Why the MICE Segment Matters for Hotel Revenue

It is a common misconception that hotels generate most of their revenue from accommodation, isn’t it? Well, that is not always the case. Today, a hotel of any size and in any location should have at least five revenue streams that help drive the other four. This means that if you are focusing your marketing strategies on generating room bookings, you are missing out on growth in your other revenue streams and underperforming in daily room revenue. Spending cuts in the MICE segment during the years of the economic crisis undoubtedly affected the hotel industry, but times are changing and the MICE industry is on the rise again. More and more countries are investing in Events and Conventions, and plan to spend more on organising events and conferences abroad and promoting destinations capable of hosting events of different scales.

Many hotels take a rather superficial approach to their marketing. As a result, they do not allocate budget to ancillary revenue streams, most likely because they believe they are irrelevant. However, the truth is that some of these strategies do not require major investment either.

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On average, a hotel generates between 20 and 30 per cent of its revenue from the MICE segment, but it often does not include room revenue resulting from MICE activity when rooms are booked independently of the event itself by guests attending it. MICE marketing traditionally includes the following:

Listings in specialised directories
Attendance at trade fairs and events
Organising fam trips
Visits to agencies and event planners
PPC campaigns
Paid advertising or media exchanges online/offline
Social media and content marketing
Communications and public relations

Any MICE sales professional knows that each type of hotel will attract a particular meetings and events client. Some hotels attract corporate and MICE clients simply because of their location, but hotels often need a much more sophisticated marketing plan to succeed in this segment. If you focus on channels with the right audience, this will limit costs and generate a much higher ROI. Remember to set some type of KPI: measure as much as possible, and your hotel will be in a much better position to improve its strategy. MICE tourism is a segment with great potential, and it is growing once again. Do not miss the opportunity to expand your services and attract this sector to your hotel.

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Why the MICE Segment Matters for Hotels

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