← Business Models: Industry Specific (Consumer, Services & Financial) (all topics)
Corporate travel & MICE
What it is
Managed corporate travel sells a policy-compliant booking system, approval workflows, consolidated invoicing and GST credit capture rather than a cheap fare. MICE - meetings, incentives, conferences and exhibitions - is project work priced on organisation rather than on inventory
Both are contracted, invoiced and collected rather than prepaid
Impact on industries
- Contracted volume is predictable and renews, which is the opposite of consumer booking behaviour and smooths a seasonal business
- Switching cost is real - once travel policy, approval hierarchy and expense integration are configured, changing provider is an IT project
- Take rate is thin because corporates negotiate transaction fees with full visibility of the fare, and credit terms mean the provider funds the float
- MICE revenue is lumpy and event-dependent, and is the first budget line cut when corporate conditions tighten