MICE Affairs Media
Group, Special Feature, 13 August 2023
is the talk of the town these days, basis the growth this particular segment
has registered in Indian MICE industry. Organizations who were doing business
between 30-40 Crores in a financial year are aiming at 200 crores plus.
With the growth in business
the buyers are adopting new practices too. One of them being the e-bidding
process to select right vendors for MICE services. But is it worth? Is it
really serving the purpose? Allow me to put my point here through this
Generally, the objective
of the E bid or reverse auction is to bring efficiency, bring transparency,
cost efficiency and time saving.
But does it really serve
the purpose when it comes to complex large scale mice movements &
ultimately who is the ultimate winner at the end? Is it corporate, Mice Service
provider, DMCs or someone else?
While speaking with few
MICE professionals, they have shared interesting insights into current
practices followed by many mice service providers to get into the top slots of
E-bid. As per them, It is only & only by underquoting heavily at the time
of bidding, particularly when the volume of business is large & corporate
spend is pretty decent.
At the time of bidding, in
most cases, no blockings of services are made apart from one or two small
components that too in rare cases. (This differentiates services from
commodities/Goods). Generally, highly Volatile elements like airlines are
heavily underquoted & land elements are little less underquoted as
volatility is not that high when it comes to land services A condition is
always put by service providers “ air seats are subject to availability &
airfare is subject to change”.
As they know it really
well, that finalization of such complex events is a time consuming process and
no corporate is going to pay advance immediately and agent would have enough
time to play gimmicks once he get into the top slot of L1 & L2. His only
objective at the time of bidding is to get into the top slot. Generally, such
agents are those who are highly desperate and are not known in market for their
services and are always ready to do anything & everything to grab the
Agents know well that a
corporate who is spending 10-20 crores on its channel partners, would certainly
be looking for a return on investment and he would not mind spending a few
crores more later to achieve this objective. Therefore, agent’s primary
objective is to first grab the top slot by underquoting and than begins the
real game and corporate has no option but to play in his hands as corporate too
would not want to spoil the entire MICE Project just because of 8-10% more
spend. And finally, he agrees to spend this amount willingly or unwillingly. At
this point, entire e- bidding/reverse auction activity and its objective of cost
saving & time saving etc go for a toss, as he would be spending much more
than what realistic guys had quoted them at the time of E-bidding.
E-biddings are definitely a powerful tool for products but
services through e-bidding can be definitely challenging.
What do you think on this
process? Do you face the same challenge while e bidding? Or do you think these
views are biased basis one didn’t have enough risk-taking abilities to grab a
deal? Or it’s a fair process in other businesses, then why not MICE? Let me
know via email to [email protected]
PS: Above views are basis
the conversations with top MICE players from India. If you have a different
view, we would like to hear your perspective too. So get in touch with the team
to hear your side of story too.