difference between travel agency and dmc

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What is the difference between a DMC and Travel Agency or Tour Operator?

A Destination Management Company (DMC) is a company that contracts with local service providers (tour guides, restaurants, hotels and other vendors) to prepare and deliver custom itineraries for a travel agent’s clients. The purpose of a DMC is to provide an all-inclusive service to a client by coordinating and contracting the travel services that their client needs such as travel, lodging and entertainment while they are at their destination. A tour operator is similar to a DMC in that they offer customized tours and trip planning services on behalf of a brand or destination. 

DMS stands for Destination Management System . A DMC is a company that contracts with local service providers (tour guides, restaurants, hotels and other vendors) to prepare and deliver custom itineraries for a travel agent’s clients. It is not uncommon to see two or three different companies working together in this way.

In contrast with a tour operator who provides lodging, meals and transportation for individual travelers as well as providing specific services such as booking air/bus tickets or car rentals; DMCs focus on providing an experience that takes you off the beaten track of your typical tourist destinations.

A DMC is a company that contracts with local service providers (tour guides, restaurants, hotels and other vendors) to prepare and deliver custom itineraries for a travel agent’s clients.

A DMC is a company that contracts with local service providers (tour guides, restaurants, hotels and other vendors) to prepare and deliver custom itineraries for a travel agent’s clients. The term “DMC” is often used interchangeably with “travel agent,” but there are many differences between these two industries.

Travel agents typically work with wholesalers or other agencies that specialize in booking travel packages; they act as middlemen between the client and the supplier of their choice. Travel agents can be based out of one particular city or country but may also have offices elsewhere in the world so they can provide additional services such as suggestions for hotels or restaurants on each destination visited by their clients.

The purpose of a DMC is to provide an all-inclusive service to a client by coordinating and contracting the travel services that their client needs such as travel, lodging and entertainment while they are at their destination.

A DMC is an all-inclusive service that provides clients with a travel experience, managing all of their travel needs such as airfare, lodging and entertainment. DMCs also help you manage your business by finding new clients and saving money on marketing expenses.

A DMC will be able to provide the following services:

• Finders Fee – This is when we find the best deal for you from different suppliers in order to save money on your trip or vacation package. We do this by looking at various factors such as flight times, dates available etc., so that we can make sure that everything works out well without any extra charges later down the line (such as cancellation fees).
• Advance Bookings – If there are specific items which need to be pre-booked prior to arrival at destination then this would be done automatically through our system once payment has been processed through Stripe/PayPal account number associated with booking activity!

A travel agent can use a DMC to maximize profit by purchasing a certain package that meets the customer’s needs while minimizing the cost.

A DMC can provide a variety of services such as custom itineraries, hotel reservations, tour packages and more. It also helps in maximizing profits through strategies like bulk buying and reselling tickets at lower prices than what they are currently selling online or offline.

With this kind of service available through your local travel agency, you’ll be able to save money by getting exactly what you want at an affordable price point!

A tour operator is similar to a DMC in that they offer customized tours and trip planning services on behalf of a brand or destination.

A tour operator is similar to a DMC in that they offer customized tours and trip planning services on behalf of a brand or destination. However, unlike a DMC, which can be used as an umbrella term for any company that provides travel services (such as hotels), there are specific differences between the two:

• A tour operator typically offers more than just transportation to your desired destination. In fact, most have their own accommodation and activities planned for you during your stay. They will also be able to help with things like making reservations at restaurants or shopping for souvenirs while you’re away from home!
• Unlike most traditional travel agencies (which usually focus only on booking flights), many tour operators also offer guided tours around their city centers; this allows them access into areas not otherwise accessible by tourists who don’t want anything too strenuous while still being able see everything they came here looking forward too!

A tour operator or travel agency is a company that offers tours and activities. Travel agencies usually specialize in one type of activity or another, such as cycling tours or scuba diving trips. A good example would be Footprints Tanzania , who offer safaris in Tanzania’s Serengeti National Park.

A DMC (Diver’s Management Company) is an organization that provides safe diving locations and equipment for divers on their vacations around the world. These companies are often affiliated with dive shops in each destination where they operate so that you can use them as your local contact point when booking your trip

If you’re looking for an exciting way to explore some of these amazing places without having to worry about getting along with other people, all at once, then I highly recommend looking into setting up something like this!

If you serve travel agents, you may want to consider using DMS software.

If you serve travel agents, you may want to consider using DMS software. DMS is the most efficient way to manage your inventory, and it will help you grow your business by making it easier for clients to find the right tour or package. It also makes it easy for them to pay online so they don’t have to wait in line at an office or travel agency. And with an integrated payment solution like PayPal’s Braintree (which is used by over 150 million consumers), there are no additional fees!

There are many options to choose from when looking at DMS software. We hope that this article has helped you understand the differences between Destination Management Companies (DMCs) and travel agents or tour operators. If you do have any questions about our product or would like more information.

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A Travel Agency’s Guide To Destination Management Companies

Key takeaways.

• Collaborative partnerships, especially with Destination Management Companies (DMCs), are essential for travel agencies to enhance offerings and precisely meet diverse travel aspirations.
• DMCs play an integral role in connecting local services, going beyond logistics to offer various and tailored services, enriching the overall travel experience.
• Strategic software integrations, including communication tools and online reservation systems, optimize collaboration between travel agencies and DMCs for systematic interactions.

The travel industry, characterized by its constant evolution, caters to the myriad desires of global adventurers seeking personalized and unique experiences. In this era where tailor-made travel is paramount, travel agencies play a crucial role in crafting memorable journeys for their clients.

Recognizing the rising demand for customized experiences, travel agencies increasingly turn to collaboration as a pivotal strategy to elevate their offerings and maintain competitiveness.

In today's fast-paced and interconnected world, collaboration has emerged as a fundamental strategy. Travel agencies now understand the significant value of forming strategic partnerships to provide clients with comprehensive services.

This ensures that every aspect of their travel aspirations is met with precision and excellence. Whether uncovering hidden gems, planning seamless itineraries, or delivering extraordinary experiences, collaboration has become the cornerstone for travel agencies aiming to exceed customer expectations.

This guide delves into one such collaborative avenue gaining prominence in the travel industry – Destination Management Companies (DMCs). Understanding the role of DMCs and how they complement the services of travel agencies is essential for those seeking to enhance their offerings and provide unparalleled travel experiences.

Join us on this exploration as we unravel the intricacies of DMCs and explore the myriad benefits they bring to travel agencies aiming to thrive in this competitive realm.

• What’s a Destination Management Company (DMC)?

A DMC functions as a crucial intermediary, connecting a network of local travel service providers with travel agencies that subsequently resell these services to travelers. Operating primarily from the destination, DMCs possess extensive knowledge of the locale, its unique attributes, regional potential, and a comprehensive understanding of local suppliers.

This expertise enables DMCs to offer a wide array of services, including airport transfers, vehicle rentals, logistical support, hotel and restaurant bookings, tailored activities, workshops, and themed corporate events.

DMCs collaborate with tour operators and directly engage with travel product suppliers to source their inventory. DMCs sometimes operate as hotel wholesalers, securing allotments from local accommodation providers. They then package these travel products into comprehensive offerings, selling them through various channels, including distributors, marketplaces, or directly to end customers.

Prominent DMCs in the industry, such as the Global DMC Network by JTB Group, Hosts Global, Ovation Global DMC, and PRA, exemplify these entities' significant role in shaping and enhancing the travel experience.

Historical Context and Evolution of DMCs

Destination Management Companies trace their origins back to the mid-20th century when the travel industry recognized a growing need for specialized entities to navigate the complexities of international travel. Over time, DMCs have evolved into indispensable partners for travel agencies, expanding beyond logistical support to offer innovative solutions that enrich the travel experience.

Initially acknowledged for their role in managing logistics, DMCs have broadened their scope to become strategic facilitators, leveraging local insights to curate unique and authentic experiences for travelers. Their evolution aligns with the changing dynamics of the travel industry, where personalization and immersive experiences have become paramount.

DMCs remain pivotal in fostering sustainable and responsible tourism as the travel landscape evolves. Their commitment to preserving the cultural and natural integrity of destinations reflects a dedication to meeting the evolving preferences of modern travelers. In essence, DMCs stand as critical contributors, bridging the gap between travelers and the rich tapestry of experiences destinations have to offer.

What’s the difference between a DMC and a travel agency?

A DMC is an intermediary, collaborating with local service providers to tailor personalized itineraries for travel agents' clients. The primary goal of a DMC is to provide a comprehensive service, overseeing different travel elements such as airfare, lodging, and entertainment at the destination. DMCs emphasize unique and less conventional experiences, often engaging with multiple local vendors.

Conversely, a travel agency typically acts as a mediator, connecting clients with suppliers to facilitate booking travel packages. While travel agencies also offer personalized services, their main focus is organizing transportation, lodging, and meals for individual travelers.

The core responsibility of a DMC is to curate and manage comprehensive travel experiences, extending beyond logistics to deliver distinctive and immersive journeys. In comparison, a travel agency excels in efficiently booking standardized travel packages, offering convenience and reliability for clients who prefer established and popular destinations without extensive customization.

To exemplify these differences, consider a client searching for authentic local experiences. A DMC would coordinate activities with local guides, arrange workshops, and organize themed events, enhancing the overall travel experience with a personalized touch.

On the other hand, a travel agency might specialize in efficiently booking standardized travel packages, providing convenience and reliability for clients who prefer well-established and popular destinations without extensive customization.

It is of utmost importance for travel professionals and their clients to thoroughly understand the distinctions mentioned above. This enables them to make well-informed decisions that align with their preferences and travel objectives.

What’s the difference between a DMC and a tour operator?

DMCs and tour operators play distinct roles in the travel industry.

