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November 30, 2015

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MICE travelers flock to city’s hotels

Q: How would you assess Shanghai’s current MICE market?

Hamer: While there are many destination choices available in China and throughout Asia, Shanghai is becoming increasingly popular as an overseas destination for conferences. It offers a tremendous lineup of luxury and boutique hotels, exhibition and convention centers and historical and cultural experiences.

I think we are all expecting the demand for MICE in Shanghai to grow stronger in the coming years.

Meyknecht: Shanghai is clearly positioning itself as a leading MICE destination in China. The number of arrivals to the city attending corporate meetings, exhibitions and trade fairs increases annually. Domestic arrivals to the city grew this year by a compounded annual average of 9 percent. Yet the overseas markets grew more modestly with an average of 2 percent. Strong international markets remain Japan, South Korea and USA, but I am positive on the future demand growth from Germany, UK and France. Around 12 to 13 percent of the revenue in most luxury hotels is generated from MICE activities. This revenue proportion appears to be rather stable in most hotels. The slowdown in the Chinese economy has resulted in a decrease in demand for MICE from financial institutions, though the demand from pharmaceutical, automotive, luxury retail brands and distribution has compensated for this.

Lam: With a rapid increase in the frequency of economic and trade related activities, China’s hospitality industry has enjoyed strong growth momentum in recent years. It’s evident that China’s MICE market is booming. Shanghai is still a leading MICE city compared with other cities in China, offering mature infrastructure and service personnel capable of catering to international events. 

However, the surrounding secondary cities are accelerating their development and opening more and more international brand hotels. They will be a very competitive option and consequently share the market.

Q: How does your hotel stand out in the city’s MICE market? What challenges you are encountering at the moment to maintain long-term growth here?

Hamer: We are proud to offer a variety of unique event spaces and are lucky to be situated in such a great area — we are right in the heart of Xintiandi, the city’s most famous entertainment, shopping and commercial district. It’s a really engaging area that gives our guests ample opportunities to explore a more social environment.

Our 11 dynamic meeting venues really help foster creativity; we offer everything from meeting studios that can seat 14 to 16 guests to a ballroom that can cater to groups up to 330. The most unique space, however, is the Garden Studios, a flexible residential-style event venue that features a glass-walled pavilion, an open kitchen and two outdoor terraces with beautiful gardens and barbecues.

As a part of the Hyatt chain we hold ourselves to extremely high standards with our MICE business. When people come together they can create, inspire, and solve virtually anything. We believe that when the details of your meeting are graciously handled and the distractions are artfully managed, you’re better able to succeed.

Apart from all this, the hotel also offers Andaz brand complimentary benefits that cannot be enjoyed elsewhere in Shanghai. We treat every guest like executive floor guests by offering benefits such as a welcome drink, Wi-Fi throughout the hotel, local phone calls, non-alcoholic mini-bar snacks and drinks, wine service at Andaz Lounge daily from 6-8pm, all-day coffee, tea and snacks at the host desk and departure gifts upon checkout.

Meyknecht: For global and regional MICE events size matters! While at the same time we need to maintain a personalized service style. We feature a large inventory of 686 rooms and suites, thereby offering flexibility to accommodate all types of corporate meetings. From start to finish we offer a highly personalized service approach. Each event is carefully handled by a dedicated event manager who is experienced with last minute requests, VIP protocol, dietary wishes, themed events, etc. We even focus on the right wine pairing during social dinners. Our banquet facilities can host up to 800 guests. All meeting rooms are equipped with state-of-the-art audio visual equipment, including high speed Wi-Fi connectivity, electronic backdrops, long-distance wireless microphones and other high-tech services. We feature an auditorium with 120 seats, plus a large number of break-out rooms. All meeting facilities are located on the same floor, creating a perfect logistics flow for both organizers and guests. The ballroom can be reached by nine guest elevators, including a dedicated cargo elevator for larger products. Organizers can choose from seven restaurants and bars offering various cuisines including Chinese, Spanish and Italian. The Red Passion roof-top bar and lounge is a popular destination for themed parties and sunset cocktails, offering a stunning view of the Shanghai skyline.

