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Dmo vc dmc
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
MODUL
Australia Indonesia Partnership for
Health Systems Strengthening
(AIPHSS)
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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