Tour operators, rooted in the rise of mass tourism, serve as intermediaries connecting end consumers with standardized tourism packages. These packages encompass primary services like lodging, transportation, food and additional offerings like guided tours. The primary objective of tour operators is to boost sales volume for these standardized packages, with a relatively limited emphasis on providing personalized customer service.

On the other hand, a DMC specializes in event planning and organization. Utilizing professional tour operators and product managers, DMCs leverage their deep understanding of destinations to offer exceptional services and advice. They excel in tailoring itineraries based on client needs, mainly on events.

DMCs are categorized into Business (congresses, conventions, fairs, and incentive trips), Specialized (pre-designed trips focusing on themes like culture, sun and beach, ecotourism, and romance), and Mixed (a combination of those above). Customer satisfaction is the primary goal for DMCs, emphasizing personalized experiences.

Tour operators create mass-market products to increase sales volume with limited customer service. In contrast, DMCs specialize in tailored experiences, prioritizing attention to detail and customer satisfaction.

Real-world scenarios emphasize the significance of tour operators and DMCs in different travel contexts. Tour operators are adept at catering to the needs of mass tourism by providing standardized packages to a broad audience.

In contrast, DMCs excel in creating bespoke itineraries for specific events or preferences, thereby delivering personalized experiences to niche markets. The collaboration between tour operators and DMCs ensures a flexible travel ecosystem that caters to travelers' mixed needs and preferences across various situations.

• What Services Does a DMC provide?

A DMC capitalizes on local expertise and industry connections to flawlessly plan and execute events. DMCs deliver a wide range of services, adopting a holistic approach to event management. Here's an overview of the services offered by DMCs:

Venue Sourcing

DMCs leverage local insights to pinpoint and secure fitting venues aligned with event objectives. They assist in optimal location selection and offer creative input for onsite branding and decor.

Travel and Transportation

Providing support in travel logistics, DMCs cover airport arrivals, transportation schedules, and private cars and facilitate ride-sharing discounts. This ensures a smooth plan, punctual VIP arrivals, and an elevated overall event experience.

Budget & Supplier Management

Utilizing established local relationships, DMCs negotiate favorable rates, manage budgets, and coordinate details with multiple suppliers. This enables clients to stay within budget while ensuring the systemized execution of all event components.

Event Management

Functioning as an Event Architect, DMCs aid in designing, constructing, and managing events from conception to execution. Leveraging local expertise, they streamline vendor management, offering clients a singular point of contact for an efficient and focused event planning process.

Tours/Activities

Leveraging the destination's uniqueness, DMCs curate memorable experiences for attendees. Considering demographics, safety, creativity, and budget, they plan recreational activities, ensuring an ideal experience from start to finish.

Entertainment

DMCs provide insights into entertainment options and outsourcing local talent based on client preferences. They manage entertainment vendor contracts, transportation arrangements, and ensure special requests are accommodated.

Program Logistics

With in-depth destination knowledge, DMCs handle logistical considerations such as permits, secret entrances, and emergency preparedness plans. They excel at developing backup scenarios, ensuring events run smoothly even in unforeseen circumstances.

DMCs offer a comprehensive service covering venue sourcing, travel, and transportation support, budget and supplier management, event design and execution, curated tours and activities, entertainment coordination, and program logistics. This seamless integration contributes to the success and positive impact of diverse travel experiences.

• Benefits of Working with a DMC

Collaborating with a DMC offers many benefits, prioritizing your peace of mind and streamlining event planning. Here are the key advantages of working with a reputable DMC:

Local Expertise

DMC's unparalleled local knowledge of your chosen destination is the foremost benefit. Beyond access to well-known activities, DMCs offer creative and unique experiences, leveraging their insights. They assist in determining optimal event timing, considering factors such as venues, crowds, weather, and transportation.

Cost-Effectiveness

Contrary to being an unnecessary expense, investing in a DMC often leads to long-term cost savings. DMCs boast strategic partnerships across varied industries, allowing them to negotiate deals and secure discounts unavailable to the general public. Their ability to navigate budget management from the outset helps avoid unexpected costs and ensures fiscal responsibility.

Quality Assurance

Planning an event remotely can be a difficult task. However, you can quickly source venues, vendors, and activities by working with a DMC. DMCs have an extensive knowledge of the local area and can recommend the best options tailored to your event's specific objectives and preferences. This ensures high quality throughout the planning and execution process, giving you peace of mind.

Travel agencies gain significant advantages by collaborating with DMCs, including access to unparalleled local expertise, cost-effectiveness through strategic partnerships, and quality assurance in supplier selection. Testimonials and success stories from travel agencies that have partnered with DMCs can further illustrate the tangible benefits and positive outcomes of such collaborations.

• How Travel Agencies Can Partner with DMCs

DMCs play a significant role in the travel industry, offering services both directly to consumers and through mutually beneficial partnerships with travel agencies and tour operators. This raises the question of how these Business-to-Business (B2B) relationships operate in practice.

Certain DMCs are organized into groups, like LatinPlus and PLUS DMC, to optimize efficiency and reliability. These groups typically consist of DMCs with aligned business values, specializing in specific destinations or markets.

Interactions Between Travel Agencies and DMCs

Calls and emails.

Small-scale DMCs often opt for traditional communication methods, relying on phone calls and emails. While opinions on this approach vary, some consider it inconvenient, others, like Ian Ropke, the founder of Your Japan Private Tours, perceive it as a personal and intimate mode of communication, particularly in the private travel sector.

Ropke highlights that high-end clients expect personalized attention throughout the travel planning process—a level of service that might be challenging for Online Travel Agencies (OTAs) or global DMCs to replicate.

Another illustration of this preference is evident in Adios Adventure Travel, a compact DMC operating in South America that favors communication through phone and email channels. This deliberate choice enables them to tailor itineraries and information according to the specific needs of travel agencies, going so far as to incorporate the agency's branding into documents.

In negotiating rates, Jacquie Whitt, co-owner of Adios Adventure Travel, notes that agencies typically initiate the contact, requesting a quote for a custom trip for their clients. The DMC then provides them with a preferential rate, allowing the agency to add their commission to the overall arrangement.

Online Reservation System

Travel agencies typically utilize online reservation systems (ORS) to access and book the portfolio of a DMC. The primary interaction method involves agents registering through a travel agent extranet, initiating negotiations with an Account Manager to establish terms and conditions. Once their account is activated, agents receive login details, providing them entry to the DMC's travel system.

Various forms of ORS are employed by different DMCs. For instance, Greek DMC Zeus Travel utilizes an e-Tourism platform, while German DMC SETT offers a B2B Online Booking page for agents to input destinations, check availability, and manage reservations. In Southeast Asia, DONG DMC customizes B2B booking engines based on the agent's location.

Jumbo Tours Group, a prominent European DMC, offers agents access to the Jumbobeds ORS. This comprehensive system encompasses tourist services like hotels, transfers, and group travel management, contributing to increased agent productivity. The ORS dynamically adjusts prices and availability based on market conditions, also highlighting special offers in response to current demand.

API Connectivity

Despite technological limitations among many DMCs, some offer Application Programming Interface (API) connectivity. This facilitates the integration of DMC inventory into an agency's system.

For example, the Spanish DMC W2M provides an online booking platform featuring properties, transfers, and attraction tickets, allowing distribution through API or web interface to bedbanks , tour operators, OTAs, and travel wholesalers.

Similarly, Red Apple Travel, a prominent DMC in Asia, facilitates the integration of its standalone and package products, providing real-time pricing and availability through an API.

Jumbo Tours also offers an integrable hotel distribution platform, allowing agencies to connect with Channel Managers and suppliers directly via their API.

Snami Travel, a Cretan DMC specializing in luxury travel services, goes further by providing online booking engines with XML web services for integration. Additionally, Snami Travel offers B2C product widgets that partners can embed on their websites.

Online Marketplaces

Some travel bookings are facilitated through online marketplaces that serve as interfaces for multiple DMCs. These marketplaces aggregate the inventory of various DMCs, providing a platform for travel agents to connect and book services seamlessly. Agents, upon logging into these portals, can directly book DMC services.

For instance, MultiZebra, an Indian marketplace, allows DMCs to upload their packages and rates, enabling agencies to create quotations for chosen destinations. Adalte B2B Travel Hub adopts a similar approach by aggregating DMCs into its Travel Platform, which agencies can either adopt or integrate into their systems using the Tours API provided by Adalte.

In cases where a DMC lacks advanced technology for digital booking portals, marketplaces like Byond Travel step in to establish live booking connections. Vikram Ahuja, CEO of Byond Travel, explains their process of involving teams to coordinate bookings with DMCs that may not have the required technological infrastructure.

Byond Travel compensates travel agents with a share of the commission, ranging from 7 to 15 percent, depending on factors like the time of year and destination. They also offer additional benefits such as a travel-now-pay-later payment plan and assistance with lead generation. Agents can access the entire portfolio and integrate databases into their platforms using XML and API connections, with plans to expand integration with various B2B software.

• How To Select a DMC To Partner With

For travel agencies seeking to form a partnership with a DMC, consider the following criteria to guide your selection process:

Relevant Expertise

When assessing a Destination Management Company (DMC) for relevant expertise, consider a scenario where your customer base consists mainly of adventure-seeking travelers interested in outdoor activities. In this case, ensure that the DMC has proven experience in curating adventure-focused itineraries, arranging outdoor excursions, and collaborating with local guides specializing in adventurous pursuits.

Evaluate their track record with similar clients to gauge their ability to cater specifically to the preferences of adventure enthusiasts, providing a tailored and memorable travel experience. This detailed example highlights the importance of aligning the DMC's expertise with your customer base's unique demands and interests.

Assess the DMC's network of local service providers, including property owners, ground transportation companies, activity providers, and potential collaborations with government bodies. A robust network enhances their ability to meet your tourism expectations.

