The document discusses destination management companies (DMCs) and their role in the tourism industry. It explains that DMCs work with destination marketing organizations (DMOs) to provide tourism services and attract clients. The document then outlines the typical process a DMC follows, including sales, submitting proposals, program development, execution, and wrap-up. It discusses the types of clients DMCs work with, such as corporations and associations. Finally, it provides tips for selecting a DMC and discusses future trends in the industry.

1. Tri Anjaswarni
economic impact of tourism
services (TS)
What are the economic impact of
tourism services (TS) ?
The the economic impact of tourism
services is great. In order to understand
this topic, you will learn the concept of
tourism service, the economic impact
of tourism and the source of tourism
service sector growth.
DMC’s vs DMO’s
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PARIWISATA

2. DMC’s vs. DMO’s
DMO’s work with interests of community and private companies that provide services.
DMC’s get leads on new accounts from planners that have gone through a DMO.
Two or more DMC’s provide proposals.
Responding to clients RFP’s take considerable time.
There are some Basic Business Requirements, such as:
 Staff
 Temporary Field Staff
 Office
 Technology
 Licenses and Insurance
 Community Contacts
 Customer Contacts
 History of Success
 Destination Resources
Must have a strategically located office
DMC’s must be legally insured for business liability and standard coverage (workers comp, auto
insurance).
DMC’s compete in a relationship driven industry and must keep up with contacts.
DMC Organization, devided into three part:
Independent Operator – Good when only a limited or specific service is needed for the success of the
event.
Multi-services Operator – Typically larger with established networks of service offerings.
Destination Management Networks – pool resources to achieve economies of scale.

3. Business Model of DMC’s
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.”
Who are the DMC Clients ??????
Corporate Accounts
 National Sales Meetings
 Training Meetings
 Product Introductions
 Dealer/Customer Meetings
Association Accounts
 Industry Trade Shows (Food, Construction, Aircraft, etc)
 Professional Trade Shows and Conferences
 Fraternal Organizations (VFW, Lions, etc)
 Educational Conferences
 Political Conventions
Corporate Accounts
 National Sales Meetings
 Training Meetings
 Product Introductions
 Dealer/Customer Meetings
Incentive-Based Organizations
 Sales Incentives

4.  Dealer Incentives
 Service Manager Incentives
How’s the The DMC Process then ??
The Sales Process
 Business Opportunities
 Specialization
 Association
 Corporate meetings and events
 Incentive travel
 International travel
 Identifying New Business Opportunities
 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
Request for Proposal (RFP)
 Project Specifications
 Research and Development
 Creativity and Innovation
 Budgets
 Response Time
 Competition
Project Specifications
 Group size
 Choice of hotel / meeting space allotment

5.  Dates / Types of services required
 Attendee demographics
 Approximate budget
 Past history / current deadlines
Pricing
 Total estimated costs for services
 Staff time necessary before, during and after program
 Amount of DMC resources necessary
 Supplier choice and availability
 Time of year and local business activity
 Costs of taking staff off of market during season
Questions to ask
 Revenue potential / value of future relationship
 Amount of proposal work
 How many companies and competitors are bidding
 Success rate of you and your competitor
 What are the odds of winning contract
 How profitable will it be?
Program Development
 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 Execution
 Transportation management
 Event production

6.  Tour and activity management
 Support staff supervision
 Supplier/vendor management
 Meeting support
 Customer relations
 On-site changes, challenges, contingencies
 Troubleshooting
 Community liaison
 Information source
Production of events
 Cocktail receptions and networking events
 Breakfasts, luncheons, and dinners
 Dining events at unique venues
 Gala dinner events
 Extravagant theme parties
 Outdoor and indoor team-building events
 Events for staff to meet and mingle
 Events for sales staff to meet and mingle with clients
 Events on final night of incentive program to “fire up.”
 Events to promote casual networking
Wrap-up and Billing
 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

7. Finding and Selecting a Destination Management Company
Careful Considerations:
 How long the company has been in business
 What are the experience levels of the management and staff
 What are the personalities of the management team
 Is the DMC an affiliated member of a professional organization
 Is the DMC adequately bonded
 What is they quality of their references
So how about the Destination Management Company Resources ?
DMC’s provide recommendations on:
 Products
 Reputation
 Experience
 Relationships
 Suppliers and Vendors
 Credit and Buying Power
There some DMC Future Trends:
 Take the lead in Green Practices
 Work together in Consortiums
 Identify and develop new business from Drive-To Markets
 Develop Crisis Networks
 Emphasize standards of conduct and organization
 Build relationship management strategy
 Becoming attentive to Competitive Forces