improved
energy performance and has to define scope and boundaries of the planned energy management system appropriate to its energy use. It should include a commitment to continual improvement in energy performance and a commitment to ensure the availability of information
& all necessary resources to achieve objectives & targets.
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Introduction to MICE industry
Planning
ISO 50001 requires an organization to establish energy planning that address an energy profile, energy baseline, energy performance indicators, legal & other requirements, objectives,
targets and action plans. An energy profile is developed to record energy performance, which
includes its source of energy, current energy use and future estimation, areas of significant energy use and opportunities for improving energy performance.
The organization also has to establish an energy baseline, based on energy profile information,
to provide a basis for comparison in energy performance. To determine energy performance
and to evaluate progress towards objectives and targets, energy performance indicators
(EnPIs) are defined. In addition, the organization has to specify legal and other requirements to
which it subscribes and that are associated with its energy uses. Energy planning also includes
implementation and maintenance of energy objectives and targets.
Implementation and Operation
Organization responsibilities in this process are to ensure conformity in energy policy, procedures and energy management system (EnMS) requirements and to provide needed training
associated with the control of significant energy uses and the operation of its energy management system. Implementation and operation processes include EnMS documentation, operational control associated with energy use, communication within the organization, and the
design and modification of energy consuming facilities, equipment, systems and processes.
Checking Performance
Monitoring includes the evaluation of its compliance with legal and other requirements to
which it subscribes and internal audits to ensure that EnMS is efficiently performed.
Review of the Energy Management System
Top management, defined in ISO 50001 as a person or group of people who direct or control
an organization at the highest level, has to review its energy management system. The process
includes a review of its energy policy, energy performance, legal compliance, target achievement, audit results and recommendations for improvement to ensure consistent suitability and
effectiveness.
ISO 50001 has been adopted by organizations and industries in many countries including
Japan, Germany, Taiwan, China, France and India, which have shown significant reductions
in power consumption and carbon emissions. In Thailand, the Thailand Convention and Exhibition Bureau (TCEB), encourages MICE operators to seek ISO 50001 certification in accordance
with their environmental responsibility campaign. As the trend in the MICE industry increasingly
moves toward green or environmental responsibility, ISO 50001 will play a vital role in adding
value to MICE events.
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ISO 14000: Environment Management System
ISO 14000 is in alignment with sustainability and green concepts. It goes hand in hand with BS
8901 (see next section), which specifically takes a sustainable management approach towards
event management organizations.
ISO 14000 is about environmental management systems for business. The first step requires top
management to set proper policy for environmental conservation within the firm and has to
take into considerations aspects such as the nature of the business, type of environmental damage resulting from its products or services along with legal and other codes.
The planning phase requires a business to identify environmental issues caused by the company, legal issues it must comply with along with its goals and objectives. This information as well
as policy set earlier is used to form an environmental management plan that clearly spells out
all tasks and projects, responsible parties and time needed to complete tasks.
Then, the company is required to put the plan into action. The implementation and operation
phase includes ensuring that responsible parties within their roles are keeping environmental
policy in check, training employees as management sees fit, communicating new policy and its
requirements, documenting all information and planning for emergencies & risks.
After putting a plan in place, the next step is monitoring and measuring. Management needs
to identify all non-conformances and instigate necessary corrective action. It also needs to audit the environmental management system seeing whether it aligns with ISO 14000 standards.
Then, these measurement and evaluation results will be passed to management to consider
revising policy, goals, objectives and plans accordingly.
ISO 26000: Social Responsibility
This particular ISO has become increasingly vital for sustainable development of organizations.
Similar to ISO 14000, ISO 26000 can be applied to all types of business. However, ISO 26000 is not
a management system standard intended as a base to certify, regulate or contractually use,
but is just a guideline concerning social responsibility.
ISO 26000 documentation provides guidance on:
•Concepts, terms and definitions related to social responsibility
•Background, trends and characteristics of social responsibility
•Principles and practices relating to social responsibility
•Core subjects and issues in social responsibility
•Integrating, implementing and promoting socially responsible behavior through
out the organization and, through its policies and practices
•Identifying and engaging with stakeholders
•Communicating commitments, performance and information related to social
responsibility
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Introduction to MICE industry
This standard provides a pathway for organizations towards sustainable development. It encourages them to go beyond legal compliance given that complying with laws is the first step
towards social responsibility. Furthermore, it is to shape a common understanding of social
responsibility while complimenting and improving what may have already been implemented.
The standard also addresses and guides the way organizations and stakeholders recognize and
influence social responsibility issues through seven core areas - governance, human rights, labor
practices, the environment, fair operating practices, consumer issues, community involvement
and development.
National-level Standards and Guidelines
BS 8901 (ISO 20121)
BS 8901 is a primary draft approved by British Standards before becoming an official international standard authorized by International Organization of Standardization (ISO) scheduled for
early 2012. BS 8901, however, has been widely used internationally when implementing sustainability events management is a concern.
BS 8901 is the first standard intended to guide management in implementing sustainable
development in event organization. According to ISO, a management system is the framework,
policies, procedures and processes an organizations use to ensure the achievement of tasks
required to fulfill its objectives. It is a base for sustainable development defined by ISO as “a way
of working which will help you consider how to meet the need of the present without compromising the ability of future generations to meet their needs in every business distinct point.”
BS 8901 covers three parts: planning, implementing and monitoring. Planning involves developing policy for sustainability, identify and engage with stakeholders and identify key sustainability
issues. Implementation has to do with the development and adoption of key management
systems, be they developing training courses, allocating resources, communicating with
stakeholders, managing supply chain, maintaining and controlling proper documentations.
