DR. B.

R AMBEDKAR UNIVERSITY DELHI

SBPPSE
MASTER OF BUSINESS ADMINISTRATION

SUMMER INTERNSHIP
PROJECT
A Management Case Study on
MICE in Hotel

Name- Pankhuri Jain

Enrolment No.- S213F0029
Course- MBA (2021-2023)

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Introduction
In this report I am going to briefly describe the history of the hotel Radisson, the chief
landmarks that hotel has hit in past 60 years and a brief summarization of MICE.
With approximately 1,700 hotels either operational or under construction and over 260,000
rooms, the Radisson Hotel Group is present all over the world. One of the two largest hotel
chains in the world by the quantity of rooms and hotels as of 2018 was Radisson Hotel
Group, a Jin Jiang International affiliate.
The report highlights the timeline how Radisson Hotel Group has expanded it's chain in the
past years throughout the world. It further points out the aspects how it stands out among its
various competitors making it distinctive in its hospitality, excellent services, modern
infrastructure, predominant quality and luxurious yet comfortable experience.
Furthermore, the report features detailed analysis of various sources of revenue and how it
has changed with the advancing of time.
In this report, I elaborately explain the concept of MICE and the profits and losses caused
with and without it. The concept was broadly accepted but the omission of MICE yielded far
more fulfilling profits compared to the time when it was in use which is explained in detail in
the given report.

RADISSON HOTEL GROUP

With more than 1,700 hotels and over 260,000 rooms currently open or under construction,
the Radisson Hotel Group has a footprint all over the world. As of 2018, Radisson Hotel
Group has been a part of Jin Jiang International, making it one of the two largest hotel chains
in the world in terms of the number of rooms and hotels. With a business plan that will keep
them moving forward, they begin a critical new chapter of their development strategy.

History summarized in a timeline

At the Radisson Hotel Group, they are always looking for innovative methods to better serve
their visitors, give their owners and business partners opportunities, and establish themselves
as leaders. Their business, which started in Copenhagen, Denmark with the opening of the
first designer hotel in the world, has spread throughout the world and continues to provide
new locations each year. Let's take a peek at the past to learn more about it.

1960-2009 2009-2020
1960 2009
The contemporary Radisson Collection Radisson SAS was changed to Radisson Blu
Royal Hotel, Copenhagen, was one of the as the brand name.
first SAS hotels to open in Copenhagen.

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1962
After acquiring Minneapolis Radisson
Hotels, the group's name was changed to
Carlson.
1986
To introduce the Radisson brand to Europe,
Carlson Hotels and SAS International
Hotels joined together.
1987
The Country Inns & Suites by Carlson
brand was introduced by Carlson Hotels.
1989
Headquarters moved to Brussels
1994
For the management of the Radisson brand
throughout EMEA, later known as Radisson
Blu, Carlson Hotels and SAS International
Hotels entered into a franchising agreement.
1999
Radisson Rewards, formerly known as
Carlson Hotels' guest loyalty programme,
was established.
2010
According to MKG, Radisson Blu has
emerged as Europe's leading upscale hotel
brand.
Park Inn becomes Park Inn by Radisson.
Rezidor is one of the world's most ethical
businesses, according to the Ethisphere
Institute.
2012
The Rezidor Hotel Group and Carlson
joined together in a strategic alliance,
increasing Carlson's shareholding to 51%,
and the two companies went public as
Carlson Rezidor Hotel Group.
At the 2012 Worldwide Hospitality Awards,
Carlson Rezidor Hotel Group won Hotel
Group of the Year.
2014
Radisson RED, a new brand in the luxury
lifestyle select market, was unveiled by
Carlson Rezidor Hotel Group.
2016
Carlson Hotels, Inc. was acquired by HNA
Tourism Group.
With a 49% ownership investment in
prizeotel, The Rezidor Hotel Group entered
the economy sector.
2017
Federico J. González was appointed
President and Chief Executive Officer of
Rezidor and Chairman of the Global
Steering Committee.
To purchase all of the shares of Rezidor,
HNA Tourism Group Co., Ltd. made a
necessary public offer.
2018
Country Inns & Suites by Carlson changed
its name to Country Inn & Suites by
Radisson.
In addition to introducing Radisson in
EMEA and debuting the Radisson
3

