Bringing home M!CE & weddings

The third session of TravTalk Digital Conclave presented an opportunity for India to shine as a M!CE and wedding destination. The next step is for the stakeholders and the government agencies to ensure that the infrastructure is at the ready. The conclave received a total of 7,244 registrations and more than 1,800 individuals were part of this session.

Hazel Jain

The third edition of TravTalk Digital Conclave brought together three experts who deliberated on the topic titled ‘Big-ticket business: When do we start looking at weddings, corporate and M!CE travel?’ There can be no simple answer to this, of course. The readiness of not only the corporates but also the service providers such as hotels and event planners is a process.

Opening the session on an energetic and powerful note was Rajeev Jain, Director, Rashi Entertainment. He said, “I don’t know why there is such a hue and cry about this pandemic. Those companies that have cash reserves shouldn’t have any problem right now. Let me tell you that hoteliers, wedding planners and wedding management companies have made their money until February 2020, after which we saw lockdowns. The last wedding we did was in Udaipur on February 29, 2020. We are now in the off-season, so there would have been no weddings in June anyway. Rooms that were being sold for Rs12,000 are available at half the rate during off-season.”

Jain added that while the world is facing a huge problem, we should not lose our mental/emotional equilibrium because of it. “If we do, we will not be able to survive this. This is a pandemic that we need to fight medically and the entire world is working on it. This is a time to spend time with family and relax. Let me tell you, by next year, the wedding industry will be up by 15-20 per cent. Anyway, nothing happens before November and December. My request to the industry at large is please control your mental and emotional health as well apart from the physical health. Business is bound to return,” he said.

As per Jain’s forecast, the wedding industry will bounce back between December 2020 and January 2021. He adds, “It will return to normal by this time. Yes, I agree that the wedding size will get smaller with 100-200 guests as against the usual 1,000 guests. But from February 2021 things will be alright and business will be rocking as usual.”

Incentive market is cautious

Sharing his perspective from a tour operator’s point of view keeping M!CE in mind, Rajeev Kale, President and Country Head – Holidays, MICE, Visa – Thomas Cook (India), says he would like to differ with Jain as far as this segment is concerned. “These are unprecedented times. But, whenever there is a disruption, there is also an opportunity. Those travel companies that can actually invest this interim time in re-imagining and re-inventing their business model will be able to survive this. Year 2020 is the time for companies to look at how their business will be in a post-COVID-19 scenario. If we are hoping that things will go back to being as they were until March 2020, the answer is a big No! It is going to be a completely different business going forward. I recommend everyone to invest in technology systems, knowledge-building and sharing, and building relationships. Talking to each and every partner will be key because communication will be vital during these times,” Kale says.

He feels that the recovery will be in phases. “If we are thinking that M!CE will bounce back by July 2020, the answer is no. It will take time because today, the concern is about safety. There is fear in the minds of travellers. First, this fear needs to settle down and a vaccine needs to be in place. All dealer-based industries today are looking for credit notes against their international incentive travels because they want to maintain their cash flow. Similarly, the employees are unsure about their jobs. So, we will have to wait for the dust to settle down before things can improve, and they will. Travel is a huge aspirational product and experiencing new places and cultures is a definite urge that cannot be replaced by digital means. One must ask this question: at such times, what is making us happier – our fancy cars or our memories and photos of travels with our loved ones?” Kale asks rhetorically.

What do corporates say?

With 26 years of experience in the travel and corporate sector, Rajdev Bhattacharya, General Manager, Global Travel & Hospitality Services and Way2go, Digital Operations & Platforms for Wipro, feels that starting today, the industry needs to change the narrative of the crisis. “The mindset is important. We are going to look at 2020 and say that it made us more resilient and stronger. We must work with our circle of influence. The rest is not in our hands,” he says.

Weddings must take place in India

While weddings cannot stop taking place, Jain says that as an event planner, he wants to conduct every wedding in India this coming season. “As Indians, we have to ensure that all the revenue stays in India. I love all international destinations – whether it is Ras Al Khaimah or Thailand – but first we will promote our own country as a wedding destination. We have to support our own hotels and destinations first. We need to support the Indian economy first! The expense is not a hurdle as people have money to spend on weddings. They start saving for this one event 20 years in advance. So they have enough savings for this. The wedding industry is here to stay! First we need to fill Indian hotels. Anyway, right now we are scared to travel and are afraid to get on airplanes. Yes, there will be new norms for weddings. Masks and gloves will become a way of life and hand sanitisers will be a fixture at weddings.
But we will adapt. I am very optimistic about this. In fact, I’m sold out for November 2020!” claims Jain.

Domestic M!CE will pick up

Taking this thought forward, Kale believes that domestic luxury M!CE will bounce back first. “It will be affordable luxury as the hotels will be hungry for business due to low occupancies. The big chains such as Marriott will open first. And, by end of the year, short-distance M!CE destinations in India will be in demand. India will definitely be our focus and why not – it has everything to offer so why look elsewhere,” he says. Currently, Thomas Cook India is looking at how it can use technology to do its Rewards and Recognitions (R&R) events. “We need to continue recognising our people’s efforts. As we speak, we are doing our Rewards and Recognitions Programme on a digital platform instead of a banquet hall,” Kale reveals.

Virtual meetings might be the norm

Meanwhile, in the corporate sector, Bhattacharya feels that virtual meetings are here to stay. “What has not happened in decades has happened in the last two months. Companies now feel that the ‘work from home’ option can also be productive. Another thing that I have seen happen in the last two months is large deals closing via video calls. I want to believe this is temporary as it is not good for business travel. But, I do see companies cutting down on international travel in the short term, at least till April 2021. This will also be a factor of airline pricing as they push up flight tickets. Another thing we need to look at is how insurance companies will react to this situation. But a lot of factors are fluid at this point of time,” he says.

To this, Jain quipped, “Before I say anything, I have a message to the corporate world – please don’t encourage virtual meetings. It is all about personal experiences and face-to-face interactions. We must be ready to start doing business in India in the next few months. As far as buyouts are concerned, they will continue for weddings. Weddings cannot take place without buyouts. I completely believe that this segment is going to save the hotel industry and domestic travel in India.” Jain added this is only the second webinar he has opted to be part of.

His message to the hotel industry in India: please don’t undersell yourself! Hold your bookings and sell them at your own rate. “I am projecting a 15 per cent growth in the wedding market by February 2021,” he said.

Managing corporate expectations

Technology is here to stay, and stressing on this point was Bhattacharya, who said, “It is going to change the behaviour of people. Corporates will not buy travel the same way as before, that’s for sure. That means the travel agencies will also have to become digital. When that happens, the mix of people that travel companies employ is going to change. It will depend on the kind of skillsets they possess. This is apart from the domain knowledge they have. The travel counsellors can easily pick these skills up during the lockdown period. By the end of it, they will be thanking 2020 for giving them the opportunity to arm themselves with new skills. The entire travel industry is going to move to IT. They will also have to learn how to close deals on the phone.” He recommends five skills that today’s travel professional needs to learn (see box).

Sharing his point of view, Kale added that the entire process of travel is going to become touch-less. “Some countries already offer e-visas. We have to wait and see how the rest of the countries are going to adapt to this amidst COVID-19. We are going to get ourselves equipped to do this entire end-to-end process digitally. Companies that can digitise every stage of travel bookings and reduce touchpoints will survive and re-define the travel business. This happened in a small way during SARS,” he said, adding that speed and errorless transactions will be some of the client expectations going forward.

Top Indian destinations for weddings

For Jain, India offers many options for destination weddings. “Rajasthan has always been a popular destination for weddings. Jaipur takes the biggest share of the pie, followed by Udaipur. We are also trying to develop new spots in Rajasthan such as Pushkar, apart from Jodhpur which has huge potential. We are also looking at newer destinations in other states such as Mahabalipuram in Tamil Nadu. It promises to have a huge share in the wedding market. And, of course, Goa that has always been very popular,” he says.

In terms of M!CE travel though, Kale feels that cities like Hyderabad, Jaipur, Kolkata and Mahabalipuram will be great destinations that have good infrastructure. “In terms of exhibitions, our ‘Make in India’ programme and the ‘Atma Nirbhar’ scheme will give the sector a lot of opportunities for exhibitions within India. The government has also come up with certain policies for M!CE, one of them being extending monetary benefits to any exhibition organiser that has 20 per cent of foreign delegates. My view is that in the last quarter of 2020, we will see a lot of RFPs for exhibitions coming up and those who are armed to handle it well amidst COVID-19 will stand to win,” he says.

In the end though, whichever city it is, the hotel brands that show huge emphasis on hygiene and sanitation will come back strongly as customers will choose them over others. Bhattacharya says, “There will be a willingness on the part of all corporates to pay a premium for brands which will showcase their high hygiene standards. This is the primary shift from the price point of view of corporates.”

Availing benefit as MSME

“It is important for all Event and Entertainment Management Association (EEMA) members to get themselves registered under MSME to avail various benefits from the government, which is ready to provide any kind of help that the association is seeking”

– Nitin Gadkari, Union Minister of Road Transport and Highways, Shipping & MSME

A word from MOT

“We want travel to take centre-stage with M!CE tourism as its component. For this to happen, protocols and SOPs have to be in place and every stakeholder has to be informed about it. We have to position ourselves as a country that is safe for M!CE”

– Rupinder Brar, Additional Director General, Ministry of Tourism

Guidelines for MoT’s incentives for M!CE

• Conferences will require minimum of 500 participants and must comprise at least 20% foreign participants to be eligible for the incentive.
• Financial incentive will be extended to international conference/convention organisers in the form of reimbursing 50% of GST on hotel rooms for international/fore ign participants/NRIs on actual basis subject to GST being paid to be not more than 18%.
• Incentive of GST incurred on hotel stay up to a maximum charge of `8,000 per day per room will be made for one night only.
• Incentive will be available for three years.

Government incentives through ICPB

Ministry of Tourism will provide incentives under the CSSS Scheme for promoting M!CE in India. It has made India Convention Promotion Bureau (ICPB) as the nodal agency for steering and promoting this, which in turn will motivate travel planners and associations in publicising the scheme.