Accor has brought the first international five-star hotel to New Zealand’s Bay of Plenty region, in the form of Pullman Rotorua.
The new-build offers 130 rooms across five categories, some of which offer panoramic views of the city and lake area.
Pullman Rotorua
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Meeting planners will be able to avail the four event spaces – the largest of which is 155m2 and can hold up to 120 people theatre-style – and a boardroom which doubles up as a private dining area.
Aside from the Barrel & Co Bar and Grill, other amenities on-site include an executive lounge, bar, and gym.
Pullman Rotorua is the second Pullman hotel in New Zealand, joining the existing Pullman Auckland.
What is trending?
To win the talent war, organisations recognise the need to provide a holistic employee experience. Business travel contributes to employee satisfaction and productivity, leading to a higher overall return on investment for the company.
Business travel programmes have become more focused, and many are also seeking sustainability and reporting requirements from suppliers.
How will these trends impact the way suppliers and buyers work?
Low margins in the airline and hospitality industry, and antiquated systems have led to a need for evolution in distribution and content. For business travel, increased complexity with private channel content creates a need for buyers and suppliers to work closely across the value chain to provide a highly customised experience for the traveller while creating an efficient shopping experience.
We are seeing increased consolidation across the supply chain. With travel buyers becoming more cautious, suppliers are expected to see pricing and cost becoming a bigger priority in buying decisions.
CORPORATE MEETINGS AND EVENT Milton Rivera Vice president, global business development & strategy, American Express Global Business Travel
What is trending?
Attendee experience continues to be a focus across the globe (and) face-to-face meetings continue to be a defining feature of activity in Asia-Pacific, with 13 per cent of meeting planners reporting they do not use any virtual or hybrid meetings.
Sustainability is a key area of focus. Also, as companies are highly aware of managing their corporate reputation, compliance continues to be a recurring theme in countries across the region.
How will these trends impact the way suppliers and buyers work?
With the focus on attendee experience and making personal connections a priority in the region, planners and travel buyers will have to find smarter solutions to deliver memorable events.
That may translate into decisions about different destination and/or the style of the event being delivered; smarter supplier sourcing like finding the right suppliers who share the values of the organisation; while delivering cost efficiencies without sacrificing the quality and experience of the event.
EXHIBITIONS Kai Hattendorf Managing director and CEO, UFI
What is trending?
The exhibitions industry continues to grow faster than the world economy. However, growth has slowed as trade barriers have gone up. This has led to growth in new markets, with a number of Asian markets benefitting.
Overall, Asia is the fastest-growing region with regards to exhibitions. While mergers and acquisitions will continue in our industry, many leaders are now focusing on customer experience and customer-centricity, leading to an ongoing evolution of the traditional tradeshow business model.
What factors are driving these trends?
Trade barriers and tariffs impact the way the world economy works. Millennials entering the boardrooms are influencing the ways marketing investments are viewed and prioritised.
The key for exhibition organisers here is to maintain – or regain – trust in their shows by being transparent about the values and ROIs that they offer. With more and more private equity investments coming into our industry, the current focus on “getting things right” is undoubtedly here to stay.
How will these trends impact the way suppliers and buyers work?
Nothing will replace the value of face-to-face meetings and interactions. But UFI research, drawn on the global input from more than 13,000 tradeshow visitors, shows that suppliers are expected to provide more than just the trade and the conversation at their booth.
The “confex” and “festivalisation” trend means that exhibitions are also expected to (provide) a memorable experience.
ASSOCIATION CONGRESSES Octavio B Peralta President, Asia-Pacific Federation of Association Organisations
What is trending?
I see three cross-cutting themes trending in the association congress space.
They are: more experiential events, developing meaningful connections, and providing sustainability, which are largely driven by technological innovation, purposeful creativity, and social responsibility, respectively.
It is about return on experience – ROE – and not only about ROI. It is not only about networking, but of connecting people for a purpose and in memorable settings. It is about being mindful about doing events that contribute to the destination’s environmental, social and economic well-being.
How will these trends impact the way suppliers and buyers work?
More than ever, I think association buyers and suppliers need to “converge and immerse” themselves into these trends and work closely together for greater impact. Association buyers have to spell out clearly in their RFPs, what their expectations are, for example, of a green event, so suppliers can also make suggestions in terms of say, energy-efficient transportation options, farm-to-table dining choices, or reusable event materials, among others.
Grand Park City Hall, the flagship property of Park Hotel Group, has appointed Jeane Lim as the hotel’s new general manager.
In her new role, Lim will steer the team to accomplish a new level in brand representation and awareness, guest experiences and financial results. Her immediate responsibilities include evaluating the current processes with the various heads of department and offer clear directives and effective support to maximise performance and financial results, while strengthening the cohesiveness of the team.
