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First exploration
MICE  W hat do you think you will learn from this subject? W hat do
you expect?

Tourism  W hat is MICE tourism? How have you involved into this?

 W hy do we have to study this subject?

Fall 2017
Enrollment key: MICE2015
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Objectives
 To acquire the principal definitions in business travel
Lecture 1
 To appreciate the differences between business travel
and leisure travel
Introduction to  To be aware of the structure of the business travel
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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International Business Arrivals to Vietnam

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Principal Definitions Principal Definitions - MICE

 What is Business Travel?  Meetings
 “All trips whose purpose is linked with the traveller’s employment  Conferences, training seminars, product launches, annual general
or business interests” meetings, conventions
 Held by companies and associations in order to facilitate communication
Business Travel with and between their employees, customers, shareholders and
members
Individual Business  Incentive trips
Usually luxurious and often to attractive destinations
Business Travel Tourism/ MICE 

 Trips for employees receiving from their employer as a prize related to

• Regular and necessary part of
employment
• Often individual travel
• Nondiscretionary/ fixed destinations
• Presentations; consultations;
investigations; one-to-one meetings
• Occasional feature of employment
• Often group travel
• Discretionary/ floating destinations
• MICE
their job/ a means of motivation
 Corporate hospitality/ Conferences, conventions
 Corporate hospitality: For creating goodwill and building rapport with VIP
customers and potential customers
 Events/ Exhibitions
 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

Business Travel Business travel vs. leisure travel

 There are forms of business trav el that are not business related; Leisure trav el Business travel But…
 Motivation is not to discuss jobs related issues , i.e. Associations meet regularly
Trip payment The traveller – both The employer Self-employed/ those
for members to share an interest, the same faith or the same hobby
customer and consumer attending events paid
 There are forms of business trav el that inv olv e very little trav el for themselves
 One-day meetings held in the seminar room of a local hotel; a party for a group
Where Mainly coastal, mountain, Largely in cities in stable, Incentive travel similar
of clients at an entertainment venue within the city
urban, rural industrialized destinations to leisure
 Very often, elements of two or more categories are combined in the
When In leisure time In working time Many extend into
same ev ent: e.g., exhibitions with conference – 3 advantages evenings and
Classic holiday periods & Mainly outside holiday
 Exhibition earns revenue to offset the cost of the conference weekends periods & weekdays weekends
 Exhibiting companies can present their products to an interested market Quite infrequently but last Quite frequently but for short
 Delegates have an additional reason for attending the event longer periods
Trip planning Holidays - a few months/ Large events organized years Individual business
Short breaks – a few days in advance travel – at very short
in advance notice

Travelling Friends and family Usually unaccompanied Family members

companions (individual business may be included in
travel); or with incentive trips or
colleagues (business conference
tourism) attendance

Business travel vs. leisure

Business travel vs. leisure travel
 Business tourist
- Consumer, not customer
- Not choose destination
- Frequent travels
- Shorter duration of trips
- Very short to very long
planning period
- Less budget conscious
- More experienced and
demanding
travel
Links exist btw biz & leisure tourism:
 Leisure tourist - Leisure tourist can be the business tourist in
- Both customer and consumer their working lives
- Choose the destination
- Infrequent travels  When working day is over, biz tourists
become leisure tourists
- Longer trip
 Conference programs often have social and
- Medium time of planning cultural programs; and provide visitors with
- Cost conscious opportunities to relax and network together
- Less experienced and  After business time, biz tourists may choose
demanding to stay more days as leisure tourists
 Biz tourist may take along a partner with
them who have time for leisure activities

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Structure of the business travel market

Structure of the business travel market
 Top 10 meeting countries in 2016  Top 10 meeting cities in 2016
(Source: ICCA) (Source: ICCA)
Buyers Intermediaries
 1. United States (595 meetings)  1. Vienna (160 meetings)
2. Germany (458 meetings) 2. Barcelona (135 meetings)
3. Spain (360 meetings) 3. Paris (131 meeting)
4. Italy (350 meetings) 4. Berlin (129 meetings)
Business 5. United Kingdom (345 meetings) 5. Singapore (119 meetings)
trav el 6. France (341 meetings) 6. Copenhagen (103 meetings)
7. Brazil (293 meetings) 7. Stockholm (102 meetings)
8. Japan (257 meetings) 8. Amsterdam (98 meetings)
The end 9. China (245 meetings) 9. Lisbon (98 meetings)
Suppliers
consumers  10. Austria (236 meetings)  10. Beijing (96 meetings)
Business travel
destinations

http://blog.cvent.com/blog/c ven t-blog/top-10 -countrie s-and-

cities-for-international-association-me et ings

Top five cities for international association Demand for business travel
me e tings in the Asia-Pacific and Middle East
 Determined in part by the status of national and,
re gion: increasingly global economy
1. Singapore  More stable than holiday trav el and less inf luenced by
2. Beijing f ashions
3. Seoul
4. Bangkok
5. Kuala Lumpur
Read more:
http://meetingsnet.com/associationmeetings/news/icc
a-top-destinations-association-meetings-
0518/#ixzz1klU8ITAZ

Business Travel Demand Pattern to

Demand for business travel
Vietnam in 2012
 Determined in part by the status of national and,
increasingly global economy
 More stable than holiday trav el and less inf luenced by
f ashions
 In some cases, spending on business trav el can actually
rise when the economy is slowing down
 Derived demand (# leisure trav el – final demand)
 Income- inelastic
 Dependant on the lev el of gov ernment taxation of
business expenses

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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)
Im pacts of business travel - Image
 Putting the destinations firmly on the political map
 Focusing the attention of key groups of decision-makers
upon the destination’s potential for professional and
business location and development
 Establishing and reinforcing the image of the destination as
a place to visit for leisure purposes
Im pacts of business travel – Social
 Hidden economic cost: aviation fuel and airline tickets = no
VAT  the society as a whole subsidising air transport
 Health cost associated with noise and air pollution
 Costs of building and maintaining the transport
infrastructure to serve airports
 Direct and in direct subsidies to the industries to supply the
air transport sector
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Econom ic im pacts of business travel
 Higher spending levels  greater per capita value than leisure
travel


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)
Im pacts of business travel – Environmental
 Good geographical spread  on minimal impact on fragile
natural environment
 Typically distinguishable business visitors in dress, behaviour
and use of facilities
 More sustainable nature: use of public transport like trains
(domestic business travel)
 On the other hand, for international business travel – by air 
the most highly polluting mode of transport
 Hidden costs paid by the society
The costs of being a business destination
 Costs to attract business visitors
 Substantial investment in specialist facilities (for
conferences and trade fairs)
 Costs to destinations of various externalities of hosting
certain types of event
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Vietnam in the ranking list of m ost popular

Challenges facing the business travel m arket association m eeting destinations in 2011
 Political challenges (source: ICCA)
 Lack of recognition and contribution from national and local  Rank 60th in the world (with 29 international meetings)
government
 Market intelligence
 Lack of standardised and properly defined terminology
 Difficulties in reliable statistics and regular research
 Technology
 Information and communications technology as an actual
substitution for business travel
 E.g., downloading presentations; goods viewed from a distance;
videoconference

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Business travel industry: Opportunities

 Demand side
 Increasing volume of world trade
 A relaxation of border controls
 A process of internationalisati on of not only businesses but also associations
 Supply side - Vietnam
 Asia (e.g. Hong Kong, Korea, Seoul, Singapore, Taipei, Thailand) is challenging
Europe’s pre-eminence
 Government’s 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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