2002
Franchise rights to Regent Hotels &
Resorts, Park Inn, and Country Inns &
Suites were purchased by The Rezidor Hotel
Group, which was formerly known as SAS
International Hotels. via Carlson
2006
On the Stockholm Stock Exchange, the
Rezidor Hotel Group completed its first
public offering. Carlson acquired more
shares, bringing its stake to 35%.
Collection brand, Carlson Rezidor Hotel
Group changed its name to Radisson Hotel
Group.
On May 7, 2018, Rezidor Hotel Group AB
(publ) changed its name to Radisson
Hospitality AB (publ) and the Club Carlson
reward programme was renamed to
Radisson Rewards.
2019
The purchase of the shares in Radisson
Hospitality AB was completed by a group
led by Jin Jiang International Holdings Co.
Launching its new global Responsible
Business training programme, Radisson
Hotel Group
With the debut of its new multi-brand
platform, Radisson Hotel Group embraced
the future of digital hospitality.
RadissonHotels.com
The Radisson Blu Hotel, Frankfurt, the first
co-branded property of Jin Jiang
International and Radisson Hotel Group,
opened its doors.
The purchase of prizeotel by Radisson
Hospitality AB was finalised.
The request by Radisson Hospitality AB to
delist from Nasdaq Stockholm was granted.
2020
The Radisson Hotel Group introduced the
Radisson Safety Protocol in response to the
COVID-19 pandemic, a global commitment
to cleanliness and hygiene in collaboration
with SGS.
A new brand, Radisson Individuals, was
introduced by the Radisson Hotel Group.
As it expands its serviced apartment
business across EMEA, Radisson Hotel
Group has strengthened its extended stay
value proposition.
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Discover all the brands
The dynamic collection of hotel brands offered by the Radisson Hotel Group caters to a
variety of travel needs and price ranges. These brands each have a distinctive identity.
Because there is always a Radisson Hotel that can accommodate their needs, any traveller can
feel at home when they choose to stay with them. By being the best partner, they perform as a
true host by centring and concentrating their job on creating memorable moments.

Radisson Collection
WELCOME TO THE EXCEPTIONAL
The Radisson Collection is a distinctive grouping of legendary
buildings. Although each hotel's personality feels true to its
surroundings, they all provide the ultimate model for modern
living, connected by bespoke design and great dining, exercise,
health, and sustainability experiences.

Radisson Blu
FEEL THE DIFFERENCE
In elegant settings, Radisson Blu provides unforgettable encounters.
Every time a guest stays with us, they have an amazing experience
because we pay close attention to the little things that really coun

Radisson
SIMPLY DELIGHTFUL
With peaceful natural settings, carefully chosen small details, and
unexpected joys, Radisson helps visitors discover harmony in their
hotel experience.

Radisson RED
ENJOY IT!
Infusing new life into hotels with informal services where
everything goes, a social environment that's eager to be shared,
and striking design, Radisson RED offers a creative take on
traditional hotel stays.

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Radisson Individuals
SELECTED FOR YOU
In order to provide guests, the chance to experience new places
while still receiving the superior quality and service they have come
to expect from the Radisson Hotel Group, Radisson Individuals
brings together hotels that have distinctive qualities and personalities.

Park Plaza
FEEL THE AUTHENTIC
Park Plaza provides genuine, original service that is influenced by
the unique characteristics of each location. Every element of the
encounter is made vibrant by the modern design. For a really
authentic experience, Park Plaza connects the people and places.

Park Inn by Radisson

FEEL GOOD
The Park Inn by Radisson provides guests with enjoyable
experiences, delectable cuisine, and cheery surroundings.
With intelligent use of colour, creative, modern design, warm,
individualised service, and unexpected, feel-good extras, we
positively enhance our customers' moods for a joyful stay.

