Professional Documents
Culture Documents
Spring 2011
Enrollment key: MICE08
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Lecture 1
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Objectives
To acquire the principal definitions in business travel To appreciate the differences between business travel and leisure travel To be aware of the structure of the business travel market To discuss the main impacts of business travel, and the major opportunities, challenges and threats affecting this industry
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In 1 year, the British spent almost 46 million nights away from home travelling on business? At the top end of biz market, individuals are making over 20 biz trips/ year? Business travel was one of the earliest forms of tourism?
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Principal Definitions
What is Business Travel? All trips whose purpose is linked with the travellers employment or business interests Business Travel Individual Business Travel
Regular and necessary part of employment Often individual travel Nondiscretionary/ fixed destinations Presentations; consultations; investigations; one-to-one meetings
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Conferences, training seminars, product launches, annual general meetings, conventions Held by companies and associations in order to facilitate communication with and between their employees, customers, shareholders and members Usually luxurious and often to attractive destinations Trips for employees receiving from their employer as a prize related to their job/ a means of motivation Corporate hospitality: For creating goodwill and building rapport with VIP customers and potential customers Exhibitions: trade fairs, trade shows, customer shows to which business send sales staff in order to display their products to potential customers to buy and/or to receive expert information
Incentive trips
Events/ Exhibitions
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Business Travel
There are forms of business travel that are not business related;
Motivation is not to discuss jobs related issues , i.e. Associations meet regularly for members to share an interest, the same faith or the same hobby
There are forms of business travel that involve very little travel
One-day meetings held in the seminar room of a local hotel; a party for a group of clients at an entertainment venue within the city
Very often, elements of two or more categories are combined in the same event: e.g., exhibitions with conference 3 advantages
Exhibition earns revenue to offset the cost of the conference Exhibiting companies can present their products to an interested market Delegates have an additional reason for attending the event
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Business travel
The employer
But
Self-employed/ those attending events paid for themselves Incentive travel similar to leisure Many extend into evenings and weekends
Mainly coastal, mountain, urban, rural In leisure time Classic holiday periods & weekends Quite infrequently but last longer Holidays - a few months/ Short breaks a few days in advance Friends and family
Largely in cities in stable, industrialized destinations In working time Mainly outside holiday periods & weekdays Quite frequently but for short periods Large events organized years in advance Usually unaccompanied (individual business travel); or with colleagues (business tourism)
Individual business travel at very short notice Family members may be included in incentive trips or conference attendance
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Buyers
Intermediaries
Business travel
Suppliers
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Impacts of business travel When we have a convention in town, it is as if an airplane flew overhead dropping dollar bills on everyone.
(Smith, 1990 in Davidson and Cope, 2003)
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Daily expenditure (biz : leisure travelers) = between 2:1 and 3:1 Average expenditure of international meetings = 343 USD/ day/ head UK: 591 million/day (177 million all average visitors)
Induced effects generated by the large number of ancillary activities linked to conferences and exhibitions (=1.5 2 times the direct turnover) Spending spreading more evenly throughout the year and complementary to leisure demand during troughs (low season, weekdays)
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Lack of recognition and contribution from national and local government Lack of standardised and properly defined terminology Difficulties in reliable statistics and regular research Information and communications technology as an actual substitution for business travel E.g., downloading presentations; goods viewed from a distance; videoconference
Market intelligence
Technology
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Increasing volume of world trade A relaxation of border controls A process of internationalisation of not only businesses but also associations Asia (e.g. Hong Kong, Korea, Seoul, Singapore, Taipei, Thailand) is challenging Europes pre-eminence Governments increased awareness of MICE industry Highly active local associations and businesses (VMIC, Saigontourists) Stable political system; attractive diversity in terms of destinations and cultures, The presence of many company head offices, institutions and associations + increasing number of business visitors to Vietnam Tourism infrastructure, especially the hotel and resort system, is growing rapidly Equipped themselves with facilities and services Experience in hosting international events
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