Insights
August 2020 recovery would be led by nonluxury categories, with domes c leisure peaking on weekends.
Weekly hotel occupancy rates in China were at 55 per cent in late July and at 48 per cent in the US, but STR is repor ng other regions at barely 20 per cent. While hotels in the US tend to rely more on MICE business, the leisure market is more dominant in Asia Pacific. Without this group business, recovery in the US will plateau. There are 87 countries currently managing large-scale travel. If they do so without a significant rise in cases, it will go a long way towards crea ng the consumer confidence needed for a genuine recovery. Conversely, a spike in cases risks a major setback. Corporate travel recovery has begun in some markets, but many small mee ngs will not return from the virtual pla orms adopted during the lockdown. Instead, hotel
MICE sector recovery will be led by domes c events with safety protocols with social distancing easier to operate at exhibi ons as opposed to conferences. Mainland China, Korea, Taiwan and Germany are leading the return of large-scale events with exhibi ons and government events. Many events have turned to virtual or hybrid formats for the short term. The importance of digi sa on and flexibility of venues has escalated, while mul -loca on events that form a larger online global event are growing. This appeals in the transi on phase as a endees lack confidence for travel and large gatherings.
Significant shi s in the MICE industry are underway. In-person interac on remains powerful, but it’s unlikely to be replaced by virtual events in a dominant way. Inperson events are a rac ve for commercial and networking purposes, and most will return this way, but a high por on will be hybrid events. Venue offers will include in-person, hybrid or virtual op ons with enhanced technology infrastructure and flexible rooms. Virtual tours of venues will be the norm with mee ng and event so ware improving rapidly. Contactless opera ons beyond check-in are also here to stay. When a New Normal without Covid-19 begins is unclear. Even a er a vaccine is found, it may take a year or more before worldwide vaccina on and the confidence for mass travel returns.
The ‘New Normal’ There is a strong rela onship between the unemployment rate and hotel demand. At some point consumer behaviour will depend on economic, not health factors. A er borders are wide open and consumer confidence in safe travel has returned, economics will influence hotel demand.
So a consensus is emerging that the world has to figure out how to live with Covid. Are we le ng our high hopes for a vaccine deter us from finding solu ons for an earlier return to some normality? People in the MICE sector have to ask whether we can do more right now, knowing the risks of second waves of infec ons and re-imposi on of lockdowns.
Rod leads the Conven on and Exhibi on Centre Development advisory team at GainingEdge, a specialist consul ng firm.
Later, at IHG he was involved in the development and asset management of hotels and venues. Rod has been at GaningEdge since 2013. He has been a speaker at UFI, ICCA & other industry events. With experience advising clients on 5 con nents he brings a uniquely global perspec ve.
His exper se is in the development and asset management of hospitality assets – conven on & exhibi on centres, arenas, hotels, and casino integrated resorts. Rod is a highly regarded specialist for mixeduse developments. He has advised government and private sector clients on projects with a comple on value exceeding US$ 20 billion. Rod has over 20 years of experience in this industry star ng with PwC where he was involved in hotel feasibility studies.
Some of his past projects include Singapore, Tokyo, Kuala Lumpur, Colombo, Christchurch, Melbourne, Oslo, Cyprus, Bologna, Tbilisi, Los Cabos, Nairobi, and Jordan. He is currently advising mixed-use projects in Hong Kong, Japan and Thailand.
Rod Kamleshwaran, Partner and COO, GainingEdge 40 | www.exhibi onshowcase.com
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