In event management, especially in MICE (Meetings, Incentives, Conferences, Exhibitions), various metrics are used to measure the success and effectiveness of events.
The more a venue can measure, the more effectively it can improve. To measure performance in MICE, reliable metrics are needed that go beyond traditional and occupancy-based metrics.
Space Utilization determines how effectively function space is used. There are several approaches to measuring space utilisation.
1. Venue Occupancy determines how high the percentage utilisation is for the specific time period (day, month, year).
- For larger events, how often is an event space sold at a low value as an organising office or group room as part of the overall event?
- How often are the rooms occupied with a small number of participants or for the set-up/dismantling of an event?
2. For an overall picture and to evaluate the effective utilisation of the venue, the attendee density and the revenue per available square metre must also be taken into account.
Attendee Density is based on the definition of Optimal Attendee Capacity. Attendee Density is the percentage of sold attendee capacity compared to the optimal total capacity for all event spaces. A danger with this metric is the multiple recording of actual attendees sold (ACTUAL) per time period. For example, the sold attendee capacity for an event with a total of 30 attendees with 2 group rooms with 15 attendees each is 30.
Different figures (room rental, F&B, etc.) are available in the company as part of the financial analysis. However, for the core process of Function Space Revenue Management, a more detailed view of turnover is required in order to use the findings in forecasting demand and future strategic decisions.