CHAPTER 2 i ICE Industry .. ves ly ee ad os Tourism and Hospitality Industry . Learning Outcomes At the end of this chapter, 1. describe the key players in the MICE industry and you should be able to: 2, disiss the roles ofthe key players in the tourism and hospitality industry, which are: a. associations; b. convention centers; c. conference centers; d.. tour operators; : e. trade shows and expositions; f. hotels; 8 convention and visitors bureaus; and h. the Process of Providing a MICE Event, a The size of the MICE industry has greatly expanded. At Present, it a ‘oe fh ie This chapter. will introduce these various Players Toles in the touri: jitality i tic urism and hospitality industry. These playérs are the 1. Associations : 2 Convention centers 3. Conference centers 4. Tour operators 165, Trade shows and expositions 6. Hotels : 7. Convention and visitors bureaus ot ' 8. The Process of Providing a MICE Event Ee E a E Associations i An association is an organized bod: ; he ly that promotes ; mmon interest activity or purpose. Modern ee dare ' in historical times. Roman and Oriental craftsmen in ancient times formed | associations for the improvement of their trade. In the middle iat i ; : a ages, associations | were in the form of guilds, which were organized to obtain proper wages and " tomaintain work standards. Associations are classified into two main categories—trade associations and professional associations. Both are organized for the betterment of their members. The main activity for both types of associations is to gather and exchange information through publications, educational seminars, newsletters, and meetings. Trade associations are nonprofit organizations that are designed to address the needs of for-profit businesses. The members are business agencies that have the same objective. A good example is the Professional Convention Management Association _ (PCMA) whose members are involved in the conventions and meetings industry. Professional associations are nonprofit organizations that are not business-oriented. They are designed to help their members realize their objectives. Professional associations are divided into three sections. The first sector consists of the members with the same interests such as the American Association of the Retired Person (AARP). The second sector consists of scientific, engineering, and learned associations such-as the Council of the Hotel, Restaurant and Institutional Education (CHRIE). The third sector is concerned with religious, charitable, and public services such as the American Heart Association.Convention Centers / / A comprehensive convention center is a public agency whose aj im ig to its ina venue. It provides banquet, food and be Fad P Ve and concession Majority of convention centers are owned ni . ernment and are operated by an appointed 7 ‘ard city, country, OF state gove! or authority. An example of a convention center is the PICC. Other e: are the Jacob K. Javits Convention Center in New York and the ane hein, Convention Center in California. In some cases, convention centers may be managed by private management companies. host meetings and exhibi services. Convention centers provide big, flexible rooms for trade sh ¥ 0 smaller spaces for banquets, meetings, and association parties. The co; WS and and visitors bureau assists in marketing convention centers. sa Historically, convention centers were organized to serve the c However, = present, convention centers are profit centers. Mam owe oe a revenues by renting their exhibition and miedtiig Da eote cine ae ah ak food and beverage catering, caincsSdons it atid e i ay offer specialized services to exhibit Teather bat el : in 7 Examples are electrical, telephone ie y , plumbing, air, and sound. Beenince Centers ‘A conference center is a specialized hospitality Operation which aims to facilitate and support small to medium size meetings of 20 to 50 people. Conference centers are different from convention centers because pa ot conference centers provide overnight accommodations for their SAS, The guests at 2 conference center do not need to leave the center during the entire duration of their conference because all their needs, such as meals, accommodations, and leisure activities, will be provided by the conference center. The conference center was established to meet the growing demand for specialized meetings. The design of the conference center emphasizes comfort and privacy for the attendees. ‘A unique characteristic of a conference center is that it provides continuous refreshment throughout the meeting, thus, allowing the attendees to take a break whenever they feel like doing so. Another unique feature of a conference center is that it charges only one price that includes meals, room rates, meeting rooms, audiovisual equipment, coffee breaks, and paper supplies needed by the participants. Tour Operators Tour operators play an important role in the MICE industry. They work with meeting planners in arranging tours and activities for meeting attendees and their families who combine business with pleasure. Most often, convention delegates stay in the convention city for a few days after the convention to relax, sightsee, or enjoy the entertainment in the city. Tour operators often create tour packages for the spouse, guest, or children of the attendees. Thus, while the participants attend their meetings, their spouses and guests may be brought to a local museum or art gallery while the children may be brought to a theme park or a zoo. The convention delegates usually receive information about the tours several weeks before the convention. Because there is a growing trend for meeting attendees to bring their families with them, the job of the tour operator is becoming more important in the MICE industry. ‘ Trade Shows and Expositions Trade shows, expositions, that are used interchangeably in the MICE industry. E and scientific/ technical conferences are terms xhibition was historically |become more global, Americans