Country Inn & Suites by Radisson

I LOVE THIS COUNTRY
Country Inn & Suites by Radisson offers a heartfelt experience
through welcoming design, products, and services, so that all
guests feel that they are welcome and that they matter. The
company was inspired by a sense of belonging, community, and
shared experiences.

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Prizeotel
VIBRANT, SMART, GENUINE
The prizeotel's diverse aesthetic mixes comfortable lodging
with a relaxed social environment and service culture, focusing
on lifestyle design at a reasonable price range. Each hotel
transforms into a hub for work and play by adding welcoming
multipurpose communal spaces in strategic places.

COUNTRY INN & SUITES BY RADISSON

Every guest who stays at a Country Inn & Suites hotel joins their family. It's simple to feel at
home when visitors stay with them because to their genuine warmth, cutting-edge
conveniences, and warm, inviting décor.

Spend some time with loved ones in the welcoming public areas, which include outdoor
pools and sitting rooms with fireplaces, or curl up in one of their cosy guest rooms. Along
with free Wi-Fi and a complementary cooked breakfast, guests may take advantage of all the
other distinctive Country Inn & Suites amenities.
In 1987, Burnsville, Minnesota, welcomed its first hotel. With more than 530 properties
spread across the Americas and Asia Pacific, Country Inn & Suites by Radisson is a market
leader in upper-midscale hospitality today. For more than 30 years, they have been refining
their guests' home away from home.
Country Inn & Suites by Radisson, Sahibabad
Less than an hour from the Indira Gandhi International Airport (DEL), the Country Inn &
Suites by Radisson, Sahibabad, Distt Ghaziabad (U.P.) offers cosy hotel rooms that are
close to the Vaishali Metro Station. The hotel in Vaishali is only a 30-minute cab ride from a
number of popular attractions, including Akshardham, Humayun's Tomb, and Connaught
Place. If guests are in the neighbourhood on business, they may reach Vasundhara in less
than seven minutes and the East Delhi National Capital Region (NCR), Noida, and Greater
Noida in around thirty minutes. To get guests where they need to go, be sure to utilise their
24-hour travel services.

After a long day of sightseeing or giving presentations in meetings, relax with a beauty
service in the salon on-site or a revitalising massage at the spa, Revive. The hotel's on-site
restaurants serve up delicious authentic Italian, Chinese, or Indian fare for hungry guests, and
a show in the 3-D theatre can round off the evening.
Fact Sheet (Pg No. 15)

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SOURCES OF HOTEL REVENUE
1. Direct booking sources
Customers can book rooms directly from your business by visiting and booking room
services on your website, contacting the hotel, sending an email, and using social media
platforms.
Booking room through hotel’s social media channels
The hotel reaches out to potential clients using social media platforms like Facebook and
Instagram. Facebook, Instagram, and Twitter are the platforms with the most online users,
according to research. To ensure that users pay attention to their brand and engage more, a
solid content strategy should be the focal point of their marketing approach.
Making a reservation through phone
By giving the relevant details, such as the room type to book, the number of nights to stay,
etc., customers may easily make a reservation at the hotel by calling directly. Recurring
visitors or elderly visitors frequently use this.
Hotel Websites
Hotels have developed websites that include all of its features in great detail. Customers can
simply make reservations according to their preferences by filling out the reservation form
found on the hotel website. The guests will receive confirmation of their reservation after
completing the form.
Through E-mail
By sending an email to the hotel, guests can make reservations. The hotel's website includes
contact details on the home page and fan page to make booking accommodations easy for
guests.

2. Indirect booking sources

The benefit of indirect booking channels is that they give customers a lot of options. To select
the best hotel for their needs, they can view a variety of possibilities from other hotels and
compare pricing, services, promotions, etc.
Here are a few well-liked indirect booking channels.

Online Travel Agency (OTAs)

Anyone who works in the hospitality industry is familiar with this method of selling rooms.
Make My Trip, Agoda, Traveloka, Booking, Expedia, and Abay are a few OTA channels
with large user bases. The hotel will be required to pay an agreed-upon portion of the
booking value as a commission for the room sales channel for each reservation made through
the OTA channel.