Examine the DMC's technological capabilities, explicitly focusing on their approach to digital development. In the ever-evolving landscape of advanced communication and digital solutions, ensuring that the DMC aligns with the latest technological trends is crucial. Evaluate their proficiency in leveraging modern tools, software, and platforms to streamline communication, enhance operational efficiency, and deliver a prime experience.

Key Considerations

Communication tools.

Assess the DMC's use of communication tools such as instant messaging platforms, video conferencing, and collaborative project management systems. A tech-savvy DMC will leverage these tools to facilitate real-time communication, ensuring prompt responses and efficient coordination.

Digital Platforms

Inquire about their digital platforms for itinerary management, client communication, and information sharing. An effective DMC should embrace user-friendly digital interfaces that enhance the overall experience for both travel agencies and end clients.

Data Security

Prioritize data security measures in the DMC's technological infrastructure. Verify their commitment to safeguarding sensitive information, especially considering the significance of personal and travel-related data in the industry.

Automation and Integration

Explore whether the DMC incorporates automation into its processes and integrates with other relevant systems. Automation can significantly improve efficiency in booking confirmations, itinerary updates, and financial transactions.

Mobile Accessibility

Consider the DMC's approach to mobile accessibility. With increasing numbers of users relying on mobile devices, a DMC's services and communication channels should be optimized for mobile platforms to ensure accessibility.

By delving into these specific aspects of technological capabilities, travel agencies can understand how a DMC aligns with the modern digital landscape and whether their approach is conducive to efficient collaboration in the travel industry.

Quotes and Commissions

Compare quotes from shortlisted DMCs to ensure competitive rates for similar services. Consider leveraging different DMCs for specific services, such as transfer services from one and tours from another. Request a comprehensive breakdown of commissions, unveiling any potential hidden fees like event management charges tied to custom requirements.

Reliability

Prioritize reliability by researching the DMC's history of collaborations with similar agencies. Verify their business license, seek references, and explore memberships in respected tourism offices. Exercise caution and thoroughness in ensuring the DMC's credibility and reliability.

In navigating the dynamic landscape of travel and forming successful partnerships with DMCs, Voyage Labs stands ready to provide innovative solutions and support.

With a commitment to enhancing the travel agency experience, Voyage Labs empowers agencies to optimize collaboration with DMCs through advanced technology, ensuring smooth communication, efficient bookings, and, ultimately, the delivery of unparalleled travel experiences to clients.

Samuel Corso

Samuel Corso is a software engineer and entrepeneur with deep expertise in systems integrations and reverse-engineering APIs, dating back to his time building commercial ecommerce bots. He's the author of the number one open source project of this kind on GitHub. He also bears unique knowledge of the software infrastructure behind the travel industry. He founded Voyage Labs to help companies unlock cutting-edge software solutions to meet the needs of their customers.

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Table of contents.

What is the difference between a travel agency and a DMC?

When it comes to planning a trip, many people are unaware of the differences between a travel agency and a DMC (Destination Management Company). While both can help you plan and book your travel needs, there are some key distinctions between the two types of companies.

**Travel Agency:**

A travel agency is a company that specializes in helping individuals and groups plan and book trips, whether it’s for leisure or business purposes. They typically offer a wide range of services, including flights, accommodation, car rentals, and tour packages. Travel agencies work with various suppliers and vendors to provide their clients with the best possible travel options.

One of the main advantages of using a travel agency is that they can offer a one-stop-shop for all your travel needs. They can help you find the best deals, make reservations, and provide you with travel advice and support. Additionally, travel agencies often have access to special promotions and discounts that may not be available to the general public.

**DMC (Destination Management Company):**

On the other hand, a DMC focuses on providing destination-specific services and experiences for travelers. They work closely with local suppliers and vendors to offer unique and immersive travel experiences. DMCs often work with corporate clients, incentive travel groups, and event planners to create customized itineraries and activities.

One of the main benefits of using a DMC is their in-depth knowledge and expertise in a specific destination. They can offer personalized recommendations, insider tips, and access to exclusive experiences that may not be available through traditional travel agencies. DMCs can also help with logistics, event management, and on-the-ground support during your travels.

**Frequently Asked Questions:**

**What services does a travel agency offer?**

A travel agency offers a wide range of services, including flight bookings, hotel reservations, car rentals, tour packages, travel insurance, and travel advice.

**What are the advantages of using a travel agency?**

Using a travel agency can save you time, offer convenience, provide access to special promotions, and ensure professional support and assistance throughout your trip.

**How does a DMC differ from a travel agency?**

A DMC specializes in destination-specific services and experiences, offering in-depth knowledge, personalized recommendations, and access to exclusive activities.

**What types of clients do DMCs work with?**

DMCs often work with corporate clients, incentive travel groups, event planners, and individuals seeking unique and customized travel experiences.

**What are some examples of destination-specific services offered by a DMC?**

Destination-specific services offered by a DMC may include cultural experiences, culinary tours, adventure activities, team-building activities, and event management services.

**How can a DMC enhance my travel experience?**

A DMC can enhance your travel experience by providing personalized recommendations, insider tips, access to exclusive experiences, and on-the-ground support during your travels.

**What are the key benefits of using a DMC?**

The key benefits of using a DMC include their in-depth knowledge of a destination, customized itineraries, access to unique experiences, and event management support.

**What should I consider when choosing between a travel agency and a DMC?**

When choosing between a travel agency and a DMC, consider your travel needs, destination, and the type of experience you are seeking. A travel agency may be suitable for general travel arrangements, while a DMC is ideal for personalized and immersive experiences.

**Can a travel agency help me with destination-specific services?**

While a travel agency can help you with general travel arrangements, they may not have the same level of in-depth knowledge and access to destination-specific experiences as a DMC.

**What are some examples of unique experiences offered by a DMC?**

Examples of unique experiences offered by a DMC may include private city tours, cultural workshops, off-the-beaten-path excursions, and exclusive access to local events and festivals.

**How can I find a reputable travel agency or DMC?**

When looking for a reputable travel agency or DMC, consider their industry experience, client reviews, certifications, and partnerships with local suppliers and vendors.

**What are the potential drawbacks of using a travel agency or DMC?**

While using a travel agency or DMC can offer numerous benefits, potential drawbacks may include limited availability of certain services, pricing variations, and the need to communicate your specific travel preferences and requirements.

In conclusion, understanding the differences between a travel agency and a DMC can help you make informed decisions when planning your next trip. Whether you’re looking for general travel arrangements or seeking unique and personalized experiences, both types of companies play important roles in the travel industry. By weighing the advantages and limitations of each, you can ensure that your travel needs are met with professionalism and expertise.

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What is the difference between a travel agency and a DMC?

When it comes to planning a trip, many people rely on travel agencies or DMCs to help them navigate through the complexities of arranging accommodations, transportation, and activities. However, it is crucial to understand the fundamental differences between these two entities. In this article, we will the distinctions between a travel agency and a Destination Management Company (DMC) in terms of their roles, services provided, and target customer base.

1. What is a travel agency?

A travel agency is an organization that offers a range of services to individuals, families, and corporate clients, assisting them in planning and booking their travel arrangements.

A. Definition and primary function

A travel agency acts as an intermediary between travelers and travel service providers, such as airlines, hotels, and tour operators. Its primary function is to facilitate and simplify the process of travel planning and reservation for customers.

B. Services offered

1. Booking flights and accommodations: * Travel agencies have access to various booking systems and can help customers find the most suitable flights and accommodations based on their preferences, budget, and travel dates. 2. Planning itineraries: * Travel agencies can create personalized itineraries, suggesting popular attractions and hidden gems based on the customer’s interests and budget. 3. Organizing transportation: * Agencies can arrange transportation options, including transfers, rental cars, and private drivers, ensuring smooth and convenient travel. 4. Providing travel insurance options: * Travel agencies offer travel insurance to protect customers from unforeseen circumstances, such as trip cancellations, medical emergencies, or lost luggage. 5. Assisting with visa applications: * They can guide customers through the visa application process, providing necessary information and documentation support for hassle-free travel. 6. Offering customer support during the trip: * Travel agencies provide 24/7 customer support, assisting travelers in case of any issues or emergencies during their trip.

2. Understanding the role of a DMC

A Destination Management Company (DMC) is a local expert that specializes in providing ground services and destination-specific travel solutions.

The primary function of a DMC is to ensure a seamless travel experience by offering in-depth destination knowledge and professional service in the area where the travelers seek to explore.

1. Local expertise and destination knowledge: * DMCs possess extensive knowledge of their destinations, including cultural insights, local customs, and hidden gems, allowing them to create unique and immersive experiences for travelers. 2. Customized itineraries: * DMCs curate tailor-made itineraries based on travelers’ preferences, focusing on specific interests, such as adventure, history, gastronomy, or nature. 3. Ground logistics and transportation: * DMCs handle all ground transportation arrangements, ensuring seamless transfers, including airport pickups and drop-offs, as well as transportation for excursions and activities. 4. Assistance with language barriers: * DMCs provide language support, helping travelers communicate with locals, facilitating interactions, and overcoming language barriers. 5. Coordination of local activities and excursions: * DMCs organize and coordinate a wide range of local activities and excursions, including guided tours, adventure sports, cultural workshops, and exclusive access to attractions. 6. Cultural insights and experiences: * DMCs offer unique cultural experiences, connecting travelers with locals through activities like traditional cooking classes, visits to local markets, or participation in traditional ceremonies.

3. Target customer base

A travel agency and a DMC cater to different customer segments based on their specific needs and travel preferences.

A. Travel agency clientele

1. Individuals and families: * Travel agencies serve individuals and families who rely on their expertise for hassle-free travel planning, seeking convenience and a range of options. 2. Corporate travelers: * They assist corporate clients in arranging business trips, including flight bookings, accommodation, and transportation, ensuring a smooth and productive travel experience. 3. Group tours and package holidays: * Travel agencies offer group tours and package holidays, providing a comprehensive itinerary, guided tours, and a combination of services at competitive prices. 4. Independent travelers seeking convenience: * Independent travelers who value convenience and time-saving rely on travel agencies to plan their trips, taking care of all the logistical details.

