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Understanding and leveraging MICE tourism for your hotel's success

During the pandemic, many people began to learn new skills of working from home, and to some extent the WFH phenomena has continued. It can be convenient, flexible and offers lower overheads for companies. On the other hand, not being able to meet colleagues for those ‘water cooler moments’ in the office, and being unable to interact directly with customers or the public means that remote working can get, well… all rather remote.

What is MICE

It’s long been recognised that meetings can boost the productivity of companies through engagement with their employees, and if those meetings can be in interesting or unusual locations, then they provide a greater impetus to attend. From this has grown the market for Meetings, Incentives, Conferences and Exhibitions, or MICE, and after being impacted by the pandemic, it’s now on the rebound. 

First, let’s define each part of that acronym: 

  • Meetings are the backbone of the market and are characteristically one day events with simple, functional catering, no entertainment, and accommodation only for colleagues from distant locations. Hotel space may be a single meeting room, although break-out areas for workshopping are desirable. Equipment needs are relatively uncomplicated: Projection or large monitors, perhaps a small PA system, and probably a bunch of flipcharts and fresh pens. Apart from that, coffee on arrival, refreshments at scheduled breaks, a light working lunch, and water available throughout the day - to hydrate working brains and ensure positive results!

  • Incentives almost always have a residential component and involve going to an attractive or unusual location, plus activities such as team building, or visits to interesting sites. As the name implies, this type of gathering is usually seen as a reward for great performance, or to increase the engagement and loyalty of employees. The ‘business-to-fun’ ratio can be skewed towards enjoyment of sports and outings, and major incentives might include the partners of attendees. Incentives usually involve more sophisticated staging and equipment, and there is likely to be entertainment, or a ‘gala dinner’.

  • Conferences bring elements of the previous two categories together and are usually large events, often for multi-stakeholders. Conferences (also called Conventions) are highly programmed with keynote speakers and special guests, panel discussions, and ‘side booths’ for special interest groups or new product displays. Multiple rooms of varying sizes are needed, with different stage set-ups and presentation formats. Audio visual and other equipment is sophisticated, and conference events are frequently live-streamed to remote attendees and recorded for later use and sale. Conferences often have an international element, and for major corporations and industries can be located almost anywhere in the world.

  • Exhibitions are specific to a product or special interest group and can be targeted to ‘trade’ attendees, the public, or both. While accommodation is needed by exhibitors, most attendees will be day visitors, and even catering may be outsourced to independent suppliers. The main sellable item for exhibitions is floor space, and the ancillary services that come with that. Depending on the nature of the exhibition, there are likely to be many specialist smaller clients, each with different needs in terms of services such as audio-visual equipment and product displays.

The MICE market is therefore very varied and covers anything from a dozen people using a hotel meeting room for half a day, through to massive exhibitions which take a year to organise and fill every bedroom in town. If you manage a small to medium sized hotel, or even a boutique setup, perhaps you think that MICE is not an area you can engage with. Well, think again. And of course if you’re a hotelier with a larger footprint, or your hotel is part of a chain, then you’ll be well aware of these segments.

Partnering up with the MICE organiser

In general, hotel managers have tight control over how their property is used by guests, who come and go within the parameters of arrival and departure times, pay set rates, and so on. When it comes to the MICE market however organisers set out their needs more forcibly. Whether it’s a sales meeting for a local company, or a massive trade fair where your hotel might be just a small cog, there will always be an organiser that you have to work with. For a small event that might be just one individual that a personal relationship can be quickly established with. 

The more scaled the event, the more people will be onboard to oversee timetables, meals, rooming, technology, transport, and dozens of other areas. The hotelier has to accept and flex with all of these people, and work smoothly with them. Of course your hotel will maintain its values and methods, but chances are that you and your staff will be asked to do many things a little differently. Being willing to step outside your comfort zone to meet the challenges of MICE will go a long way to ensuring successful outcomes, and repeat business

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Advantages of MICE activities for properties

Professional conference and event organisers love things to go well, and like to then repeat future activities with trusted partners. It is the job of hotel management to become that trusted partner working towards the same goal - to deliver an outstanding meeting, incentive, conference or event, and then do it again, and again. The MICE organiser is an ally, not an opponent. So, with plans agreed and the hotel team and organising team working well together, the advantages of engaging with the MICE market should be clear:

  • Revenue generation has to be a major plus, as MICE guests in the hotel typically spend more on their room, food, and other services compared to ‘regular’ travellers. They’re usually staying on the company dollar rather than at their own expense, and doing legitimate business. Conferences and event guests also often require longer stays, because attendees have to arrive early or remain for an extra day due to travel arrangements - so overall revenue per booking is likely to be improved. The MICE market worldwide has an estimated Compound Annual Growth Rate of 8.2% over the next ten years.

