In June 2021, the volume of business events reached the same levels as those recorded in 2019.

A study conducted by experts from the Aeroclub Tour MICE agency analyzed the demand for business events among Russian and foreign businesses operating in Russia. The study focused on changes in demand during the first half of 2021, ongoing market trends, and preferred locations for MICE activities.

According to the experts, the demand for business events in the first half of 2021 showed signs of recovery, reaching 75% of the pre-COVID levels recorded in 2019. In the second quarter, the demand reached 87% of the 2019 scope, and by June, it had nearly fully recovered to 99%.

While the number of events increased by 20% compared to 2019, the average budget for MICE activities decreased due to a decrease in the number of participants. Large events, such as conferences with 500 to 1,500 attendees, experienced a one-third decline, while events with 50 to 100 participants decreased by 20%. Small-scale events, such as round tables with less than 50 participants, saw a 17% decline from pre-COVID indicators.

By June, less than 5% of events adopted online and hybrid formats, which combine online and offline elements. Although this format’s prevalence remains low, there is a growing demand for it as new restrictions are introduced, and it is expected to continue growing until a safe level of herd immunity is achieved.

Andrey Zinkovetskiy, the General Director of Aeroclub Tour MICE agency, stated that the market for business events experienced a rapid rebound. Despite the success of 2019, June 2021’s figures reached pre-COVID levels at 99%. Fears of a third wave did not lead to mass event cancellations, as businesses are prioritizing mass vaccinations to ensure the safety of their employees before hosting MICE activities. Consequently, a vibrant business events market is expected for the remainder of the year.

The study also revealed that less than 5% of events are held abroad, indicating a shift to domestic locations due to restrictions on international travel. Moscow, St. Petersburg, Sochi, Kazan, and Novosibirsk emerged as popular cities in Russia for organizing business events. Overall, the Russian infrastructure, with some exceptions, meets the expectations of business representatives, and new hotels are being constructed. In response to the pandemic, hotels have become more flexible and accommodating in organizing MICE activities.

Source: Aeroclub