Are Secondary Cities Becoming the New MICE Hotspots?

 

There is no question that the Meetings, Incentives, Conferences and Exhibitions (MICE) industry is evolving. MICE has always been the forte of large metropolitan cities, with their international airports, large convention centres, premium hotels and established business ecosystems. But the needs of events are changing and the focus is shifting increasingly to secondary cities.

Companies and event organisers want value, unique experiences and greater flexibility from non-traditional business capitals. Regional connectivity, hospitality infrastructure and event facilities are helping smaller cities to attract more professional events. Organisations are also looking for destinations that will provide more for their participants than conference rooms and cookie-cutter business itineraries.

Why Big City Event Planners Are Relocating

Big metro destinations remain important for the MICE industry, especially for international conventions and very large exhibitions. However, they can offer some challenges including higher accommodation costs, traffic congestion, limited availability of venues and increased competition for dates.

Or little towns. Local transport, meeting space and hotels can be cheaper and venues sometimes offer more flexibility for customisation and availability. This can help create room for experiences, entertainment or attendee engagement for corporate groups working with a defined budget.

Then there’s novelty. It can make something feel more special when people usually get together in the same major business centers then relocating to a new place.

New MICE map: Connectivity improving

Accessibility has always been the main limitation for secondary destinations. That is slowly changing with the development of regional air networks, highways, rail and urban infrastructure.

Connectivity has got better and this has allowed companies to look at places which were too difficult to consider before for large groups. MICE relevance does not require a city to be an international aviation hub. An attractive option is one that is easily accessible by direct domestic flights, or good rail services or road links from a major airport.

This is especially true for domestic corporate meetings, dealer conventions, sales meetings and incentive programs where the attendees may from different cities within the same country.

Cost advantages mean new opportunities.

Budget efficiency is one of the strongest drivers for the development of the secondary MICE destinations. Accommodation, venues, transport, food and other services for events in major cities can be expensive.

Secondary cities can provide competitive prices without compromising quality. Branded hotels and professional event venues are penetrating regional markets, providing planners with facilities that can meet corporate expectations at relatively manageable costs.

The savings could also be reinvested in improving the event itself. Instead of spending a big chunk of the budget on rooms and meeting space, companies could spend more on better activities, personalised branding, entertainment or local experiences.

Hotels go local

The hotel industry has been the main contributor for making the secondary cities more attractive for MICE business. International and domestic hotel brands are expanding beyond traditional metropolitan markets to deliver professional meeting facilities and consistent service to new, emerging destinations.

A growing number of today’s business hotels are outfitted with ballrooms, breakout rooms, audio-visual infrastructure, business centers and venues capable of hosting networking events. Secondary city resorts are also attracting incentive groups, leadership retreats and smaller corporate meetings.

Knowledge of a hospitality brand can help give planners increased confidence in selecting a lesser known destination.

Now experiences are events.

Today, the MICE agenda is not just the formal event, it’s the whole attendee experience. Companies want participants to network, engage with the destination and come away with stories to tell.

Especially for secondary cities. Many have strong cultural identities, local cuisines, heritage attractions, natural landscapes or regional traditions which can be incorporated into itineraries for events.

You can add some regional food and culture into an incentive programme after a conference, combine an outdoor activity with a leadership meeting or go on a heritage tour. They transform a typical corporate get-together into a more involved program.

Smaller cities can accommodate more intimate events.

Secondary destinations also allow the opportunity to provide a more focused setting for events. Delegates in a big, large city have lots of competing activities and distractions. In a smaller destination the participants can have more time to spend in the programmed program.

It's of benefit for leadership retreats, strategy meetings, training programmes, team building events and incentive travel. There’s more networking and professional relationship building that can happen outside of formal sessions.

Where organisations are more about collaboration and employee engagement, the destination can be part of the event strategy.

MICE potential challenge to local governments

Regional tourism boards and cities are also starting to understand the economic benefit of business events. Conferences and exhibitions create the demand for hotels, restaurants, transport providers, venues, entertainment businesses and other local services.

Hence, destinations that want to diversify their tourism economies have an incentive to invest in convention infrastructure, transportation and destination marketing. The partnership between public and private sectors can contribute to enhance a city’s attractiveness for corporate groups and professional events.

This leads to a virtuous cycle of improved infrastructure leading to more events and higher MICE demand encouraging further investment.

Technology is breaking down location barriers

Technology is also helping to broaden the scope of destinations planners can consider. Events are not limited to large urban centers anymore. With high speed internet, cloud based event platforms, digital registration systems and hybrid meeting technology sophisticated events can be held anywhere.

A secondary city with a strong digital infrastructure can host presentations, livestreaming, virtual participation and other technology-driven event needs. This is especially useful for organisations that have hybrid events with some attendees attending in person and some attending remotely.

The gap between current and new MICE destinations is shrinking as technology becomes more accessible.

Secondary Cities: The New MICE Big Things?

MICE destinations in metropolitan areas are unlikely to be replaced by secondary cities. Big international conventions, world-class exhibitions and events with thousands of delegates will remain important for cities with strong aviation networks, large convention centres and a significant hotel inventory.

The MICE market is splintering. Now some types of events, budgets and purposes are using secondary cities as secondary destinations.

There’s an opportunity to offer planners more options. Instead of simply selecting the largest city, organisations may consider measuring destinations based on connectivity, cost, quality of venues, attendee experience and purpose of event.

The MICE universe is getting more and more diffuse.

Secondary cities are part of a wider change in the way in which organisations are approaching business events. Destination choice is increasingly strategic as companies are balancing value, accessibility, experiences and engagement with traditional infrastructure needs.

Improved connectivity in regional areas and sustained investment in hospitality will see more secondary cities join the MICE fray. This allows planners to plan cost effective and memorable events which closely match organisational goals.

Major business capitals will remain important locations for the global MICE industry, but they are not the only places where successful corporate events can be held. The next wave of MICE hotspots are likely to be cities that used to be secondary but are fast proving that size isn’t everything in terms of potential for business events.