The story appears on

Page C6

November 28, 2016

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Feature » Mice

Hotel execs see bright future for MICE market

DESPITE increasing competition, hospitality insiders are pursuing new offerings and leveraging local charms to benefit from an increasingly important business segment.

Q: How would you assess China’s current MICE market, especially the city where your hotel is located?

Knaust: I would say the current and future MICE market is very healthy and Shanghai is a growing MICE destination. Although positioned as a financial hub, this vibrant city and surrounding areas have much to offer. Whilst it cannot compare, perhaps, to Beijing in terms of cultural heritage, there are many great hotels near interesting locations and visitors can experience old Shanghai at the Bund, Tian Zi Fang and Zhujiajiao water village; as well as many new attractions such as the Shanghai Disney Resort that capture the spirit of this emerging global city as a favorable MICE destination.

Dexter: The market is increasing, however the new supply of hotels may be more than the demand. Hangzhou has increased its exposure before and after G20 with the domestic market. Expect a cooling off after Chinese New Year or a greater reduction in rates as MICE buyers shop around.

Lee: China is currently a very popular MICE destination thanks to its fast economic development and large consumer market. Most top enterprises in the world have representative offices in China, making it a critical location for MICE businesses to come together. As for Hangzhou, after hosting the recent G20 and other major events such as the Computing Conference, it created more awareness among event organizers and MICE end-users around the world. Unlike Beijing and Shanghai, Hangzhou is able to give event participants a different experience in appreciating China’s natural beauty and rich history.

Vences: As a 2,300-year-old ancient city, as well as China’s next first-tier city with offices for over half of the Fortune 500 enterprises, Chengdu has become the center of southwest China. The 72-hour visa-free access has boosted the MICE industry of Chengdu; the city is also a center of traffic in South Asia and an international hub of commercial aviation, being the regional hub of operations for Air China. While opportunities for business in the city abound, Chengdu’s MICE market is very active compared to other cities in China.

Zitnik: China’s MICE market is booming so quickly and the luxury MICE market is increasingly turning to Chinese business travelers and customizing services to fit Chinese traditions instead of only targeting foreign guests. Shanghai is actually rapidly growing as a leading MICE destination in China, with new venues such as the National Exhibition and Convention Center, as well as its historic heritage which is as impressive as Beijing’s ... Shanghai’s convenient transportation to anywhere in world is also one of the important reasons behind the MICE development. Shanghai could be a super MICE destination in the world for sure.

Cabre: The strategic location of Wuhan in the middle of China, a fast growing economy, and the attention of the local government to the MICE Industry all result in an increasing number of meetings, incentives and conventions being held in the city. Industries such as education, pharmaceuticals, high technology, car manufacturing and others choose Wuhan for their events because of its convenient location, accessibility by high-speed train to all major cities in China, excellent infrastructure and fantastic cultural offerings.

Q: China is a hot MICE battle ground. What competitive edges does your hotel have to stand out in your market? What challenges are you encountering at the moment to maintain solid long-term growth here?

Knaust: Hilton Shanghai has seen healthy business in this segment and we expect the same in 2017. Our focus is more on meetings than incentive events. Our location is perfectly placed both in the city, and Jing’an District, to be an ideal fit for international and regional meetings and events. Our appeal lies in the fact that the hotel is a landmark in Shanghai and it appeals to visitors that wish to explore the heart of one of the most stylish areas of Shanghai and the former French concession area, with its tree-lined streets and abundance of appealing restaurants and bars. We have a wealth of experience in this sector and a team who are committed to the improvement and delivery of first-class events. The hotel is also synonymous with large sporting occasions, especially our outside catering offering as we are a prestige partner with the ATP Tennis Masters in Shanghai and can cater for a wide range of outdoor events.

Dexter: The strengths of our hotel have been a five-minute walk to the West Lake, excellent service as highlighted on the OTA channel reviews, a marvelous breakfast and good room choice. The Thai restaurant Sawasdee is recognized as the best in Zhejiang Province.

Lee: InterContinental Hangzhou boasts the largest pillarless hotel ballroom in Hangzhou, with similarly grand pre- and post-dinner areas, making it the perfect venue for all kinds of events. The hotel also houses an array of over 20 different meeting rooms, all equipped with state-of-the-art meeting facilities. Besides the hardware, we have a team of professional events managers who work alongside events organizers to assist them at each step before, during and after events. The Banquet Operations team is also fully experienced in serving the most complex events, including serving celebrities and world leaders.

Vences: Sitting together with the IFS in the heart of Chengdu, Niccolo Chengdu has already became the signature address for the city’s events. IFS also features premium office space and houses some of the leading corporate businesses in the city, so we work very closely with corporate and meeting clients. We are confident that we are the first choice of our IFS retail partners for meetings and events. There are 18 meeting rooms/ballrooms across fours floors in Niccolo Chengdu. The wedding business in China is still a key market segment and our new Niccolo has a spectacular glass ceremonial hall, called The Conservatory, which will make Niccolo Chengdu the city’s best wedding and event address.

Zitnik: Hilton Shanghai Hongqiao is ideally and conveniently located close to the Hongqiao airport and railway station, and the Caohejing High-tech Industrial Development Zone in the heart of the Hongqiao business district. Also, the hotel is only a 20-minute drive from the world’s largest exhibition center, the National Exhibition and Convention Center, where numerous big exhibitions will take place. In addition, Hilton Shanghai Hongqiao has 662 spacious guest rooms, and a newly renovated pillar-free grand ballroom large enough to host 1,000 people. The challenge is price-based competition as so many new hotels are booming up, making the hospitality industry fiercely competitive. However, this won’t be sustainable for the market in the long term and it is the reason why we are continually innovating our MICE offerings with creative and improved service.

