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I welcome you to my new blog post.
A destination management company (DMC) is a professional services company with the local knowledge, expertise, and resources, working in the design and implementation of events, activities, tours, transportation and program logistics. DMC is a service professional company with a wide-range of knowledge and experience over the conditions and touristic resources of a region.
As per Wikipedia.
DMC acts as a one-stop shop for travel agents and customers, they take complete responsibility of the guest once they arrive at the destination. DMC deals in proving hotels, sightseeing, visa, transfers etc. They work with the different vendors at the destination and consolidate the services for the travel agents. Although travel agents can also book standalone services with the DMC also.
Across the world small or big travel companies use the DMC to provide the services to their customers, it is really difficult to operate without them. A travel agent is dependent on DMC to provide the services required by his client.
Let us understand the example:
A customer is looking for the trip to Australia for 10 Nights with all sightseeing and hotels.
The travel agent will provide the complete details to the DMC about the hotel category, number of nights at each place in Australia, Transfers, sightseeing & meal. Post which he will consolidate the prices and communicate back to the travel agent.
In Australia customer will visit multiple cities and each city has its own service vendors therefore rather than coordinating with all, travel agent assign this task to the DMC, who will consolidate the services by coordinating with all concerned vendors and being a consolidator they have access to the best rates.
In the absence of this DMC it will take days to get the rates from all the stakeholders and it’s an Herculious task.
That’s why now you know, why travel agent use DMC.
Benefits of DMC:
Fundamentally all DMC’s are the same they work closely with the local government, local vendors, wholesalers, airlines, hotels, and transporters to provide the best rates and services to the travel agents. Some DMC also owns transport fleet & hotels at the destination in order to provide the best rates in the market. Working with the DMC has all benefits you think of after reading this part:
1)Being Consolidator provides best rates
3)No language problem
4)One point contact service
5)24X7 on ground support
6)Trust & Confidence
7)Maintain relationships with local government
8)Exclusive product support
Risk related to DMC:
Due to rise in the income & demand, many find opening DMC as a lucrative business option although these young companies try to provide the best services and price only a few make it big. Due to many factors.
Therefore, there have been cases where many young and even established DMC has shut down the operations overnight due to various reasons, therefore it is always recommended to work with the well-established player and take precautions with new ones. Although I don’t mean not to use the new one, it’s better to understand the presence, capacity and other work-related factors before awarding the contract of work.
Problems of DMC:
1) Lack of funding
2) Lack of Marketing
3) Lack of sales network
4)Lack of trust in target market