With more than 30 years of hospitality experience, Lim was most recently the general manger of Parkroyal on Pickering.
Prior to that, she has also served as director of sales in Grand Hyatt Singapore, general manager in Copthorne King’s Hotel and Destination Singapore Beach Road, and vice president of global sales at Millennium Hotels and Resorts.
Now that businesses have reopened, what is China’s MICE industry facing?
Members of the tourism industry including those handling MICE, are still working from home online.
On February 12, China Star had its first online meeting using DingTalk – a free professional office tool, developed by Alibaba, used very widely in China, as well as used by more than five million enterprises and organisations globally.
When speaking with my China counterparts, the opinion is that the Covid-19 impact on the MICE industry is probably the most severe ever. Most inbound events have been cancelled, have changed destination or have been postponed; while all domestic events taking place in February have been cancelled.
A couple of event technology companies have also downsized manpower by about 10 per cent.
What are the industry’s main concerns and why?
Personally, I believe that the number one concern is cash flow. China’s MICE industry operates on a low-profit margin and event companies usually have no pledged assets, like a property, to apply for a bank loan.
The fact is very few small event companies like to borrow money from the banks as the interest and repayment would put them under a lot of pressure.
What interim and recovery strategies are you taking?
Companies have to watch their cash flow and reduce expenditure and create a good training plan with clear targets in mind. Leaders have to identify weaknesses and take the opportunity to train staff to be ready to compete when business gets back to normal.
Meanwhile, MICE companies have to keep connecting with clients and offer accurate information about the situation in China.
China Star has been able to refund clients for events that have been cancelled, and is trying its best to protect the client relationship by building trust to resume the partnership whenever the situation is back to normal.
We are also taking this “unusual opportunity” to do research and create new and better products and reorganise the company’s database to be able to do a more efficient job later.
Last but not least, as industry insiders, we must try to share China’s MICE story with the outside world. Don’t underestimate the power of an individual. One of my posts about Shanghai on LinkedIn has received more than 120,000 page views.
What specific support does the industry hope to get from the government for it to recover?
The most practical support is for the government to return the Quality Guarantee Deposit of RMB1 million (US$143,259) to travel companies with an outbound business license and RMB600,000 to those only involved in domestic travel.
The deposit is bigger for large companies, and the government has decided to return 80 per cent of the deposit to help them with their cash flow. The first 15 travel companies in Beijing have received RMB11.7 million of the Quality Guarantee Deposit.
Other government support includes giving a tax cut, refunding the unemployment insurance, reducing office rent, etc.
As a private company, however, I don’t expect that the government can do much. I have to rely on my own resources.
What I would like to suggest is for the government to make a bigger effort to promote China as a very attractive MICE destination once Covid-19 is contained.
There is no single government department taking care of the MICE industry, and it has never done enough to promote the destination.
The government should start investing in MICE professionals to attend selected MICE shows, build beautiful booths with scheduled activities of Chinese culture experiences, and create a platform for them to meet hosted buyers.
The world is now focusing on China because of the bad news. We should turn the negative into a positive if we can create and showcase the new image of China at tradeshows. We can also invite journalists, really influential ones, to visit China and to report on what they experience, and the government should entrust China’s MICE professionals to organise these fam trips.
Could you share some examples of what the MICE industry is doing to help itself?
SITE China Chapter will be helping second- and third-tier cities to improve their services for event management. The plan is to invite young professionals to be part of the team at events handled by established event companies in Beijing and Shanghai in 2H2020. And we will give priority to those in Wuhan.
In Wuhan, quite a number of MICE professionals are working as volunteers to help those in need. Some venues have been converted into hospitals.
Personally, I cannot do much. But I promised in an ICCA China WeChat group that the first city I will visit after the Covid-19 situation is contained is Wuhan to do whatever I can to help the industry recover.
How different is the situation today compared to SARS in 2003?
I had just started the company with no money in the bank, a 13-year mortgage, a son in middle school, old parents living with me and a small new team of employees.
I made up my mind after SARS that, no matter what in future, China Star had to accumulate enough cash flow to survive any disaster.
Seventeen years later, China Star is much calmer because of that decision. If I could survive then, someone else in my situation now can survive because China today is stronger.
China
China industry observers report sustained growth in 2020 for outbound business events and travel, driven largely by the need to cater to the country’s millennial workforce and businesses impacted by the US-China trade war.
Chinese outbound incentive trips are expected to rise in 2020; Chinese travellers enjoying the moment at Marienplatz in Munich, Germany
Julien Delerue, general manager of meetings and events procurement solutions company 1000meetings, said demand “is expected to increase”, adding that companies are more inclined to explore destinations further afield or newer ones.
