The Russian MICE services industry: Expert's view
How would you assess today’s business and conference services market in Russia?
Today, despite the economic crisis, the Russian business and conference services market is undergoing reorientation. The number of business events has reduced; many companies now see it as inexpedient to spend lots of money for 2-3-day seminars/trainings, preferring either to reduce such programs to a day or cancel them entirely. Another trend is the ongoing reduction in the number of companies on the market. Besides, as expenses on business events are high today, several organizers are now more conscious over the scale and number of invited guests, with some reducing these parameters two or even three times. Such reductions now enable hotels to host companies that used to organize events for 600-700 persons, but have now reduced the number to 150-200 people. Most market players have noted the exodus of organizers of large-scale conferences from central cities to the Russian regions and even outside Russia to the Baltic states, caused, first and foremost, by pricing policies. At the same time, the number of events being organized by private individuals has increased, and therefore, one can say that the falling demand has so far not had any impact on the industry.
What is the real demand for business and conference services today, and who are the major consumers of these services?
The demand for business and conference services is high. Major users of these services include large companies with lots of units/departs, such as pharmaceutical companies and other corporations, which need comprehensive packages of conference services such as accommodation, food, conference halls, etc. that usually organize their events through MICE agencies. A relatively smaller market share belongs to companies in the industrial and aviation sectors. A similar market size is occupied by training companies, most of which have recently significantly reduced the volumes of their operations.
What would you say are your hotel’s key competitive advantages in this market segment?
In this respect, I can say that Korston Hotel & Casino Moscow possesses several competitive advantages. First of all, its location outside the Garden Ring, which ensures that our major corporate clients, whose offices are sited near the hotel, will not leave us, despite price dumping by more centrally located hotels. Besides, our hotel has over 14 modern conference halls, which, accordingly, give our business travelers broad variants to choose from. In addition, we also offer professional lighting and sound equipment, round-the-clock technical support, and also free-of-charge WiFi Internet access, which is still a rarity in most hotels. All these factors have enabled us to remain a key player on this market. Also, we plan to open a large, over 1,500sqm space multipurpose conference hall in this autumn, which will give us additional opportunities to boosting sales, as it will enable us to offer more additional services, and thus, attract new clients. One more advantage is the availability of an entertainment zone with bowling, snooker and other recreational facilities that allows us to plan and execute clients’ business events in such a way that the participants could both work and rest in our hotel.
In conclusion, I would like to note that the Russian conference services industry is not static, and its growth forecasts for the future are more than optimistic. This is because different business events are not only being used today as incentive programs for the employees, but also as ways of demonstrating company’s status to its business partners. And, finally, I would like to stress the fact that hotels are competitive players on this market, which, when necessary, are always ready to help meet the clients’ needs, demonstrate loyalty and work in anticipation of clients’ requests/needs.
Web design,