Cabre: Wanda Reign Wuhan — located in the heart of Wuhan Cultural District, together with other Wanda properties such as Wanda Realm, Han Show and the Han Street pedestrian shopping area — is a MICE destination by itself. In the high-end market, it is a quite unique offering because of its luxury environment, high-tech facilities and top service.

Q: Are there any new projects your hotel will launch this year to attract business travelers and enlarge your share in the MICE market?

Knaust: There is an increasing trend for organizations to select hotels that are focused on sustainability and reducing the impact of our carbon footprint, and Hilton is in the process of launching a series of “Meeting with Purpose” products and services. Many global organizations now wish to select partners that share their own values of being focused on health and well-being and supporting environmental initiatives and we hope to make a key difference in this area. Hilton Shanghai offers a “Clean Air” plan, decreasing the negative influence on the environment when clients are holding meetings or organizing events in our hotels. We will use the Light Stay system to calculate all the carbon released during meetings and events and purchase carbon use quotas to offset the impact on the environment.

Dexter: Yes, we have new projects … but they are currently secret and under wraps until they are officially announced and implemented.

Lee: At InterContinental hotels, we have a program called “Insider Meeting” in which we help events planners and organizers plan events with some local touches and flavors, giving participants the opportunity to get to know the location and experience its culture. We also had a three-year strategic plan to ensure we stay abreast of our competition.

Vences: Niccolo Chengdu offers very relevant meeting and conference specials that will attract the city’s most influential businesses to this unique hotel. Naturally lit function venues, in addition to the Niccolo Ballroom and The Conservatory, give event planners a unique and exciting choice of flexible spaces. Combined with highly attentive service, Niccolo rises to the challenge of each unique event with surprising flair and a sharp eye for detail.

Zitnik: Hilton Shanghai Hongqiao is working on several new projects aimed to enlarge its share in Shanghai’s MICE market. “Meeting with Purpose” is one of the new concepts. It is based on the following three ideas.

• Mindful meeting: This is about promoting and offering options and practices that reduce the use of resources and waste production in meeting and conference settings.

• Mindful eating: This is about offering an F&B experience that supports a balanced diet and includes local and seasonal ingredients, in line with today’s dietary trends.

• Mindful being: This is about offering delegates an experience that maintains high energy levels, boosts their well-being and drives productivity.

I’m pretty sure this project will be an exceptional experience for MICE guests.

Cabre: With the “Big MICE” campaign launched by Wanda Hotels & Resorts, the influence of our MICE services and facilities has enlarged. More MICE agencies and organizers have gotten to know Wanda Reign Wuhan not only as a luxury hotel, but also as a MICE hotel with 413 rooms, a grand ballroom that’s 1,500 square meters, a 75-square-meter LED screen, and seven other function rooms to meet the different requirements from all kinds of meetings.

Q: Do you consider the MICE business an important engine for your financial growth? How do you expect the overall MICE market in your city to expand over the next couple of years and how do you anticipate this to impact your own business?

 

Knaust: Shanghai is well positioned to become a global key city in the MICE market with the constant development of hotels, exhibition and conference centers, and leisure attractions. The hosting of the G20 Summit in Hangzhou earlier this year provided a further opportunity to showcase the area. As Hilton Shanghai is best placed for small- to medium-sized events, we will continue to focus on delivering a quality and creative experience for key corporate customers. And, of course, as local demand increases we will also benefit from this.

Dexter: MICE is and always has been an important segment to our hotel’s revenue generation and will continue to be part of our offerings moving forward. The market for MICE will continue to grow. However, in challenging economic times, this tends to be the first place where companies cut costs and reduce spending. Therefore, our particular property does not wholly rely on the MICE segment.

Lee: Yes, the MICE business has always been a core revenue stream for our hotel, as we also manage the Hangzhou International Convention Center, located in the hotel. We expect there will be significant growing demand in China’s MICE market; and being one of the key MICE hotels in Hangzhou, InterContinental Hangzhou will certainly benefit from this trend.

Vences: MICE business is an important engine for our revenue and profit growth. Chengdu has been expanding in the travel and tourism arena for years. The city will soon welcome a new airport terminal and new subway lines are also being added. Several new international flight services from London, Abu Dhabi, San Francisco and other cities have opened. We are seeing more hotels being built, from three-star to luxury-standard, to meet different needs and budgets. We continue to drive brand and destination awareness with stakeholders in the MICE business. In addition, we focus on spreading the word about what the city, our hotel and our brand have to offer.

Zitnik: MICE is definitely one of the important revenue growth areas for our hotel. I believe Shanghai will exceed other Asia MICE cities in the very near future. Hilton Shanghai Hongqiao is always sensitive to the constantly changing market, especially with regard to MICE, and I’m so proud of my experienced sales team that always has smart strategies to place our hotel among the top choices for our international target guests. My excellent operation team provides exceptional service to welcome guests back again and again.

Cabre: The MICE market represents an important percentage of our revenue. We expect growth in the coming years as Wuhan’s economy continues to grow at a strong and sustainable pace, and the city continues to develop. I anticipate the financial impact of MICE business will increase at a minimum of 10 percent yearly, so we’re continuously improving our hardware and software to prepare for the future.




 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend