Adapting Under Pressure: Exploring Dynamic Capabilities in the Post-COVID MICE Sector in Hungary

AIMS OF THE PAPERThis research examines the digital transformation of the Hungarian MICE sector’s response to theCOVID-19 pandemic and its subsequent digital transformation. The primary aim is to contribute to theevolving discourse on how the pandemic accelerated digitalisation in MICE tourism industries and toexamine how actors in the Hungarian MICE industry recognised changing customer needs during theCOVID-19 pandemic related to digital solutions as well as how successfully they adopted and integratedthese solutions. METHODOLOGYWe investigate the Hungarian – and particularly the Budapest – MICE sector’s digitalisation using the“Dynamic Capabilities Framework” (DCF) to gain insights into how Hungarian event and venue serviceproviders are responding to the challenges posed by the pandemic and to understand their perceptions ofthe sector’s digitalisation trends. The research methodology employed is a qualitative, semi-structured thematicanalysis of expert interviews. MOST IMPORTANT RESULTSThe study revealed that the MICE sector in Hungary performed well in recognising and meeting changingcustomer needs during the pandemic, which is a capability labelled as sensing, but was less capable ingaining market positions, expanding service portfolio, i.e., the MICE sector underperformed in the area ofseizing, as well as in terms of creating a long-term organisational transformation. Barriers to developmenthave been identified including a lack of infrastructural background, financial resources and burdens inmanagement mindset and decision-making. The expected outcome is an overview of the market situationof the players, an analysis of development trends and perceptions of competitiveness, aiming to provide acomprehensive picture for decision-makers. RECOMMENDATIONSThe results of the research on the Dynamic Capabilities of the MICE sector may contribute to supportingpolicymakers in building policy and strategy, such as event and destination management companies or tourismagencies. Results on consumer attitude can enhance the local and regional competitiveness of venueproviders, conference centres, exhibition venues, and technical background companies.