THE M.I.C.E.

INDUSTRY
AN INTRODUCTION
Rob Davidson
Centre for Tourism
University of Westminster

THE USES OF BUSINESS EVENTS

EDUCATE
DEBATE
NEGOTIATE
INITIATE
MOTIVATE
CELEBRATE

Rob Davidson
Centre for Tourism
University of Westminster

TYPES OF BUSINESS EVENTS

Individual business travel

Meetings
Exhibitions
Incentive travel
Corporate hospitality
but two or more of these elements can
be combined in a single event:
concentives !
Rob Davidson
Centre for Tourism
University of Westminster

TERMINOLOGY
M.I.C.E. ????
Business tourism
Business events.

Rob Davidson
Centre for Tourism
University of Westminster

Meetings and Conferences 1

Demand
Rob Davidson
Centre for Tourism
University of Westminster

DEMAND FOR CONFERENCES

The demand for meetings is very varied in

terms of:
- sizes
- length
- purpose
But the objective is usually:
To educate, to motivate, to provide
opportunities for networking.
Rob Davidson
Centre for Tourism
University of Westminster

CORPORATE DEMAND

Dominates in terms of numbers of meetings

WHY hold meetings outside company
offices ?
Internal meetings
Training sessions
Strategy meetings
External meetings
Shareholders meetings
Internal AND external meetings
Rob Davidson
Product launches
Centre for Tourism
University of Westminster

CORPORATE DEMAND

Main sectors =

Oil, gas and petrochemicals

Medical and pharmaceuticals
Computing and telecommunications
Engineering and manufacturing
Financial and professional services
Retail and wholesale distribution
Travel and transport

Rob Davidson
Centre for Tourism
University of Westminster

ASSOCIATION DEMAND
(societies, clubs, federations .)
Professional / trade
associations
Local / regional / national /
international

Rob Davidson
Centre for Tourism
University of Westminster

OTHER TYPES OF DEMAND

Government
Trade unions
Hobbies
Religious
The S.M.E.R.F. market:
Social, Military, Educational, Religious,
Fraternal

Rob Davidson
Centre for Tourism
University of Westminster

ASSOCIATION DEMAND COMPARED

WITH CORPORATE DEMAND
Generally larger
Of longer duration
Lower daily spend per delegate
More likely to encourage partners to
attend

Rob Davidson
Centre for Tourism
University of Westminster

ASSOCIATION DEMAND COMPARED

WITH CORPORATE DEMAND
More likely to change destinations
A more complex decision-making
process
More likely to use the bids system

Rob Davidson
Centre for Tourism
University of Westminster

SUMMER INSURANCE & REINSURANCE DAYS

SOPOT. 15 17 JUNE 2009

Rob Davidson
Centre for Tourism
University of Westminster

EDEN 2009 Annual Conference: INNOVATION IN

LEARNING COMMUNITIES ,10-13 June 2009,
Gdansk

Rob Davidson
Centre for Tourism
University of Westminster

4-5 June 2009 GDYNIA hosted the international

conference: Always Active promoting a healthy
lifestyle for elderly people

Rob Davidson
Centre for Tourism
University of Westminster

THE IMPACTS OF CONFERENCES

ECONOMIC IMPACTS
SOCIAL / CULTURAL IMPACTS
ENVIRONMENTAL IMPACTS
KNOWLEDGE TRANSFER
THE EXPERIENCE ECONOMY

Rob Davidson
Centre for Tourism
University of Westminster

ECONOMIC TRENDS
A buyers market: over-supply of
meetings venues and destinations
Planners negotiating harder: to get
more value for their money
Economic uncertainty means shorter
lead times (corporate market)

Rob Davidson
Centre for Tourism
University of Westminster

SOCIAL TRENDS
Conferences have changed from this

Rob Davidson
Centre for Tourism
University of Westminster

to this:

Rob Davidson
Centre for Tourism
University of Westminster

TECHNOLOGY TRENDS

Use of the Internet:

For site selection
For destination and venue promotion
For enhancing the conference experience
Wireless everywhere: free Wi-Fi
Radio Frequency Identification
Rob Davidson
Centre for Tourism
University of Westminster

