Destination Management Company
Encyclopedia
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.
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 barrier
s. 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 operator
s.
DMCs can therefore be contrasted with other organisations:
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
.
Professional services
Professional services is an industry of infrequent, technical, or unique functions performed by independent contractors or by consultants whose occupation is the rendering of such services....
company possessing extensive local knowledge, expertise and resources, specializing in the design and implementation of events, activities, tours, transportation and program logistics.
A DMC provides a ground service based on local knowledge of their given destinations. These services can be transportation, hotel
Hotel
A hotel is an establishment that provides paid lodging on a short-term basis. The provision of basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has largely been replaced by rooms with modern facilities, including en-suite bathrooms...
accommodation, restaurants, activities, excursions, conference venues, themed events, gala dinners and logistics, meetings, incentive schemes as well as helping with overcoming language barrier
Language barrier
Language barrier is a figurative phrase used primarily to indicate the difficulties faced when people who have no language in common attempt to communicate with each other...
s. By acting as purchasing consortia
Group purchasing organization
In the United States, a group purchasing organization is an entity that is created to leverage the purchasing power of a group of businesses to obtain discounts from vendors based on the collective buying power of the GPO members....
, 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
Travel agency
A travel agency is a retail business that sells travel related products and services to customers on behalf of suppliers such as airlines, car rentals, cruise lines, hotels, railways, sightseeing tours and package holidays that combine several products...
and Tour operator
Tour operator
A tour operator typically combines tour and travel components to create a holiday. The most common example of a tour operator's product would be a flight on a charter airline plus a transfer from the airport to a hotel and the services of a local representative, all for one price. Niche tour...
s.
DMCs can therefore be contrasted with other organisations:
- Travel Agent: a store offering travel products such as air tickets, hotel bookings, cruiseCruiseCruise may refer to:*Cruise , a distinct stage of an aircraft's flight*Cruising , living on a ship or a boat and traveling for extended periods of time*Cruise ship*Cruise , a gathering of modified cars...
s, 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 tourismTourismTourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".Tourism has become a...
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 (marketingMarketingMarketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
, sales) to harvest the fruits of that potential.
The tourism potential of Singapore
Singapore Tourism Board
The Singapore Tourism Board is a statutory board under the Ministry of Trade and Industry of Singapore, tasked to promote the country's tourism industry.-History:...
is the result of destination management. Another example of this approach is Manx National Heritage
Manx National Heritage
Manx National Heritage is the national heritage organisation for the Isle of Man. It was established in 1951 as the Manx National Trust, and its legal title is the Manx Museum and National Trust.-Overview:...
. However Destination Management need not be at a national level like Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
, 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
Madhya Pradesh
Madhya Pradesh , often called the Heart of India, is a state in central India. Its capital is Bhopal and Indore is the largest city....
.