have adopteg fer to traveling shows such as art exhibitions, According to the we term to ref stions are public shows. Historically, trade shows are py; lossary, Haas open only to those involved in the industry, Although « pen themselves to the public on their final days, majority a a European term. As We shows which trade shows ©) private. All these terms describe an activity which aims to Tepresent a Majo, industry marketing event. Trade shows provide a venue in which indivi uals associated with a particular industry can bring their products and exhibit togeth er, The forumallows theattendeesand exhibitors to exchange information about their products. For example, an annual trade show is sponsored by the ‘American Hotel and Motel Association every November in New York City, This trade show brings together all the suppliers associated with the hotel ang motel industry. Trade shows have a very interesting history. According to Evan St, Lifer, trade shows or expositions started when caravans crossing the desert would meet and exchange products. In the United States, the history of trade shows dates back to 1876 when Alexander Graham Bell showed his telephone at the Philadelphia Centennial Exposition, a show celebrating America’s first 100 years, With the advent of the industrial era, marketing of products became very important. Salesmen spent most of their time on the road selling their ‘products, Because it was impractical to call on customers individually, salesmen began to rent hotel rooms to display their wares. They invited their customers to look at V7 their display. This practice was beneficial to individual companies. As the trade shows industry expanded, hotels became insufficient to use. By the mid-1920s, hardworking individuals developed an exhibit hall in which large groups of exhibitors who shared a common product showcased their wares together. This gave trade shows a new look. Clients were no longer crowded in small hotel rooms and not allowed to leave the room until they Placed their orders. In exhibit halls, clients were allowed to roam freely from one booth to another, At Present, the trade show industry is the most exciting, dynamic, and economical means for marketing individuals to achieve their sales goals. 20ause of the great number ef attendees in trad peting for the trade show business, com ‘There are several key aks Within the trade show industry: the trade show sponso™s; exposition or show managers, and service contractors, le shows, cities are now Trade show sponsors are trade or professional associations who use the trade show as an important part of their meetings or conventions to generate revenve, For example, the National Restaurant Association is the sponsor for the NRA trade show which is held in Chicago every-May. The exposition or show manager is responsible for all aspects of the trade show. The service contractors are individuals responsible for Providing all the services needed tg run the facilities for a trade show. A general service contractor is multi- talented, creative, and equipped to serve all exhibit requirements. Hotels Hotels play an important role in the MICE industry. Hotels provide comfortable overnight accommodations for out-of-town guests for a meeting, convention, or trade show. In addition, many hotels provide meeting rooms, convention facilities, and small exposition halls for meetings and conventions. Meetings and conventions have become a major source of revenue for many hotels. This revenue is generated through the rental of sleeping rooms, food and beverage, as well as rental of meeting spaces. The most important person in a hotel is the convention service manager. He orsheactsasa liaison between the meeting planner and the hotel. This position has increased the marketability of hotels as convention sites because the primary aim of the convention service manager is to service the meeting or convention. Meeting planners need not deal with different department heads within the hotel. The convention service manager can help them with all their needs. Convention and Visitors Bureaus A convention and visitors bureau is a nonprofitable organization designed to solicit visitors and conventions to a community. Majority are privately owned although some are housed within the state government. They are funded through the hotel accommodations tax. The convention and visitors bureau coordinates all activities of meetings and conventions. These include marketing the destination, providing information about possible host facilities, coordinating familiarization tours for meeting planners and association 21executives, and acting as liaison between the group and several suppliers within the community. ‘The Process of Providing a MICE Event According to Rutherford, the process of providing a MICE event is often compared with the design of a wheel. At the center of the wheel is the MICE event which may be a conference or exhibition that will be mana; ged conference organizer. Allspecialists who Provide services are located on the spokes of the wheel (see Figure 2.1), During the planning of the MICE event, one or more of the service specialists or suppliers might assume a specific role that is very important for the success of an event. An example is the tranapor, supplier who provides transfers of international delegates from the airport to the venue, Around the edge of the wheel are the delegates or customers, Any time during the event, the delegates will come into contact with the suppliers, ‘Their overall experience of the event will be influenced by each of the service specialists or suppliers. Hence, the interrelationship between each supplier and the delegates is very important to the success of the MICE event. Figure 2.1 shows the key players of the MICE industry. These include hotels, facilities, support services, associations, professional congress organizers, incentives travel organizers, and convention and visitors bureaus. Fi ‘igure 2.1. The process of Providing a MICE event