Meetings and Conferences

Supply & Intermediaries

Rob Davidson
Centre for Tourism
University of Westminster

Purpose-built conference centres

Rob Davidson
Centre for Tourism
University of Westminster

Purpose-built conference centres

ADVANTAGES
Space for large
events
Technology
Expertise
Room for exhibitions

DISADVANTAGES
Growing number of
smaller events

Rob Davidson
Centre for Tourism
University of Westminster

Hotels

Rob Davidson
Centre for Tourism
University of Westminster

Hotels

ADVANTAGES
Everything under
one roof
All-inclusive quotes
Airport hotels: timesaving
American
preference

DISADVANTAGES
Mixing business and
leisure guests
Can appear too
luxurious
Unsuitable for very
large events
Lack of flexibility
Rob Davidson
Centre for Tourism
University of Westminster

Academic venues

Rob Davidson
Centre for Tourism
University of Westminster

Academic venues

ADVANTAGES
Good value-formoney
Learning ambience
Everything on site
Ancient/modern
Range of sizes of
meetings rooms

DISADVANTAGES
Lack of comfort and
facilities
Limited to vacation
periods
Large sites:
problems of
orientation
Rob Davidson
Centre for Tourism
University of Westminster

Management training centres

Rob Davidson
Centre for Tourism
University of Westminster

Management training centres

ADVANTAGES
Businesslike
ambiance
Few distractions:
more focussed

DISADVANTAGES
No grading scheme

Rob Davidson
Centre for Tourism
University of Westminster

Unusual venues

Rob Davidson
Centre for Tourism
University of Westminster

Unusual venues

ADVANTAGES
Memorable
Novelty value
Cruise ships: all-inone price

DISADVANTAGES
Restrictions due to
primary function
Unlikely to be used
several times by the
same client

Rob Davidson
Centre for Tourism
University of Westminster

INTERMEDIARIES

Rob Davidson
Centre for Tourism
University of Westminster

Intermediaries working on behalf of

buyers

Professional conference organisers

Help in defining objectives

Advice on taxation liabilities
Sponsorship
Registration processing systems
Meetings with organising committees

Rob Davidson
Centre for Tourism
University of Westminster

Intermediaries working on behalf of

buyers

Venue Finding Agencies

Help in identifying suitable venues

Shortlist
Work on commission

Rob Davidson
Centre for Tourism
University of Westminster

Intermediaries working on behalf

of buyers
Destination Management Companies
A professional services company,
possessing extensive local knowledge,
expertise and resources, specialising in
the design and implementation of
events, activities, tours, transportation
and programme logistics

Association of Destination Management Executives (ADME)

Rob Davidson
Centre for Tourism
University of Westminster

DMC services

Creative proposals for special events within the

meeting
Guest tours, pre- and post-conference tours
VIP amenities and transportation
Shuttle services
Meet and greet
Entertainment
Accommodation (housing)
Registration services
ET CETERA
Rob Davidson
Centre for Tourism
University of Westminster

Intermediaries working on behalf of

buyers
Destination Management Companies
INBOUND

Extensive and detailed knowledge of the destination

Can be in competition with PCOs

Rob Davidson
Centre for Tourism
University of Westminster

Intermediaries working on behalf of

buyers

Conference production companies

For high-profile or technically-elaborate events

Build the conference set
AV support and special effects
Writing scripts and training speakers

Rob Davidson
Centre for Tourism
University of Westminster

Rob Davidson
Centre for Tourism
University of Westminster

Destination Marketing
Rob Davidson
Centre for Tourism
University of Westminster

Convention & Visitor Bureaux (CVBs)

Intermediaries working on behalf of
suppliers
Exist at different geographical levels:
local, regional, national
Partnerships between public sector
and private sector, and funded by
both

Rob Davidson
Centre for Tourism
University of Westminster

CVB funding
Public sector contributions (taxation)
Private sector membership fees:
The CVB must be able to demonstrate
to its members a significant return on
investment

