More agencies move into events
AS CORPORATE clients
continue to trim travel
spend, an increasing
number of travel agencies
and specialist travel
management companies
have ventured into the
Meetings, Incentives,
Conferences and
Exhibitions space to attract
increased business.
The African Business
Travel Association’s
founder, Monique Swart,
says TMCs are recognising
the link between travel and events
and positioning themselves to cover
all services. Many have opened
destination management divisions
or have partnered with destination
management companies. “I think this
is a natural progression and TMCs
that are offering these services have
opened up a nice new income stream
for themselves.”
But most industry stakeholders
recommend circumspection when
moving into MICE, which requires
specialist skills.
“There is definitely a gap in the
market and understanding that
travel is under both exchange rate
and economic pressure, we need to
diversify to find alternative sources
of income,” says Marco Cristofoli,
coo of the BidTravel Leisure Cluster.
“This is quite a unique market and
something Harvey World Travel will
be investigating. That being said, it is
a specialised area of travel and we
would suggest using the
services of a tour operator
that has a track record of
experience in this area.”
Marco Ciocchetti, ceo of
the XL Travel consortium,
recently told TNW: “Within
XL Travel we have
members that specialise
in the MICE sphere of
travel and do it well. We
encourage our members
to be the best at what they
do and not dabble in every
sphere of travel. MICE
can be lucrative, however it requires
technology and expertise.”
Although diversifying into MICE is
a logical progression for retail travel
companies, says the Global Business
Travel Association’s chair, Howard
Stephens, the commodity is not quite
the same as booking travel and travel
consultants are not the same animal
as a professional conference organiser
or incentive travel organiser.
And yet, many travel agencies find
themselves not only booking the travel
element of conferences, exhibitions
and meetings, but getting involved in
venue hire and other aspects of MICE.
Some do an excellent job, says
outgoing SAACI ceo, Adriaan
Liebetrau, but others go into it with
little knowledge of the scope of work
involved. He concedes that they are
often pressurised into taking on
meetings organisation by clients for
whom they want to go the extra mile.
He suggests a cautious approach.
First put the correct strategy into place
THE drive towards more effective
management of spend is alerting
corporates to the value of travel
principles in a MICE environment.
According to Euan McNeil, gm of
FCM and cievents, the move into
MICE is being propelled by corporate
clients, but for different
reasons. “Historically,
the management of
MICE and traditional
corporate travel has
been separate. However,
trends in the market
show that this is
changing. The force
driving this change is
many organisations
reporting that they do
not have transparency
over their MICE spend.
This is in stark contrast
to the landscape of the
corporate travel category,
which has become
increasingly managed
and commoditised in
recent years.
“Organisations we
work with have realised
that there are incredible
opportunities and
savings to be made by
applying the principles
used to manage their
travel programme on
their MICE category.
“By conducting a
meetings request for proposal (RFP)
at the same time as a travel RFP,
procurement, marketing and in-house
event managers have a value-added
prospect – one that allows them to
stick more tightly to their budgets
and improve service efficiency for
stakeholders.”
Gill Dewar, md of GCD Consulting,
who has much experience in MICE,
says the field can be lucrative, but
breaking into it is not simple. She
says MICE is a competitive space
and the local market is
relatively small. “Unless
you have good corporate
contacts and someone
experienced in MICE, I
would not suggest that
a travel agent breaks
into MICE without the
correct strategy in place.
Corporate procurement
departments often ask
for three quotes and
agents can quote and
quote and never get a
chance of confirming
business, due to the
corporate’s existing
relationships with other
MICE providers.”
Breaking into MICE
is possible if certain
conditions are in place,
says Maria Martins,
director: programme
management for TMC
Carlson Wagonlit Travel.
If the corporate client
already has a mature
travel programme,
views MICE as part of
its overall travel spend,
and is cognisant of the cost savings
and policy optimisation that can
be achieved through consolidation,
it is relatively easy to obtain full
stakeholder alignment to manage
MICE effectively, she says.
Cost-cutting put orginisers under the whip
CONFERENCE organisers
are under pressure to
deliver more for less.
With corporate costcutting,
says Kevin
Clarence, founder and
director of The Birchwood
Hotel & OR Tambo
Conference Centre,
conference organisers are
having difficulty organising
meetings and conferences
on tight budgets. In
contrast, expectations by
corporates are greater –
requiring far more than just
a decorated venue with
good food.
“In order to meet these
budget constraints and
facilitate conference
organisers in this process,
we are trying to offer
additional services free,”
he says. “For example,
free airport shuttles are a
huge saving compared with
logistical costs to transport
delegates to venues
outside Johannesburg.
We provide free WiFi and
believe our fully inclusive
package rate is a great
value-for-money product.”
Kevin has also noted
shorter lead times in PCO
requests, making it all
the more difficult for the
venue to deliver the same
value at a lower price.