Lastly, monitoring involves implementation of control protocols for performance measurement
against pre-determined targets, correcting & tackling nonconformance, review and feedback
preparation.
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TISI 22300 MICE Security Management Standard (MSMS)
Regarding security standards specifically developed for the MICE industry,
MICE Security Management Standard (MSMS) or
TISI 22300, was developed
by the Thailand Convention and Exhibition Bureau
(TCEB) and Thailand Industrial Standards Institute
(TISI) to guarantee international-level security within
the industry.
Source : Thailand Convention and Exhibition Bureau (TCEB)
Under MSMS, organizations
within the MICE industry
such as venue providers, exhibitors and other service providers wishing to be certified have to
implement five key elements:
• Establish an organization security policy that covers threats & risk for its security
operation, intentions to prevent & control unsafe incidents and determine to enhance
security & risk management within the organization
• Develop a plan for security management, prevent & control risk, as well as respond to
emergency situations
• Implement and operate resources, roles and responsibilities for training, communication
documentation control, operational control and preparedness & response
• Revise and improve operations through system assessments and internal audits
• Evaluate policy, planning, implementation and efficiency of the overall process
Certification with the MICE Security Management Standard is an opportunity to lift standards
and build confidence in security within the industry.
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Green Meetings Guideline
The Green Meetings Guideline, developed by Thailand Convention & Exhibition Bureau (TCEB)
and Thailand Environmental Institute (TEI), provides a guideline for planning and organizing
meetings and events in such a way as to eliminate, reduce or recycle waste along with other
environmental concern. This guideline aims to enhance the environmental consciousness of
event planners as well as demonstrate the advantages of conducting environmentally aware
events. This guideline covers elements related to stakeholders in the MICE industry include:
• Convention/ Exhibition Venues
The guideline gives recommendations on three issues: valuable resource usage, waste
& pollution reduction and chemical reduction for convention & exhibition venues. For
example, convention and exhibition venues are encouraged to use energy-efficient
electronic device.
• Accommodation
Guidelines include valuable resource usage, waste & pollution reduction and chemical
reduction such as the use of environmental friendly cleaning products.
• Transportation for Delegates, Exhibition Visitors, Tourists and Equipments
Guidelines in this topic are mainly focused on energy consumption and pollution reduction by encouraging visitors to use public transport, for instance.
• Food and Beverage
Guideline to reduce waste and pollution as well as chemical reduction in food and
beverages served and consumed at meetings and events.
• Convention and Exhibition Production
Several guidelines are recommended for convention and exhibition production regarding waste and pollution reduction, chemical reduction and valuable resource usage.
• Communication and Public Relations
Promoting events through electronic media channels is encouraged to reduce waste
and pollution along with designing an environmentally friendly medium.
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• Tokens and Souvenirs
Environment preservation in designing and manufacturing tokens and souvenirs used in
MICE events are recommended through eco-design, green procurement and avoiding
ingredients from plants or animal facing extinction.
• General Office Procedure
The guideline is focused on increasing the potential within the employee by defining
environmental promotion policies, changing employee behavior, promoting green procurement and making agreements on environmental issue.
Source : Thailand Convention and Exhibition Bureau (TCEB)
Conformity to green meeting guidelines will benefit MICE stakeholders by creating business opportunities, attracting MICE visitors, saving long-term investments, presenting positive opportunities for marketing, improving public relations and demonstrating a commitment to corporate
responsibility.
Quality Tourism Services (QTS)
The QTS scheme is accredited to product and service providers ranging from shops, restaurants,
visitor accommodation to hair salons that meet high standards in product quality and services.
Certified product and service providers have to pass strict annual assessments that show the
capability to produce high standard products and services including: providing clearly displayed prices, displaying clear information and ensuring attentive customer service. Providing
and consistently conducting QTS has helped reinforce Hong Kong’s image as a destination offering quality tourism services and products.
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Introduction to MICE industry
The Singapore Service STAR (STB)
Singapore Service STAR was developed to recognize and promote businesses that deliver good
services by setting standards in the tourism industry. It also serves as a showcase for the best of
Singapore in service excellence and helps enhance service excellence for businesses in tourism
through a consultancy service. Singapore Service STAR accredited scheme covers business in
retail, food & beverage and nightlife.
The service standards in tourism industry can benefit service providers within the tourism industry as well as in the MICE industry since these standards can ensure high quality and professional services, a main concern in choosing MICE destinations.
Standards and Guidelines
APEX/ ASTM Environmentally Sustainable Meeting Standard
Convention Industry Council (CIC) initiated an Accepted Practices Exchange Panel in partnership with the America Society for Testing and Material (ASTM), Environmental Protection Agency
(EPA) and Green Meeting Industry Council (GMIC) to develop green meeting practices. It offers
a checklist for both planners and suppliers to follow a consistent and uniform measurement for
environmental performance. In this case, the meeting industry covers all meetings, incentive
travel, conventions and exhibitions.
APEX/ASTM standards provide minimum best practices that, as mentioned, serve as a checklist
for those who voluntarily choose to follow. This standard requires cooperative effort from both
planners and suppliers given that only collective effort can lead to green meetings. To receive
this accreditation, scores are combined from both planner and supplier to arrive at a sector
score. Standards evaluate green performances from nine distinct areas: accommodation,
audio visuals, communication, exhibits, food & beverage, on-site office, destination, meeting
venue and transportation. Within each sector, different meeting management aspects are
evaluated and include staff management & policy, communication, waste, energy, air quality,
water usage, procurement and community partners.
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GRI Sustainability Reporting Guidelines
This guideline was developed by Global Reporting Initiative (GRI) a not-for-profit organization,
to promote economic sustainability and to be an internationally accepted standard for organizations of all size, type, sector and region. It is by far the most widely used sustainability-reporting framework.
