What’s the state of corporate and MICE travel and how can hotel revenue managers adapt?

On the surface, the numbers look promising. Business travel spending is hitting record nominal highs, and the Meeting Incentives Conferences and Events (MICE) sector has recovered remarkably, as the demand for in-person meetings became palpable after years of virtual fatigue. 

It’s tempting to look at the return of the wider tourism industry, coupled with rising Average Daily Rates (ADR), see bustling lobbies, and think the recovery is complete and it’s a return to business as usual.

But look closer, and the picture becomes far more nuanced. While top-line revenues grow, profitability is being squeezed by relentless operational costs, and crucial metrics such as occupancy still haven't fully hit their 2019 peaks. 

More importantly, the very nature of why and how people travel for business has fundamentally and permanently changed. The "road warrior" of the past is being replaced by a diverse cast of new traveler personas, each with unique needs and expectations.

The old playbook of static corporate rates, predictable booking windows, and a one-size-fits-all approach for business travelers is outdated. To drive profitable growth in the business travel sector and capitalize on the new opportunities emerging, it’s vital to have a grasp of how this sector is evolving. 

2025 marks a pivotal moment for hoteliers, where the promising surge in nominal business travel spending converges with evolving travelers expectations and persistent operational challenges. 

This guide will break down new industry trends, introduce you to your new target guests, and provide actionable strategies to help you build a successful revenue strategy for the corporate and MICE sectors. 

Why increased business travel spend doesn't tell the whole story

Let's start with the data. On the face of it, the headlines are impressive - according to a Global Business Travel Association report, global business travel spending is expected to reach $1.64 trillion in 2025, up from $1.48 trillion in 2024. Easily surpassing the 2019 record of $1.43 trillion once again. 

The World Travel & Tourism Council (WTTC) reported an even higher figure of $1.5 trillion for the year of 2024, exceeding pre-pandemic levels by 6.2%, according to their October 2024 report. 

In 2024, business travel expenditure across Europe is estimated to have hit €360.4 billion, marking a 10.4% rise compared to 2023. Projections suggest this figure will climb to €476.6 billion by 2028.

The MICE sector is also buzzing with activity, fueled by pent-up demand for the irreplaceable value of face-to-face connection.

However, this is where a sharp, data-informed revenue strategy becomes critical. A closer look reveals a more complex reality that may directly impact your bottom line.

Corporate travel: Spending surges but volume lags

While nominal spending has rebounded strongly, actual travel volume is still lagging. 

In 2024, U.S. domestic business travel volume lingered at approximately 95% of 2019 levels and total global business travel spending in the U.S. in 2024 was nearly 87% of 2019 levels. 

While projections hinted at a swifter return, the U.S. Travel Association now forecasts that U.S. domestic business travel volume won't fully recover until 2026, and total business travel spending may not rebound before 2028.

Even as 2025 approaches, with U.S. domestic business travel volume projected to be within a hairsbreadth of recovery at 99% of pre-pandemic levels , a recent GBTA poll in April 2025 casts a shadow of concern.

Nearly one-third (29%) of global travel buyers anticipate a decline in business travel volume this year according to the GBTA poll in April 2025; averaging a 21% decrease , primarily attributing this to U.S. government actions —a trend we've observed in our own data.

This overall reduction in business travel demand has a direct and undeniable link to your pricing power, setting the stage for what travel management firm CWT anticipated as a period of "great moderation" in travel prices throughout 2025, with only slight increases expected in average global hotel rates

According to our own proprietary room rate data, this appears to be the case so far, with Asia actually seeing declines in hotel room prices to date in 2025.

This means that while you may be able to command slightly higher rates, the total number of room nights from traditional corporate travel may still be below historical peaks, meaning fixed costs are spread across fewer occupied rooms.

The MICE sector: A resilient rebound with persistent gaps

The MICE sector has shown large-scale recovery. In Q2 2024, small event RFPs had increased to 97% of 2019 levels. 

Germany, one of the globe’s key MICE destinations, saw international MICE travel in 2024 nearly match 2019 levels at 98% recovery, and recorded 378 million in-person event attendees, reaching 90% of 2019 levels. International business event attendance in Germany was at 93% of 2019 figures. 