B. DMC clientele

1. Tour operators: * DMCs collaborate with tour operators, providing them with local ground services and resources to enhance their tour packages. 2. MICE (Meetings, Incentives, Conferences, and Exhibitions): * DMCs assist companies in organizing corporate events, conferences, and incentive trips, handling all logistics and providing a unique local perspective. 3. Incentive travel planners: * DMCs work closely with incentive travel planners, helping them create unforgettable experiences for high-performing employees or clients. 4. Corporate event planners: * DMCs support corporate event planners by offering local expertise and destination knowledge, ensuring successful and engaging events. 5. Destination weddings and special interest groups: * DMCs specialize in organizing destination weddings, catering to the specific requirements of couples and guests. They also assist special interest groups, such as yoga retreats or photography workshops, in creating memorable experiences.

Your Journey, Your Way

4. collaborations between travel agencies and dmcs.

Collaboration between travel agencies and DMCs can result in mutually beneficial partnerships, enhancing the travel experience for customers.

A. Utilizing DMCs as local partners

Travel agencies often rely on DMCs as their local partners in various destinations to provide on-ground support and local expertise.

B. Benefits of collaboration

1. Local insights and access to hidden gems: * DMCs have firsthand knowledge of the destination, allowing travel agencies to offer unique experiences, off-the-beaten-path attractions, and insider tips to their customers. 2. Streamlined operations and logistics: * DMCs efficiently handle ground operations, logistics, and coordination, ensuring a seamless travel experience and saving time for travel agencies. 3. Enhanced customer experiences: * Collaboration with DMCs enables travel agencies to offer personalized itineraries, authentic cultural experiences, and immersive activities, creating unforgettable memories for customers. 4. Risk management and crisis response: * DMCs possess local knowledge and connections, enabling them to effectively manage any unforeseen circumstances or crises that may arise during a trip. 5. Cost-effective solutions and negotiations: * DMCs leverage their local networks and relationships to negotiate competitive rates with suppliers, helping travel agencies offer cost-effective solutions without compromising on quality.

5. Different business models

A. revenue streams of a travel agency.

1. Commissions from airlines, hotels, and other service providers: * Travel agencies earn commissions by promoting and selling services provided by airlines, hotel chains, car rental companies, and other service providers. 2. Service fees charged to customers: * They charge service fees to customers for their expertise, consultation, and the time and effort involved in planning and organizing travel arrangements. 3. Profit margin through package holidays and customized tours: * Travel agencies create package holidays and customized tours, adding a profit margin to the overall cost to generate revenue.

B. Revenue streams of a DMC

1. Markup on services provided to travel agencies and tour operators: * DMCs add a markup to the services they provide to travel agencies and tour operators, allowing them to cover their costs and generate revenue. 2. Negotiated rates with suppliers: * DMCs negotiate rates with local suppliers and service providers, securing better prices, and maximizing their profit margin. 3. Service fees for creating bespoke experiences: * DMCs charge service fees for curating tailor-made experiences and itineraries for their customers, considering their specific preferences.

6. Importance of local expertise

A. travel agency’s reliance on dmcs.

Travel agencies rely on DMCs for their in-depth destination knowledge and local connections to ensure the best travel experiences for their customers.

B. Value of in-depth destination knowledge

DMCs have an intimate understanding of their destinations, enabling them to offer unique insights, expert recommendations, and personalized experiences that go beyond popular tourist attractions.

C. Cultural sensitivity and local connections

DMCs possess cultural sensitivity and strong ties to local communities, allowing them to create authentic travel experiences that respect local traditions and foster meaningful interactions.

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7. flexibility and customization.

Both travel agencies and DMCs have distinct approaches when it comes to flexibility and customization.

A. Travel agency’s approach

1. Offering pre-packaged tours and itineraries: * Travel agencies often provide pre-packaged tours and itineraries, offering convenience and a well-structured travel experience for customers. 2. Limited scope for tailor-made experiences: * While travel agencies can offer some customization within their package options, the level of personalization is generally limited compared to DMCs. 3. Balancing cost-effectiveness with customer preferences: * Travel agencies strive to provide cost-effective solutions while considering customer preferences, aiming to strike a balance between affordability and travel experience.

B. DMC’s approach

1. Customizing itineraries according to specific requirements: * DMCs specialize in creating tailor-made itineraries, catering to individual preferences, interests, budgets, and timelines. 2. Focused on unique, off-the-beaten-path experiences: * DMCs emphasize unique and authentic experiences, often going beyond mainstream tourist attractions to showcase the destination’s hidden gems and local culture. 3. Adapting to clients’ budget, preferences, and timeline: * DMCs work closely with clients to understand their budget, preferences, and desired schedule, allowing them to create personalized itineraries that meet their specific requirements.

8. Global reach and network

A. travel agency networks.

1. Relationships with airlines, hotel chains, and other service providers worldwide: * Travel agencies build strong relationships and partnerships with global airlines, hotel chains, car rental companies, and other service providers, giving them access to a wide range of options for their customers. 2. Access to a range of destinations and accommodation options: * These networks enable travel agencies to offer their customers a diverse selection of destinations and accommodation options, catering to different budgets and preferences.

B. DMC networks

1. Local presence in specific destinations: * DMCs have a physical presence in specific destinations, allowing them to establish strong relationships with local suppliers and partners. 2. Strong connections with local suppliers and businesses: * DMCs build and maintain close relationships with local suppliers, ensuring reliable and high-quality services, as well as access to exclusive experiences and activities. 3. In-depth knowledge of specific regions: * DMCs specialize in specific regions, enabling them to have unparalleled knowledge and expertise, benefitting both themselves and their travel agency partners.

9. Pricing and cost management

A. price structures of travel agencies.

1. Ability to negotiate bulk rates with suppliers: * Travel agencies can negotiate bulk rates with airlines, hotels, and other service providers, allowing them to offer competitive prices to customers and maintain profitability. 2. Offering competitive prices to customers through partnerships: * Travel agencies leverage partnerships and volume-based discounts to offer competitive prices to customers while ensuring a reasonable profit margin.

B. Pricing strategies of DMCs

1. Building relationships with local suppliers to secure better rates: * Travel DMC s establish strong relationships with local suppliers, working closely with them to secure favorable rates, ensuring cost-effective options for travel agencies and customers. 2. Monitoring and managing price fluctuations: * DMCs stay updated on fluctuating prices of services, such as transportation, accommodations, and activities, and manage them effectively to keep overall costs in check. 3. Creating value through unique experiences rather than focusing solely on price: * DMCs focus on creating value for customers by offering unique and authentic experiences, providing a higher level of service and personalization that goes beyond price considerations.

In conclusion, while travel agencies focus on booking flights and accommodations for a broad audience, DMCs like Astamb Holidays specialize in destination management, providing tailored experiences. Recognized as one of the best DMCs in Dubai, Astamb Holidays offers small travel agencies the opportunity to enhance their offerings with exceptional local expertise. Collaborations between travel agencies and leading DMCs, such as Astamb Holidays, create a synergistic partnership that elevates the overall travel experience for clients.

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Home Blog What is the difference between a DMC and a tour operator

What is the difference between a DMC and a tour operator

In the middle of the 19th century, after an ideological change brought about by the Industrial Revolution, the need for leisure and recreational activities arose, allowing the consolidation of tourism as a developing industry.

In 1841 the first group trip in history was registered, planned, and organized by “The Father of Tourism,” Thomas Cook (1808-1892).

Time after, he would create the first travel agency, the oldest in the world, “Cook and Son.” These revolutionary ideas would have an impact on modern tourism in the not-too-distant future.

The arrival of globalization and the evolution of transportation means motivating a phenomenon known as the “Tourist Boom” (1950-1973). This exponential growth gives rise to the need to manage destinations.

The tourist can acquire different principal and complimentary services just by contacting a tourist agent. This allowed the development of other organizations or companies in charge of integrating packages to market them and provide a better service to the tourist. And this is when the figure of Tour Operator starts.

Tour Operator History

The first to emerge are travel agencies, retail companies that offer tourism products or services with or without intermediaries; they are focused on the client’s needs, conceive, create, plan, organize and execute tourism packages for small groups to a mass-market (DATATUR, 2006). Unlike other agents, their priority is to sell and manage package programs for their portfolio of clients.

With time and the expansion of mass tourism, the need to mass-produce to satisfy the destination’s demand was born. Tourist agents had to adapt by creating wholesale tourist products, setting up agencies where the experience and service have been reduced for a more accessible price.

These agents are known as tour operators, organizations that participate in tourism activities as intermediaries between the final consumer and the tourism product (WTO, 1998).

In other words, within the tourism market, they are the creators and distributors of tourism products in destinations that are generally commercial, integrating principal services (lodging, transportation, and food) and complimentary services (tours, excursions, guided visits, etc.).

Whose function is to facilitate trips that are difficult to arrange independently, creating large-scale tourism packages and circuits, marketing them to wholesalers at a single price, or distributing them directly to the client.

Benefits of contracting a Tour Operator

Affordable prices. Provides a selection of destinations in a specific region Facilitates travel, packages, and transportation to market trends The convenience of acquisitions. The tourist purchases all the necessary services (lodging, transportation, food, tour activities) from a single tour operator.

DMC History

In Europe in 1977, Tom Wibecker began to use the term Destination Management Company (DMC) to describe organizations that destroy the standards of traditional tour operators or wholesalers they seek to provide a quality service to the customer. In the mid-’80s, the Society of Incentive & Travel Executives (SITE) acknowledged the peculiar meaning of DMCs.

Destination Management Company (DMC) are professional tour operators and product managers. Offering the best principal and complimentary services thanks to their extensive knowledge of the destination.

A DMC company is a specialists in the planning and organizing of any event, designing itineraries and logistic programs based on the client’s needs, capable of coordinating all local suppliers.

