Hotels missing out on MICE business

A worldwide survey on the handling of MICE inquiries in the hotel industry has revealed what it calls “disturbing findings” showing that lack of responsiveness is widespread throughout the industry, with hotels missing out on significant potential MICE revenues.

Whilst conference and event business has experienced an upswing since 2010, the 2011 IFH Institute For Hospitality Management survey found that a great many hotels are missing out on business due to a lack of appropriate procedures and responsiveness to enquiries.

“Put bluntly, too many hotels are literally leaving major amounts of money on the table by failing to have or supervise their MICE handling procedures,” the report noted.

A mystery shopping IFH team made a comprehensive set of test MICE enquiries at the end of 2010 to 167 hotels in the 3-5 star category worldwide.

The result, an overwhelming number of the hotels neither addressed the actual needs and requirements of the enquiry, and in many cases did not even respond.

“Whether Amsterdam, Hong Kong or New York – with regard to personal communication with the customer, silence prevailed to a large degree,” the mystery shoppers reported.

The most important results at a glance:

– 30 percent of the 167 hotels that were sent inquires did not respond at all.

– Of the 117 hotels (70 percent) that responded to the inquiry, 85 percent did not speak nor attempt to personally contact the customers by phone to query or follow up on the response.

– Only 26 hotels (15 percent) provided a tailor-made offer oriented to the needs of the customer.

– 75 percent of all offers were merely “non-binding proposals” (i.e. prices and general proposals) although the details of the inquiry had been specifically worded.

– Only five hotels of a total of 167 were able to make a convincing offer and encourage the booking.

About the 2011 IFH MICE Survey

Eighty four percent of the 167 hotels contacted were from major international hotel groups and consortia with the remainder being privately owned independent properties.

In terms of star rating, the survey concentrated on the upscale segment with 64 percent being 5 Star and 36 percent being 4-star category.

Most of the hotels are in Europe (40 percent, of which six percent are in Germany), followed by Asia and the Russian Federation (each with 16 percent), the US (15 percent), Middle East (9 percent) and Australia (4 percent).

Hotels were contacted by means of an identically worded email containing an event inquiry via an appropriate fictitious company address.

This “company” also had its own company website with appropriate content. Afterwards, the complete event enquiry procedure was analysed and evaluated – from the first enquiry to the conclusion of the contract – based on a set of criteria (eight categories such as communication, customer orientation and sales behaviour).

The enquiry comprised a 3-day event (two overnight stays) for 30 persons with full board, including a special dinner as well as an attractive accompanying programme to be arranged in more detail.

The stipulated maximum budget was EUR 30,000. The proposed event was outlined with just enough essential basic information, but making it absolutely crucial to take up personal contact with the customer.