Destination Management Companies: Business Model and Process

The online reputation management New York company understands the role of a destination management company and are thinking of even hiring one for one of their special events. The destination management company have unique business models and these ultimately involve clients and customers and those who plan meetings, events, and incentive travel programs. The client is a representation of the customer who purchases the DMC’s services. In the organization, the planner si a person who represents the customer, company, or organization who works directly with the DMC. The customer, client, and planner can all be in three separate entities or the same with a destination management company. For the organizations clients, they usually have different corporate accounts including national sales meetings, training meetings, product introductions, dealer/customer meetings along with association accounts for industry trade shows, professional trade shows and conferences, fraternal organizations, educational conferences and political conventions. They also have incentive-based organizations such as sales incentives, dealer incentives and service manager incentives.

For a destination management company, the sales process involves different business opportunities including association, corporate meetings and events, incentive travel and international travel. Their process for sales include everything from sales and marketing plans. These include different industry trade show attendance, community sales efforts and networking industry events, utilization of representation firms, newsletters, brochures, and collateral materials, along with partnerships and memberships for the destination management company industry groups. Request for proposal and project specifications, research and development, creativity and innovation and budgets. They also have different product specifications including how big the group size is for the events, the choice of hotel/meeting space allotment, the dates/types of services required along with attendee demographics and approximate company budget. The pricing is very important since this involves being able to have a total estimated cost, staff time necessary, amount of DMC resources necessary, supplier choice and availability, time of the year and local business activity and the costs of taking staff tike off of market during season.