According to GRI, a sustainability-reporting framework is “a practice of measuring, disclosing
and being accountable to internal and external stakeholders for an organization’s performance towards goals of sustainable development.”
This GRI guideline can generally be divided into two modules, principles & guidance or standard disclosures. Guidance has to do with actions that can be taken or options to consider
when making reporting decisions. Principles, on the other hand, portray desired report outcomes a reporting organization should achieve throughout the process. Both modules are
designed to help reporting organizations achieve transparency in sustainability reporting.
Figure 12-2: GRI Sustainable Reporting Guideline Framework
Source : G3.1 Sustainability Reporting Guideline, Global Reporting Initiative (GRI)
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Introduction to MICE industry
Prior to disclosing any data, three reporting aspects should be attended to and involve outlining content, defining data quality and setting reporting boundaries. First, outlining report content ensures balanced and reasonable disclosure. Considering its purpose, experience, reasonable expectations and stakeholder interest, content should have these qualities:
• Content: important and able to influence stakeholder decisions
• Inclusiveness: content responds to stakeholder expectations
• Sustainability: present performance within a wider sustainability context
• Completeness: reflect economic, social and environmental significance
The next step required by the guideline is to define the quality of the content chosen. GRI
reporting framework provides guidance to ensure the quality of information and the way it is
presented. Decisions related to processing and choosing data to be disclosed should align with
these principles:
• Balance: information should reflect both positive and negative performance impact
• Comparability: information should be selected, compiled and consistent. It should be
able to indicate changes in performance overtime and comparisons with peer organizations
• Accuracy: information must be sufficiently accurate and detailed for stakeholders to
assess performance
• Timeliness: reporting must occur in a timely manner with scheduled availability
• Clarity: information should be made available in an understandable and accessible
manner
• Reliability: information should be gathered, compiled, analyzed and disclosed so that
when subjected to examination the information quality remains clear
After defining content and the quality of information that must be included in a report, the next
step requires setting boundaries as to the scope or the extent of how much information should
be disclosed. Performances to be included in the report should be from components both upstream and downstream upon which the reporting organization exercises control or significant
influence.
Shaping an accurate and quality framework can influence the methodology in collecting and
analyzing information. The second module of the framework is standards of disclosure that
specify the base content that should appear in final sustainability reports. Final reports can
be seen as having two main parts: context and results. The first two components in disclosing
information, strategy & profile and management approach are part of the context within final
sustainability reports.
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1. Strategy and profile: overall context for understanding performance such as strategy,
profile, governance and commitment
2. Management approach: how the organization handles each topic and should include
policy, commitment level, responsible party for particular matter and milestones
3. Performance indicators: indicators that provide comparable information related to the
economic, environmental and social performance of the organization (labor practices, human rights and product responsibility)
This reporting guideline affects organizations that choose to implement it as it shapes the way
they measure performance and report after an event. In time, planners are expected to improve in operating events by learning by tracking previous performance. Transparency will be
promoted among planners, as end users will be able to track and compare each organizer’s
performance based on standardized reports.
Destination Marketing Accreditation Program (DMAP)
Destination Marketing Accreditation Program (DMAP) was developed to evaluate the performance of Destination Marketing Organizations (DMOs) or Convention and Visitor Bureaus
(CVBs). This standard was launched by the Destination Marketing Association International
(DMAI), an association established to promote and develop professionalism and effectiveness
of CVBs worldwide. The purpose of this standard is to create global standard for operational
excellence and consistency. To receive DMAP accreditation, a CVB has to comply with 54 mandatory standards and 33 voluntary standards in 7 areas: governance, finance, human resource,
technology, marketing, visitor services and destination development.
Governance and Finance
Certified CVBs have to meet DMAP requirements which include: establish a functioning governing body as well as articles of incorporation, bylaws and operating policies, publish vision and
mission statements, establish a strategic plan with long term strategies, establish a policy for
controlling its financial operation along with maintaining insurance coverage to cover potential
estimated liabilities.
Human Resources and Technology
DMAP requirements regarding human resources and technology includes maintaining a
Human Resources Manual that complies with all government labor and employment laws,
conducting periodic performance appraisals for all staff, providing appropriate channels for
employees to report and document prohibited activities. In the area of communications, it
includes providing and following e-mail and internet usage policy as well as an information
technology/network security policy and externally conducting and storing data backups.
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Marketing and Visitor Services
To meet marketing and visitor service criteria, CVBs have to maintains a marketing plan and a
comprehensive website that allows visitors to find necessary information, generate reports on
advertising, offer meetings and convention services for planners and provide staff training to
meet the needs of individual and group markets.
Destination Development
DMAP also identifies CVBs roles in destination development by participating in periodic destination-development assessment ranging from infrastructure needs, demonstrating a need for
ongoing product enhancement for destinations as well as a commitment to conduct research
in visitor and inquiry tracking.
Passing all these criteria along with an accreditation from DMAP can lead to an improvement
in CVB service performance and professionalism.
Certified Meeting Professionals (CMP)
Certified Meeting Professional (CMP) is a program to certify professionals in the MICE meetings, industry and is offered by the Convention Industry Council (CIC). It is intended to enhance
knowledge as well as professionalism in performance. It also promotes professional status and
credibility among industry practitioners and ultimately can create conformity in standards of
practice.
CMP aims to enhance the level of professionalism among industry practitioners by:
• Identifying a comprehensive body of knowledge
• Determining knowledge and performance required
• Stimulating advancement in performance
• Increasing value through guidance and training
• Enhancing standards, practices and ethics
• Maximizing value received from products and services
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Exhibition Management Degree (EMD)
Exhibition Management Degree or EMD was developed by the Global Association of the
Exhibition Industry commonly known as UFI. This degree was developed in collaboration with
the Cooperative State University in Germany and aims to train exhibition professionals to meet
future demands.
