← Business Models: Industry Specific (Consumer, Services & Financial) (all topics)
MICE (meetings, incentives, conferences, exhibitions) & corporate contracts
What it is
Meetings, Incentives, Conferences and Exhibitions business, plus negotiated corporate rate agreements. It fills rooms midweek and drives banqueting and food and beverage revenue that transient leisure guests do not
Banquet and event revenue often rivals room revenue at large city hotels
Impact on industries
- Fills the midweek trough and lifts total revenue per guest well above the room rate through banqueting, catering and event services
- Contracted corporate volume gives base occupancy that makes yield management on the remaining inventory possible
- Weddings function as a domestic MICE analogue and have become a major seasonal earnings driver for Indian chains
- Corporate rates are negotiated annually and discounted against transient, so heavy corporate mix caps ARR
- Sensitive to travel-policy tightening and geopolitical disruption, both of which hit MICE before leisure demand