However, despite these positive signs, the recovery is not yet complete or uniform. 

According to PCMA's Annual Meeting Market Survey, while nearly half (49%) of event planners reported higher attendance at their largest in-person meeting in 2024 compared to pre-pandemic times, 29% said attendance was on par, and one out of five said it was lower. 

A significant challenge is ensuring long-term profitability. The gross profit for top-performing annual meetings, corporate events and trade shows in 2024 was down by 20 percentage points compared to pre-pandemic figures, largely due to an approximate 30% increase in expenses. 

The Center for Exhibition Industry Research (CEIR) reported that Q3 2024 total MICE performance was still 11% below Q3 2019, and has updated its forecast for a full industry recovery from 2024 to 2026.

Your takeaway

Don't be misled by the impressive spending figures. This isn't a straightforward rebound; it can be seen more as a restructuring. 

There is a lingering gap in corporate travel volume and occupancy, which has surfaced as limited room price growth. Couple this with the significant profitability hurdles in the MICE sector, means a more thoughtful approach is needed. 

The demand mix has changed, so your revenue strategy must adapt accordingly.

Meet your new target guests: Three profiles driving corporate travel revenue in 2025

Success today means moving beyond a single corporate traveler archetype and getting more granular. 

Your revenue strategy, from pricing to marketing, must be tailored to these three high-value profiles that now dominate the landscape.

1. The purposeful professional

Forget the routine weekly sales trip. Today's business trips can be shorter, more condensed, and laser-focused on ROI. 

These travelers are on a mission, often packing a week's worth of meetings into two or three days. They aren't just occupying a room; they are using your hotel as their command center, and they expect an environment that facilitates this.

What they need:

Flawless, secure, high-speed Wi-Fi is non-negotiable. They require flexible workspaces - not just a desk in the room, but adaptable public areas for impromptu collaborations or quiet pods for focused work. 

Service must be efficient and tech-enabled, from mobile check-in to seamless in-room dining orders that don't disrupt their workflow.

Your revenue strategy:

Think beyond solely room rates and start monetizing productivity. Offer tiered connectivity packages for power users. Create a business advantage package that bundles the room with meeting space credits, F&B for working lunches. 

From a revenue management perspective, consider their typically shorter length of stay. To capture these higher-spend, nimble guests who often book later in the curve for peak nights (like Tuesday/Wednesday), you'll need to yield appropriately and ensure availability is maintained correctly.

Use a Business Intelligence solution to track the performance of these new offers to this segment - see what’s working and what isn’t, and then adjust your strategy accordingly.

These travelers value convenience and efficiency, and they (or their companies) will pay a little more for services that maximize their often limited and valuable time.

2. The bleisure traveler

The bleisure boom is no longer a niche, emerging trend. It's turned into a dominant force in the travel and hospitality industry. 

The global bleisure travel market was estimated at $430.86 billion in 2024 and it is predicted to increase to $472.31 billion in 2025. It is then forecasted to reach a staggering $676.77 billion by 2029, accelerating at a Compound Annual Growth Rate (CAGR) of 9.4% from 2025 to 2029. 

Data from Hilton shows that over a third of Gen Z guests planned to extend a business trip in 2024 to enjoy leisure time. Additionally, 27% of them planned to take a friend or family member with them on a business trip in the following 12 months (from 2024).

Fueled by flexible remote work policies, these guests tack leisure days onto business trips, representing a massive opportunity for you to extend stays, capture higher-margin weekend revenue, and build deeper guest loyalty.

What they need:

They need a hotel that can transform with them. On Thursday, it's a professional environment and on Saturday it's a relaxing getaway. 

This means great workspaces and connectivity alongside appealing wellness facilities (spas, modern fitness centers), authentic destination experiences, and flexible booking options that make it easy to add personal days to a corporate stay.

Your revenue strategy:

Static corporate rates are the enemy of capturing bleisure revenue. Implement dynamic pricing models with length-of-stay (LOS) triggers that automatically offer attractive rates for weekend or lengthy extensions. 

