Time to transform MICE from a logistics business into a high-value, strategic partner role

It won’t be easy. Business events operators today sit at the intersection of rising costs, sustainability pressures, and technological disruption. Costs are climbing, clients are squeezing budgets, and demand is shifting fast.

At the same time, in an increasingly competitive industry, they must deliver measurable RoI and memorable experiences.

Not an altogether comfortable position. Yet it’s not all bad news. Change always opens the door to new opportunities.

Global tensions, high airfares, and inflation add extra pressure, and it has become very demanding: Gens Y and Z want purpose and experiences - not just another networking dinner. They also tend to be more politically and socially demanding.  They’re looking for helpful takeaways, like delivering results for the local community, or reaching agreements on outcomes from a conference.

These aren’t inherent only to these generations, but for Y and Z they’re more top of mind, and these generations are used to being listened to.

Unsurprisingly, sustainability has quietly moved front and centre. Corporates expect real action: carbon reporting, cleaner (SAF) flights, local food, less waste. Boards are in the firing line to show they’re reducing emissions; and of course travel is a big, identifiable target, as well as an easy fix for cost reduction.

Many companies are cutting corners by saving on long-haul trips. A Sydney group that would once have flown to London now chooses Singapore, or even stays domestic with a Gold Coast or Adelaide hub.

And some companies now require emissions tracking for their major events. If the footprint looks too heavy, it can be easy simply to default to hybrid. As a result, venues and suppliers are under the microscope like never before.

Tech is changing the game too. AI can shape agendas, match people, and cut costs. This year, at CES in Las Vegas, AI-powered matchmaking apps connected thousands of buyers and sellers. Hybrid platforms like Hopin or Cvent turn one-off events into year-round communities. But blending live and virtual still takes work, and data privacy is a growing worry. Europe’s GDPR fines aren’t just theory anymore; they can hurt.

Margins are tight. Air fares are less competitive; hotels in Sydney and Melbourne are consistently charging 20–30% more than pre-COVID, catering bills are rising, and skilled staff are scarce.

Sponsors are also harder to win. Instead of just paying for a banner, they now want immersive booths, gamified demos, or live data on how many delegates engaged with their brand. RoI needs to be accounted.

Notably too there are signs of a shift in these revenue streams – and of new opportunities. While traditional sponsors are often reining in costs, the big end of town is becoming more focussed on experiences and community and socially aligned activities. They will be willing to commit larger amounts, but that means a new element of risk. Losing the odd smaller fish won’t jeopardise the event, but concentrating on a handful of major sponsors can also concentrate the mind.

Yet, for all that, the upside is potentially huge. Responding effectively to the challenges means events that for example go green can stand out as leaders. IMEX in Frankfurt, for example, is marketing its waste-free halls and local sourcing as a competitive edge. Operators that use AI smartly can run smoother events and give delegates a more personal experience. In Davos, delegates get curated agendas tailored to their interests.

Regional hubs are on the rise too. Destinations like Cairns, Penang and Da Nang are cheaper, closer, and often come with government incentives.

More widely, global competition is heating up. Dubai now subsidises major events heavily, and cities from Seoul to Barcelona offer packages that combine top venues with cultural flair. There the winners are the destinations that combine easy access with unique local character.

And when event design moves beyond panels to interactive labs, wellness breaks, and cultural storytelling, delegates leave with memories, not just notes.

The magic ingredients will be partnerships and collaboration

As with most industries, the next few years belong to those who can adapt. Not just logistics managers - although that needs to be done well - but moving to become partners and collaborators. That means helping clients prove ROI, go greener, embrace tech, and deliver events people actually love to attend. As well as, pragmatically seeking out likely sponsor destinations!

Getting ahead of this cycle can reduce risk both for event producers and the owners of the event. By adopting various methods of sharing financial exposure - and profits - more mutually attractive models can evolve. Creativity and flexibility will give an edge to organisations prepared to look beyond the old ways of doing things.

The operators who win in the next five years will be the ones who embrace AI, lean into sustainability, reinvent sponsorship, and reframe events as immersive experiences and year-round communities.

That means transforming MICE from a logistics business into a high-value, strategic partner role. In delivering RoI for attendees, think partnership at every level, event manager, sponsor and accommodation. Yes, AI will be a useful “partner” too, but more importantly, think of it as just one element in a reformed business events model.

Join us at the Meetings & Events Summit at FACTS 2025.