Travel Ecosystem: Five Facets of Success for DMC
The travel ecosystem is an ocean of opportunity. Here are tips on how to become a successful DMC.
Destination Management Companies (DMC) have endured a lot of threats and challenges over the years, and there is always speculation whether the future is bright or gloomy. To succeed, you must be ready to press forward and face them. Awareness of the changing environment and foresight for what clients are demanding is important to stay ahead of the game.
Here are five things you need to consider to succeed as a DMC, strengthening a value proposition that otherwise could end up being flaccid.
Tips for Destination Management Companies
1. The DMC as a Travel Market Player (and beyond)
Working as a DMC means you have to deal, communicate, and collaborate with many people and/or companies in a cruel and ruthless marketplace.
Who are the successful DMCs, then? They are those that accepted that their ideas will be sought but not purchased. That their time will be engaged but not remunerated. That they’ll even be lied to. And so on. So stop complaining, face reality, and just get your job done!
2. The DMC as a Service Provider
Speaking of getting the job done, you must deliver second to none service standards. This includes getting information to a client in a different time zone, leading destination site inspections on a 24/7 basis, dealing with endless programme alterations, taking calls on the cellphone while on your vacation, etc. Having a service attitude is your bedrock, the heart and soul of a DMC’s value proposition, and you need to work from this space. Protect, nurture, and cultivate this mindset, and your business is expected to flourish.
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3. The DMC as an Innovative Entrepreneur
Think about it. What do DMCs that continue to prosper in challenging times have?
Usually, they are diversified and have created extra revenue streams. Some have invested in equipment, developed their creative production capabilities, created an entertainment or leisure department, or could handle large city-wide conferences.
We are living in an era of continuously advancing technology, and there are great opportunities - both in terms of selling technology as a service and using technology as an additional distribution for unique products and services. Exhaust everything technology has to offer and be on par by creating one or more businesses.
4. The DMC as a Destination Marketer
Being a creative destination marketer is another core element in the DMC value proposition. DMCs have a reputation in local knowledge and expertise. They are professionals in the delivery of company incentives. They know that corporate events are not an end in themselves, but merely a way to achieve objectives. DMCs know how to position a destination to deliver on corporate objectives; thus are perfect destination marketers for the MICE (Meetings, Incentives, Conventions, and Exhibitions) sector.
Therefore, you must know how to deploy this local knowledge to build demand for your destination.
5. The DMC as a Relationship-builder
The tragic flaw in the traditional DMC business model is that you only get the business when the client confirms your destination and most programmes are once-off. You build up considerable relationship equity with a customer and with the customer’s customer, but once the event comes to an end, so too does their business into your destination. Because of this, you should establish long-term agreements with customers both for ongoing business into their destination and outside their destination.
Challenges are inevitable, given the ever-changing business climate and customer needs. To become successful in the travel business, you need to strive to think creatively, provide high-quality client service, and deliver cost-effective solutions.