Delerue continued: “The trend in 2019 was already showing more demand for off-the-beaten-track destinations compared to renowned and established ones of the past. There is interest in the Mediterranean islands off Spain, or beach destinations in Vietnam such as Nha Trang, with more companies incorporating teambuilding or ecotourism elements to their meetings, incentive and conventions trips.
The number of incentive trips and conventions are expected to increase as more companies expand their businesses internationally.
“Overall, outbound is expected to grow a minimum 20 per cent, but with businesses stringent on cost management as a result of the prevailing world economic outlook,” Delerue remarked.
Starry Wong, deputy general manager, Shangpin Tour Shenzhen, part of the Century Holiday Group, said “educational” trips were expected to grow rapidly in 2020, as more Chinese businesspeople saw the need to attend exhibitions to market their products.
Aggressive destination campaigning by foreign CVBs in China will “have a positive impact on outbound business”, noted Vivian Zhang, director, MCI China.
However, optimism is being tempered by the US-China trade war where travel to the US has dropped, and strong currency exchange rates that have made travel to Europe expensive.
Zhang noted: “Business performance in the past year will impact event budgets for 2020. For example, China’s direct selling market, a major outbound spender, has undergone large-scale administrative reform which has put the whole industry at stake in the past year.”
Wolfgang Georg Arlt, CEO of COTRI China Outbound Tourism Research Institute, said spending in 2020 was expected to grow at the same rate as travel. The corporate meetings sector would fare the best in 2020, he projected, as China was establishing many new business contacts to replace those in the US, in places like Brazil, Iran, and the European Union and in industries such as high-tech. – Caroline Boey
Indonesia
Signs of business recovery are clear for 2020, following a challenging 2019, as stability returns to the Indonesian political environment and new policies by President Joko Widodo are put in place to prioritise development.
Donny, managing director of Adonta Group, a local event and travel company, shared that client budgets will “be back to normal” this year, allowing his company to enjoy a “robust 2020 and beyond” that would be unlike 2019 when many clients cancelled their events due to political concerns.
Pauline Suharno, managing director of Elok Tour, said incentive programmes will grow in numbers, driven by infrastructure, pharmaceutical, automotive and insurance industries.
Fuelled by business confidence, Indonesian companies are turning to longhaul destinations to reward and motivate their staff and partners.
Eddy Efendy, director of Synergy Production Travel and Events, said Eastern European destinations are winning hearts with their exotic appeal and affordability compared to the more established Western European cities.
Ary Leonardo, vice president for the incentive department of AntaVaya, said the new year has gone off on a great start, with bookings for incentive trips secured until the end of 1Q2020. He will be handling a group of 20 top achievers from a cosmetics company to Greece and Turkey in March, and a 150-pax reward trip by an insurance firm to Dubai in April.
Ary observed that more Indonesian companies are favouring experiential programmes. – Tiara Maharani
Japan
Against the excitement and shine of the 2020 Olympic and Paralympic Games in Tokyo, Japanese outbound event agencies are bracing themselves for reduced overseas activities in the new year as local companies choose to stay home and weave Games-related programmes into their incentive and teambuilding events.
Working against Japanese outbound event agencies is also a weakened event budget for 2020.
A sales representative for Tobu Top Tours, who requested for anonymity, said 2020 budget for overseas events is lower than that of 2019.
His revelation was echoed by Lucky Morimoto, president of Event Services Inc., who told TTGmice that budgets for 2020 are “flat.”
Destinations with a higher chance of winning these limited budgets are those with a strong reputation for safety and security, have a good selection of unique venues, and can offer a strong package of activities and experiences via local companies, he said.
Tobu Top Tours’ sales representative agrees that destinations must offer “something out of the ordinary” to score Japanese corporate movements, and pointed out that Hawaii is a firm favourite, while Cambodia and Vietnam are gaining popularity.
Morimoto predicts that Japanese incentives, ceremonies, galas and teambuilding activities will perform the best for overseas destinations. He also expects strongest business opportunities to lie in the IT, financial, insurance and automobile sectors. – Kathryn Wortley
Malaysia
Demand for outbound business events will continue to be soft in 1H2020, say Malaysian agents whose projections are influenced by ongoing trade tensions between China and the US; Brexit; a weak Malaysian currency; and other global uncertainties impacting the business environment.
Asian female traveller in Japan
Mayflower Holidays general manager, Abdul Rahman Mohamed, is expecting “smaller incentive group sizes partly because there are fewer people who were able to meet their sales targets (in 2019)”.
He also noted that clients were paying more attention to the price of the programme and not so much on the experience. “In the past, companies used to ask for quotations from four players, usually the ‘big boys, during the bidding process. Now, it is not unusual for them to ask from eight players as companies shop around for the cheapest offer. Travel companies desperate for business are also dumping rates.”