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Travel Agency (TAs)
These travel businesses frequently plan tours with a sizable and consistent number of guests.
Normally, travel agencies are in charge of organising all services associated with tours,
including reservations for hotel rooms. 50 to 60 percent of hotel reservations are often made
through travel agents.
Global Distribution System (GDS)
The method of selling Business to business (B2B) rooms. The way GDS operates is that
hotels get into a contract with them and then communicate details of their offers. After that,
travel agencies will obtain data from the GDS system and sell it to their customers.
3. Corporate Houses
Because they have better resources, corporate houses are another reliable source of business
for the hotel. Corporate organisations must plan meetings and training sessions for their staff
in addition to managing a large number of clients. For these reasons, they make contact with
a hotel. Due to their dependability, hotels also like this industry. By working with the
corporate house, the hotel can increase business by bringing in more visitors.
4. Free Individual Travelers (FITs)

FITs are visitors who make reservations directly with the hotel. They choose the hotel based
on convenience, affordability, image, and quality of service. As a result, the hotel makes an
effort to draw these visitors by offering top-notch service. The hotel room can be reserved by
independent travellers for free from any location in the world. Travelers can choose a hotel
based on convenience thanks to the website's detailed display of hotel amenities.
5. MICE
Meetings, Incentives, Conference/Conventions and Exhibitions/Events, or MICE, is a
specialty segment of the hospitality industry that is gaining popularity in business due to its
capacity to motivate staff members by offering accommodating settings and specialised
services.

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 MICE
As outlined above, the MICE sector is made up of four main event types: meetings,
incentives, conferences, and exhibitions.

Meetings

Meetings are often one-day affairs hosted at convention centres or in the conference rooms of
hotels. The size of these events might range from a small gathering of senior executives to
major events like yearly shareholder meetings. To address difficulties, debate strategies, and
establish goals, participants from the same business, sector, or project are brought together.
The catering is frequently kept modest, and entertainment programmes are uncommon.

Incentives

Probably the most enjoyable aspect of the MICE sector is incentives. They consist of any
form of incentive travel a business provides to its partners, teams, or employees (e.g.
affiliates). In this situation, an incentive's purpose is to express gratitude for excellent work,
raise spirits, or foster employee loyalty. Some businesses could take their staff on a weekend
getaway to an out-of-town resort that is all-inclusive. Others could organise a range of local
events to promote workplace cooperation in a relaxed atmosphere.

Conferences

Consider conferences to be large-scale meetings. They can range in size and frequently run
longer than one day, but typically include more participants than meetings. The goal of
conferences is to discuss and resolve problems in a business or industry. A key element of
that is exchanging fresh ideas and research. Likewise, networking and team-building
exercises.

Conferences frequently involve one, a combination of, or all of the following activities:

 Panels: A panel of specialists delivers new information and discusses a subject. A

moderator offers questions, controls the conversation's pace, and welcomes audience
inquiries.
 Presentations: Senior executives may discuss the most recent business achievements
or outcomes during a corporate conference. The latest trends and insights may be
presented by thought leaders as guest speakers at public industry conferences. Slides,
props, and other visual aids are frequently used in presentations.
 Speeches: Speeches, often called keynotes, frequently herald in or close conferences.
At times, the host or organiser is the one to welcome or thank the participants. In
other cases, a leading member in the sector may discuss a current problem and offer
suggestions for remedies.
 Discussions: They could be included on a panel. The audience listens while a chosen
group discusses a topic in this instance. To promote lively discussion among small
groups of attendees, some organisers employ breakout rooms.
 Workshops: A small group of people examines a particular case study or does
research on a chosen topic. Offering guests an engaging learning experience with this
strategy is a great idea.

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Exhibitions

Thousands of attendees and exhibitors travel from all over the world to exhibitions, which are
often enormous events. They might last for a week or a few days. The target market for
exhibitions is specifically focused on a single sector. Exhibitors attend trade exhibitions to
showcase and advertise their goods or services, generate revenue, and communicate with
current and new partners. Industry experts travel to network, locate clients or employment,
and learn new approaches to challenges.

