Business tourism as a business niche

During the 9 years that I have been developing new tourism products for Casa Sauza, I have come to realize how quickly the market trends change and I have learned that the only thing that remains constant is CHANGE.

Facing an increasingly complicated economic situation and the compelling need for companies to remain in the market and increase their sales, I have given myself the task of exploring new tourism business niches and the ways in which my company can become part of them.

In this post you will discover how business or meeting tourism has influenced the economy of our Country (Mexico) and why this niche has become more and more attractive for companies engaged in tourism.

The role tourism plays in the economy of Mexico

Meting tourism is a very important niche for the economic activity of the country. Every year more than 266 thousand meetings take place in Mexico and they bring around 29 million people to our country. Of these 266 thousand events, 165 were world wide congresses. This area generates around 890 thousand jobs. It represents the 1.5% of the national GDP and 17.5% of Mexico's economic flow due to tourism.

The total value of business tourism is estimated in more than $35,000 million dollars from which 37% represents direct expenses for the organization of an event and the rest for activities that revolve around the event, such as the hiring of audiovisual services, support materials, transportation, etc. Therefore, it can be said that this segment has diversified, since it includes the participation of different kinds of companies. Business tourists spend three times more money than leisure tourists. Their average spending budget is of &1,252 dollars per capita.

Business tourism as business niche

Some of the assets that we take into account in order to consider this segment a potential niche for our businesses are:

• It activates the relatively low seasons for tourism companies since these events usually take place during the weekdays.
• It increases the average stay of tourists in the country: A business tourist stays at its destination for 5 to 6 days while a leisure one stays for 3 to 4 days.
• It promotes the creation of micro, small and medium companies. This does not only apply to companies that provide tourism services, but also to those that provide other kinds of services such as audiovisual, advertising, food suppliers, transportation, etc.
• It supports the generation and distribution of tourism income in the host destinations.

80% of all the meetings that are organized in our country take place mostly in Mexico City, Guadalajara, Monterrey and Cancun. Other minor destinations are Leon, Puebla and Chihuahua.

Mexico City is currently ranked as the sixth most important city to hold fairs, congresses and conventions in Latin America. It also ranks n.21 in a world wide ranking for the number of international congresses it has held. For all these reasons, as well as for being a very diversified segment, this niche has become a very attractive business opportunity for several companies.

Casa Sauza participates in this business niche in Jalisco by offering tourists a unique experience at our hacienda "La Quinta Sauza", where business events are held in a thematic concept venue, giving our guests a very Mexican and traditional experience. If you want to know how to participate in this market niche, we at Casa Sauza can tell you about our experience in our next article.