The EMD program is divided into four modules - basics in exhibition management 1 & 2 and
advanced studies in exhibition management 1 & 2 and consist of classes such as marketing
management, project management, congress and special events management, risk management and service partners in the MICE industry. After each module, participants must pass a
test to be certified.
The EMD program has proven to be very beneficial to those taking it with the upside being an
enhanced competitive advantage and upgraded management qualifications, which can
lead to higher customer satisfaction, improved planning and production of tradeshows, conventions and events, as well as increased long-term profit potential.
Sustainability Concept and its Significance
The MICE industry has proven to be very active in reacting to environmental issues. Corporate,
associates and other players in the industry are beginning to realize the importance of sustainable development. Furthermore, many associations and governmental bodies are also starting
to set sustainability standards to define how they can effectively align their business with this
concept.
Concept
According to the International Institute of Sustainable Development (IISD), the most common
reference to a definition of sustainable development is from Our Common Future, also known as
the Brundtland Report. It defined sustainable development as follows:
Sustainable development is development that meets the needs of the present
without compromising the ability of future generations to meet their own needs.
It contains within it two key concepts:
•
The concept of needs, in particular the essential needs of the world’s
poor, to which overriding priority should be given; and
•
The idea of limitations imposed by the state of technology and social
organization on the environment’s ability to meet present and future
needs
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Introduction to MICE industry
Furthermore, several additional points must be clearly identified to gain a full definition
of sustainable development according to ISO.
1. The process is providing an enduring, balanced approach to economic
activity, environmental responsibility and social progress.
2. Sustainable development is about integrating the goals of a high quality
of life, health and prosperity with social justice and maintaining the earth’s
capacity to support life in all its diversity. These social, economic and environmental goals are interdependent and mutually reinforcing. Sustainable
development can be treated as a way of expressing the broader
expectations of society as a whole.
Generally, the concept of sustainability development is composed of three pillars - people,
planet and profit or what is commonly called the ‘3 P’s’.
• People: This has to do with the treatment of human capital in enterprises or companies.
Apart from fair wages and complying with labor laws, companies needs to take into account employee welfare and health as well as creating pleasant working environments.
• Planet: This refers to usage of natural resource capital. It is important to consider the impact of spending natural resources together with a time-frame be it short-, mid- or longterm. Companies should be able to find ways to mitigate or compensate for potential
damage to the environmental and depletion of resources being used today.
• Profit: The easiest to gauge, this is monetary profit from operations.
The 3P concept has been further expanded to make it more applicable in shaping management schemes that are measurable while keeping the same underlying definitions and intent
for sustainable development. Called the ‘triple bottom line,’ consisting of economic, social and
environmental factors, it was first introduced by John Elkington in the mid 1990s. His primary idea
was to find a way to measure sustainability via creating a new framework to measure each
sustainable dimension.
In management of any business, incorporating sustainability requires a balance between three
objectives:
• Economic activities: value creation, profitability, efficiency, quality of goods & services
and innovation
• Social progress: use of human resources, workplace healthiness & safety, culture enhancement, diversity management, education and training
• Environmental responsibility: eco-efficiency, waste control, water usage, energy usage
and recycling
Firms that wish to pursue sustainable management need to balance all three underlying pillars
by measuring through different indexes as seen appropriate. Measurable refers to the ability to
quantify the impact of initiatives and activities based on the three pillars of sustainable development.
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Economic activities (Profit) companies pursue can be measured through these indices:
• Personal income
• Under-employment cost
• Establishment churn
• Establishment sizes
• Job growth
• Sector employment distribution
Social progress activities (People) companies pursue can be measured through these indices:
• Unemployment rate
• Female labor force participation rate
• Median household income
• Relative poverty
• Percentage of population with a post-secondary degree or certificate
• Average commute time
Environmental responsibility activities (Planet) companies pursue can be measured through
these indices:
• Sulfur dioxide concentration
• Concentration of nitrogen oxides
• Selected priority pollutants
• Excessive nutrients
• Electricity consumption
• Fossil fuel consumption
The concept of sustainable development has spread across every industry, as well as in the
MICE industry in what many call ‘Green Meetings.’ Therefore, it is important to point out that
sustainability covers a wider array of meanings and aspects when compared to ‘green.’ Green
is an inseparable part of being sustainable as it is one piece in the jigsaw for organizers.
The Convention Industry Council has defined green meetings as “a meeting that incorporates
environmental considerations to minimize its negative impact on the environment.” In short, providing green meetings fulfills the environment responsibility pillar and serves as a starting point
to compliment other initiatives to complete the remaining pillars in sustainable development.
Statistics have shown permanent signs of industry transformation in marketing media survey in
2009, 51% of independent meeting planners were expecting to plan green meetings within the
same year, 46.8% of corporate meeting planners were expected to plan green meetings and
44.4% of associate and governmental meeting planners were expected to plan green meetings
that year.
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Introduction to MICE industry
Standards Guiding Sustainable Event Management
As we are witnessing the growth in demand for sustainability, many associations and international organizations have come up with standards and guidelines that can improve and ensure
that management moves towards sustainable development concepts. Figure 12-3 shows the
inter-relationships among three standards related to sustainable event management.