The following are typical activities that may be found during exhibitions:

 Networking events: Subgroups of guests at trade shows frequently host networking

events. It's a great opportunity to network with possible business partners, plan joint
ventures, and explore emerging trends.
 Awards: Many exhibitions include award shows that recognise the achievements of
top businesspeople. Additionally, it offers winners a significant PR and commercial
push.
 New business pitches: Trade exhibitions frequently have a separate session for new
business presentations because they wish to encourage development and innovation in
their sector. Gaining awareness, financing, clients, and job applications is excellent
for start-ups.

Significance & Shortcoming

For many hotels, MICE is a significant source of business. First, many rooms in hotels with
meeting spaces or adjacent to convention centres are filled with exhibitors and attendees.
Second, a Hong Kong survey discovered that MICE visitors typically pay 17.5% more than
leisure visitors. This is partially due to the town hosting significant events, which increases
demand and presents an opportunity to charge higher accommodation prices. Hotels may
provide organisers with significantly reduced prices if they conduct meetings or conferences
on-site. They can generate more money, though, by offering meeting and catering packages.
MICE event participants may also eventually return to a region they visited during a business
event and offer you more leisure business. And last, MICE may be a dependable source of
ongoing income. The frequency of conferences and trade exhibits means that hotels must
factor them into their annual budgets.
The Country Inn & Suites by Radisson, Sahibabad was set up in 2009 and continued the
business of MICE till 2015. In 2015, the revenue generating from Corporate FIT (Frequent
Individual Travellers) was 20%, Leisure (inbound +domestic) was 25%, MICE was 40%,
Online business was 15% and Total revenue was Rs. 20 crores. From this data we can say
that Mice in itself was a business of Rs. 8 crores. At that time, Pharma (e.g., Cipla) and
Multinational Marketing business (e.g., Vestige, Amway) had major contribution to the hotel
business. Though MICE was majorly contributing to revenue for the hotel, still it has its
shortcomings which were discovered by the hotel. The major shortcomings were it involved
credit business and the rates were very low i.e., Rs. 4000 APAI (American Plan All
Inclusive)/Double occupancy (inclusive of breakfast, lunch, dinner, hall usage from 9 am to 6
pm, tea/coffee break twice). The turnover was high, still profit yield was less than expected.
The corporate travellers coming through MICE business hardly used to spend in the other

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areas of the hotel. Moreover, the hotel used to face severe problem of shoulder dates* which
used to make the occupancies very erratic.
*Shoulder Dates- Dates that fall very close to other high demand dates.

Decision Making
After continuing with MICE concept for so many years, it was clear for the hotel that hotel
was not generating optimum profit though this. So, hotel was in a fix whether MICE should
be continued or they should bring some alternatives along with it. They analysed that MICE
had become opportunity cost for the hotel. Therefore, they decided to grab the untouched
opportunities within the hotel and by increasing the reach that could bring more profit to the
hotel. As a result, they chose not to organise further events related to MICE.
What forced the hotel to go ahead with this decision- As it was entirely a credit business, the
hotel was struggling in maintaining the cash flow. Though payments were assured by the
corporates, it took a couple of months to be done. It caused delay in paying monthly
expenditure of the hotel (e.g., salaries to the staff, expenditure on Food & Beverages and
hotel maintenance expenses). In addition, the hotel was finding difficulty in getting business
from other areas of it. For example, the hotel consists of 4 restaurants where one serves buffet
meals and others serve À la carte. For MICE guests, all major meals (buffet) were already
included in their package. As a result, other amenities such as In-Room Dining, Swimming
pool, Salon, Spa and other 3 restaurants within the hotel remain unused. This incurred
comparatively less profit, though turnover was high. The major problem faced by the hotel
was of erratic occupancies. Suppose, a hotel gets a booking for 5 days (say, Sep 1- Sep 5)
from MICE and on Sep 3, hotel is already packed. In this case, the company, wanted to
conduct the MICE, would not give bookings to the hotel which ultimately would not make
the hotel packed on remaining days. Besides this, the guest profile at times was a problem for
other inhouse guests. The hoteliers spend far too much time and energy drafting proposals,
and as a result, lose other opportunities in the pipeline.