Their vast experience allows them to provide consulting services, in addition to their excellent logistics and management. Their dedicated anticipation of the event elements is another crucial point, ensuring comfort and safety. Successful execution will bring a good reputation for the DMC, exceeding the expectations of all participants.

There are three types of DMCs based on the design and needs of the client that hires their services. That is, by the nature of the group: business (congresses, conventions, fairs, and incentive trips). Specialized (they organize pre-designed trips with a focus such as cultural, sun and beach, ecotourism, romance, among others). And the mixed (combination of the two previous ones).

Benefits of contracting a DMC

Personalized service generating an added value in the tourist’s experience. Design of unique and creative products tailored to the customer’s needs. They perfectly know the characteristics and conditions of the destination, can provide access to exclusive locations. Negotiation capacity to determine the costs associated with the requested requirements. They are skilled in planning, coordinating, organizing, and supervising events. They provide advisory and consulting services. High quality (hygiene, attention, reception, orientation). Solid relationships and connections that maximize the budget. In addition to functioning as network generating elements through the concentration of the global supply of tourism services provided by small local businesses (Jamal and Getz, 1995). They also function as network .

So, what is the difference between tour operators and DMCs?

In short, the tour operator creates products for a mass market where the main objective is sales volume with limited customer service. On the other hand, the local integrated travel agencies or DMC’s have a specialized approach by niches and provide personalized attention, and customer satisfaction is their principal objective.

Christopher H. Lee, president of ACCESS California, uses a peculiar analogy to refer to this type of organization’s work. His philosophy poses contrasts aspects of a DMC with an architect since this organization can design an event thanks to its vast knowledge and experience in the field to satisfy the requirements of the meeting, convention, congress, or incentive trip, in addition to meeting the client’s expectations by optimizing the destination’s resources and limiting itself to the infrastructure of the area.

With the digital era, tourism has evolved towards new technologies, creating new distribution channels through networks such as the Internet, modernizing its services, and offering new tourism products.

Visit our award-winning destination management compnay at www.luxtraveldmc.com

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Here's what we can do for you.

Our DMCs offer a rich variety of business opportunities no matter your goals. From custom-made adventures to all-inclusive guided trips, you'll find the support you need to ensure a highly competitive end product. Learn more about our range of services.

Our DMC Services

At the very heart of our travel experiences sits our extensive transport network. From a whole class of students to a single individual travelling in style, no logistical challenge is too complex for our DMCs. We can marshal a fleet of motor coaches, minibuses, jeeps, or luxury cars to ensure your customers travel safely and comfortably throughout their journey.

Looking to travel on national transport networks? We can help you find the best deal by rail or boat using our in-country expertise. We'll even provide private chauffeur services for those extra-special journeys. Simply tell us your goals and we'll take care of the rest.

Our transport services include: airport services, transfers and vehicles, coach transportation services, and luxury rentals

Stately castles, charming country inns or luxury hotels - wherever your customers want to stay, we can provide a solution that's guaranteed to make their journey truly special. Book one of our proprietary accommodation options or speak to an in-country specialist about finding the best local destinations. Comfort, quality, and safety are guaranteed.

Our accommodation services include: luxury accommodation, villa vacations, game lodges, ‘off the beaten track’ bed & breakfasts, and budget hotels

Guided tours are what made TTC what it is today. That means our standards are some of the highest on the market. Throughout our DMC network, you'll find everything from guided day tours to luxury safaris, custom excursions and multi-day adventures. Each one is driven by expert local knowledge and decades of experience in the sector. With the sheer breadth of options available, we can help you tailor a tour experience that fits your business needs.

Our tours services include: all-inclusive guided tours, custom tours, group travel (incentive, small groups, special interest & sporting groups), FIT bookings & private trips, safaris, rail journeys, short breaks, day tours, self-drive vacations, guided tours for Japanese travellers, white label coach series, and all-inclusive private chauffeur

Sail & Cruise

Our DMCs operate some of the world's most-awarded river cruises and yachting experiences. Your customers will take to the water in comfort and safety no matter how they choose to sail, whether by flotilla, chartered yacht, or riverboat. Our team can help you build a custom itinerary that will satisfy even the most seasoned sailors in your audience.

Our sail & cruise services include: luxury river cruising, yachts & sailing holidays, cruises & shore excursions, and day cruises

Destination events are truly special. But they're not easy to plan. That's why our DMCs have their own dedicated account management teams ready to give you the custom event experience of a lifetime. They can help you plan events of any size with the care and attention that your group deserves.

Every one of our events is personalised to your requirements and flexible enough to ensure you get a smooth experience from start to finish. And, of course, you'll always get the signature service that defines TTC. Get in touch now for a personalised quote from one of our experts.

Our events services include: conferences and events for corporate groups, milestone events, special event touring, and seasonal special events

Luxury means something a little different to everyone. That's why bespoke itineraries are at the very heart of our luxury travel services. By working through our DMC network, you’ll open up travel options that you simply won't find with other providers. We can enable access to some of our locations' greatest and most exclusive attractions whilst providing everything your customers need to experience them in comfort and style. You'll capture the very essence of every destination. Best of all, the logistics are easy to plan, with a huge range of suppliers at your disposal.

Our luxury services include: complete luxury travel services, exclusive VIP travel, custom luxury tours & safaris, private luxury charter & transportation, and priority entrance sightseeing

Our operations services include: itinerary and logistics management, guest relations & customer services, on-demand travel directors & tour guides, after hours & emergency support

Family-owned and run since 1920, The Travel Corporation (TTC) is the world leader in immersive travel experiences. We connect over 1 million happy travellers each year to exciting local destinations through our network of Destination Management Companies. Now, we're enabling businesses just like yours to connect with our DMCs to enhance their products, services and travel experiences.

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Frequently Asked Questions

What is a dmc and what does it do.

A DMC (Destination Management Company) helps travel businesses create exciting new products by providing the services associated with those experiences. They can offer a huge range of services, from full tours to hotel accommodation, activities, catering, conferences, transfers and unique travel experiences. Every DMC is a little different, so make sure you explore them in our Companies page.

What is DMC business?

A Destination Management Company (DMC) is a locally-based, for-profit tourism business whose function is to provide groups - and individuals - with services to meet their travel, meeting, and entertainment interests and needs at a specific time and place.

What is the difference between a DMC and a traditional travel agency or tour operator?

Although travel agencies can sell everything from select tour experiences to full package holidays, they usually don't create those experiences themselves. Instead, they work with partners that specialise in a specific part of the holiday, whether that's accommodation providers, tour operators or safari specialists. Those partners are what we call DMCs. Travel agencies and DMCs frequently work closely together, creating new products and business opportunities that capture the imaginations of traveller the world over.

Why use our Destination Management Companies Servies?

You wouldn't ask an electrician to fix your plumbing. So why would you expect a travel agency to create a travel experience? For that, you need to go to the experts. And our DMCs represent some of the best in the business. When you work with them, you'll have the security of The Travel Corporation's financial security and flexibility to back your investment. We've helped to create thousands of successful travel ventures around the world. Let us do it for you.

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• Whole Mexico

Tour Operator or Destination Management Company/DMC?

• February 8, 2021
• Blogs , Uncategorized
• 2 mins read

Does it really mean a big difference?

Conexstur managed to get the registration of ¨Tour Operador¨ in Mexico in 2016 when Enrique de la Madrid was the Tourism Minister of Mexico. We had to explain the difference between a Travel Agency and a Tour Operator . ¨Tour Operador Receptivo¨ still has another aspect which makes a big difference: Taking care of international tourists arriving in your country, managing the special requests in different languages, and taking into consideration the very different expectations from foreign clients. The organization of either leisure travel for individuals or groups, business travel, Incentive travel, or special events – when contracted from another country, the organization and supervision of all services are YOUR responsibility. It is a 24/7 service and preciseness is one of the most important key factors to become a reliable and confident partner in Mexico.

Only the Association of Conexstur is firm with this restriction and belonging to this association means that the tour Operator has a minimum of 80% of the total business with an international clientele. Also, managing US Dollar accounts, taking the risks of exchange rate instability, and register as a company whose main business is the exportation of tourism services.

The Tourism industry never put a lot of importance on the tour operator receptive who brings into the country the foreign tourists, with more days staying in the country with a normally higher budget for travelling than the national tourist and most important the income stays 100% inside the country. 

The benefit goes directly to the provider of the services in the region. And yes, international tourism spends much more on souvenirs and local handicrafts than the domestic travellers. 

The Tour Operators melt together with all the services alongside the chain of providers, including transportation, hotels, restaurants, guides, historical & ecological sites, entertainment & activities, and most important the local guides who accompany the guests on their travel experience through Mexico.

There are tour operators that have started with pure leisure travel and now also take care of events or corporate travel – the so-called MICE business. And yes, there is a difference that a regular tour operator can not cover. A DMC or Destination Management Company is considered the specialist for groups (small or big ones) that have a corporate theme or interest. Both segments of international or national events are handled by a DMC. They are professionals that guarantee the success of the event, give you the best tips and news about the locations, and work as an extension of the company that is requiring the services. Each event requires different providers and a good DMC knows the pros & cons parts of the providers, restaurant, hotels. etc – work with a local DMC helps you to not step into the dark and to be updated with the local services and infrastructure.

Most of the DMC´s have developed during the pandemic and now include even a more amplified range of services, starting with marketing and communication, production, and AV services.

Both activities – incoming tour operator/tour operador receptivo and on the other side a DMC, both create and promote the ideal place for a growing industry.

January 12, 2021 - In Itinerary , Itinerary>Zacatecas

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Why use a DMC or Destination Management Company?

What is a dmc or destination management company.

