chapter 2 business structure of mice

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The Business Structure of MICE industry

Chapter 2

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Introduction� Chapter Two outlines for students the structure of the MICE

industry in Thailand. It identifies the various industry stakeholders and the role that they play within the industry.

� Students are also provided with an over view of the various types of venues, facilities, products and services provided by the industry.

� The chapter is designed to build on the information introduced Chapter One to ensure that students are provided with a solid foundation on the structure and organisation of the MICE industry.

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Objectives1. Outline and explain the structure and organisation of the

MICE industry in Thailand

2. Name the industry stakeholders and outline the roles that they play

3. Define the types of services necessary to conduct MICE business

4. Identify the customers of the MICE industry

5. Explain some of the terms and definitions used in the MICE industry

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Outline

1. The structure of MICE industry (demand and supply)

2. Player and Stakeholders in the industry

3. MICE customer

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The Structure of MICE industry

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The relationship between business tourism and leisure tourism

Business tourismLeisure tourism:

� Accommodation� Bars, Café, and restaurants� Transport� Retail outlets

Leisure tourism +:� Convention and exhibition venues� AV specialists and IT facilities� Secretarial services

The supply side: Business tourism

and leisure tourism

�Entertainment

venues

�Visitors attractions

�Tourism information

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Leisure tourism and business tourism

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The Structure of Business Travel and Tourism

Consumer/ Customers� Individuals� Companies� Associations

Specialist Intermediaries� Business travel agents� Conference placements and handling agencies� Exhibition companies� Event management companies� Incentive travel agencies� Destination management agencies

Supplies� Transport operators� Venue (Residential and Non-residential)� Accommodation operators� Ancillary service (Catering)� Special service (AV, Entertainment equipment, IT)� Visitors Attractions

Demand

Intermediaries

Supply

Source: Horner and Swarbrooke (1996)

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The Structure of Demand

Business travel and tourism

1. Frequency of travel2. The level of demand for particular destinations3. The level of demand for particular venues4. The level of demand for different types of accommodation5. The level of demand for the products and services 6. The segmentation of the market on the demographic7. The seasonality of demand8. The purpose of trip and the type of business tourism9. The duration of the trip10. Expenditure during trips

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The Structure of Supply

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Characteristics of Events as a service

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Structure of Event services

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Structure of Event services

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Structure of Event services

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Industry Stakeholders

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The Industry Stakeholders

PCOs andConvention managers

Convention Bureaus

Exhibition servicecontractors

Exhibition/trade show managers

Food Services

TransportationExhibitors

Audiovisual

services

Exhibit design

Associations

Destination management Companies

Exhibit design Facilities

Hotels

Delegates

Delegates

Delegates

Delegates

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The Industry Stakeholders1. Convention and visitors

bureaus2. Hotels3. PCOs and Convention

managers4. Transportation / Freight

forwarder5. Exhibition service

contractors6. Destination management

companies (DMCs)

7. Food services

8. Exhibit design

9. Associations

10. Audiovisual services

11. Exhibitors

12. Exhibition/trade show managers

13. Facilities

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Services necessary to conduct MICE business

1. Convention and Visitor Bureaus

2. Venues3. Transportation Operators4. Service Support Companies5. Exhibition Service

Contractors6. Professional Conference

Organizers (PCOs)

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1. Convention and Visitors Bureaus

� CVB has been established for the need of coordinatedapproach by all sections of the tourism businesscommunity as to encourage both MICE business andvisitors

� CVB works or acts as a cooperative, representing all thevarious sectors of MICE industries (e.g. venues, hotels,restaurants, transport operators, etc.) and promoting thecity/destination to a broad range of companies,associations or visitor groups

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Convention and Visitors Bureaus

Retail Shopping

Convention and Exhibition

center

Information center/ Visitors

Entertainment Arts events

Food and beverages

Transportation network

Attraction Tours

Hotels Meeting facilities

CONVENTIONAND

VISITORSBUREAU

Community Setting

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Convention and Visitors Bureaus

� Major functions & responsibilities of CVB include:1. Sell the city/destination by developing an image to

position the city in the market place 2. coordinating the constituent elements of the industry

and public sector3. working with meeting & group planners4. representing both buyers (demand side) and sellers

(supplier side)5. providing information and responding to visitor enquiries6. providing leadership for the industry

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Convention and Visitors Bureaus

� CVB[s services provided for all MICE sectors1. site inspections of the city[s hotels & other facilities2. advice and assistance on budgeting & organization of the event3. suggestions for the structure of conference program (during, pre &

post programs for both participants & accompanying persons)4. promotional materials5. assistance in the preparation of the bid documents, particularly for

associations that might wish to host a regional, national andinternational conference at the destination

6. Liaison between government, civic authorities and the MICEorganizers

7. It generally has a list of members, those would have beenclassified into different categories

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Convention and Visitors Bureaus