Consequences and Measures

Room Occupancy:
After eliminating MICE, the first pillar of trouble was raised i.e., the room occupancy rate got
reduced. In order to counter this issue, the hotel, initially, started offering the rooms at lower
rates at CP plan (Continental Plan) via different online platforms and increased the business
through corporate FITs. The hotel targeted those companies which had potential of giving
enough room nights. During the initial days, the hotel struggled. However, the hotel,
gradually buckled up by religiously following the strategy.
Banquets:
Almost all the banquet halls were vacant during the non-wedding seasons. What did the hotel
do to manage this situation- Hotel decorated all the banquet halls with permanent décor
materials which converted all of them into wedding venues. This was non-recurring expense
which was recovered after organising many weddings in a year. That’s how this hotel became

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the first hotel in Delhi NCR wherein the halls were pre-decorated and the guests could
visualize how would the event look like. The decoration was so lavish that in case the guests
are willing to pay mammoth amounts in other hotels they would not be able to enjoy the same
looks because of the time constraints during the wedding season. This helped us in turn hike
up our rates for weddings i.e., Rs. 3000 per plate which resulted in a growth of 200%.
Food and beverage:
During the MICE business days our coffeeshops were packed because of the conference hall
guests getting their lunch served there. The hotel used to serve lunch there in order to save the
cost of manpower and additional food items plus, this was the USP (Unique Selling Point) of
the hotel which resulted in bringing more business to it. Now with the MICE business not
being there, the hotel faced a problem that there were not enough guests who could help in
covering the cost of lunch and dinner. The strategy they followed was that they increased
their rates from Rs. 1200 to Rs. 2100 and started a scheme of 1+1 or Buy one Get one.
Consequently, it gave the client a feeling that he/she is getting a steal deal and the hotel,
despite slightly reduced APC (Average per cover), started making more revenues.

Analysis
Was it worth dropping the MICE?
YES, and the elaboration to this is concisely explained in the table below. As per the general
opinion, the dropping of MICE would have incurred some heavy loses to the hotel but on the
contrary the decision yielded 50% more profit to the hotel. Initially, the MICE bookings that
were taken up by the hotel were on the price of Rs. 4000 APAI (American Plan All Inclusive)
which had the inclusions as follows – breakfast, conference hall charges, tea / coffee and two
meals plus tax. This gave the profit of Rs. 1180 to the hotel and yearly revenue of Rs. 20
crores. Later on, after the omission of MICE the bookings through online platform,
corporates and other sources were taken on the price of Rs. 3000 plus 12% taxes at CP
(Continental Plan) which further included breakfast plus taxes. Consequently. it yielded the
profit of Rs 2200 which was high compared to the services provided when we were taking up
the MICE bookings. The earlier profit with MICE was Rs. 20 crores which on dropping
changed to Rs. 30 crores.
It was estimated that MICE would incur losses to the hotel but on the contrary, the hotel
gradually picked up and recovered making an even astounding profit of Rs. 30 crores which
is 50% more than what we initially were making. Furthermore, Online business was either
prepaid or pay at the hotel so, there were no credit involvement. The occupancies were as per
expectations and the regret to corporate FIT business got reduced. The other ancillary
business units of hotel like In-room Dining started flourishing. Now, the turnover and profit
are both at par.

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CASE 1 Rs. 4000 APAI
single/double

Single Double
Breakfast 200 400
Conference hall charges 100 200
Tea/Coffee 100 200
Lunch 400 800
Dinner 400 800
Tax 420 420
Total 1620 2820

Net yield 2380 1180

CASE 2 Rs. 3000 + 12% Tax at CP

single/double

Single Double

OTA commission 400 400

Breakfast 200 400
Tax 360 360
Total 960 1160

Net yield 2400 2200

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Fact Sheet of the Hotel

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