A DMC or Destination Management Company  simply put is a travel agency. However, we cannot leave the definition there. A DMC or Destination Management Company  offers you everything you need to help you organise a corporate event or trip .  It is not based on organising family holidays (which it can do), but is a specialist agency in organising trips for groups whether smaller or larger which, in the majority, travel or undertake an event for corporate purposes.

Where does a DMC works?

As a travel agency a DMC or Destination Management Company could organise trips all over the world. But in this case specialization is generally the key. The figures of the DMC   concentrate on the destination they are most familiar with in order to be able to offer a guarantee on every service level. These services can be offered all over the country or simply locally. There can be receptive DMC agencies specialising only in Málaga, for example, or only Andalucía. In our case we have the ability and experience to work at a national level. So we can offer our services all over Spain.

Strong relationships between DMCs and tour operators essential for travel recover

Networking in tourism plays an essential role as it facilitates partnerships involving interacting elements such as tourists and businesses.

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The year 2022 is set to be pivotal in the travel and tourism industry, but challenges remain due to the ongoing pandemic and rising cost of living. To tackle these difficulties, the relationships between DMCs (Destination Management Companies) and outbound travel operators must become stronger than ever to capitalize on the growing demand for leisure travel.

Networking will be key to driving recovery

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Networking in tourism plays an essential role as it facilitates partnerships involving interacting elements such as tourists, businesses, institutions, and the local community. It is imperative for DMCs and tour operators to form close working relationships due to their interdependency. The DMC benefits from inbound tourists, and an outbound travel operator profits from a DMC’s promotional and organizational activity. Many small to medium-sized enterprises (SMEs) depend on networking to build brand awareness.

The effects of globalization and the pandemic have posed significant challenges to the travel industry. The need for collaboration and the formation of B2B (Business-to-Business) partnerships is now more critical than ever. The relationship between DMCs and tour operators has the potential to increase passenger flows and revenue streams and develop the destination’s branding. Therefore, enhancing the development of these partnerships will substantially impact the travel industry in what is expected to be another challenging year.

A culture of sharing knowledge and learning can emerge once the partnership has been established between the tour operator and DMC. Sharing experiences, challenges, and solutions is one of the most effective forms of learning. The ability to collectively implement learnings across the destination also increases the return on training investment. Furthermore, the relationship with the outbound operator can help increase in-destination expertise, promote brand awareness, enhance the overall customer experience, and ultimately increase revenue. If the relationships are mirrored between DMCs and tour operators globally, then industry recovery could exceed expectations in the short term.

The relationship between a DMC and trade has proven impactful in the past

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The networking relationship within the travel industry has been proven successful. For instance, the strong relationships developed with outbound trade by Iceland alongside its social media campaign helped tourism grow by 437% from 2010 to 2018 according to GlobalData’s Tourism Demands and Flows database.

Projections show that the global international tourism industry will recover by 2024. Trade networking in this period is needed more than ever. This could be a successful way for the recovery of travel industry in the next few years due to the estimated growing number of travellers globally, which creates additional demand for service providers.

To promote networking, some travel associations like AITO (Association of Independent Tour Operators) and IATA (International Air Transport Association) are heavily engaged in organizing B2B travel and trade fairs around the globe where travel service providers are provided the opportunity to showcase and exchange information on their products such as travel packages or travel experiences. To survive in this recovery stage, SMEs should expand their trade network and continue to collaborate with DMCs.

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Understanding the Difference Between Tour Operators and Travel Agents

By Cressida Sergeant

Tour operators and travel agents might seem similar at first glance, but they have distinct roles when it comes to planning a vacation. While they both offer some similar services, it’s helpful to know which one best fits certain needs.

What is a Tour Operator?

A tour operator handles the nitty-gritty of a holiday experience, from booking and packaging to organising accommodation, transport, meals, guides, and optional tours. They’re like the behind-the-scenes magicians who ensure everything runs smoothly once a customer steps off the plane at a destination

On the other hand, travel agents act as matchmakers, connecting customers with the perfect vacation package from various tour operators. They’re like personal travel advisors, helping navigate through different destinations, budgets, and travel preferences to find the ideal fit for a dream getaway. Once customers have made a choice, they liaise with the tour operator to ensure all requests are met, handling the paperwork and payments along the way.

In the past, travel agents were the go-to choice for booking tour packages. However, with the rise of the internet and travel technology over the last couple of decades, many people now opt to book directly with tour operators. The internet has made it easier than ever to access and book tour packages independently, reducing the need for an agent to identify available operators. Nowadays, most tour operators engage directly with clients and sell their packages, cutting out the middleman.

However, some people still prefer to rely on their trusted local or family travel agent, with whom they have built a long-standing relationship over the years.

Types of Travel Agency

In the travel industry, there’s a growing number of independent travel agents who operate without ties to a specific agency. This presents a fantastic opportunity for people looking for remote work in the travel sector.

These independent agents come in various forms. Some create bespoke itineraries tailored to each client’s preferences, while others partner with specific travel companies. Additionally, some act as resellers, offering pre-packaged tours through Host Agencies.

Regardless of their specific model, most travel agents excel at helping to plan a trip. They use their expertise to provide recommendations based on their customer’s interests, budgets, and travel requirements. The advantage of working with a travel agent lies in their insider knowledge and knack for navigating the complexities of holiday planning and booking. When it comes to travel agencies, there’s a varied range of options available to suit every preference. Here are some of the different types of travel agencies:

Online Travel Agencies (OTAs): These are websites that allow users to search and book travel-related services online. OTAs offer a wide range of options, from flights and cruises to tours and activities, all in one convenient platform.

Brick-and-Mortar Travel Agencies: These are traditional travel agencies with physical offices where customers can visit and speak with travel agents face-to-face. They provide personalized service and assistance in planning and booking travel arrangements.

Corporate Travel Agencies: Specializing in business travel, corporate travel agencies cater to the needs of companies and organizations. They manage corporate travel policies, negotiate discounts with suppliers, and help with itinerary planning and expense management.

Specialist Travel Agencies: These agencies focus on specific types of travel, such as adventure travel, luxury travel, or niche markets like eco-tourism or culinary tours. They offer expertise and tailored recommendations for travellers with particular interests or preferences.

Overall, the travel agency landscape is diverse and caters to a wide range of travellers, each with unique needs and preferences.

The Roles of Tour Operators and Travel Agents

In conclusion, while tour operators and travel agents share some similarities, they play distinct roles in the holiday planning process. Tour operators handle the logistics of a vacation, from booking and packaging to on-the-ground arrangements, ensuring a hassle free experience for travellers. On the other hand, travel agents act as intermediaries, connecting customers with the perfect holiday package from various tour operators, and offering personalized advice and assistance throughout the planning process. Despite the rise of online booking platforms and websites , many travellers still rely on trusted travel agents for their expertise and insider knowledge. Additionally, the travel agency landscape continues to evolve, with independent agents offering bespoke services and various types of agencies catering to different travel needs and preferences. Ultimately, whether booking through a tour operator or a travel agent, travellers have access to a diverse range of options to suit their individual preferences and requirements thanks to the advancements in travel technology and products .

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What is the role of destination management?

by Go Together DMC | December 20, 2022 | Destinations , DMC Brazil , Experiences | 0 Comments

A Destination Management Company (DMC) is specialised in the implementation and the processing of events related to the MICE sector (Meetings, Incentives, Congresses, Exhibitions). The company designs for example meeting sessions, conferences or incentive trips often including multiple activities and tours. Moreover, a DMC coordinates a project with a wide network of providers and expertise in one or more destinations.

Embarking on a new DM planning process can be a lengthy exercise requiring a reasonable degree of commitment and resourcing. Stakeholders need to be clear about what they want to achieve and be mindful of the resources, capability and capacity available to develop and implement the plan. Small steps can be taken and built on over time as capacity and resources become available.

Many aspects of DM could already be captured in existing plans. Some destinations may want to take a light touch approach, coordinating components of existing plans and identifying gaps and new areas to focus on. Other destinations may choose to embark on a full DM planning process. Whether you choose a light touch or detailed approach, be clear about why you are developing a plan, who needs to be involved with clearly defined roles and responsibilities and how the plan will be implemented (and funded).

To help you understand a little more about incentive programs and how DMCs work, GT DMC Brazil answered the five most frequently asked questions in the area.

What do you mean by destination management?

Before we define destination management, we have to define a destination. A destination can be anything, including a country, region, province, district, city, park, museum, neighborhood, etc. Destination management is a comprehensive process that includes the management of different aspects of the destination.

Destination management defines a process that involves coordinated actions aimed to control the economic, socio-cultural and environmental dimensions of a specific tourism territory. Destination management can include anything of the following:

• Local resources
• Accommodation
• Events & activities
• Environmental concerns
• Marketing efforts
• Transportation
• Tourist attractions

DMCs also include local businesses and leverage local knowledge to help create immersive experiences and attract even more travelers to visit the destination . It should be carried out by local authorities and other tourism stakeholders in partnership, following principles of good governance. It is central to the delivery of sustainable tourism as it allows a territorial approach to the multi-sector, multi-stakeholder, multi-thematic matrix of challenges and opportunities facing tourism development. It is also central to sustainable tourism implementation as actions taken within destinations at local and regional level are best able to influence the tourism impacts.

What is the role of a destination management company (DMC)?

The DMCs, or Destination Management Companies, are the critical link connecting travelers and service providers. They are specialists in local knowledge, from regional language to the best tourist opportunities to the most authentic dining places. Very objectively, a DMC is a company that provides tourism services for both leisure (individual or groups), but mostly focused on incentive and convention trips. These agencies aggregates all the services necessary to meet travel business need. From a professional guide waiting for your team at airport arrivals, to take them to a transfer, to complete organization of a convention and all the logistics involved, among many other things.

So, the DMC is the dream of every operator or travel agency, as it takes all the task of organizing such processes (negotiations, schedules, etc.) and concentrates them in a single place. Then you ask: what is the difference between this type of company and a travel agency? Easy: a DMC is deeply specialized in the country or region where it operates. Talking about Brazil, for example, GT DMC Brazil is a true expert and will be able to add knowledge and services for every corner of such huge and diversified country.

