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Hotel GMs see bright future for MICE market
Q: How would you assess Shanghai’s current MICE market?
Peter Pollmeier: Shanghai and the Yangtze River Region are one of the world’s largest MICE markets. It’s evident — Shanghai’s MICE market is booming quickly since Shanghai continues to invest in infrastructure and meeting-centric facilities. It has become increasingly attractive as a meeting destination. Shanghai is connected to the rest of the country and the world via its expanding infrastructure; this also attracts even more tourism and MICE opportunities to the city.
InterContinental Shanghai NECC (National Exhibition and Convention Center) is an integral part of Asia’s largest exhibition venue. This unique location offers the finest facilities for corporate and leisure travelers to live an “InterContinental life,” enhanced by our signature service and authentic destination experiences.
Juergen Sterkau: With the continued addition of deluxe hotels within the greater Shanghai area, and a slowdown on meetings and conventions in China as a whole, it has become a lot more competitive to capture MICE business in the Shanghai market. However with great sales associates, dedicated hotel ambassadors and a strong base of corporate guests, combined with the JW Marriott Brand, I still feel optimistic about securing a fair share of the MICE market in Shanghai.
Q: Shanghai is a hot MICE battle ground, so what competitive edges does your hotel have to stand out in the market? What challenges are you encountering at the moment to maintain long-term solid growth here?
Pollmeier: Excellent location is the key benefit the hotel offers guests. A new landmark of Shanghai, InterContinental Shanghai NECC hotel is just 5 kilometers from Hongqiao International Airport and Hongqiao Railway Station. It is only a 3-minute walk to Metro Line 2 on the Shanghai subway network. This strategic location places the hotel at the center of a new era of business development in western Shanghai, linking Hongqiao with the prosperous Yangtze River Delta Economic Zone.
From the standpoint of hardware, InterContinental Shanghai NECC has an impressive location for business meetings, banquets and weddings in the heart of Shanghai’s premier convention destination. The Grand Ballroom spans 900 square meters, which can be sub-divided into three parts, accommodating up to 900 guests.
Ten flexible meeting rooms are equipped with state-of-the-art audiovisual and multimedia facilities, plus a break-out kitchen and bar. Working seamlessly with the NECC, specialized InterContinental Conference Concierges provide “In the Know” information and assistance for every need.
With a prominent location and leading MICE facilities, InterContinental Shanghai NECC is poised to become the benchmark of luxury service in the burgeoning Hongqiao CBD.
Shanghai remains a very attractive and popular MICE destination. Obviously, a lack of talent has become a challenge at the moment, not only with hospitality talent, but also meeting organizers. While competition is increasing within the local hotel industry, I believe many excellent opportunities remain, which will improve the overall quality of MICE in the city.
Sterkau: The JW Marriott Hotel Shanghai Changfeng Park has first class MICE facilities, a great balanced room count, excellent food and beverage, health club and spa facilities, and an event team that is seasoned to service our international guests.
Q: Are there any new projects your hotel will launch this year to attract business travelers and enlarge your share in Shanghai’s MICE market?
Pollmeier: First of all, InterContinental Shanghai NECC is the most prestigious luxury hotel in the vibrant new Hongqiao CBD, and it is the only luxury hotel located within Shanghai’s new National Exhibition and Convention Center, the largest single building and exhibition complex in the world.
Meanwhile, there is a growing number of exhibitions and events at the NECC this year. Hotel guests can have direct access to the NECC’s 38 meeting rooms covering a total 24,000 sqm, plus 400,000 sqm of state-of-the-art indoor exhibition area and 100,000 sqm of outdoor exhibition area.
Also, proximity to the Hongqiao Hub and easy access to Pudong International Airport and Hongqiao Railway Station offers an advantage, especially for domestic business travelers.
Sterkau: Many of our hotel’s facilities underwent renovations after only five years in operation. Needless to say, we have an owning company that supports investment into new travel trends and keeps the product up to date; assuring solid growth on revenue and profits.
Q: Do you consider MICE business an important engine for financial growth? How do you expect the overall MICE market in Shanghai to expand over the next couple of years and how do you anticipate this to impact your own business?
Pollmeier: Shanghai has become one of the most dynamic metropolises in the world, with many big events coming in the future.
Since we’re the only luxury hotel located within Shanghai’s new National Exhibition and Convention Center, MICE business is and always will be an important engine for this hotel’s growth and revenue. Our strategies are definitely centered on MICE. That said, from the guest rooms to the expansive dining and meeting space options, everything at this hotel was designed with meeting planners in mind.
Shanghai is going to continue to develop in terms of infrastructure and facilities and become increasingly attractive as a meeting destination. The Hongqiao CBD will be a main MICE destination in Shanghai because of the NECC. We’re looking forward to bringing more large scale conventions to the city, which will benefit our MICE business.
Sterkau: Despite the slight slowdown within the Shanghai market, there will be surely a rebound after a few years. China will have continuous growth and in Shanghai we will be one of the key centers. With being a JW Marriott branded hotel that is recognized for its outstanding services and hardware, I am sure we are among many international meeting organizers’ first choices.
