MICE, mobility and margins: The next growth engine for global aviation

The MICE (Meetings, Incentives, Conferences, Exhibitions) industry is emerging as a critical growth driver for the global aviation sector. By generating high-value air travel demand, MICE supports year-round flight operations, offsets seasonal leisure slowdowns, and accelerates demand for improved connectivity, new routes, and specialised air services such as charters.

Airlines benefit from large group bookings, higher yields, and technology-enabled efficiencies, making airport infrastructure and seamless connectivity central to destination competitiveness.

From 2026 onwards, the MICE industry is expected to significantly boost both domestic and international aviation demand. Large-scale events will help fill aircraft, raise airport traffic, and prompt airline network expansion, particularly into non-metro and emerging hubs. As MICE formats evolve toward experiential and hybrid models, the need for reliable global connectivity for delegates is intensifying, creating a positive feedback loop between event-driven travel and aviation growth.

The global MICE market was valued at USD 870.46 billion in 2024 and is projected to reach USD 1,466.94 billion by 2030, growing at a CAGR of 9.2% between 2025 and 2030. Current estimates for 2024–2025 place the market between USD 907.2 billion and USD 1.12 trillion, while projections for 2030 range from USD 1.5 trillion to as high as USD 2.4 trillion.

Although North America and Europe continue to dominate in terms of revenue per attendee, the industry’s growth engine has shifted decisively toward Asia-Pacific. The region is forecast to be the fastest-growing MICE market globally, with CAGR estimates ranging from 10% to 13% through 2030.

Travel behaviour is also evolving rapidly. In 2025, 42% of travellers plan business trips with leisure components, while 45% are opting for “flexcations,” combining remote work with leisure travel. This shift is reshaping venue selection, with hotels now judged not just on meeting capacity but also on lifestyle amenities. The global bleisure travel market, valued at approximately USD 816 billion in 2025, is expected to grow at a robust CAGR of 17.8% through 2034.

The centre of gravity of the global MICE industry is increasingly pivoting toward the Middle East and Asia. Saudi Arabia’s Vision 2030 represents one of the most capital-intensive transformations in the sector, with the Kingdom’s MICE market projected to exceed USD 5 billion by 2030, growing at over 11% annually.

India, meanwhile, is forecast to record a CAGR of 13.2% from 2025 to 2030, driven by aggressive expansion of convention infrastructure and a booming domestic incentive travel market. To succeed in the 2025–2030 landscape, industry stakeholders must prioritise high-touch, relationship-driven events over mass volumes, rotate events across geopolitical “safe harbours,” and leverage AI for attendee matchmaking and hyper-personalisation.

The future belongs to destinations and organisers that can seamlessly blend sustainability compliance, experiential travel, and ease of access, including simplified visa regimes.

According to IATA, global passenger traffic in 2026 is forecast to grow by 4.9% year-on-year, measured in revenue passenger kilometres (RPK), led by Asia-Pacific growth of 7.3%. While this represents a marginal deceleration from 2025, it reflects persistent supply-side constraints such as limited aircraft availability and labour shortages.

These constraints are keeping load factors at record highs, projected at 83.8%, supporting yields and profitability. Industry revenues are expected to cross USD 1 trillion for the first time in 2025.High load factors, strong fleet utilisation, and rapid growth in ancillary revenues are expected to sustain airline profitability, with net profits projected to reach a record USD 41 billion in 2026 and a stable net margin of 3.9%. Despite this progress, aviation remains a low-margin industry, where individual companies can earn the sector’s total annual profit within a single quarter.

Regionally, Europe is expected to deliver the highest net profit, buoyed by Turkey’s stellar performance. The Middle East will maintain the highest profit margins, Asia-Pacific will lead in growth, and Latin America shows signs of structural improvement. North America, while still a major contributor to profitability, faces headwinds from stagnating domestic demand and operational constraints.

In 2026, both hotels and airlines are expected to benefit from improved occupancy levels. However, a key question remains whether this growth will flow through tour operators and travel agents, as airlines increasingly target customers directly through special campaigns.

To remain relevant, tour operators must move beyond selling standalone airline tickets or hotel rooms and focus on comprehensive, value-driven travel packages. Domestic tourism will remain a frontrunner, while expanded international connectivity will fuel outbound travel growth. Segments such as destination weddings, events, adventure tourism, wellness, and MICE will require proactive strategic focus.