Early in the pandemic, it was clear that MICE and international business travel would have a way to go to get back to its original vigor. Video conferencing technology became the replacement for all in-person meetings. This worked well during a time of lockdowns and travel restrictions when there simply wasn’t another option.
But then restrictions began easing. There was an immediate uptick in leisure travel, followed by a steady rise in business trips and the slow resurgence of the live, in-person event.
Still, numbers aren’t quite back to 2019 levels. But things are looking promising, with carriers such as United Airlines adding extra routes to accommodate rising demand.
That begs the question: how is the international business and MICE travel segment doing right now? And what does the future hold for them?
A slow recovery gathers steam
Leisure travel already saw a fairly quick rebound after the first lockdowns ended. However, many companies still didn’t feel safe sending their staff on business trips, especially long-haul flights.
A survey of 100 heads of travel by the Institute of Travel Management (ITM) in spring 2022 still echoed this sentiment. At that time, just 28% of respondents expected business travel to ever return to 2019 levels.
But now, in summer 2022, things are looking quite different. In their Q1 earnings call, American Airlines revealed that business travel had reached 80% of 2019 levels in the first quarter of 2022. Delta Air Lines had similar news about Q1 2022. They communicated that business travel volumes had reached the highest post-pandemic levels they’d seen.
The Cvent Travel Manager Report: Europe June 2022 Edition reflects this trend as well. According to its findings, most corporate travel managers expect their organisations’ travel spend to increase significantly in 2022. 75% even say that it will be above 2019 levels.
These developments give reason for optimism in the corporate travel and MICE sector.
Shifting priorities in post-pandemic business travel
The pandemic showed that successful and productive remote work, meetings and events are possible. However, Zoom fatigue and a desire to reconnect in person began boosting demand for in-person gatherings once vaccinations became available.
This has led some companies to quickly push for a return to business travel as usual while others are re-evaluating which trips are really necessary.
Reasons for resuming business travel slowly are varied. One of them is that businesses have realised that remote meetings are a viable alternative. Many are also conscious of rising travel costs and are leveraging remote options to keep expenses in check. Finally, there are the environmental aspects. Companies want to highlight their dedication to sustainability. Avoiding non-essential travel is an effective way to do this.
As many businesses make more conscious decisions about which trips to greenlight today, priorities shift. Especially when it comes to MICE, the focus is now on events that foster genuine connections and provide valuable experiences.
A new chance for both existing and emerging MICE destinations
There’s one more aspect that has impacted business travel and MICE. For years now there’s been a trend to combine business and leisure trips, a tendency that’s becoming ever more prevalent.
This creates opportunities for destinations that make it easy to offer both and have the needed MICE and tourism infrastructure.
Mallorca, one of Spain’s Balearic Islands, is a prime example. It’s been a popular MICE destination in the European market for years thanks to its accessibility and varied offering for guests. However, when looking at attracting MICE from North America, Mallorca still has a lot of room for growth.
That’s partly because the island’s capital Palma de Mallorca was one of the most underserved destinations. Even leading airports like New York offered no nonstop flights. Still, nearly 30,000 passengers flew indirectly to the Balearic Island in 2019. Given historic demand development and this year’s surge, United Airlines began offering the first ever direct flights from New York to Palma.
Marga Méndez, Managing Director from Mallorca’s Convention Bureau sees a valuable opportunity for the island’s MICE market in this new connection to the United States: “The fact that, for now, the United Airlines flight is scheduled until September, it is an excellent window to make ourselves known in a more direct way. Our goal now is that they get to know the product we offer, where we are, who we are and the guarantees of success we offer.”
Tapping into new source markets as a MICE hub
Attracting clients from North America isn’t a new project for Mallorca’s Convention Bureau but the new direct flights are wind in its sails. “Since 2018 we’ve been carrying out a strategy of opening up to this market. We continue working on it through actions such as press trips with the most influential media; fam trips with the main tourism agents in the area; seminars and webinars, as well as constant coordination with Mallorca’s tourism value chain so the North American client can discover everything the island has to offer,” Méndez explains.
These activities have already helped raise awareness, drive business and clarify the wants and needs of North American MICE clients. “Like all markets, the North American one has its preferences, and we work to keep up to date with what’s most in demand. We know that they are particularly interested in our cultural product, in our gastronomy and also in our natural environment, so we work to ensure that their demands are met,” Méndez elaborates.
The fact that Mallorca’s MICE product and tourism sector are already well-established helps a lot here. Additionally, the island offers exciting entertainment options throughout the year, not only during its traditional summer high season.
“Mallorca does not ‘close’ outside the summer, quite the contrary. The concept of the ‘season’ is becoming longer and longer thanks to the different products we offer. That includes everything from cultural and sports activities to gastronomic and nature experiences. In other words, visitors can travel to the island throughout the year to enjoy the option that best fits their profile, including, of course, MICE,” Méndez goes on to say.
Given all this, Méndez is confident that Mallorca will be able to better attract North American MICE business as well.
For other MICE destinations looking to tap into new source markets, she has these words of advice: “Every destination knows its potential. In this sense, the most advisable thing to do is to listen to and understand expectations so you can offer the best quality service to meet them.”