Budgets for incentive programmes have been cut by some 10 to 15 per cent compared to 2019, he added. As a result, fancy optionals, such as a gala dinner or a Michelin-star feast, have been abandoned.
Syed Razif Al-Yahya, managing director of Sutra Group of Companies, shares a dull outlook for 2020, as his expectations of a local economic rebound in 3Q2019 had failed to happen.
He said Malaysian companies had cut costs in 2019 due to uncertainties in the business environment as well as lower profits – an unfortunate development that he predicts will continue into 2020.
“(Besides slashing event budgets for 2020), companies are reducing the number of staff attending events, as well as being more picky with airfares and hotels,” Syed Razif said.
He added: “Sectors like insurance and financial sectors are still fulfilling their obligations to top achievers, but Small and Medium Enterprises (SMEs) have yet to even determine a destination for their reward trips. Some SMEs are looking at destinations in the region, while others are rewarding staff with cash incentives instead of all-expense paid incentive trips.”
Raaj Navaratnaa, general manager, New Asia Holiday Tours & Travel, has also seen a small number of SMEs opting for cash incentives, and he believes this may catch on with multinational firms in the future. – S Puvaneswary
Philippines
Outbound business events from the Philippines – still comprising mostly incentive travel – is expected to remain robust, influenced by several positive changes in the marketplace.
These changes include destinations like Europe becoming more affordable; NTOs actively promoting their packages; non-traditional carriers like Saudia and China Eastern providing better accessibility to far-flung destinations at affordable rates; and the advent of low-cost carriers that fly from many parts of the country.
Long-established MICE destinations of Thailand, South Korea and Japan will remain on the radar because aside from granting attractive perks to corporate groups, they also dangle the lure of new products, activities or locations.
Turkey will remain in the rat race given its jaw-dropping promotions in the Philippines, direct Manila-Istanbul flights, as well as affordable packages made possible by government subsidy for hotel operators and earnings from optional tours that cover low net rate and service fee, said Angel Ramos Bognot, owner of Asian Afro World Events.
Bognot also expects newcomer Vietnam to be one of the most-favoured South-east Asian destinations because of its extensive marketing promotions and planner incentives in the Philippines, while Malaysia is seen to follow Thailand’s lead of offering cash subvention depending on the size of the event group.
Other corporations, however, are looking for new and exotic destinations. Israel, Kazakhstan, Georgia, Armenia, Morocco, and Russia, among others, have come up on their shopping list.
Budget remains a major factor for corporate outbound and this has been factored in clients’ 2020 programme. Benjie Bernal, Sharp Travel Services tour operations manager, said the event budget varies among their clients, but as travelling becomes more affordable, there are also company heads that bring along their lower-ranking staff on more focused programmes. – Rosa Ocampo
Singapore
As the waves of economic downturn crash onto Singapore’s shores, local business confidence has taken a hit and companies are clamping down on discretionary spend, of which the MICE sector is largely considered a part. Planners and agents alike report tightening travel budgets across the board, shrinking the distance and scale of events and incentive trips.
This is compared to last year’s buoyant forecasts, whereby 80 per cent of planners in Asia were found to have expanded event budgets, according to the 2019 Cvent Planner Sourcing Report Asia Edition. Now, Singapore’s companies are retreating into more conservative travel spending for 2020.
Diana Ho, general manager of Royal Wings Travel, observed: “Companies are tightening their travel budgets and cutting down on longer trips. Groups that used to go longhaul are now looking at nearby destinations.”
Popular destinations include perennial favourites like Thailand, Vietnam and Malaysia, while some TMCs report a growing interest in Cambodia and Myanmar.
“(Besides being accessible), these destinations have infrastructure to support mid- to large-scale events at a cost-effective price, which allows planners to achieve better return on objectives with lower investments,” explained Petrina Goh, director, Singapore, CWT Meetings & Events.
Whether MICE spend and travel distance will bounce back in 2020 will depend on the status of geopolitical developments.
Goh noted: “We’ve noticed that the list of approved destinations for outbound business events has been shrinking. Event planners naturally want to avoid cities or countries that are at greater risk of being impacted or do not have adequate infrastructure to cope with such incidents.” – Pamela Chow
Thailand
Thai MICE groups, armed with a stronger currency and therefore greater buying power, have become the darling of many destinations.
Dave Chang, managing director, Asia MICE Planner, said Japan and other South-east Asian destinations stand to benefit most from Thai corporate travel, and DMCs and hotels are “happy to offer competitive rates to attract more business from Thailand”.
“While the 2020 budgets of upscale clients have remained consistent with last year’s, (cost-conscious clients) are trying to save even more money,” Chang observed, adding that for the latter group, travel budgets for European destinations have shrunk.
Corporate clients are also increasingly relying on social media to make their travel decisions, although airfare and the safety of the destination remain the most critical decision influencers.
