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

Introduction A DMC is a professional management company specializing in the design and delivery of events, activities, tours, staffing and transportation utilizing extensive local knowledge, expertise and resources. Specialize in their particular locality.

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 DMC’s 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. May contract direct with the event sponsoring organization, or May contract through an independent planner

DMC Clients & Customers DMCs act as the local destination’s “eyes and ears” for the the planner: Provide un-biased and experienced-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 Many are small, stand alone operations, locally owned and operated Others are regional, national or international in scope with multiple destination offices Some have a strong affiliation with a particular hotel or resort

Structure of a DMC Management and Administration Sales and Marketing General Mgr. Office Mgr Accounting Mgr. Executive Ass’t Admin. Ass’t Receptionist Research Assistant Sales and Marketing Dir. of Sales Dir. Marketing Dir. of Special Events Sales Mgr. Sales Coord. Proposal Writer Research Analyst

Structure of a DMC Operations and Production Field Staff Dir. Operations Dir. Special Events Operations Mgr. Production Mgr. Transportation Mgr. Staffing Mgr. Field Staff Meet & Greet Staff Tour Guide Transportation Mgr. Event Supervisor Field Supervisor Equipment Mgr.

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

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

The 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 events & association memberships Sales calls & community sales efforts Utilization of representation firms Newsletters, brochures & collateral materials

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

The Business Process Contracts of Services Identify buyer and seller Dates of contracts and of services Detailed itinerary of each service and its pricing Detailed listing of services and items included Deadlines, costs and procedures for changes Force Majeure clause Guarantees Deposit and Payment policies Cancellation policy Participation by minors Remittance instructions

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 Program Operations and Production Billing and Follow-up

The Business Process Program Operations and Production Transportation management Event production Toru and Activity management Support staff supervision Supplier/vendor management Meeting support Customer relations On-site changes, challenges, contingencies Trouble shooting 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 & Production Billing & Follow-up