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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.
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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.
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 Services Offered by DMCs Hired by meeting planners, DMCs can provide:
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 • 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 • 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 TheSales 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 • 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