Meanwhile, Addy Ritthirong, managing director of Eventage (Thailand), is keeping his eye on political and economic developments in the world as well as new destinations in season, festivals and national grand sales, which he believes will impact 2020 outbound MICE demand for his Thai clientele. – Anne Somanas
Vietnam
As Vietnam’s business event offerings continue to grow, infrastructure improves and domestic air routes expand, the domestic market has emerged as the destination’s biggest source of business events.
Jackie Han, deputy director general of Hoa Binh Group, said: “The majority of events are still planned for within Vietnam. There are many new exciting destinations, venues and opportunities opening that (local corporates) want to explore.”
Bruno Simoes, executive director of smallWORLD Experience, also noted an increase in domestic-driven demand. He said Hanoi remains a “trendy” destination, with the company receiving a rise in enquiries for the Vietnamese capital in 2020.
For Vietnamese firms that do consider overseas events, regional destinations are favoured.
Han said destinations closer to Vietnam are most popular “in order to meet clients’ budgets”, budgets which have risen slightly for 2020.
Pham Ha, CEO of Luxury Travel Vietnam, noted that outbound MICE is a “rapidly growing segment”, with growth seen in 2020 compared with 2019. He added: “Big enterprises now have a combination of travel with seminars and accompanying events.”
Simoes said the main factor expected to impact Vietnam’s outbound MICE market in 2020 is the Chinese economy. He said: “We are quite concerned with the current economic 2020 outlook in China. The economy is slowing down and the whole world’s economy, namely South-East Asia, will be affected.” Ha added that the currency exchange rate may also have an impact. – Marissa Carruthers
Stakeholders are expecting Singapore’s MICE industry to make a comeback in 2H2020, after the spread of Covid-19 is stemmed, and international meetings and events resume regular programming.
The destination enjoyed a solid year of events in 2019, and initially had “a robust pipeline for the next two years” queued up, said Aloysius Arlando, president, Singapore Association of Convention & Exhibition Organisers and Suppliers (SACEOS).
MICE business for Singapore will tumble this year, but stakeholders are hopeful that things will bounce back in 2020
However, the Covid-19 outbreak that erupted over the past few weeks has given MICE businesses in Singapore – many of which are SMEs – “a very rough start” to the year, said Arlando.
Numerous global and regional events, such as the Sweden-Southeast Asia Business Summit; the World Association of Newspapers and News Publishers’ inaugural Asian Media Leaders Summit; Aviation Festival Asia; and the second SG Tourism Leaders Engagement Series 2020, have placed their bookings on hold or postponed them.
In addition, arrival numbers for Singapore are expected to worsen, with the STB projecting that international visitor arrivals (IVAs) to the country will slide by 25 to 30 per cent this year, shared chief executive Keith Tan on Tuesday.
This drop is more severe than the decline seen in 2003 as a result of the severe acute respiratory syndrome (SARS) outbreak, which dented Singapore’s IVAs by 19 per cent.
Tan continued: “At this point, we estimate that every day, we are losing an average of 18,000 to 20,000 IVAs into Singapore. Most of these are Chinese, since we have stopped all visitor arrivals from China, but leisure and business travellers from other countries are also deferring or cancelling their travel plans to Asia.”
However, the MICE sector is banding together to work towards a swift recovery once this blows over.
Arlando shared: “(The SACEOS) team is working with organisers to see how best we can manage the cancellations and postponements. However, not all players are at the (same) level of understanding and preparedness (for the crisis). What we want to do is to level up the baseline, to make sure that precautionary measures are in place.”
He added that 2H2020 will see a “bunching up” of postponed events – many have been rescheduled to the period from May to July – and advised MICE companies to consider “how to best manage” this flood of business when it arrives.
Tan reassures MICE stakeholders the government is doing what they can to retain confidence
Some hospitality players have implemented the strategy of turning their attention to long-needed refurbishment works in anticipation of eventual recovery, said Kwee Wei-Lin, president, Singapore Hotel Association.
STB’s Tan also assured that the organisation has been engaging with other global associations, such as at the UFI Global CEO Summit 2020 in Rome, where leaders have expressed “a high level of trust” in Singapore’s safety and success of recovery.
“We don’t see any reason for other countries to impose travel advisories (on travel to and from) Singapore. We’re very confident in the measures that our government has taken. Our foreign ministry will work very closely with other countries who indicate that they wish to (impose travel advisories on Singapore),” he continued.
Wishton Hotel Yangon will be opening its doors this month
Japanese realtor Yamaman will be making its first foray overseas, with the launch of a hotel in Myanmar on February 17.
Situated in the Yankin area between downtown Yangon and Yangon International Airport, the Wishton Hotel Yangon will be operated by Yamaman’s Myanmar arm, Hotel Yamaman.
