The Hindu Business Line : MICE travel down 15-30%

New Delhi, Oct. 28 With companies reducing incentive travel and sales conferences as part of cost-cutting measures in the wake of the slowdown, activity in the meeting, incentives, conferences and exhibitions (MICE) sector is witnessing a slump.

In better times, top Indian companies would spend anywhere between Rs 3 crore and Rs 8 crore annually on MICE. Industry observers pointed out that there is a 15-30 per cent drop in MICE travel. MICE is a typical incentive given by companies to their outstanding dealers, but now the emphasis is on cost cutting.

Cost Cutting

Mr Samar Singh Sheikhawat, Vice-President, Marketing, Spencer’s Retail, said: “Cost-cutting has become a reality in times of a slowdown. We are prudent about spending. Measures such as using video-conferencing and cutting down on unnecessary travel are being undertaken.”

Mr M. Gandhi, Managing Director of UBM India, the Indian arm of Asia’s largest event management company, said there is a drop in number of visitors as companies are tightening their belts and sending either top management or selective members to conferences and exhibitions. A year ago, he said, a whole contingent would be present.

“It is a little early to see tangible drop in movement of numbers just yet. The real impact will be seen next quarter or during the summer season,” pointed out Ms Richa Goyal Sikri, Director, STIC Travel Group.

The General Manager, India, Singapore Airlines, Mr C.W. Foo, felt that there were still some companies going ahead with MICE movements. “Companies in sectors such as pharmaceutical, infrastructure, consumer goods have continued to spend while the finance sector has obviously slowed down,” Mr Foo said.

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