Create and market specific work and play packages that bundle weekday business amenities with weekend leisure perks like spa credits, late checkout, or local tour tickets. Use your data to identify corporate guests who have previously extended stays, or had stays that included midweek peak dates and spilled over into weekend stays, and target them with personalized offers for their next trip.

Another way to identify bleisure travelers is to spot guests who book a corporate stay under their negotiated rate and corporate payment method, check out on Friday morning, and then check back in under a different rate plan or personal payment method for an extended leisure stay.

3. The conscious corporation

Sustainability has graduated from a nice-to-have to a non-negotiable procurement initiative. Driven by powerful regulations like the EU's Corporate Sustainability Reporting Directive (CSRD), companies are now mandated to track, report, and reduce their travel emissions. 

They are actively seeking hotel partners with verifiable green credentials who can help them meet their ESG (Environmental, Social, and Governance) goals.

What they need:

Proof - vague promises aren’t enough. Corporate travel managers require verifiable data on your hotel's energy efficiency, water consumption, waste reduction programs, and sustainable sourcing policies. 

This information is now a key part of the RFP process. Industry bodies like the Global Business Travel Association (GBTA) are even releasing sustainability standards for air and hotel procurement.

Your revenue strategy:

Position sustainability as a premium value-add and a core part of your B2B sales strategy. If you’ve invested in green initiatives, make it a prominent and quantifiable part of your value proposition. This can be the deciding factor in securing large MICE contracts and winning preferred corporate partnerships.

Frame your hotel not just as a place to stay, but as a strategic partner in corporate responsibility.

Unlocking profit in the MICE sector

While MICE demand is strong, the profitability challenge requires a smarter, more sophisticated approach to sales and revenue management. 

Grand View Research valued the global MICE tourism market at approximately $870 billion in 2024 and believes it is on track to exceed $1.4 trillion by 2030, growing at a CAGR of roughly 9%. 

Another report estimates the global MICE market size at USD 802.59 billion in 2023, expecting it to grow at a CAGR of 9.1% from 2024 to 2030, potentially reaching $1.4 trillion by 2028. 

No matter which figures you use, they underscore the MICE sector's significant potential, not just as a revenue generator but as a strategic tool for financial resilience, especially as events can fill demand during traditional off-seasons. 

However, as the market matures and attendee expectations evolve, maximizing this opportunity demands a forward-thinking revenue strategy. 

To truly unlock and optimize the profitability of your MICE business, consider these key areas:

1. Attracting the new MICE Audience 

Whether your aim is to secure more MICE events or simply increase MICE guest arrivals, your marketing and pricing strategies must precisely target the motivations of today's business travelers. 

The modern MICE attendee is increasingly driven by a desire for purposeful, efficient experiences and balanced with opportunities for personal well-being and a strong preference for sustainable options. 

Recognizing this, your outreach should clearly articulate the specific value you provide. This means moving beyond generic offers to craft compelling narratives and rate structures that speak directly to their priorities, ensuring your hotel stands out as the ideal partner for their evolving needs.

• For the purposeful professional, highlight your hotel's seamless tech infrastructure, high-speed connectivity, and adaptable workspaces that facilitate intensive, condensed meetings.

• For the bleisure traveler, showcase flexible extended-stay options and attractive weekend amenities that seamlessly blend work and leisure. 

• For the conscious corporation, prominently feature your verifiable sustainability credentials and wellness integrations, demonstrating how your venue supports their ESG goals.

Hybrid events are also now a standard part of the MICE landscape. The robust tech infrastructure required, from high-definition cameras and microphones to dedicated streaming platforms is a high-value asset. Don't give it away. 

Develop tiered digital event packages that price your capabilities according to the value they provide in extending an event's reach and impact.

2. Monetize wellness and sustainability 

Planners are actively seeking venues that offer wellness integrations (healthy menus, fitness breaks) and can provide sustainability reports. Turn this demand into a revenue stream. 

23% of business travelers worry about health challenges such as sleep loss, stress management and diet, so develop add-on packages like a wellness break (guided meditation, healthy snacks, yoga) to put them at ease. 