Wishton Hotel Yangon will be opening its doors this month
The Japanese-style accommodation will be supported by Japanese-speaking staff. Each of the 91 rooms will be equipped with a bath, with prices ranging from US$70-80 per night. Half of the rooms are designed for long-term stays, and feature a kitchen and washing machine. Guests can also enjoy a Japanese breakfast buffet.
By offering affordable, diverse accommodations near the international airport, Yamaman hopes to attract tourists, business travellers and long-term guests to the hotel, which will become the company’s test case for expansion in Myanmar.
Sanae Tani, Yamaman overseas operations department executive, told TTGmice: “We decided to open the hotel (in Yangon) because of the potential for future growth in Myanmar and the warm personality of the Myanmar people.”
Tani said that Yamaman’s mix of Japanese hospitality and ability to accommodate longer-stay guests is filling a gap in the market.
“In Myanmar, the number of serviced apartments for long-term stays has increased dramatically, but there are still few Japanese-style facilities and services available, especially for Japanese businesspeople,” she said.
Although no concrete plans are in the pipeline, the company is eyeing more hotel ventures outside Japan.
“We would like to open five or six hotels in Myanmar and hope to develop our business in other South-east Asian countries too,” Tani said.
I learnt from the Community Foundation of Singapore (CFS) that this is the first donor-advised fund that has been established for a company in the travel and hospitality sector. Also, S$250,000 (US$180,157) is a rather large donation coming from a company with just 20 people. Did you know that?
I was actually quite shocked to find out, but you know what? We’re really happy to do it.
Why did you set up this foundation?
Actually, CSR has always been part of our DNA. During our yearly Christmas office party, when we invite our partners and suppliers, we encourage our guests to donate (to charity). We are a little notorious (laughs).
But the mood is generally light and cheerful, and for every dollar they put in the bag, we match it. The final amount will then be donated to a single charity organisation such as Make-A-Wish Singapore, and through the past 15 years, I’ve seen the final amount range from between S$3,000 to S$10,000.
This year (because of our company’s 15th anniversary), I think we got a little bit emotional and sentimental (laughs). We wanted to do something different to celebrate our 15 years in the industry. When Mitch (MICE Matters’ co-director, Michelle Seet) and I look back all these years, we realised we just lived year-by-year and basically rocked and rolled our way through it. We will never ever forget how we started.
So how are the funds dispersed?
We have placed S$250,000 with CFS, which partners more than 400 charity organisations in the country. The administrative work is done on their end, and they will in turn identify which charities are in dire need of funds and inform us accordingly. Then, we will decide whether to donate or not.
We have decided that a bulk of the money will go into the bursaries, but we have not allocated the percentages or the exact amount. That’s the beauty of this arrangement.
We will soon have a first-round discussion, with a group of people from both CFS and Singapore Polytechnic, to sit down and talk about the amount they need for their bursary programme.
Also, we wanted our team members to have a say in where the money goes; as everyone has their own favourite charity. For instance, someone would like to donate to Children’s Cancer Foundation, while another would want some of the money to go to an animal welfare project instead.
There’s no fixed timeline on when this money should be used, but we’re hoping to allocate it to the appropriate charities over the next two years.
Why the big focus on bursaries?
We are in the travel industry, and we want to give back to the industry. This is why we want a large portion of the money going to students taking courses in travel and hospitality. Education is very important to us, and it’s close to my heart.
There is a difference between scholarships and bursaries. With scholarships, the recipient must be really smart and may not have the money to study. But bursaries will provide the money to a student with financial difficulties, even though he may not be as bright. This will allow us to help more students.
We are also planning to stretch (our assistance) even further. For example, after they complete their education, we want to give them an internship with MICE Matters. We want to show our commitment to the industry while helping these students develop further.
Do you think the sector needs more young blood?
Absolutely. There is a lack of young blood in the industry right now, but it’s a good thing that MICE has been slowly introduced into the travel and hospitality syllabus in schools in recent years.
You know, the MICE sector is not the most glamorous, and not the most well-paid industry. You really need to have passion and interest in it. I’m actually an accountant by training, and stumbled into the industry. But I stayed on all these years because I found that I was passionate about it.
I think we are in dire need of good people in the industry and that’s why I think future professionals can benefit from the bursaries. I hope that they will be able to see a clear MICE career path upon graduation, and enjoy working in the industry.
Any closing thoughts about the MICE sector here in Singapore?
I think the MICE sector in Singapore is constantly developing. There is a need for education, and for more young professionals to join the industry. Even as technology is becoming more rampant, face-to-face is still very important in the business. The MICE industry is very people-centric at all levels.
