A snap survey conducted by the Academy among MICE venues within the greater Gauteng area has revealed thought-provoking booking schedules in the first quartile of 2015.
Bookings are quick, quick slow
Similar to dance lessons, MICE booking lead times for the largest client sector being the corporate market continue to get shorter – two to four days in advance on average – while slow bookings have been experienced in the first half of January with good bookings in February and March.
Confirmed average pax are between 15 and 70.
April being Easter month plus traditional religious down-time – the industry is bracing itself for a lean, mean month starting this week. The more enterprising managements have planned and promoted various Easter specials primarily with a family focus.
The take-up is erratic making internal planning schedules challenging.
With or without accommodation, that is the question
While agents of all descriptions push the accommodation-linked MICE venues for obvious greater bottom-line return, a definite slow down in MICE related accommodation take-up is evident. More corporates are leaning towards day MICE venues as general catering service, facilities and charge structure are more conducive preferring instead to hang-on to their money chests.
Over-supply of MICE space
Just like the great magicians every building structure be it B&B, sports club, office complex et al are able to conjure up and establish a conference venue at a moment’s notice. Traditional venues have however been slow to realise the need for greater concentration on service and meeting client’s specific needs in order not to be less competitive against a flood of more convincing alternatives.
Greater bang for the buck
And then there are the ‘others’ who attempt every trick known to the human race to slash the MICE venue’s charge structure by less catering for the attending number yet demand more freebies in one form or another. Sadly, irrespective of the detrimental consequences, it is the reputation of the MICE venue that bears the backlash not the ‘others’ that made the decision in the first place.
Payment? – What payment?
The petty complaints in order to delay payment for a hundred and plenty days is on the increase. A petty complaint is deemed as one in which the client delays a payment of many, many thousands of Rands because there were two extra coffees charged on the account.
Lest we forget – if the venue wants the business – it is not always possible to off-set slow payments with large non-refundable deposits.
With the economy far less than buoyant, MICE venues need to stay cutting-edge to remain seriously profitable this year. It’s a jungle out there.
