Destination management company

Destination management company

A Destination Management Company (DMC) is a term for a professional services company possessing extensive local knowledge, expertise and resources, specializing in the design and implementation of events, activities, tours, transportation and program logistics[1].

A DMC provides a ground service based on local knowledge of their given destinations. These services can be transportation, hotel accommodation, restaurants, activities, excursions, conference venues, themed events, gala dinners and logistics, meetings, incentive schemes as well as helping with overcoming language barriers. By acting as purchasing consortia, DMCs can provide preferential rates based on the buying power they have with their preferred suppliers.

While the term DMC is being widely used to identify a travel trade professional service, the service being offered is essentially the use of those ingredients, services and products already available at a particular destination and to which the user has provided no contribution other than use. These functions are performed by Travel Agents and Tour operators.

DMCs can therefore be contrasted with other organisations:

  • Travel Agent: a store offering travel products such as air tickets, hotel bookings, cruises, tours offered by tour operators; the store-keeper – key skill - product knowledge.
  • Tour Operator: A company that amalgamates travel products into tour itineraries; the tailor – key skill - product tailoring.
  • Conference Bureau: An agency that handles conference and conventions
  • DMC: An organisation that manages a tourism destination; the creator (presently state tourism departments) – key skill - product vision. A DMC providing DMS (destination management services), is basically the Creator who recognises the potential available in a place and creates the infrastructure, both tangible (infrastructure, training) and intangible (marketing, sales) to harvest the fruits of that potential.

The tourism potential of Singapore is the result of destination management. Another example of this approach is Manx National Heritage. However Destination Management need not be at a national level like Singapore, but could be at a district or zonal level. An example of destination management at a local level is the destination of the Khajuraho Group of Monuments in Madhya Pradesh [2].

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