I know this segment is going to stay, and will remain relevant for a long time to come. Maybe not at this time during the virus outbreak, but the segment is going to grow. And from a business perspective, the sector needs people who have the passion to be running in this particular industry. The learning curve is steep, and the industry can be complex, but the strategy is always to be event-centric, and give clients a reason to keep coming back to you.
UFI's Global Barometer confirms positive operating profits for 2019 - Turnover expectations for 2020
UFI, the Global Association of the Exhibition Industry, has released the latest edition of its flagship Global Barometer research.
Notably, the report confirms strong industry performance for 2019, but also a higher level of uncertainty when looking towards 2020 in many countries, especially in the Asia-Pacific region and Latin America.
UFI’s Global Barometer confirms positive operating profits for 2019 – Turnover expectations for 2020
The survey reveals a positive result in terms of operating profit, with at least 70% of companies in each of the four regions maintaining a good level of performance in 2019 compared to 2018.
The majority of companies from all regions also expect an increase in gross turnover. However, there is uncertainty in many countries, even prior to the coronavirus issue.
Results also indicate that the key issue for the industry remains the “state of the economy at home” (selected by 26% of all respondents). This is ahead of “competition within the industry” (20%) and “global economic developments” (19%). In recent editions of this long-running UFI research, there has been a trend towards this focus on the national/regional economy over global economic development.
In terms of strategy, in all regions, a large majority of companies intend to develop new activities, either with classic exhibition industry initiatives and/or by moving outside current product portfolios. In terms of geographical expansion, on average globally, more than one company out of three declares an intention to develop operations in new countries.
The survey also tackles the evolution of the exhibition business model and to what extent specific features are implemented. The results indicate a major use of “conference stages on and near the show floor” (3.6 out of a scale of 5).
“Exhibitions grew again in 2019, but a slowdown is expected for the beginning of 2020. The Novel Coronavirus outbreak, which has already led to many shows being postponed or cancelled in China and Asia, will impact this as well. We all hope this situation settles quickly, as the exhibition industry is using these results to shape its general development plans and how it’s adapting to the continually evolving classic business model ,” said Kai Hattendorf, UFI’s managing director and CEO.
Size and scope
This latest edition of UFI’s bi-annual industry survey was concluded in January 2020 and includes data from a record 438 companies in 70 countries and regions.
The study delivers outlooks and analysis for 18 countries and regions: Argentina, Australia, Brazil, China, Colombia, Germany, India, Indonesia, Italy, Japan, Macau, Mexico, Russia, South Africa, Thailand, the UAE (for the first time), the UK and the US. In addition, it analyses four aggregated regional zones.
Economic developments
In all regions, the majority of companies (those in a position to assess their turnover), expect an increase in gross turnover. Eight of the selected countries have, for the three periods surveyed, a majority of companies declaring an increase in turnover: Australia, Brazil, Germany, India, Indonesia, Russia, the UAE and the US.
However, significant levels of uncertainty over the period are recorded in Argentina, China, Macau, Japan, Mexico and the UK.
In terms of operating profit, the highest proportion of companies declaring an increase of more than 10% are observed in the USA (62%), Brazil (50%), Germany (42%), Thailand (42%) and India (41%). Conversely, the lowest proportion of companies are in Indonesia (29%), Russia (29%), Australia (28%), South Africa (24%), the UAE (11%), Macau (0%) and the UK (0%).
Key business issues
As in previous surveys, around 80% of all answers relate to the following four issues: “state of the economy at home” (26% in the current survey, up 2% compared to six months ago); “competition within the industry” (20% in the current survey, up 1% compared to six months ago); “global economic developments” (19% in the current survey, same as six months ago); “internal challenges” (16% in the current survey, down 1% compared to six months ago), where “human resources” are named as the most important aspect.
Strategy
Seventy-nine per cent of companies in the Asia-Pacific region, 87% in the Middle East and Africa, 90% in Europe and 93% in the Americas intend to develop new activities, in either the classic range of exhibition industry activities (venue/organiser/services) and/or moving outside current product portfolios.
In terms of geographical expansion, 36% of companies on average declare an intention to develop operations in new countries, and this is the case for the majority of companies in seven of the 22 markets analysed: Germany (73%), the UK (73%), South Africa (64%), “other Middle Eastern countries” (56%), Brazil (50%), Italy (50%) and the US (50%).
Evolution of the exhibition business model
The 24th Global Barometer survey looked into how the exhibition model is evolving, by questioning companies as to what extent specific features are implemented, as well as the share of available space used for these features.
Results indicate a major use of “conference stages on and near the show floor” (3.6 out of a scale of 5), followed by “open meeting spaces” (2.9) and “catering/designated food spaces” (2.8). “Off main site events” are, by comparison, less common (2.0). These features occupy on average less than 10% of the total space of the exhibitions. The survey results reveal various stages of development and diverging focal points across different markets and regions.
