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Is there a need for destination management companies (DMC)?

Today the traditional Outgoing and Incoming Travel Agent s under the pressure of fierce competition have diverted from their original mission of “experienced travel consultants” Today most of the agents have become brochure sellers and seat bookers……

Our profession can trace its origins back well before Thomas Cook. Herodotus was one of the first who wrote his travelling impressions in a sort of guide book and advised the travellers! No need to go so far back. Just a few decades ago the Travel Agent was an expert who, based on his personal expertise, could advise his clients where to travel, how to dress, what to eat, how to appreciate and behave with foreign cultures etc.

he Travel Agent had the knowledge to plan perfectly a detailed and exciting programme around the world. He could also depend on the expertise of his incoming agents abroad for providing his clients with the best services and advice.

There were the times when the Travel Agent was a “consultant” for the client, the times when the Travel Agent would take the time to sit with his client and analyse his needs for providing the best programme fitting both budget and dreams.

There were times when the  Incoming Agent would call daily on several clients to find out if everything was well. Was there anything he could do for them? Was there any problem with accommodation, service, food etc.? These were the times when the client would trust his Travel Agent with his desires and dreams and be sure that he/she would get the best advice from a friendly and concerned expert.

Then came the time of “fast food” and “fast bookings” together with “fast and impersonalised services” The time when the reduction to be obtained was more important than the value of the advice. The Incoming Travel Agent s also had to adapt (but sometimes negatively) to meet the demands of mass production; and mass tourism!

Pressured by the mega Tour Operators and the demands of mass tourism, the role of local Incoming Travel Agents became more narrowly defined.  Experience, creativity and service became of secondary importance; but the trend has turned full cycle. Because people are no longer content with being part of the “herd”, the Destination Management Companies moved in to successfully fill the gap and provide necessary quality, expertise, reliability and business based on personal relations.

Tom Risbecker from Sweden first used the term “DMC” for Destination Management Company in 1977. His objective was to categorise himself and a handful of other colleagues; and break the bridges from the traditional services of the ground transportation companies and the incoming agents. Many controversial thoughts were expressed then in the market and many agents believed that the term “DMC” was only cosmetic. However, all the major pioneers in this trade recognised
themselves in the new terminology and quickly followed Tom in calling themselves DMC’s. Some of them I remember were Gunter Roleff, Harry Baum, Henry Pransky, Jean Murat, Issy Scher, Byron Argiri, Elhamy El Zayat, and many others.

Their belief in the mission and position of DMC’s was so strong among them that they created the IADMC (International Association of Destination Management Companies). Following the internationalisation of SITE (Society of Incentive & Travel Executives) in the late 80s and its recognition of the role of DMC’s, there was no need to keep the IADMC which was dissolved a few years later. However the seed was planted and today is flowering all over the world; to the point that even companies who do not qualify to call themselves DMC’s, do so.

The term of DMC was created to ; and distinguish the companies and executives who not only provide creative itineraries and exemplary management but above all make constructive contributions to the incentive, motivation and meeting management industry. The DMC staff member is not a passive handling agent but an active consultant. A DMC consultant actively collaborates with his clients in building up a successful programme and delivers it under the exact contracted prescriptions.

        The DMC consultant is not contributing only to Incentive Travel, but also to the motivation travel and the meeting industry. Here again, due to the exemplary management of logistics we find more and more DMC’s involved in the meeting industry than traditional Professional Congress Organisers (PCO).

Recognising the role and contribution of DMC’s in our industry, and following the recommendations of the 1994 and 1996 Task Forces, SITE created a separate and distinct discipline of Destination Management Companies and adapted a new definition.

“Destination Management Company is a local service organisation that provides consulting services, creative events and exemplary management of logistics based on an in- depth knowledge of the destination and the needs of the incentive and motivation market.”

This definition describes but does not limit the profile and activities of the DMC consultant that ideally must meet the following criteria necessary for handling the requirements of the incentive, meeting and congress trade; as defined by SITE Benelux Chapter:

  • The DMC consultant is an expert and committed adviser who can support his client during the selling and promotion process of Incentive, Motivation or Conference travel.
  • The DMC consultant possesses an in depth knowledge of the destination; has excellent strong relation with reliable local suppliers; and is a crucial and dependable link between them and the client. 
  • The DMC consultant respects both in letter and in spirit all commitments made to the client and suppliers.  
  • The DMC consultant provides creative programmes and events, outstanding customised services and exemplary management of logistics during the operations.  
  • The DMC consultant puts at the client’s disposal all the necessary means and staff support; and is fully available for the client before, during, and after the execution of the programme.

Issy Scher CITE in his thesis “The theory and practice of Destination Management” states that:  “The professional DMC must at all times strive for:

  • CREATIVE CONCEPTION
  • PERFECT PLANNING
  • IMPECCABLE PERFORMANCE.

This sounds like quite a tall order…. it is. But this level of aspiration is what the exciting world of DMC’s is all about. And that is why there are not too many real DMC’s. DMC’s are known for their fair play and correct attitude towards both clients and suppliers and they adhere and perform according to the Code of Ethics of SITE.  

Under the scope of the above that there is a need and there are good prospects for the future of DMC’s. Therefore you are invited my future articles to share some ideas and experiences of how one can make a successful transition from being a good incoming agent or ground handler to a successful Destination Management Company and DMC consultant.

* The word client(s) or customer(s) is often used in this document. This does not refer to the participants of a trip (travellers or guests). It refers to the real clients of a DMC who are the Incentive Houses, Travel Fulfilment Companies, Specialised Travel Agent s, Meeting Planners, Congress Organisers or the corporate user.

In the next Issue: Marketing yourself as DMC

© Tasso Pappas CITE
Tasso Pappas is President of the Site Greek Chapter and served as President of Site Intl. in 2000. This article is an extract from his book "To be or not to be a DMC" which he wrote in 1996 as his thesis for the certification CITE (Certified Incentive Travel Executive).

Co-Founder & Managing Director - Travel Media Applications | Website | + Posts

Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.

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