Conference organisers are
having to put more effort
into convincing clients that
longer lead times are not
only better for the event’s
outcome but for their
budget. Hotels are more
willing to negotiate with
those who arrange their
meetings in advance, he
points out.
Grant Sandham, group
sales and marketing
manager for Premier
Hotels & Resorts, says
a conference organiser’s
ability to add value will
make the
difference
between
survival and
failure. It is
no longer
sufficient to
act simply
as a booking
agent, he
believes.
“The
role of the
conference
organiser is
more than
that of just
sourcing a venue. They
have become trusted
advisers
dedicated
to providing
the best in
planning
and hosting
conferences.
It is only once
organisers
understand
the desired
objectives of
an event that
they are able
to recommend
a venue that
will deliver on
the expected outcomes,”
says Grant.
Tips to take your Mice programme into the future
Tamarin Transell, head
of Groups & Incentives –
South Africa & Africa of
LUX* Resorts & Hotels
offers the following advice:
Forward planning is
key to the successful
implementation of an
incentive campaign and
the qualification period
that incentive winners
need to follow.
Creative consulting
is vital for a unique
experience. For example,
delve into local cultures
and talents for exciting
airport welcomes, transfer
options and authentic
gifting solutions.
Explore new and
untapped destinations;
allow the unexplored to
be explored. LUX* Saint
Gilles on Réunion has
proved a very lucrative
and exciting hotel for
South Africans looking for
something different.
If revisiting destinations,
make it your business
to understand what has
already been offered
in the past and ensure
that not only the hotel
differs, but that the entire
programme offers new
and interesting elements.
Ask the client’s staff,
prospective incentive
winners, to vote for
the destination and
experiences. They need
to be heard and made to
feel part of the process.
More intimate cruise in demand
THE Mediterranean
remains the top
choice for cruise
ship MICE events
with the South
African market,
according to
Dalene Oroni,
groups and
incentives manager
at Cruises
International.
But in a
departure from
normal practice,
tenders are
coming in much
later and reflect a
demand for smaller,
luxury ships visiting
smaller ports of
call.
The Caribbean
and Asia hold
second and third
places in the
cruising popularity
stakes for the local
market.
While South
African groups
make good
use of ships’ facilities in
their programmes, they are
increasingly concentrating
on the destinations they
visit, incorporating tours
and activities that include
local cuisine and transport.
Examples are a unique
experience at a winery in
France, or a Ferrari drive along
the Amalfi Coast. Coupling
a cruise to reach exotic
destinations with extraordinary
excursions in ports makes
for a fantastic incentive, says
Dalene..
Did yuo know?
Avis M.I.C.E provides customised solutions to MICE travellers through the use of one point of contact, as
well as on-site group co-ordination at airports and venues. The unique needs of the sector are catered for
through Avis Rent a Car, Avis Point 2 Point, Avis Chauffeur Drive and Avis Luxury Cars. For larger groups,
Avis Van Rental has a substantial fleet, including 14 seaters, while transportation of structures and
equipment is facilitated by Avis Truck Rental, with commercial vehicles up to 12 tons.
Mauritius continues to top the polls
MAURITIUS is one of the most
popular MICE destinations
for the South African market.
But Enid Maullin, group sales
executive for Beachcomber,
cautions that MICE organisers
must be clear on client
requirements, making sure
there is a realistic relationship
between expectations and
budget.
She says the hotel chain
offers added services to
clients during certain seasons,
and these can make quite a
difference in terms of value.
To make the trip
extraordinary, she suggests
adding fun off-site options and
excursions, some of which
will have particular appeal for
the adrenaline junkie. “We
offer a truly amazing zipline
experience over waterfalls and
mountains, with quad-biking on
one of the estates.”
Another special treat is a
full-day cruise on a catamaran
to one of the outlying islands,
with snorkelling, swimming and
lunch. A cooking experience
with locals can also be built
into the itinerary, as well as
a visit to the Rhumerie de
Chamarel for a tour of a rum
distillery, rum tasting, and
exotic lunch and a spectacular
view of Le Morne peninsula.
Recognising Mauritius’s
prominence as a MICE
destination, Air Mauritius
offers some attractive
extras to groups heading for
the island for an incentive
programme, conference or
meeting.
The airline guarantees the
best group rates, as well as
a free ticket (excluding taxes)
for every 50 passengers
ticketed. Organisers can also
count on dedicated account
management.
At check-in, passengers
will find an airport counter
dedicated to their group,
along with an Air Mauritius
representative on duty to see
to their needs. Dedicated
in-cabin seating is arranged at
no additional cost. The group
can also have business-class
lounge access at discounted
rates.
There’s a free allowance of
two 23kg pieces of luggage for
economy-class travellers and
two pieces of luggage weighing
up to 32kg each for businessclass
passengers. Golf bags
of up to 20kg are also carried
free.
On board, the airline will
happily place the client’s
branded headrests on seats.
Group rates are available
on Air Mauritius’s worldwide
network.