1. International Congress and Convention Association: ICCA2. International Association of Convention and Visitor Bureaus: IACVB 3. The Professional Convention Management Association: PCMA4. Asian Association of Convention and Visitor Bureaus: AACVB5. Society of Incentive Travel Executives: SITE6. International Association of Professional Congress Organizers (IAPCO)7. Tourism Authority of Thailand: TAT8. Thailand Convention and Exhibition Bureau: TCEB9. Thailand Incentive and Convention Association: TICA10. Trade and Exhibition Association (Thailand): TEA

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2. Venues

� Venues are places where MICE eventswould be organized,

� Venues today must be aware of currenttrends within the industry, including:

1. the increase in the smaller MICE market,especially from the corporate sector

2. the need to be cost competitive3. the demand from corporate and organization

meting planners for a greater return on theirinvestment

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VenuesThere are three main categories:

1. Residential Venues

2. Non residential Venues

3. Special Venues

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Venues1. Residential Venues

Residential venues are any venue that provides both residential accommodation and convention and meeting-style facilities, for example:

� Resort Hotel, Central Business District Hotels (CBD), Airport Hotels, Suburban Hotels, Boutique Hotels, Residential conference centers

� Colleges and University� Cruise Ships

== Provide Accommodation +Provide Accommodation +Convention and Meeting FacilitiesConvention and Meeting Facilities

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Venues2. Nonresidential Venues

= Only provide convention and meeting facilities

* other venues for MICEevents that exclude theprovision of lodging� indicated or purpose-built

convention centers� exhibition halls� arenas & stadium

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Venues3. Special Venues

these have beenspecifically selected forparticular MICE events,e.g.� historical buildings,� museum,� zoos,� landmarks

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3. Transportation Operators� The transport operators in supplying a

MICE event can include:* Airlines

* Railways / BTS / MRT

* Coaches

* Car rental & taxi companies

� Airlines play an important role in thetransportation process of both domestic& international MICE event

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4. Service Support Companies� This group of companies provides

support services to ensure a successful MICE event, including:� audiovisual companies� printers, printing companies� florists� entertainment companies� interpreters & language translators� producers of conference satchels and

name badges

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5. Exhibition Service Contractors� These companies, generally sited in each capital city, provide a

variety of products & services including� exhibition stand design & construction� plant & equipment hire� provision of light & power� security� art works

� Generally, these companies work andhave a very close relationship with PCOs and organizers at the MICE[s venues

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6. Professional Conference Organizers

� These companies are an individual ororganization who organizes andprovides MICE planning services to a client/customers for a fee

� They would manage all details,activities and interactions of a MICEevent, from the initial idea through tothe actual event and post-eventevaluation

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Type of Convention and Meetings

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Types of MICE events

Corporate Initiators Non-Corporate Initiators

Internal event

External event

In/External event

International Governmental Organization. (GO’s)

International Non-GovernmentalOrganization. (NGO’s)

International MICE Events

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Types of MICE events� In general, all MICE events could be categorized into:

� Corporate events, these are from private sectors� Association/government events, these are from government &

not profit oriented organizations & associations� Examples of these events might include:

� corporate events- association meetings & events� government & intergovernmental meetings� common interest meetings� exhibitions� trade shows� consumer shows

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Who holds and Plans the Event?

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MICE customers� This section deals with the question of who holds the MICE

events, the outcomes are as the following:1. Corporate sector (think about the size of meeting, rotation &

frequency rate, etc.)Can divided in to 3 distinct areas

1.1 Manufacturing Trade Show1.2 Distribution & Retail Sales meeting1.3 Service Seminar & Training

� The cost of holding a corporate convention or meeting is normally funded by the company or sponsor of the meeting.

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MICE customers

2. Associations,Association can be professional, technical, religious, social, educational. � Most professions or careers usually have at least one

association.� Associations can vary in size from small religious groups

to large state, national and international organizations. 3. Government organizations4. Non-profit organizations

This market comprises unions, common-interest group such as sport, culture or social clubs.

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Who is involved in the Organizing of Events?

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Who is involved in the organizing of MICE events

1. Company or associationThe company make the decision to organize a convention or meeting.

2. VenueA venue provides the accommodation and all conference and other in-house facilities.

3. Professional conference organizerThe PCO becomes an intermediary between the original planner of the convention, the provider of the venue and facilities, the various supplier and the actual delegates to ensure that the convention or meeting is a success.

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Who is involved in the organizing of MICE events

1. Make all its own arrangement, including the organization of the booking and management and execution of the convention or meeting.

2. Decide on a venue and let the convention services manager at the venue take care of the details within the facility, liaising over the details as required.

3. Contract with a professional conference organizer to make all the arrangement on its behalf

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Who is involved in the organizing of MICE events

Suppliers/services,Venues, Hotels

Delegates,participants

PCOs

Company, AssociationGovernment