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DMCs – right value perception?

Author: Shekhar Niyogi / Date: Sat, 02/29/2020 - 04:56
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The work of DMCs is so crucial, however, it isn’t always viewed as integral.

Many naysayers had foretold the gradual demise of Destination Management Companies (DMCs) in a virtual web of transactions, bookings, information and decision-making leaving no room for personalised attention and customisation at a cost.  However, recent studies in events and destination management, has reiterated the role and importance of DMCs in a changing environment.

It is clear that nowadays the role of DMCs is evolving. Booking accommodation, arranging transport, reserving restaurants or advice on event ideas are just a click away. Does that mean that DMCs are becoming redundant? Not, at all. Demonstrating that point, the studies specify key reasons why clients can benefit from DMC services, from saving time to risk mitigation, economic savings and simplified finance management, and the ability to involve participants. Having one partner to liaise with instead of a long list of local suppliers, is like a one-stop delivery store.

Event organisation is a constantly evolving industry, influenced by new technologies, social change, new market offerings, and so on. The top trends to watch in this changing environment, are: tailored experiences that are meaningful and have a direct link to the client or local community, second-tier, emerging destinations or original locations, greater social media engagement among participants, CSR and local community legacies, ethical food: attention to organic, healthy, any requirements on short notice and flexibility.

By accepting the need for these parameters to be managed in a holistic manner, we reinstate the need to work with a DMC. DMCs have endured a lot of challenges in recent times and every year there seems to be speculation about what we can expect and whether the future is bright or more often, gloomy. To set the record straight, I asked for the opinions and insights from those in the know. I explored how DMCs are still relevant today, the value they offer, the challenges they are facing and how they are reinventing themselves to be ready for the future.

The Internet means that a wealth of information is available at our fingertips and everyone can Google and research standard packages and solutions. This means that DMCs have to work even harder to offer unique solutions. Cindy Y. Lo, owner, Red Velvet Events said: “Every DMC needs to offer creative solutions that are NOT turn-key because most corporate clients want something unique for their event.” The participant no longer wants the standard when they visit a destination - they want the authentic, the real and the unique. Aoife Delaney, director of marketing and sales, The DMC Network explained, “Authenticity is the new gold - a DMC knows a destination intimately and can put together an authentic experience in a way that cannot be found on the internet.”

Budgets are not growing in perpetuity. Understandably, transparency in pricing is requested frequently by clients. However, the challenge that this puts upon the DMC is where to draw the line on reasonable pricing transparency.

One of the most critical challenges DMCs face is the issue of perception. The work of DMCs is so crucial, however, it isn’t always viewed as integral. The broader business event community as a whole are not always great at promoting the value of their achievements. Although DMCs provide a service that is critical in the value chain of events, they do not get the same value perception. DMCs can offer unrivalled expertise of a destination, as well as local knowledge which means that DMCs can identify uniquely interesting and strong partners to catalyse the success of the event. This is not easy to achieve from any distant location elsewhere.

Meeting and incentive planners want unique experiences because that's what every client wants. They are there to bring the destination alive in a way that supports the goal of the client, and to ensure they have the best experience possible.

Peace of mind is primary. When an event happens with hundreds or thousands of people, everything needs to happen beautifully - to the extent it is so seamless it isn’t even noticed. Not only that, the DMC is there to control crisis if anything goes wrong. The lesson is not to be penny-wise and pound-foolish.
 

ABOUT THE AUTHOR

Shekhar Niyogi

Consultant Editor

Shekhar is a veteran journalist and destination marketing consultant. With over three decades of experience in covering MICE and all aspects of tourism, he continues to travel extensively and contribute news, analysis and commentary on trends in the industry, globally. Email: [email protected]