For this second edition, how did you refine the IFTM-Kactus MICE Barometer?
Arnaud Katz - We have added several major components, in particular the CSRSome people criticised us last year for not including enough. We laid the foundations last year, and now we have a truly comprehensive barometer. We have never gone so far in our analysis, with a study of some sixty pages. For example, we asked Clef Verte, a benchmark label for CSR, to testify. We also analysed the impact of Olympic Games Paris 2024as well as an analysis of the seasonality. In particular, we have deciphered the differences between the days of the week, to give guidance to booking managers in terms of flexibility.
What changes can we expect to see in the MICE made in France landscape?
Arnaud Katz - Among the major trends, I would obviously mention the tariff developments. Prices have risen significantly again. This is a real issue, when we see, for example, an increase of 15% on study days, 11% on company evenings, or 5% on residential seminars. Inflation continues, while at the same time companies are paying much more attention. There are many more cost optimisation strategies than before.
The study shows that last-minute bookings have given way to more anticipation...
Arnaud Katz - Exactly. Anticipation has become the rule, to take advantage of greater availability and choice, of elements for comparison... and therefore for negotiation. This is also reflected in our CSR policy. We realise that companies are not prepared to pay more for a responsible event. Companies are increasingly asking for quotes that include a CSR component, but when it comes to paying, they opt for the cheapest. The primary criterion today is price. Decision-makers don't choose a venue because it is in line with a CSR policy. At best, it's a bonus.
The study also points to a certain lack of emphasis on the CSR component of event venues...
Arnaud Katz - All venues are in the process of complying with CSR requirements. But this inevitably has an impact on prices. Joining a label helps to enhance the value of this effort, but it presupposes operating in a short circuit, giving priority to organic produce, and so on. And in fineThis automatically leads to higher tariffs.
In this barometer, only the testimony of the SNCF points to a compatibility between CSR and savings...
Arnaud Katz - That's true. But what's particularly interesting about the SNCF is that the route that's developing the most is in the south of France. Overall, rail is performing better and better, and people are increasingly willing to travel 6 hours by train to get to Nice. This may have been imposed by companies to the detriment of air travel.
What is the role of Kactus or other platforms in helping CSR to take off?
Arnaud Katz - Today, we have no impact on the choice between plane and train for an event in the south of France. However, we do promote the CSR dimension of event venues. For example, our platform allows you to filter your search so that only venues with CSR certification are displayed. It's also our job to promote these efforts.
However, according to the barometer, only 15% of events are organised in certified venues...
Arnaud Katz - That's right. Companies are simply not prepared to pay. Buyers are currently under enormous pressure to reduce costs. The barometer shows that choosing responsible service providers involves additional expenditure, ranging from 18 to 20% for CSR-certified service providers. That's huge when you consider the prices. For example, for a residential seminar, the average cost per participant was 376 euros in 2023, and 115 euros for a study day on average. If you add in the extra cost of CSR, companies can quickly do the math...
Another major topic covered by the barometer: Paris 2024. What can we learn from the impact of the Olympic Games on the MICE sector?
Arnaud Katz - It's been quite catastrophic... There's been a small exodus from Paris to other regions (PACA, Rhône-Alpes, Auvergne). But overall volumes are down.
Is this really surprising, given the "Olympic bashing" that preceded the event?
Arnaud Katz - Where we were all surprised was that the fall started as early as May. The Olympic Games were starting at the end of July. In theory, this could have had no impact on MICE. I spent my time repeating that there would be no impact as companies would already be on holiday on 26 July. It was very difficult to anticipate that the event would kill off the month of June. And the reality is that many of our partners really suffered because they couldn't sell their venues for the summer evenings in June. Barges, rooftops and all the venues that make a living from this activity suffered, along with catastrophic weather... So the second quarter was particularly disappointing for the French MICE sector. Some benefited a little, in particular certain venues that hosted events linked to the Olympic Games, or the shift towards the regions. But overall, the effect was really negative.
In the barometer, however, a player like Accor is betting on a positive impact for the end of 2024 and 2025. How can this be explained?
Arnaud Katz - This is partly due to the postponement of events that did not take place during the Olympic break. In particular, there was a slight increase in the number of evening events in September compared with previous years. The real question is: "What's going to happen now? Will there be a post-Olympic emulation in Paris, with foreign companies that tended to avoid Paris coming back thanks to the Olympic effect? We're waiting to see. That's what we're waiting for, what we can sense, or at least what we're all hoping for.
Over and above the Olympic Games effect, the barometer seems to point to a gradual decentralisation of MICE in France, from Paris to the regions...
Arnaud Katz - Completely. There is an undeniable rebalancing, with the exception of the study day. Year on year, residential seminars have become more decentralised since COVID came out. Some regions are really benefiting, notably the south-east, south-west and Lyon. Hauts-de-France is also riding this trend, with one destination in particular: Chantilly. Chantilly has been developing impressive expertise in MICE over the last few years. It's also part of a trend that we already identified last year: the green seminars are establishing themselves as a lasting trend, one that's taking hold over time and eating away at market share.
What does the maturity of MICE management, as reflected in the barometer, mean in practical terms?
Arnaud Katz - This is due in particular to the fact that all companies now recruit MICE buyers, or at least one person is identified to manage this aspect within large groups. This is often the Travel department, or sometimes an independent buyer. In one out of two cases, it is the travel buyer who is also responsible for MICE. This greater maturity is also reflected in the number of MICE solutions installed. All the major CAC 40 groups have adopted a MICE solution, or are in the process of doing so. There's a growing professionalism: today's experts want to understand what's going on. They understand the financial stakes, and no longer want this to be embodied in expense reports. This is proof of a maturity that is becoming widespread. Similarly, the MICE offering is now very high quality. The offers are clear and packaged. When we work with hoteliers, they now know how to work with players like Kactus and others. It's much more fluid, and MICE is becoming a category that is distributed like other travel categories.