Bonus: what's the difference between a DMC and a DMO?

DMCs provide their services to the customer for a fee. According to ADME , the Association of Destination Management Executives, a DMC is 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."

You may choose to engage the services of a DMC after you have confirmed the hotel and facilities in a specific destination to "manage" the destination for you. Planners may have a multi-year contract with a large destination management company to organize events and provide transportation regardless of the chosen destination, similar to how they contract with audio-visual providers and decorators.

While the overall objectives for a DMO is:

• Educating travelers about the destination's attractions and offerings
• Marketing through targeted campaigns
• Working with other organizations on issues related to sustainability to achieve common goals
• Addressing resident concerns related to tourism

Both organizations, however, have the same intention: to highlight the best of the destination and deliver an experience that leads to repeat business.

Why is destination management planning important?

In general, destination management companies are most commonly founded by specialists in tourism with great experience and relationships in their city and country, going far beyond the traditional receptive agencies, which normally limit themselves to operating transfers and city-tours, with little specialization or customization possibilities.

DMC works all the time to make tourist travel experiences viable and highly impactful (for work, business, conventions, incentives, etc.), organizing a complex network of knowledge and suppliers. A great DMC knows restaurants, spaces for events, unusual places for visits and shows, companies that set up stages and sound, bands and even massage therapists, doctors and lawyers who can make themselves available whenever necessary.

A great DMC is always prepared for a sudden downpour, a delayed flight, a blocked road or untimely cold weather. Guides have to go through daily tweaks and feedback until they hit the sweet spot between friendliness and efficiency; baggage handling, restaurant operations and cultural and sports activities are thoroughly reviewed to ensure their success. In the end, DMC must deliver the group to the airport for the return flight, seeing broad smiles of satisfaction and great expectations for the next trip on all the faces of the participants (including their contractors). When this happens, we can say that the trip was a success and that the DMC fully fulfilled its role.

What are the key components of Destination Management?

DM brings together different stakeholders to achieve the common goal of developing a well-managed, sustainable visitor destination. It is an ongoing process that requires destinations to plan for the future and considers the social, economic, cultural and environmental risks and opportunities. There are 16 main components in a Destination Management plan:

• Define the destination
• Define the vision
• Data, research and analysis
• Strategic fit
• Brand positioning
• Target markets
• Experience and product development (attractions)
• Marketing and promotion (awareness)
• Amenities, services and infrastructure
• Environmental stewardship
• Capability and development
• Leadership and structures
• Risk and crisis management
• Measuring success

What are the benefits of working with GT DMC

Like your expertise in your industry, a trip pro spends their days completely immersed in every aspect of the incentive travel industry. GT DMC Brazil is a 100% Brazilian company and we know the travel business inside out. Our mission is simple: make your job easier and make you look great. We offer valuable expertise and management services that save you time and money:

• Destination expertise - from five-star resorts on pristine, white-sand beaches, to grand lodges on the beautiful Brazilian mountains, we know the country thoroughly. We also know the best suppliers, whom to work with and the strong and weak points of every place in the country. You will not be working blind.
• Full experience - with the most popular tour models (nature and ecotourism, paradise beaches, cultural and social, adventure, couples and spa, gastronomy and wine tourism) and the latest innovations in Brazil's tourism at our fingertips.
• End-to-End management - of hotels, transportation, events, activities, participant support and communications by CMPs (Certified Meeting Professionals) who do this all year long; we are faster, save you money and reduce risks.
• Budget management - to make every penny count and keep your accounting department happy with full financial reconciliations.
• Make your work a lot easier - deal with only one project manager who will contact suppliers and coordinate everything with them.

GT DMC Brazil is a reference in the Brazilian hospitality and our team of experts can offer tailor made reception and logistics services, in an uncomplicated way and with the best rates in the market. Get to know our complete portfolio and the multiple possibilities of Brazil that we can offer to all types of incentive groups. Access www.gotogetherdmc.com.br .

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Destination Management Companies: How Travel Agencies Can Tap Into DMC Potential

• 2 Mar, 2020
• 1 Comment Share

The travel service market operates on a large scale. Online and offline travel agencies provide a wide selection of services to a wide range of audiences, so they rarely have control over the resources at the immediate destination. So, who does then? Destination Management Companies or DMCs are the critical link connecting travelers and service providers. Their strong suit is local knowledge: from regional language to the best tourist opportunities to the most authentic dining places. These niche players offer a lot of opportunities for travel agencies. We spoke with a few industry professionals working with DMCs to share how agencies can benefit from collaborating with destination companies and how to enable this interaction.

How Destination Management Companies work

The role of DMC in the travel supply chain

What DMCs do? The scope of services

Services of a T.I.T Travel DMC in Istanbul

Personalized welcome services at Mautourco

Car rental widget at Worldstar DMC

Travel-associated services. Some DMCs are one-stop-shops that serve the whole travel process including visas, insurance, and other related documents.

How travel agencies can work with DMCs

How travel agents can interact with DMCs

Calls and emails: personal communication between small DMCs and agencies

Small DMCs still use an old school approach of calls and emails. Some think it’s really inconvenient, while others, like Ian Ropke , a founder of Your Japan Private Tours , see it as a more personal interaction: “ Our relationships with high-end travel agencies are exclusively by email and by telephone which is fairly intimate and is about people to people communication.” Ian highlights that it’s justified for the private travel sector where clients are upper- and middle-class: “ These people expect personal attention from planning to arrival to departure and that is what they are paying for. It's almost impossible for an OTA or a global DMC to create this kind of intimate relationship. ” Another small DMC - Adios Adventure Travel - that operates in South America also sticks to phone and email communication. Customizing  itineraries and information to agencies' needs, they can even incorporate it into documents with the agency's branding. When asked about how they negotiate rates with travel agencies, Jacquie Whitt , a co-owner of the DMC, replied, " Usually the travel agency contacts me and asks for a quote for a custom trip for their clients. We give them a preferential rate and they can add on their commission. "

Online reservation system: accessing and booking DMC’s portfolio

Login and registration forms for travel agencies at Orient Tours

API connectivity: integrating DMC inventory into an agency’s system

XML connectivity between a DMC and a travel agency, Source: W2M

Red Apple Travel , a large DMC mainly operating in Asia, also enables integration of its standalone and package products, their real-time price and availability via an API. Jumbo Tours’ hotel distribution platform is also integrable. Their API allows agencies to connect to Channel Managers and directly to suppliers. Snami Travel, a Cretan DMC of luxury travel services, provides online booking engines that partners can integrate using the DMC’s XML web services. In addition, Snami Travel has B2C product widgets that partners can post on their websites.

Online marketplaces: one interface for multiple DMCs

MultiZebra dashboard for DMCs

Adalte B2B Travel Hub aggregates DMCs into its Travel Platform that agencies can adopt. Alternatively, they can insert it into their system using a Tours API that Adalte provides. We asked Vikram Ahuja , CEO of Byond Travel , to let us look under the hood of their marketplace. If a DMC has a digital booking portal, a marketplace can establish a live booking connection with it. But in some cases, DMCs don’t have that level of technology, says Vikram. “ That’s when we involve our teams getting in touch with their booking teams and making the confirmation for the booking”. At Byond Travel, travel agents get paid a share of the selling price: “ We share between 7 to 15 percent of our commission with the agency, depending on the time of the year, the destination, and so on. ” In addition, they offer agents Postpaid , a travel-now-pay-later payment plan, and also lend a hand with lead generation. Agents can access the entire trip portfolio by logging into the system . They can also integrate the database into their platform using XML and API connect. “ We are currently in the process of starting to integrate with a large number of B2B software, ” confirms Vikram.

How Travel Agencies Can Work With DMCs

In a world where travelers seek authentic cultural experiences in new or exotic places, finding the right combination of tourist attractions and off the beaten path sites of interest can prove challenging. If you’re a travel agency located six thousand miles from the destination you hope to sell, partnering with a destination management company can provide the real time guidance and connections you seek for your clients.

What are destination management companies ( DMCs )?

A DMC is your partner on the ground, a local travel agency with insider’s knowledge of the terrain and the ability to advise your clients during their time away. 

While your travel clients can easily book online a simple round trip ticket to Peru, booking air transport to multiple locations with multiple hotels and rentals can become overwhelming. The booking process gets even more complicated when your clients are traveling as a group and require more customized tours.

Travel agents and DMCs are therefore still in great need. In fact, many individuals and businesses prefer to book directly with an agent to receive more personalized service.

When travel agents and destination management companies work together, they can significantly improve their services and attract more clients.

Travel agents ar e reaping the benefits of DMC service

DMCs  empower travel agents to offer reliable and personalized travel services to their clients by providing the following:

Local event planning

International event planning can be tricky if you’re not located in the destination country. DMCs can help you plan:

• Conferences
• Sporting events
• International business meetings

A destination management company can provide on-site staffing during your event and serve as your “hospitality desk.” They can advise your attendees on local dining options and activities in the area as well as provide package deals to the group. Having a local expert on-site makes your business clients look good and adds credibility to your B2B travel agency.

For personal events like a wedding, the results are the same. Your DMC partner is on site to put  your customers at ease and provide them with the services they need.

Organizing local tours

Regularly working with the local community gives DMCs an advantage over off-site agents. They speak the language, understand the culture and the local customs.  They know if restaurant menus have changed, how to book a tour with a local mountain guide, what gear to bring, how to navigate weather conditions, what to know regarding safety and who are the best English speaking tour guides in the area.

DMCs may offer specialty tours like safaris, food tours, history tours, etc.

Scoping out the right accommodations 

Whether your client is seeking luxury or budget accommodations, your DMC will likely have an updated list of the best accommodations available. A successful   DMC partnership depends on mutual trust. When a DMC’s recommendations prove to be successful over and over again, you can rely on their advice and know that your clients are in good hands. 