Or a green meeting option (carbon offsetting, locally sourced menus, a post-event sustainability report for the client). This transforms a potential cost center into a powerful revenue driver.

3. Master the short-lead-time game

The days of year-long booking windows are dwindling. MICE bookings now frequently happen within a few months, demanding more agile forecasting and a dynamic pricing strategy. 

Your revenue management and sales teams must be able to react quickly to capitalize on this last-minute, high-value demand without displacing other profitable business.

A four-point action plan for modern revenue management to capitalize on corporate and MICE travel

To thrive in this new environment, your strategy must be proactive, data-driven, and creative. Here are four pillars to build upon:

1. Optimize with dynamic pricing and strategic promotions

It's time to demolish the silos between transient, group, and corporate pricing. Implement a powerful rate shopping tool for real-time competitive pricing and promotional data. This allows for granular dynamic pricing, flexing rates based on demand, competitor actions, and segment nuances. 

For example, price bleisure extensions differently from mid-week corporate stays, and adjust dynamically for high-value, short-lead MICE business. 

Use insights to craft targeted discounts and value-add promotions, ensuring offers attract specific segments without eroding ADR. This intelligent, holistic approach ensures your pricing is always optimized for maximum revenue.

2. Better predict demand in your market

Your historical booking data, while valuable, is no longer enough to navigate the future. To move from reactive reporting to truly predictive forecasting, you must leverage forward-looking flight and hotel search data. 

Predictive demand intelligence can analyze vast amounts of search intent, can help you better understand and anticipate demand in your market. This allows you to identify rising demand for corporate and MICE events, target emerging guest segments, to pinpoint corporate accounts with the highest bleisure potential, and to predict cancellation patterns with greater accuracy. 

By integrating these insights, you can optimize pricing in real-time, develop the right marketing tactics for each demand scenario and proactively protect your margins against rising costs.

3. Diversify revenue streams beyond the room

With U.S. hotel occupancy at 63.01% in 2024 and projected to reach 62.8% in 2025 (a slight downgrade from earlier projections due to macroeconomic concerns), relying solely on room revenue is a higher-risk strategy than usual. 

Every square foot of your property is a potential revenue center. You can apply revenue management principles across all of your revenue generating assets at the hotel, commonly known as Total Revenue Management. 

For example, create a membership model for your co-working spaces. Use dynamic pricing for your F&B outlets to attract non-resident diners during off-peak hours. Price your wellness services and create premium experience packages to capture the high-margin bleisure market. 

A primary challenge in implementing Total Revenue Management lies in consolidating data from various departments, each often using different systems and metrics. Your Property Management System (PMS) is a goldmine of this data. 

Therefore, an essential first step is to implement a robust Business Intelligence solution that can efficiently extract and analyze PMS data, providing actionable insights for Total Revenue Management.

With the tool in place, you can identify diversification opportunities, helping you pinpoint new revenue streams beyond traditional room sales. It also allows you to track the performance of each revenue-generating stream, enabling you to optimize every segment, from wellness services to premium bleisure packages.

This leads to more personalized offers and upgrades, enhancing upselling opportunities and ultimately contributing to increased revenue.

4. Sell total value, not just a room rate

In a world of rising costs and discerning travelers, deep discounting is a race to the bottom. The sales conversation must shift from "What's your rate?" to "How can we help you achieve your trip's objective?" 

Equip and train your sales teams to articulate the total value of your offering. This means showcasing your superior technology, your unique wellness amenities, your authentic sustainability efforts, and your ability to provide a seamless, productive, and restorative experience. 

This is how you justify a premium rate and win the most profitable business.

Driving sustainable growth from corporate and MICE travel

The corporate and MICE travel landscape of 2025 is filled with opportunity, but it belongs to those who adapt. The recovery is not just a return to the past; it's an acceleration into a new, more complex, and more demanding era of hospitality. 

By deeply understanding the motivations of the modern business traveler, leveraging technology to its fullest potential, and adopting a flexible and creative total revenue strategy, you can navigate the complexities of the market, protect your profitability, and position your hotel not just to survive, but to thrive as a leader for years to come.

Get in touch to see how Lighthouse can set you up for success with its industry leading data and commercial platform.