Rob Davidson
Centre for Tourism
University of Westminster

CVB services: 2 types

Marketing activities, to raise the

profile of the destination

Services for conference planners

who choose the destination as the
location for their event
Rob Davidson
Centre for Tourism
University of Westminster

CVB marketing activities

Advertising in the trade press
Attending specialist exhibitions:
EIBTM, IMEX, Confex
Organising familiarisation trips and
press trips
Running ambassador programmes
Producing promotional videos, CDROMs, brochures, leaflets

Rob Davidson
Centre for Tourism
University of Westminster

CVB marketing activities

Running direct marketing
campaigns (direct mail)
Dealing with media enquiries
Public relations

Rob Davidson
Centre for Tourism
University of Westminster

Business tourism marketing and

leisure tourism marketing
compared
Marketing
Business
Leisure tourism
activity

tourism

Advertising
campaigns

Aimed at decisionAimed at tour

makers: PCOs,
operators, travel
Incentive Houses, etc agencies and
consumers

Exhibitions

Attended by
intermediaries:
corporates/associatio
ns. Hosted buyers

Familiarisatio For decision-makers

n /press trips (buyers) and the
trade press

Attended by tour
operators, travel
agents and
consumers
For travel agents, the
Rob Davidson
trade press
and the
Centre for Tourism
general
press
University of Westminster

Business tourism marketing and

leisure tourism marketing
compared

Marketing Business
activity

Leisure tourism

tourism

Familiarisatio For decision-makers

n /press trips and the trade press

For travel agents, the

trade press and the
general press

Ambassador For university

programmes academics,
prominent scientists,
& members of the
business community

Not used

Rob Davidson
Centre for Tourism
University of Westminster

CVB services for conference

planners
A one-stop shop for the destination
Impartial advice and assistance (but)
Bid documents
Venue selection
Accommodation booking for delegates
Coordination of services (with DMC)

Rob Davidson
Centre for Tourism
University of Westminster

CVB services for conference

planners
Provision of welcome services at
major points of entry
Promotional and PR support to
maximise delegate numbers
Civic welcome/reception
Provision of tourist information

Rob Davidson
Centre for Tourism
University of Westminster

Conference budgeting

Effective financial planning is key to a successful

conference
A conference planner must be able to:

Prepare and work to financial budgets

Operate control systems to ensure the viability of a
congress
Maximise revenue and minimise cost.

Rob Davidson + Rachel Ley

Conference budgeting

To understand a budget, the financial philosophy

and objectives of the client organisation must be
understood.
Corporate:

Conferences = a cost to the business

Objectives are business related
Costs not to exceed Budget

Association:
Income to be > or = to expenditure.
Rob Davidson + Rachel Ley

Conference budgeting

Establish areas for potential expenditure and

sources of income
Create a monitoring framework
Set a control mechanism to maximise revenue and
minimise cost
Client or planner can set and control the budget
Budgetary constraints should be shared
There should be no surprises!
Rob Davidson + Rachel Ley

8. Conference budgeting
Factors influencing the budget:
Size and scope of the congress
History
Location
Dates
Programme content and structure
Food and beverage
Audio visual requirements
Social programme.
Rob Davidson + Rachel Ley

Conference budgeting
Key budgeting skills
Ability to use experience or intelligent
guesstimates to project costs
Ability to secure competitive costs from
suppliers
Ability to conceive the Big Picture to
project contingency allowances.
Rob Davidson + Rachel Ley

Conference budgeting
Core elements of the budget
Fixed costs = things that the congress has to
have
Variable costs = per person cost
Revenue : from various sources

Rob Davidson + Rachel Ley

YOUR ASSIGNMENT

The Polish Dental Society (POLSKIE

TOWARZYSTWO STOMATOLOGICZNE) will
hold its 2010 conference in Gdansk. You are in
charge of planning the budget for this event
What are the FIXED costs and VARIABLE costs
for this conference?
What are the possible sources of revenue for this
event ?
What difficulties do you anticipate, inRobmanaging
Davidson
Centre for Tourism
the budget for this event?
University of Westminster