Insider insights on MICE travel between Europe and Asia

Last month, German national carrier Lufthansa announced mixed results for the second quarter of 2024, citing slower growth and a decline in traffic across all regions, particularly noting reduced demand for its flights to Asia.

Was Lufthansa’s performance affected by weaker travel demand between Europe and Asia? And what knock-on effect will this have on other airlines and future MICE travel from Europe to Asia?

MICE industry experts that M&C Asia spoke to paint a picture of mixed demand between the two continents.

Southern Europe emerges as MICE hotspot

Fernando Lonergan, vice president, Australia & Asia Pacific sales & account management at BCD Meetings & Events, says the agency is not seeing muted demand to/from Europe from a business events perspective.

While Lonergan observes that Europe as an incentive destination appears to have softened slightly compared to last year, he says 2023 saw exceptionally high demand as the first real opportunity for incentive programmes to return post-Covid, albeit with smaller guest numbers, due to shorter lead times and higher airfares.

“For summer 2024 Europe is still popular, however there is more interest in southern Europe in destinations like Croatia, Malta and Greece,” he says.

It's a view shared by Michelle Sargent, director, Australia & New Zealand, CWT Meetings & Events. She says the agency is certainly seeing clients steer clear of any European regions with geopolitical issues. However, airfares to Europe are becoming more reasonably priced as airlines increase their capacity and certain European destinations are in high demand with groups from the APAC region.

“These include Malta, Italy, Spain and Portugal,” she says. “Malta, for example, is seeing a massive influx of MICE groups due to its climate, history, and quality of hotels and venues. It's also great value for money prompting larger groups to favour this Mediterranean island.”

MICE headwinds blow in for Europe?

When it comes to outbound MICE travel from Europe to Asia, the picture is mixed. “Inbound business event numbers to the region continue to be strong,” says Lonergan. “Europe to Asia has always been a very competitive airline corridor, and with the increased speed of new aircraft deliveries, we are seeing more capacity added between Europe and Asia, impacting airline yields.”

At the same time, Lonergan adds that European carriers face competition against premium Asian and Middle East carriers such as Singapore Airlines, Japan Airlines, Qantas, Emirates, Qatar Airways and Etihad, all of which he says have a positive reputation for premium travel.

On the other hand, Lorela Chia, founder and managing director of Gr8t Dreams, says the European MICE and corporate travel market is experiencing a significant shift, but it's perhaps too early to tell what long-term impact this might have.

“The muted trend is primarily driven by ongoing geopolitical issues and economic uncertainties, such as the war in Ukraine and high inflation rates,” she says. “However, there are deeper, more nuanced factors at play, mainly due to growing sustainability considerations, change in MICE behaviour and priorities.”

She adds that different economic conditions across European countries are resulting in varied levels of demand for MICE activities.

“Companies facing economic pressures are more likely to scrutinise travel expenses and prioritise essential travel only,” she says. “This trend towards cost-efficiency and high ROI travel decisions is reshaping the MICE landscape.”