Financial performance and capacity analysis for the MICE industry in Las Vegas and the United States

Abstract

The meetings, incentive travel, conventions, and exhibitions (MICE) industry is comparatively young and diverse. As a result, there has been limited research conducted in this field, especially from the financial performance and capacity management perspective. The purpose of this study is to fill the gap by analyzing the MICE capacity optimization issue in Las Vegas, a leading MICE destination, and in the U.S., a leading MICE country in the world. The findings and results of this study should help industry practitioners better understand the current status of the U.S. MICE industry in terms of assets efficiency, operational costs, and profitability. The findings of the financial performance analysis indicate that the MICE industry in Las Vegas and the United States has high operating expenses and intensive capital investment which affect its profitability. Moreover, the results of the capacity optimization analysis show that the MICE industry will continuously experience severe over-capacity over the next five years. This study recommends solutions to the capacity problems. Academically, this study should make a good contribution to capacity optimization literature by applying the theoretical model to the MICE industry.