While most global studies expect a weak recovery in the MICE sector this year, French hoteliers, questioned by Hospitality ON with Olakala, are not showing much optimism in concerns to the French congress market activity.
After a gloomy climate in 2012, MICE market prospects are not looking brighter for the current year. Reflecting the national economic health, should post a decrease in activity of about 1.4% this year, according to the experts. It should be said that since the crisis of 2008, demand for business travel has been weak particularly due to the drop in company expenditures, who must face a currently difficult economic situation and the increase in taxes. Additionally, the French MICE market is now subject to double competition: that of their European neighbors, sometimes a better deal, and that of emerging countries.Hospitality ON sought to understand the effects of current market conditions on hotel activity, via a questionnaire given by Olakala. The results clearly show a slowing of activity by French professionals on the business segment, with a downward trend in the beginning of September 2013. 73% of questioned hoteliers have not yet made any MICE reservations for the period, and among the remaining 27%, 58% note a decrease in their reservations and 39% highlight retention.The effects of the downward trend in reservations is being felt in sector revenues, but not solely as the average trip length is also on a declining curve, noted by 55% of questioned hoteliers. Among the others, 40% nevertheless observe the retention of business trip length.