Figure 12-3: Sustainable Event Management Connections
BS 8901 / ISO 20121
Management
Sustainable
Event
Management
APEX/ASTM Environmentally
Sustainable Meeting Standard
Checklist
Report
GRI Sutainable Reporting Guideline
Source: APEX/ASTM Standards: Practical and Explicit Supplier & Planner Guidelines Presentation,
Green Meeting Industry Council (GMIC)
Three standards have been widely accepted when implementing sustainable MICE event management. First is BS 8901 or ISO 20121, which points management systems toward sustainable
development. Another is the GRI sustainable reporting guideline that serves as a general framework in reporting the performance of organizations implementing and promoting sustainability
management. Lastly, APEX/ ASTM sustainable meeting management represents a checklist for
planners and suppliers within meetings industry in organizing green meetings.
The difference between APEX/ASTM and the other two is that APEX/ASTM standards apply only
to the MICE industry (meetings, incentive travel, conventions and exhibitions) but BS 8901 and
the GRI sustainable reporting framework are applicable to all types of events and organizations. In addition, while ISO 50001 promotes sustainability, it mainly focuses on energy management. The national Green Meetings Guideline, developed by Thailand Convention & Exhibition
Bureau (TCEB) and Thailand Environmental Institute (TEI) assists MICE players in Thailand organizing MICE events with environmental friendly approaches.
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Planner Perspectives
The most important entity that must react and integrate green initiatives into operations is meeting planners. MPI Sweden Chapter offered a training course in how to incorporate sustainability into event management divided into three intervals 1) pre-event, 2) during the events and
3) post event. Although this course does not necessary mean the ideas have been adopted
across the industry, it should provide a general idea of how the industry is reacting to this trend
and how important this concept has become.
Sustainability approaches, according to MCI takes into account the 5R’s - rethink, reduce, reuse, recycle and report, which must be integrated into every facet of planning, operating and
reporting when organizing an event.
The first step in implementing sustainability management has to do with proper strategic planning, as it always the first crucial step for an event. Therefore, before planners can offer successful sustainable meetings, both a vision and mission must be identified related to organizing
green meetings.
A commitment statement, objectives and implementation plan must cascade down from the
vision and mission. Roles and responsibilities can then be set and authority delegated accordingly. KPIs and goals must be clear and quantifiable. Possible KPIs and goals for sustainable
events could include; reduced carbon footprint, water saved, recycling, waste reduction and
carbon emission offsets.
The level of engagement or commitment by professional planners should balance between
business values, budget and commitments with a primary duty to comply with green meeting
standards where planners can also enjoy short-term profit from doing so. The next step, a higher
level of commitment, is for planners to provide best practice standards in the industry. Finally,
the highest commitment level is to be among the leaders in holding sustainable meetings and
able to provide service for all types of MICE events. The ultimate goal for leaders in planning
green meetings must be the ability to fully integrate and adapt proactively to any changes in
this industry. The level of engagement must be continuously assessed and adjusted over time
and as organizer capabilities grow.
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Strategically implementing sustainability concepts into events also involves cooperation from
stakeholders. Organizers must identify issues and stakeholder concerns in shifting to sustainable meeting management. Stakeholders in this case range from clients, delegates, suppliers,
partners, sponsors, staff, trade bodies and local communities. On-going communication about
implementation, requirements and risks involved in adopting green meetings must be shared.
Supply chain management is another concern prior to adopting sustainable meetings initiatives. Engagement and continuous communication must occur with every entity along the
supply chain. In the MPI training course, supply chain management needed to tackle green
initiatives and to maintain good relationship with them requires the 4P’s:
First is to create partnerships with potential service providers who meet standards set.
Second is policy, as a planner needs to set a clear code of conduct for each supplier,
the consequences for code violations and to make certain proper statements are
agreed upon by all parties.
Third is procurement, which includes an assessment of all possible partnerships that
can be created and select those who best meet organizer requirements. The selection
process may include contracts and legal procedures to ensure full cooperation among
stakeholders. The success of this step dictates the quality of services organizers will
receive and the extent to which they can exercise control over each entity in the supply
chain.
Lastly, performance management is the final process of planning that requires planners
to come up with a set of guidelines for all parties, on-site audit procedures, evaluation
criteria and how to report results that should then be communicated clearly with all the
parties involved to avoid potential problems.
Moving into the second ‘during-event’ phase, planners need to measure and audit events
apart from managing them via tracking whether events meet standards in terms of carbon
footprint, waste reduction or recycling. Monitoring performances during events should be standardized and to track actual performance against previously set KPIs.
The last phase ‘post-events’ includes reporting the results to planners. Lessons learned or case
studies should be captured, reviewed and documented for future used and improvement.
This chapter has provided standards, accreditations and guidelines applicable to the MICE
industry to varying degree. These standards are not mandatory but adopting them can attract
a larger client base as they serve as qualifying factors for stakeholders. Finally, this chapter
introduced the concept of sustainable development, which has become a pressing trend for
organizations to adopt including those in the MICE industry.
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Chapter 13
Ethics for MICE
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A negative impact is inevitable from any industry regardless of how beneficial it may be to the
economy and society. It is the same with the MICE industry in that numerous benefits to society
and the economy arrive hand-in-hand with various concerns, perhaps even drawbacks.
Despite the possible drawbacks, many countries from Asia, North America, Europe and Africa
have intensely promoted their MICE industry with the impression they can reap the benefits
including positive-growth in terms of visitors and industry value and income from MICE travelers.
Moreover, cities and venues can also benefit from MICE events hosted making it clear as to why
countries try to attract MICE events.
However, MICE events can cause pollution, excessive energy consumption, increase trash and
intensify traffic conditions. However, these can be controlled and minimized if event organizers
and attendees follow rules and regulations as well as perform their tasks with care and in an
ethical manner.
Negative Impact
Traffic and Transportation
The number of attendees at any one MICE event range from double-digit for corporate meetings and incentive travel to hundreds of thousands for conventions and exhibitions. With these
larger numbers, without well-thought out and followed transportation management, a venue
can turn into a relentless congestion of traffic. This is particularly important to avoid as traffic
congestion is seen as root cause for many other problems that can upset local communities
and damage the environment.
Consequently, to alleviate and minimize the impact traffic might have at host destinations
event organizers must carry out proper planning to manage transportation and logistics which
can include selecting accommodation close to the meeting
venue, selecting venues connected to public transportation or
hiring vehicles or utilizing modes of
transportation that emit less greenhouse gases.
Lack of effective transportation and logistics
planning and management can cause traffic
congestion in the area (Paul Trafford. (2007).
Bangkok Traffic [Photograph]. Bangkok,
Thailand, from http://www.flickr.com/photos/
paultraf/388262148)
279
Energy Usage
Energy consumption directly correlates to event size with extremely large amounts of energy
consumed before, during and after events. This includes air-conditioning, audio & visual,
preparing and preserving food & beverages, transporting attendees & exhibits, disposing &
managing waste & garbage and cleaning venues.
Realizing the relationship between excessive energy usage
and global warming, many organizations are attempting to
reduce energy consumption by coming up with initiatives for
more efficient energy use to create what is increasingly know
as, ‘Green Meetings.’
Green meetings have become so popular and adopted
globally that they now influence decision criteria employed
by organizers and consistently demanded by attendees.
Venues or destinations not offering green meetings or lacking
certain green initiatives may eventually be dropped from a
pool of destinations. Countries that would like to promote and
to lead in the MICE industry are taking proactive action to
meet growing expectations by both organizers and attendees that green MICE events, while green, will yield the same
outcome as other events.
Water Usage and Water Pollution
For every MICE event held, huge amounts of water
are consumed. While traditionally, wastewater went
through drains and sewages and back to its initial
source, a green concern is that this wastewater should
be collected and purified to a certain level before being returned to its initial source to reduce environmental
damage to the surrounding communities.
Advanced technology and an increase in environmental conservatism have stimulated the concept
that water recycling is both easily obtainable and, as
such, necessary. Although the water recycling process
can incur considerable expense, it is often seen as a
good example of a location that is committed to being
green. An excellent example of this concept is in Singapore where every drop of wastewater goes through an
advance process of purification and recycling before it
can be reused, even for a potable water.
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Introduction to MICE industry
Recycling of water has grown in popularity
among MICE event organizers and venue
operators
Source: www.planetlaudry.com
Air Pollution
Air pollution associated with events range from dust to greenhouse gas emissions caused by
any number of needs, ranging from fuel combustion by vehicles used in transporting attendees
to an increase in electricity production. Apart from global warming, the impact on health is a
major concern.
Realizing the damage caused by pollution, private companies, NGOs and government bodies have taken important steps to take corrective actions in many countries. Some concrete
examples include the carbon reduction program at Asia-World Expo, Green Cities by Sydney
Convention and Exhibition Center and Green Meeting Guidelines published by the Thailand
Convention and Exhibition Bureau.
Source : Nina Matthews. (2011). Day 41 Bangkok has over 12 million people [Photograph]. Bangkok, Thailand,
from http://www.flickr.com/photos/21560098@N06/6310720659
281
Waste Management
Apart from excessive energy consumption and air & water pollution, the amount of waste and
garbage left behind can also upset neighboring communities through undesirable odors and
extensive, possibly even toxic, waste left behind. As such, waste from MICE events has become
a crucial issue for both organizers and venue operators.
The bigger the event, the more waste generated from dismantled booths, document printouts,
disposable glasses, plates and bottles. Therefore, the concern arises of how to manage waste
before, during and after an event to minimize its impact. Organizers and venue operators must
weigh the pros and cons of different methods to manage waste for the benefit of the local
community.
Piles of waste are left behind after every MICE event can upset local communities without proper waste management
Source : Left: J Lai. (2009). Recycle Bin [Photograph]. From http://www.flickr.com/photos/jlai321/3803794988, right: JMac Pherson.
(2011). Plastic Compressed [Photograph]. From http://www.flickr.com/photos/lipstickproject/6372240609/in/photostream
One method, by far is the most popular and cost effective, is to separate trash and waste to recycle. Waste management can be initiated at the planning phase by placing trash bins designated for different types of waste. Organizers should communicate this plan to all stakeholders
requesting full cooperation. Apart from waste separation, organizers can also reduce waste by
using recyclable materials & products along with employing technology such as e-documents
to avoid excess printing.
A positive attitude and an ethical way of working by every stakeholder in the MICE industry can
help alleviate any negative impact caused by events. Responsibility and attention to the problem and selected solutions should be prioritized as a key concern when holding events.
282
Introduction to MICE industry
Ethics
Work ethics are a set of guideline that should be followed by everyone in the organization since
they serve as predetermined boundaries to justify actions as to what is right or wrong. As MICE
events require collaboration among many stakeholders, activities performed are interrelated
and can either improve or impair the efficiency of other parties. Sharing a sense of professionalism, ethics and integrity can ensure the quality of work by each stakeholder adds to event
success and reflects well on it and those it is associated with in completing a project.
Work Ethically
The concept
of work ethics
is sensitive and
complex as interpretation and
prioritization are
at an individual’s
discretion. Work
ethics in this
context refers to
a principle that
guides the right
way to perform
a task and how
to maintain an
Source : Voka Kamer van Koophandel Limburg. (2010). Meeting Nieuwe Leden
[Photograph]. From http://www.flickr.com/photos/vokakvklim/4522913512
individual or company reputation
and that of their profession within
an industry. To complicate matters
further, the idea ‘right’ is subjective and open to each individual to interpret as they might wish.
Regardless of its openness to interpretation, work ethics are important in any career. Working unethically and without integrity is equivalent to a country without law enforcement. For
instance, this would include physicians who knowingly diagnose patient symptoms inconsistent
with the illness with a hidden agenda to sell specific medication or extend services. This is
unethical and can harm the patient and hurt the reputation of the medical profession.
283
On the other hand, if everyone in society works ethically and abides by a code of ethics, the
benefits will not only be to the performer, but also to the organization represented. The importance of working ethically is:
•It leads to a continuous willingness to perform tasks and to build a good reputation.
•It helps everyone perform tasks effectively and professionally since the results of
ethical work reflect the true state of employee effectiveness without hidden motives to
distort results.
•Following work ethic criteria creates desirable norms and a positive work culture as well
as enhancing the organization’s reputation.
MICE Industry Code of Ethics and Code of Conduct
A Code of Ethics is a set of guidelines or principles of conduct for those working in an organization. It guides conduct and decisions of members in performing their tasks with a set of ethics.
A Code of Conduct is closely related and is usually used as a compliment to a code of ethics.
Codes of ethics and codes of conduct have been adopted and published by renowned organizations in the MICE industry including the International Association of Professional Congress
Organizers (IAPCO), the Professional Convention Management Association (PCMA), and the
Global Association of the Exhibition Industry (UFI). Their general ideas as to preferable codes of
action can be summarized in seven core areas.
1. Practicing in the MICE industry: The first topic in most codes of ethics and codes
of conduct usually provide a guideline for conduct and behavior and includes how to
work and perform tasks morally, honestly, ethically with respect to laws and regulations.
2. Negotiating: Negotiation should be carried out with fairness, respect to the rights of
others and in good faith.
3. Rejecting bribery and other incentives: As taking bribes in the form of money,
gifts and services or other incentives harm organizations; organizations need to develop
a code of ethics and code of conduct to tackle this undesirable behavior.
4. Maintaining credibility and reputation: To build and maintain the reputation of
organizations in an industry by establishing guidelines preventing behaviors that can
impair the credibility and reputation of an organization and/or its industry.
5. Avoiding conflict of interests: Events that require many parties to organize may
have conflicts of interest among those involved making it a priority for personnel to
refrain from being in a position that can potentially lead to a conflict of interest. For
example, a venue operator on the bidding committee for a convention rejects other
proposals in order to choose a venue they represent have a close relationship.
6. Maintaining Fairness: Every action should be undertaken with fairness and a lack of
discrimination of any kind whether it is due to gender, race, religion or disabilities
284
Introduction to MICE industry
7. Protecting the Environment: Every facet of an event should be attentive to the level
of environmental damages that it can cause and should bring about initiatives and actions to minimize the impact
Preferred Attitudes working in MICE Industry
Apart from working ethically, those who work in the MICE industry whether DMCs, PCOs, PEOs or
venue operators, should have a positive attitude towards their careers as it is seen as helping to
create pleasure and alleviate stress. A summary of preferred attitudes for those who work in the
MICE industry are as follows:
1. Service-oriented: The MICE industry requires those within the industry to share a
service-minded attitude to provide quality services to meet client expectations. In turn,
client satisfaction leads to higher retention with the same service from the same providers. Ultimately, it can help service providers expand and retain a customer base and to
increase profitability.
2. Strive to Learn: The industry is fast growing with continuous shift in trends and is becoming more competitive. MICE events have incorporated new initiatives, progressive
management styles including increased technology, more prevalent green sustainability concepts and an expanding CSR concept. Therefore, it is best for those who work
within the industry to strive for new knowledge, to update themselves as to these continuous changes and to improve their skill sets through self-learning or training to cope
with this fast-moving industry landscape and to advance in their career.
3. Self and Social Responsibility:
A single mistake can affect many people. The best thing to do is to learn from these
mistakes and prevent them from recurring. As for those who work in the MICE industry,
responsibility over their own actions is a key factor in preventing mistakes from happening again.
4. Hard Work: Hard work is always essential with any type of work. For the
MICE industry, organizing MICE events
can be tedious, time consuming and
requires an eye for detail. Morale and
motivation is needed to keep up under
time and budget constraints along
with a positive attitude and a drive to
work hard.
This section has reviewed desirable attributes and mindsets for anyone working in this unique industry. Combining
an ethical way of work with a positive
attitude can help anyone working in
the MICE industry to have a head start in delivering quality services needed to meet
client needs.
285
Consumer Rights and Consumer Protection
Every year, millions of MICE travelers go to different countries to attend meetings, participate
in incentive trips, take part in conventions and visit exhibitions. A lack of knowledge regarding
local laws can be problematic and can lead to travelers being taken advantage of while in
country. With this in mind, many countries are enforcing consumer rights and consumer protection laws. For MICE and business travelers, consumer rights protection includes but are not
limited to
•Rights to be compensated for reserved products and services cancelled
•Rights to cancel any reservation
•Right to claim any product or service as advertised or disclosed by sellers or service
providers
•Right to be notified of contract expiration dates
•Right to safety and security measures
These examples are fundamental protections MICE travelers should receive but may vary from
one country to another. Therefore, before travelling to a foreign destination, a careful study of
protection laws will lessen complications and the risk of being deceived.
Case Studies
1. Zero-dollar Tour
Thailand is a popular destination with its ability to offer many interesting tourist attractions whether historic sites, a blend of religion with modern infrastructure and tourist
spots, beautiful and exotic beaches or other entertainment options. Tourists from China
have become a major source of inbound travelers to Thailand. Usually, tour agencies
in China, who are contacted by Chinese tourist groups, will send them to Thailand and
have a Thai guide manage the group. These groups are charged tour fares covering all
costs to handle their trip including transportation, accommodation, food & beverage
and other expenses.
