A flatter MICE world, according to Euromic’s president

Market situation: are we back in 2007 (number of events, budgets, relationship with the concept of luxury…)?

R: Our members are showing positive trends in terms of market health, so there is no doubt about recovery… The level of business has gone back to pre-crisis levels, but it is hard to compare with 2007, the world has changed a lot, many new markets have appeared. As a DMC in India, I observe that western companies realise the world is as safe or unsafe anywhere. “There is no safe place anymore, therefore let’s travel”, they seem to think. Risk management is part of the new way of working; it does not limit too much the fact of traveling, it is rather a new element of events anywhere.

E: People planning events are younger today; they have different expectations, tastes… and they are less risk-averse. They have grown up with a lot of things happening around the world, they are very exposed, have travelled much more than before.

R: Also access is much better now. I am just back from Colombia; 10 years ago we would have never imagined them to be such a strong market (incoming and outgoing). Site is holding a conference in Rwanda, which was unthinkable 10 years ago. The world is much flatter.

E: As a convention bureau, there are many new destinations and markets which send business. And people don’t use the convention bureau to get to know the destination, but rather to help them manage their events, look for local resources, manage bids.

R: We find our members are now extending their market, they don’t focus on one country, they know they have to mitigate their risks and explore new markets, which they often do collaborating with associations.

Risk management is a reality in today’s events? Have we done our homework?
We can be a faddy industry, but risk management is not a fad… Every organization must have it in their DNA. Risk is not only terrorism, it is also weather, an accident on a bus, elevators not working.

But frankly: are clients asking for a risk management plan?
No, often not; they tend to find a partner they deem solid, reliable, but very seldom ask for the risk management plan.

Will the DMC business model change?

R: The travel industry has done itself a disservice by not uniting, and by infighting. Marriott lowering commissions is pure greed and instead, we should look after each other. Some hotels want to kill the middleman, and I think the DMC community has become a bit fatalistic regarding these issues. It takes a village to raise a child. If a hotel, a destination or a DMC thinks they can get the clients alone, good luck: this is an industry of collaboration.

But the business is changing indeed. Some European DMCs don’t do hotels anymore; some have become very creative in planning experiences while others are about to die. You can sell based on price or based on value; DMCs need to explain their value. And adapt to local specifics: for instance Americans are very commission-based, just like Spanish ones, while British clients accept agency fees much more easily.

Adapt or die… Are there risks regarding the survival of DMCs?

R: DMCs need to evolve, be better at creativity, flexibility, cooperation, worldwide contacts. If you want to grow, you need to be more global. Also, the threat for DMCs will not come from large players, but from new, emerging, flexible players very tech-savvy.

E: Also, they need to work on cultural experiences and personal values. Increasingly, experiences will be targeted person by person. The event will have to adapt to personal profiles: introverts vs extroverts, learning styles (tactile, visual, auditive…). Knowing this, the DMC will adapt experiences to each participant.

Another change is that DMCs will work more through society, beyond the meeting, connecting with local players. The programs that we do increasingly are committed to sustainability and cross society and have an impact on companies, hotels, activities, NGOs. It is increasingly a global experience in the destination, which makes events much more relevant.

R: Things are changing much faster than they used to. Change has always happened, but is much faster now. We all need to think of how we will be relevant tomorrow, nothing is guaranteed.