Chapter Seven Destination Management Companies (DMCs) MEEC Chapter Seven Destination Management Companies (DMCs)

Introduction A DMC is a professional management company specializing in the design and implementation of events, activities, tours, staffing, and transportation utilizing extensive local knowledge, expertise, and resources. A DMC offers, but is not limited to, guest tours, special events within the meeting, VIP amenities, transportation, staffing for conferences, entertainment, décor, on-site registration, and housing.

Introduction DMCs work cooperatively with airlines, hotels, resorts, convention centers, alternative venues, and transportation companies. DMCs refer to the entire activities and services for a client as a “program.” DMCs are also an important element in incentive travel.

Services Offered by DMCs Hired by meeting planners, DMCs can provide: Hotel and event venue selection Creative itineraries Special event and creative theme concepts Event production Sight-seeing options Team building activities Meeting support services Transportation planning and delivery Dining programs Entertainers Speakers VIP services Staffing services Budgeting and resource management

DMC Clients & Customers Clients and Customers are defined as those who plan meetings, exhibitions, events, conventions, and incentive travel programs. The “Client” is a representation of the customer, company, or organization who purchases the DMC’s services. The “Planner” is a person who represents the customer, company, or organization who works directly with the DMC on programs or events. The customer, client, and planner can be three separate entities or “one and the same.”

DMC Clients & Customers DMCs act as the local destination’s “eyes and ears” for the planner: Provide un-biased and experience-based suggestions: Logistics Venues Event concepts Social program content Both a Consultant to and a Contractor for the planner

DMC Clients & Customers Corporate Meetings National Sales Meetings Training Meetings Product Introductions Dealer/Customer Meetings Conventions/Conferences Trade Shows Fraternal Organizations Educational Conferences Political Conventions

DMC Clients & Customers Incentive Programs Sales Dealer & Service Manager Incentives Special Events Sporting Events Super Bowl Final Four Basketball PGA – LPGA Golf Tournaments Olympics Important corporate occasions

Structure of a DMC Do not require extensive capital investment to start up and operate. Many are small, stand-alone operations, locally owned and operated; owner usually runs the company. Larger companies may have offices in multiple destination offices with local staff fulfilling management duties on all levels. Levels of authority and reporting vary based on the size of company and qualifications of staff. Do not normally own transportation equipment, props, décor, and other supplies that they “sell” to customers.

Structure of a DMC Management and Administration Sales and Marketing Management: General/Office/Accounting Assistants: Executive/Administrative/Research Receptionist Sales and Marketing Directors: Marketing/Special Events Sales: Manager/Coordinator Proposal Writer Research Analyst

Structure of a DMC Operations and Production Field Staff Director: Operations/Special Events Manager: Production/Transportation/Operations/Staffing Field Staff Manager: Transportation/Equipment Supervisor: Field/Event Tour Guide Meet and Greet Staff

Structure of a DMC General Manager Sales Office Operations Special Events Director Manager Director Director Sales Manager Operations Manager Special Events Transportation Manager Coordinator Sales Coordinator(s) Staffing Manager

DMC Resources Products Reputation Experience Relationships Suppliers and Vendors Credit and Buying Power

DMC Business Process Comparison between advertising and DMC Both identify target accounts and contact through direct and electronic communication. DMCs present capabilities that will meet customers’ requirements by using examples of their successful programs. Clients of both usually choose two or more from competing firms to develop proposal after presentations.

DMC Business Process Basic Business Requirements Staff Temporary Field Staff Office Technology Licenses and Insurance Community Contacts Customer Contacts History of Success Destination Resources

The Business Process The Sales Process Business Opportunities Specialization Association Corporate meetings and events Incentive travel International travel Identifying New Business Sales and Marketing Plans Industry trade show attendance Community sales efforts and networking industry events Utilization of representation firms Newsletters, brochures, and collateral materials Partnerships and memberships in DMC industry groups

The Business Process The Proposal Stage Site Inspections Project Specifications Research and Development Creativity and Innovation Budgets Response Time Pricing Competition Site Inspections A physical review of proposed venues, services tours, and/or activities prior to the actual program.

The Business Process Contracts of Services Necessary in all aspects of meetings and event industry including: Hotels Convention Centers Cruise Ships Airlines Spell out exactly what is being purchased and the details

The Business Process Program Preparation Move from active selling to program operations Confirm with suppliers Response to client changes and requests Project manager is assigned Staff, supervisors, tour guides, escorts are hired and briefed

The Business Process Program Operations and Production Transportation management Event production Tour and activity management Support staff supervision Supplier/vendor management Meeting support Customer relations On-site changes, challenges, contingencies Troubleshooting Community liaison Information source

The Business Process Billing and Follow-up Final invoice reflects the contractual agreements Additions or deletions indicated Try to get planners approval of billing on site Follow-up evaluations of DMC services by client Debriefing of staff

Review Services Offered by DMCs Clients and Customers Structure of a DMC Resources Business Process Basic Requirements Sales Process Contracts Program Preparation, Operations and Production Billing & Follow-up