The ability to cater to varying budgets and event sizes is making hotels the choice of associations, but PCOs say more personalised services and flexibility will differentiate them further from the convention centres
While large-scale events are staged at convention centres, the city’s diverse hotel offerings are attracting association meetings of varying budgets.
Some hotels have even successfully built rapport with local and international associations. The Mira Hong Kong, for instance, said it has gained a lot of favour with them. Its director of sales and marketing, Eva Kwan, said: “Indeed, the association meetings segment is a key MICE component and definitely a lucrative one, as the groups are likely to come with a volume of 200 attendees or more.
“However, it’s quite a usual practice for many associations to change destinations for their event every year. It is thus crucial for a hotel to work on a targeted association and its upcoming series, with at least nine months or more booking lead time.”
On the other side of Victoria Harbour, Island Shangri-La hosts mainly local association lunch meetings or banquets.
Director of events management, Jacqueline Chan, said: “We think the business will continue in the same way in future.
“We usually show flexibility in pricing by tailoring the lunch package to their needs and budget. We have several non-profit organisations hosting fund-raising charity dinners, for example.”
Location plays a role. The Sha Tin district in the New Territories is a cradle for various sports associations aided with government funds. Courtyard by Marriott in Sha Tin receives traffic from members of squash, golf, football, rugby and canoeing associations. The hotel’s director of marketing, Chris Wong, said activities such as meetings, sports training and even exchanges with overseas sportsmen are common.
Said Wong: “Association meetings are a niche segment characterised by requests like more twin-bed rooms, and use of the swimming pool and gym. Sports accounts for about 10 per cent of traffic, depending on the season. The booking lead time is longer, about three to six months.”
The hotel also enjoys medical meetings, which accounts for 30 to 40 per cent of its associations business. They come from a variety of sources, including the likes of the Chinese University of Hong Kong, the Prince of Wales Hospital and the Hospital Authority situated in Sha Tin.
Wong added: “There is a wide range of related activities with these meetings, such as demonstrations on how to use medical equipment. China is a big market with study groups comprising doctors who usually stay for one week.”
Regal Airport Hotel meanwhile said it has gained the interest of the aviation, IT and religious association meetings. The booking lead time is around six to 12 months.
Area general manager (Hong Kong) of Regal Hotels International and general manager of the Regal Airport Hotel, Meeting & Conference Centre, John Girard, said: ”Managing and planning of a large group of association delegates is always a challenge.
“For some countries, air connectivity and visa regulations continue to impact the growth of the MICE sector, and of associations. The MICE business also faces keen competition from the region.”
Budget constraint remains one of the key issues with association meetings but hotels strive to help them cope. For instance, The Mira Hong Kong offers flexible venue options regardless of group size and budget. It also offers the benefits associated with its MICE product, such as the provision of handy smartphones with free IDD calls and Wi-Fi throughout the city, as well as upgrading VIPs to its premium, designer Specialty Suites. It works very closely with organisers and believes bespoke deliverables are more effective in adding value to events.
But International Conference Consultants believes hotels can do better and offer more flexibility when it comes to the financial commitment required for blocking rooms and meeting facilities. The PCO’s director, Katerina Tam, said: “Hotels need to provide more personalised services for associations so that they can experience the advantages of holding their meetings at hotels over convention centres.”
Doris Lam, general manager of Momentous Asia, which has staged meetings in hotels, agreed.
She said: “Flexibility in space options and in the minimum guarantee of number of attendees are the key to more effective meeting packages.
“Most conference organisers would prefer a grand venue for their opening. However, if the budget is tight, they may accept having the opening at a ballroom, but move the plenary sessions to non-ballroom venues to save costs.
“Most hotels offer meeting packages and it will help if they can be flexible in terms of the minimum-pax guarantee.”
The Hong Kong Automobile Association has meeting rooms at its office but still organises two to three events, mostly international meetings, seminars for members and press conferences, at hotels every year.
The association makes bookings a month ahead and one criterion for its choice of venues is sufficient parking space, given the nature of the association and members’ wish to drive.
Location is also key and both Tsim Sha Tsui and Causeway Bay are popular picks. Still, it may consider alternatives like a university venue, provided these alternatives can offer the level of service and banquet performance which are comparable to a hotel.
The Travel Industry Council hosts its AGM in a hotel annually. Its executive director, Joseph Tung, said that the council uses hotels for some seminars too but it depends on the size of the group.
“Our AGM draws 600 to 700 attendees so hotel venues are suitable, and the booking lead time is six months in advance.
“But the bottomline is of course the budget. We’ll scout around, get quotes, then wait for our board to agree to the best hotel offer.
“Other venue alternatives such as small meeting halls inside commercial buildings also fit our small meetings. We have tried university halls but they are always fully booked,” lamented Tung.
At press time, Meetings and Exhibitions Hong Kong has supported more than 530 MICE events in Hong Kong this year.
Among the major association meetings/congresses held included Jeunesse 8th Global University Incentive Event (6,500 pax), International Trademark Association 2014 Annual Meeting (8,500 pax) and International Conference on Emergency Medicine (2,300 pax).