How would you see Shanghai’s current MICE market?
Philip Zhu: Shanghai is definitely leading economic growth in China. Among the major MICE cities over the country, every year for the past decade Shanghai has hosted the largest number of international and national events. This trend will continue, especially with the NECC opened last year. But this also brings challenges to the city in terms of the logistics and service industry, including the hotel.
Shanghai is a hot MICE battle ground, so what competitive edges does your hotel have to stand out in the market? What challenges are you encountering at the moment in order to maintain long-term solid growth here?
Zhu: Crowne Plaza Shanghai Harbour City Hotel is a state-owned enterprise by Shanghai Harbour Group, managed by Intercontinental Hotel Group. IHG is one of the leading international hotel management companies and has developed in China for more than 30 years. Our hotel is under the IHG’s umbrella and we have very solid operational support and business resources provided by our support center... we work closely with the local government to focus on all the major events and festivals in our region. Our hotel also has a very unique location next to the Dishui Lake with beautiful scenery and a comfortable nature environment. The hotel itself has 100,000 sqm of outdoor landscape that can add something special to any company event, kids’ activity or wedding.
Are there any new projects your hotel will launch this year to attract business travelers and enlarge your share in Shanghai’s MICE market?
Zhu: Without the Internet, you can hardly survive these days; that’s how important the technology is, especially for business travelers. Crowne Plaza Shanghai Harbour City has invested over 400,000 yuan (US$60,000) this year just to improve the Internet speed and surfing experience of all our customers. We are also working with other Crowne Plaza hotels to launch a “Power Everywhere” project to ensure that all our customers have no hassle with powerless digital devices.
Our newly refurbished brew house will be launched next month, and our German brewery master will bring authentic Bavarian-flavor beers to our customers. With this facility, we believe that our business travelers can indulge themselves after their intense daily schedule.
Do you consider MICE business an important engine for your future revenue/profit growth? How do you expect the overall MICE market in Shanghai to expand over the next couple of years and how do you anticipate it to impact your own business?
Zhu: The MICE business is an important engine for the city’s economic growth. It will definitely have a huge impact on future revenue/profit growth for the hotel industry in the city. Our hotel is located in a suburban region of the city. We are less influenced by major events than city-center hotels. Our unique location, healthy natural environment, reputable products and impeccable service has been highly recognized among the automobile, pharmaceutical and banking industry already.
With the city’s macro-economic growth, plus Crowne Plaza Shanghai Harbour City Hotel’s recognized reputation, we are very confident with this particular market segment in the future.
How would you assess Chengdu’s current MICE market?
Vito Romeo: Chengdu’s MICE market is quite active. Chengdu is the center of western China, and is at the heart of the local economy, logistics and traffic. With the construction of Chengdu’s second convention center in the Xinglonghu area, Chengdu’s MICE capacity is getting ready to double.
Chengdu is also building its second airport, with more direct flights from Europe and the US. We are definitely looking at more opportunities.
Chengdu is a hot battlefield of MICE, so what are the competitive edges for your hotel to stand out from others in the city’s MICE market? Any challenges you are encountering at the moment to maintain a long-term solid growth here?
Romeo: At The Ritz-Carlton, a meeting is not simply a meeting, but an experience that enlivens our event participants through their senses. The brand makes sure that guests can have memorable experiences at The Ritz-Carlton properties around the world.
Our staff are all experts in their fields, from the customer contact service team to the banquet service team and the chef team. We all aim to create personalized experiences for guests. For example, we offer a Chengdu-themed tea break, with dandan noodles and other local specialties… And we take meeting participants to signature tourist sites for a more local touch, like the Sichuan Gastronomy Museum, where guests can learn from local chefs how to cook Sichuan cuisine.
More and more competitors are joining the market, so we have to maintain high service quality and be more competitive to get the most market share. We need talented ladies and gentlemen to join The Ritz-Carlton team and create “wow” stories for our guests.
Are there any new projects your hotel will launch this year to attract business travelers and enlarge your share in Chengdu’s MICE market?
Romeo: At The Ritz-Carlton, we focus on the experience of our meeting participants. We focus on providing them with unique meeting experiences combined with local culture, so we will offer an optional package to showcase Chengdu’s authentic leisurely spirit and cultural heritage.
In order to customize guest meeting experiences, we will fully engage the meeting organizers to understand them more, and discover their needs. Along with meetings and events in the hotel, we have a strong team that can support off-site catering for 50-person private gala dinners, all the way up to 1,000-person wedding events that are over 100 kilometers outside the city.
Do you consider MICE business an important engine for your future revenue/profit growth? How do you expect the overall MICE market in Chengdu to expand over the next couple of years and how do you anticipate it to impact your own business?
Romeo: We try to achieve steady development in all of our major business pillars. MICE is an important part of this and will remain part of our revenue growth plan.
Chengdu is the top MICE city in western China. The local government is giving its full support to the expansion of the city’s MICE market, including the construction for a second convention center and holding major exhibitions and meetings like the G20 and the Sugar & Wine Fair. MICE may start to represent a bigger part of our revenue growth plan, and the market will get bigger and more competitive.
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