The 24th Global Barometer survey, conducted in December 2019 and January 2020, provides insights from 438 companies in 70 countries and regions. It was conducted in collaboration with 14 UFI Member Associations.
Lewis: Companies can mine and analyse travel and expense (T&E) data to inform decision-making around spend, manage negotiated rates and prepare for rising hotel costs
How many times did you read last year that we are in the midst of a data revolution? That data is part of your value and it’s the currency of the future? You may well have read or heard it and then thought this is all very interesting but it’s not my responsibility, and even if it was, I haven’t got the time or resources to look into it.
The thing is that managing data does seem like a daunting task, a mammoth job that could open up a whole new set of problems and issues that will make you wish you’d never started.
Like everything else however, if you break it down into manageable chunks then suddenly it doesn’t seem like you’re trying to scale a mountain. This is how you do it.
Lewis: Companies can mine and analyse travel and expense (T&E) data to inform decision-making around spend, manage negotiated rates and prepare for rising hotel costs
Objectives
Just like every other task, start with a clear set of objectives and goals that sit within with your corporate policy. Now look at your KPIs and how you can achieve cost savings and more effective spending. This is the important bit and without it, you will have no idea if your data management strategy is working for you or not.
Some good KPIs may include:
Travel percentage of company revenue
Travel percentage of company expense
Total average cost per trip
Travel cost per employee
Travel cost per department/cost centre or project
Strategy
Once you have agreed this with your team, your thoughts should then turn to your data and what you’re collecting. Look closely at the data you have and then consider what you need to achieve your objectives – expenses, HR feeds, purchasing, meetings management and so on. You need real-time access to this to measure your goals, but don’t make the mistake of looking at this data in isolation. Checking across the information you have exposes other variables that you would not see by looking at individual data. There are plenty of data sources that travel managers need to have access to and your chosen partner will be able to help you with that.
Travel and expense managers must have a strategy and a set of tools that can report effectively on all of this data and it needs to be clean. A strategy is imperative to optimise the specific elements that will have the largest impact on your budget. Data quality is paramount. The information you gather needs to be accurate in order to make the correct business decisions.
You need tools that your team will use and feel comfortable with, so look for partners who understand your business, as well as the travel industry in general – specifically how it is trending and changing. Communicate your goals. A great relationship with your selected partner is crucial so choose wisely and carefully and agree your parameters.
Consolidate
So, how do you bring all of your data sources together in one consolidated location? Make sure you collect what you need and only that. Don’t overcook the problem or make it too complicated. Make sure you are consistent across all partners.
Data exists in many locations and in a variety of formats. With purchasing and travel data for example, the primary sources are usually:
Booking engines
TMC invoicing/back office
Travel request and/or the approval system
Credit card/ billing accounts
Human resources systems
By bringing all of this data together, your business can start to predict and analyse behaviour and spending habits. Be clear on what you want to measure, what must be delivered and what data is required to meet your objectives. Collect information from all of your vendors and identify how often they can provide this data and in what formats. Take a look at your entire organisation to fully understand what can be improved.
Measuring up
Make sure that you’re able to provide measurable results which meet the objectives of your organisation. Plenty of intelligence tools produce the data but they don’t know or understand your business. Define the type of data analysis you will be conducting and use the tools to evaluate where you are at today. Set your goals clearly – focus on where you are and where you want to go.
If this needs tweaking or changing, don’t be afraid to do so. There is useful data within your organisation that can show trends, so exploring and playing with numbers will present new opportunities. This will give you a better insight into your overall travel data picture.
The things to remember are:
Collect what you need; work backwards from the reports to the data source
Ensure consistency across all partners to capture critical data points
Accurate reporting
Your business must have an easy tool to use. You may have all the data you need, but you’ve now got to make it work for you. Tools that are easily deployed and usable to many users of differing skill levels are vital to ensure that they are used. Don’t waste your budgets on overly complicated software and make sure you try a live demo of any reporting/analytics.
Phocuswright reported last year that corporate travel is solidly and steadily increasing. With that in mind, data is one of the most valuable enterprise assets you have, but it must be actively managed. With a systematic and methodical approach, it will be a much easier task to face in 2020.
Chris Lewis is the founder and CEO of Travelogix, a company which provides TMCs and travel managers with quick, easy access to business travel data. Lewis is highly experienced in the travel, and IT, industries. He was previously sales director at Micros Travel and responsible for developing automation systems for corporate travel. Lewis is also a regular speaker at travel industry events.
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Chris Lewis is the founder and CEO of Travelogix, a company which provides TMCs and travel managers with quick, easy access to business travel data. Lewis is highly experienced in the travel, and IT, industries. He was previously sales director at Micros Travel and responsible for developing automation systems for corporate travel. Lewis is also a regular speaker at travel industry events.