Lam: With Marriott’s largest and most up-to-date MICE facilities in Shanghai, we offer over 2,800 square meters of event space, including two pillarless ballrooms of 1,400 and 1,000 square meters respectively, even a hydrolift platform to the ballroom level. We will accelerate our learning, provide consistent services, localize global best practices to keep up with evolving economic and industry conditions, as well as keep our market share as the new hotels will be opened in a rapid speed.

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

Hamer: We recently launched our exciting “Meeting for Free” package, and it has already been very well received. With this package, events with a minimum of 10 room bookings starting from 1,380 yuan (US$215), plus surcharge, per night will be entitled to host their meeting for free at one of the hotel’s creative event spaces.

That includes full-day room rental from 8am to 5:30pm, with coffee breaks and working lunch. Of course, all guests staying with the group will also have one free buffet breakfast and full access to the hotel’s complimentary core benefits.

In addition, every 10 fully paid and materialized rooms on a nightly basis entitle the booking group to one free upgrade from an Andaz King Room to an Andaz Suite, and bookers are also eligible for double Hyatt Gold Passport points.

Meyknecht: We are investing heavily in updating our Wi-Fi connectivity in all areas of the hotel. With the growing influence of the millennium generation as a serious decision maker for booking and organizing premium MICE events, we try to be ahead of the curve by updating the bandwidth and speed. Recently we opened The Terrace, as an extension to our all-day dining venue, creating options for outdoor coffee breaks and themed dining events. We are enlarging our Havana Room, creating additional seating space. At the Lobby Lounge we recently opened our Kempi Deli Shop featuring home-made cookies, chocolates and cakes. It has become a popular grab-and-go outlet for those on the run.

Lam: Our guests will be excited about the Meeting Imaged planning platform launched by Marriott International this year. Marriott’s vision is to be the first choice for meetings and events worldwide. Meetingsimagined.com is a digital platform that houses our visual inspiration and expertise used for ideation, planning and collaborating. This and other innovations in the areas of service, space, dining and technology also create an elevated experience for both meeting planners and attendees.

Q: Do you see the MICE business as an important engine of future revenue/profit growth? How do you expect the overall MICE market in Shanghai to expand over the next couple of years?

Hamer: MICE business is essential. It’s the best way to drive total hotel revenue and profitability. It’s a win-win for our biggest departments — rooms, and food and beverage — and generates many incremental revenue streams as well.

The hotel is very friendly to visitors from all around the world. We make it a point to make everyone feel like they’re at their best friend’s home, and that they “arrive a visitor and depart a local.” We really try to incorporate the vibrancy of our local neighborhood into the hotel itself, and we like to spoil guests with extras like everything included in our complimentary core benefits.

Looking forward, business from entertainment and luxury brands will certainly increase, especially for a boutique inspired hotel in Xintiandi like we are. And with the establishment of the Shanghai International Circuit in Jiading and the National Exhibition and Convention Center (Shanghai) in Hongqiao, business from automotive companies will also play a growing role in the MICE industry.

We’re expecting strong growth in the coming years.

Meyknecht: We anticipate that during the next few years demand for corporate meetings will outpace demand from corporate individuals. This trend is similar to other key destinations in Asia such as Singapore, Hong Kong and Tokyo. Shanghai is clearly a leading destination for regional meetings, trade fairs and conferences. The city has top-notch infrastructure and a collection of renowned restaurants. Night life is exciting and an important draw for international and regional events. MICE revenue will continue to be an important part of our business model for the years to come. With strategic investments in modern facilities and the latest technology I am confident that Grand Kempinski Hotel Shanghai will be a key player in the Shanghai MICE market.

Lam: MICE traffic has been an important business for us since our hotel opened in 2014. Shanghai will be a more and more important city over the coming years, especially with the opening of business and leisure facilities such as the National Exhibition and Convention Center (Shanghai) and the Shanghai Disneyland Resort. Such facilities are expected to impact our MICE business and create new opportunities for the hospitality industry.




 

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