As Thailand has a lower cost of living and requires a less expensive airfare and accommodation when compared to other countries like Korea or Japan, tour fares to Thailand
for these Chinese travelers are inexpensive increasing the popularity to visit Thailand.
This has created an opportunity for entrepreneurs to start up more tour agencies in
China who then compete by offering lower tour fees. In the meantime, Thai tour agencies have also reduced their service charges to these Chinese tour agencies to attract
more tour groups.
286
Introduction to MICE industry
These price reductions
went to the point where
tour agencies in Thailand
stopped collecting any
fees from tour agencies in
China. So what do these
Thai tour agencies do to
maintain their profitability?
Sometimes, these tour
guides take Chinese travelers to shopping spots that
charge extremely high
prices where tour guides
receive a commission
for every transaction a
traveler makes. The extent
Source : Shubert Ciencia. (2007). The Grand Palace
[Photograph]. Bangkok, Thailand, from http://www.flickr.com/photos/
bigberto/522839149
of this practice went so far
that it involved coercion
to buy products or to use
services in places a tour
guides took them.
A common practice for
the past ten years, it resulted in a 25 per cent drop
in Chinese travelers from
800,000 to only 600,000
people per year. Apart
from a drop in inbound
tourists, it impaired the
reputation of Thailand’s
travel and tourism industry
in the eyes of Chinese and
other nationalities.
Source : Roman Lashkin. (2008). Walking Street Pattaya [Photograph]. Chonburi,
Thailand, from http://www.flickr.com/photos/lashkin/2514369380
Questions
• What is the cause of this practice?
• How can it be stopped?
• Will ethics prevent it happening again?
• What can be done to rebuild Thailand’s imagine in China?
287
2. Management Incentives and Economic Slowdown
During the recent economic boom, Company A, one of the most famous financial
companies in the US, consistently paid generous bonuses and incentive trips to management and employees who had exceptional performances. The economy was bright
and everybody was happy.
However, in 2007, things started to go downhill. Starting with the mortgage crisis where
subprime borrowers could not repay their loans and resulting in foreclosures, stock market sentiment across the globe noticed the red light and began to cast doubt on the
state of the global economy. Spending on consumption started to decline, unemployment rose.
However, the performance of Company A remained strong despite growing concerns
in the economy. Its stock price increased as management announced that its liquidity and performance would remain strong. Management also promised bonuses and
incentive trips for their employees (even more than in 2006).
Then a twist in the company’s situation occurred in 2008. With more than half of its
investments in mortgage-backed securities (fixed-income instruments tied to mortgage
payments) Company A’s performance and liquidity started to plunge.
Stockowners, rating agencies and the public were concerned over the insecurity of
Company A. Management retaliated through publicly announcing it was still strong
despite the economic slowdown and bubble in the real-estate sector. They reassured
the public the company would proceed with cost-cutting measures such as a reduction
in incentives and rewards for employees, increase cash reserves, cut dividend payment
for stockowners and divest itself of some branches that were performing poorly.
Even after management had announced its intention to cut bonuses and other incentives, in 2008 top management paid themselves millions of dollars in bonuses. They also
arranged incentive trips for top management bringing along close friends and families
to the Caribbean. This trip included a private chartered flight, a private island for their
entertainment and the best services to be found.
Top management, who also hold the largest share in the company, perceived that it
belonged to them. The fact employees were laid off and many top performers were not
compensated and paid any incentives did not matter to top.
Questions
• If you were the company hired to organize their incentive trip, what would you do?
• Would you proceed and organize the trip for the top management knowing the
company is in the red?
288
Introduction to MICE industry
3. Catering Good Food
Catering Good Food has not been operating for very long. The owner, Ms B, graduated
from a catering institute abroad. Her services range from catering for small birthday to
huge wedding parties. Although the company is only a few years old, it has gained in
popularity due to her professional services, quality ingredients and customized cuisine.
Catering Good Food has an opportunity to be a part of a bidding committee for a
cardiology convention at which it will provide catering. The association hosting the
convention has listed requirements for food & beverage stating that ingredients must
be fresh and sourced locally. The preparation of food must be clean and offer distinct
tastes with a local touch.
Through many meetings with her client, Ms. B is able to generate menus for the five-day
convention. She also contacted primary local suppliers to ensure the quality and
sufficient amount of ingredients for the convention. Everything is fine until two days prior
to the convention. Fish, one of the main ingredients for the gala dinner, she has learned,
is contaminated.
Her supplier has confirmed the contamination thought to be from the release of toxic
wastes by a factory in the area. Fish in the area have been tested and found to contain
high toxic chemical residues causing bowel infections and traumatic diarrhea.
The supplier has casually suggested going ahead with the plan and use the fish since no
one will ever find out. Knowingly that no attendee will ever find out the contamination
source, she cannot make up her mind to go ahead with the plan. The consequence
from using this fish in case any delegate gets sick, could ruin her reputation that has
taken her several years to build. She realizes that her company may be sued or forced
to close.
Another option, changing menus, will not be feasible since the menu for the gala dinner
has already been printed.
The last option is to import the same type of fish from a neighboring country significantly
affecting the cost from what was agreed. Imported fish alone require almost the entire
amount she was paid for her services.
She now has two choices: ignore the potential consequences and continue using contaminated fish or import the same type of fish and absorb a financial loss from doing so.
Question
• What should she do?
• What should she have done?
• Who is responsible for the increase in cost?
289
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