The MICE (meetings, incentives, conferences and exhibitions) industry is growing because of the rise of companies who are trying to venture into this new type of marketing. Many years ago, conference and event management are far and few and considered by companies to be a luxurious endeavour but this is no longer true because there are companies that devote their a portion of the yearly budget for these events.
The high commissions received by those under the industry cannot be denied because of the rapid digitalization in terms of inquiry as well as booking of guests during the event planning process. The hospitality market is trying to adapt with this new challenge which is to look for the most effective strategy in the field of digital marketing.
This is evident in countries such as Germany where the conference industry is currently blooming compared to any other nations. Planning an event has never been easier because they can easily hire agencies with the said expertise and there are also online platforms that can be used to make the tasks easier. As a result, hoteliers were taken by surprise because of the sudden rise in intermediaries for upcoming events. Furthermore, it is common for abrokered business to set a fixed rate when it comes to commission.
The commissions in every establishment are not the same. The rise of these intermediaries in the form of agencies and online platforms is something that is inevitable because it is trying to match up with the demand. Majority of the agents are setting a fixed commission rate of 10 per cent while others even go higher. There are also alternative options such as the Channel Manager MICE access that gives every hotel the right to set the commission that they are willing to provide. The intermediary is just going to approve whatever the establishment has proposed. The hoteliers get to decide the amount that should be given to the agent.
This kind of approach is a win-win situation for everyone involved in the conference and event management industry but more than that it gives the hotels the chance to set the structure with which they are willing to agree rather than being forced in something that might not be good for the business.