  • Additional revenue opportunities are many and varied once a MICE initiative is developed. There are so many points at which added-value offers and upsells can be brought into the mix, every one of which can enhance the bottom line. These include special catering, banqueting, equipment and marquee rental, as well as entertainment and special activities such as team building exercises.

  • Occupancy rates are improved by MICE guests who can fill rooms during off-peak times, so that the rate is smoothed throughout the year, with fewer slumps in demand. In addition larger events tend to result in guaranteed block bookings which create a stable revenue stream.

  • Partnering with MICE organisers can lead to increasing business opportunities as trust and experience are developed, so that companies and their affiliates are steered to your hotel as a solution to part of the ‘MICE jigsaw’ for events of all shapes and sizes.  
  • Differentiation from the competition is key to the success of any hotel, and if yours can carve a niche which demonstrates why it stands out from other competitor hotels, then you will enhance your reputation as the go-to for future MICE activities. Stand out from the crowd, and whatever you’ve done that is successful, plan and execute more of the same, and extend your offering.

Winning strategies to boost MICE activities

You know where you sit in the hospitality sector and whether you can host a meeting for tens, hundreds or thousands of people. Whatever the size of your hotel it’s possible to get a slice of the cake by carefully defining your niche, and reaching out to MICE organisers at the appropriate level.

  • Key to this is proactive marketing and networking, especially using digital channels to reach out to MICE organisers and clients. This can also involve collaboration with local businesses, tourism boards, and councils to understand what is upcoming, and how your hotel can be promoted as a destination of choice. Find out what clients want and then work hard to fulfil these needs. It’s worth it.

  • In the MICE field it’s never a case of ‘one size fits all’, so be prepared to offer tailored solutions with customisable MICE packages. Working from your own experience and knowledge, be prepared to push back if you have good reason to question a particular idea, but always be aware that there may be very good reasons why the MICE organiser wishes to do some things their way.

  • High quality service and well-trained staff are always important to a hotel’s reputation and a satisfactory guest journey, and this is very true in a MICE setting. Attendees are likely to talk to each other and share their experiences of your hotel. Positive experiences will go a long way towards the ‘internal word of mouth’ within an organisation, prompting awareness of your hotel as a preferred destination, with responsive and helpful staff.

  • The extras can make your hotel stand out in the memory of MICE attendees, whether it’s a thoughtful welcome gift, or the many additional services that you can provide, either bought in, or from your own resources. Think spa and wellness facilities, offsite trips - especially for partners who are not attendees - and entertainment packages. Don’t wait for the MICE organiser to ask what extras you can offer, but get proactive and suggest some great ideas. Not all of them will be adopted, but each extra is a chance to cement your MICE reputation, and boost the bottom line.

  • Getting the tech humming is non-negotiable these days for hotels of every size, serving every type of guest. Everyone expects smooth, fast internet, and MICE attendees are even less likely to accept faults or inconsistencies. They are there on business, and expect to be able to do business without interruption.

    If you’re supplying any technology such as audio visual equipment then this must be good-to-go and have suitably trained staff on hand to set up or operate systems. Partnering with a trusted local company is usually the least headachey way to achieve this.

    And then there’s all the contemporary facilities that guests anticipate will be found in a modern hotel, such as contactless check in and check out, keyless room access, and advanced communications between guest and hotel. An increasingly important concern is around sustainable services where MICE attendees can see that their footprint is mitigated by greener hotel facilities. These include more efficient HVAC systems, and control of these through guest’s own devices.

We help you implement hotel technology solutions

When it comes to this last strategy of getting tech humming, we’re well positioned to help, because we are SabeeApp, creators of cloud-based hotel software specifically for the hospitality industry. We have extensive experience internationally with hotels and venues of all sizes and understand the challenges facing modern hoteliers. One of these is how to best leverage the MICE market - something our software is well placed to do. Please contact us for a free no obligation demo so that we can show you some further tips and tricks about successful engagement with the Meetings, Incentives, Conferences and Events sector.

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