When organized travel companies collaborate, they will attract more customers and provide a much better service.

Providing car rental services and transportation

Whether it’s an airport pickup, car rental, bus ride, or train ride, your DMC can handle all the transportation logistics, locating the right options for your clients.

VIP service

Beyond the standard services listed above, DMC representatives provide VIP service to travelers. They are on the ground picking up travelers from the airport, transporting them to their hotels, offering real-time expert advice, providing additional services on the spot and troubleshooting issues when they arise. 

As the local logistics experts, a DMC is like a third arm to the travel agency.

But before you partner with just any DMC, you must do your due diligence as your reputation depends on it. 

Research potential partner DMCs

Ask yourself the following questions :

• Does the DMC have a history of productive travel partnerships that you can verify?
• Is it registered as a business and licensed according to local regulations?
• Is it operating in compliance with all applicable laws and regulations?
• Does the DMC have a comprehensive insurance from a reputable insurance company according to the local requirements and the law?
• Do they possess the necessary qualifications and expertise to serve your clients according to their expectations?

A profitable relationship

The travel industry continues to suffer from the effects of COVID. The cost of air travel, car rental and hotel rooms have gone up in price dues to supply chain issues, staffing shortages and changes in demand.

Nevertheless, leisure travel is already making a serious comeback. On site international trade conferences  are also attracting travel professionals worldwide. And in general, the public is seeking adventure after being locked up for two years.

Building strategic relationships with destination management companies in different locales will help you to attract more clients and increase your revenue streams. These relationships will directly impact how well your travel business fairs during the post-COVID recovery period. 

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What is the difference between a DMC and a tour operator?

• DMC Mexico , Incentives

In the middle of the 19th century, after an ideological change brought about by the Industrial Revolution, the need for leisure and recreational activities arose, allowing the consolidation of tourism as a developing industry.

In 1841 the first group trip in history was registered, planned, and organized by “The Father of Tourism,” Thomas Cook (1808-1892).

Time after, he would create the first travel agency, the oldest in the world, “Cook and Son.” These revolutionary ideas would have an impact on modern tourism in the not-too-distant future.

The arrival of globalization and the evolution of transportation means motivating a phenomenon known as the “Tourist Boom” (1950-1973). This exponential growth gives rise to the need to manage destinations.

The tourist can acquire different principal and complimentary services just by contacting a tourist agent. This allowed the development of other organizations or companies in charge of integrating packages to market them and provide a better service to the tourist. And this is when the figure of Tour Operator starts.

Tour Operator History

The first to emerge are travel agencies, retail companies that offer tourism products or services with or without intermediaries; they are focused on the client’s needs, conceive, create, plan, organize and execute tourism packages for small groups to a mass-market (DATATUR, 2006). Unlike other agents, their priority is to sell and manage package programs for their portfolio of clients.

With time and the expansion of mass tourism, the need to mass-produce to satisfy the destination’s demand was born. Tourist agents had to adapt by creating wholesale tourist products, setting up agencies where the experience and service have been reduced for a more accessible price.

These agents are known as tour operators, organizations that participate in tourism activities as intermediaries between the final consumer and the tourism product (WTO, 1998).

In other words, within the tourism market, they are the creators and distributors of tourism products in destinations that are generally commercial, integrating principal services (lodging, transportation, and food) and complimentary services (tours, excursions, guided visits, etc.).

Whose function is to facilitate trips that are difficult to arrange independently, creating large-scale tourism packages and circuits, marketing them to wholesalers at a single price, or distributing them directly to the client.

Benefits of contracting a Tour Operator

• Affordable prices. 
• Provides a selection of destinations in a specific region
• Facilitates travel, packages, and transportation to market trends
• The convenience of acquisitions. The tourist purchases all the necessary services (lodging, transportation, food, tour activities) from a single tour operator.

DMC History

In Europe in 1977, Tom Wibecker began to use the term Destination Management Company (DMC) to describe organizations that destroy the standards of traditional tour operators or wholesalers they seek to provide a quality service to the customer. In the mid-’80s, the Society of Incentive & Travel Executives (SITE) acknowledged the peculiar meaning of DMCs.

Destination Management Company (DMC) are professional tour operators and product managers. Offering the best principal and complimentary services thanks to their extensive knowledge of the destination.

A DMC company is a specialists in the planning and organizing of any event, designing itineraries and logistic programs based on the client’s needs, capable of coordinating all local suppliers.

Their vast experience allows them to provide consulting services, in addition to their excellent logistics and management. Their dedicated anticipation of the event elements is another crucial point, ensuring comfort and safety. Successful execution will bring a good reputation for the DMC, exceeding the expectations of all participants. 

There are three types of DMCs based on the design and needs of the client that hires their services. That is, by the nature of the group: business (congresses, conventions, fairs, and incentive trips). Specialized (they organize pre-designed trips with a focus such as cultural, sun and beach, ecotourism, romance, among others). And the mixed (combination of the two previous ones).

Benefits of contracting a DMC

• Personalized service generating an added value in the tourist’s experience.
• Design of unique and creative products tailored to the customer’s needs.
• They perfectly know the characteristics and conditions of the destination, can provide access to exclusive locations.
• Negotiation capacity to determine the costs associated with the requested requirements.
• They are skilled in planning, coordinating, organizing, and supervising events.
• They provide advisory and consulting services.
• High quality (hygiene, attention, reception, orientation).
• Solid relationships and connections that maximize the budget.
• In addition to functioning as network generating elements through the concentration of the global supply of tourism services provided by small local businesses (Jamal and Getz, 1995). They also function as network .

So, what is the difference between tour operators and DMCs?

In short, the tour operator creates products for a mass market where the main objective is sales volume with limited customer service. On the other hand, the local integrated travel agencies or DMC’s have a specialized approach by niches and provide personalized attention, and customer satisfaction is their principal objective. 

Christopher H. Lee, president of ACCESS California, uses a peculiar analogy to refer to this type of organization’s work. His philosophy poses contrasts aspects of a DMC with an architect since this organization can design an event thanks to its vast knowledge and experience in the field to satisfy the requirements of the meeting, convention, congress, or incentive trip, in addition to meeting the client’s expectations by optimizing the destination’s resources and limiting itself to the infrastructure of the area.

With the digital era, tourism has evolved towards new technologies, creating new distribution channels through networks such as the Internet, modernizing its services, and offering new tourism products.

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Understanding the differences between DMOs and DMCs

We are definitely not the first to say that tourism is filled with similar sounding and confusing acronyms, but we are happy to put our hands up and help you make sense of a few. Instead of leaving you to feel on the outer circle of an exclusive club, we would like to lift the curtain on key tourism terminology that will undoubtedly make you feel a whole lot more comfortable with your knowledge of the industry. 

You would be forgiven for mistaking Destination Management Organisations (DMOs) and Destination Management Companies (DMCs) for being one and the same, but as this blog highlights, each is very distinctive in their own right. Although both share extensive knowledge of a particular destination, the way in which they work, their overall objectives and how they interact with travellers is what earns them their own separate titles. 

Before we leap into the definitions of DMOs and DMCs, it i s first important to properly define what a destination is. We know for some it may seem obvious what constitutes a destination but there is a set of crucial characteristics that defines one. 

Seen as hubs that drive tourism activity and engagement, destinations are a “physical space in which a visitor spends at least one overnight.” Other specifics regarding destinations include: 

• The presence of attractions, tourism support services, tourism and non-tourism related activities
• Management is clearly defined by both physical and administrative boundaries
• A range of stakeholders are involved

Destinations can of course be grouped in different ways. For example, some tourists may see a whole country as the destination, for others it might narrow down to a regional destination or a specific town/city. 

The main thing to associate with the definition of Destination Management Organisations (DMOs) is that they have the bigger picture in mind and work towards a common goal. Tasked with coordinating all elements of a tourist destination, from attractions, marketing, accommodation to amenities, DMOs strive to build the competitiveness of the whole destination while keeping sustainability front of mind. 

Depending on the governance structure of an area, a DMO may be broadly responsible for a country, often referred to as a National Tourism Organisation (NTO), or they might have a regional focus and receive the title of Regional Tourism Organisation (RTO). Whatever their scope, the efforts of DMOs are underpinned by the desire to spread the benefits of tourism across their community and establish strong brand identity for the destination. 

In order to drive the competitiveness and sustainability of their destination, DMOs often create destination management models that guide and shape their decision making. Looking at short, medium and long term prospects, considerations are made towards funding allocations, crisis management responses, marketing efforts, business development, training and sustainability. The beauty of these organisations is that they take a holistic look at the industry and closely consult with various stakeholders before establishing a set direction. 

While DMOs essentially oversee the development of tourism in a destination, they are mindful not to control the efforts of independent businesses and are very impartial in their position. Careful not to demand particular actions be taken by tour operators, DMOs take on more of a guiding, facilitating role and want to see local businesses succeed. These organisations offer a huge amount of support to local businesses through the likes of networking, stakeholder engagement, knowledge sharing and training, yet have no say in how their suppliers do business. 

When it comes to marketing, DMOs are huge champions for sharing the amazing things that are going on in their destination and offering suggestions on what tourists should see, try, taste and get amongst. Rather than trying to stimulate direct purchase off their platforms, DMOs act as an intermediary for local businesses and try to guide tourists towards the efforts of individual suppliers. DMOs achieve this through ‘above-the-line’ marketing activities such as highly visible campaigns, outdoor media, radio and television. 

In the same breath, DMOs often spend time focusing on B2B marketing where they seek the interest of inbound tour operators to bring travellers to the destination. One way to capture the attention of these operators is to invite them on trade familiarisations (famils) where they personally get to enjoy activities and experiences that would be well suited to their clientele. Considered to be ‘below-the-line’ marketing, this kind of promotion establishes close working relationships with highly connected agents who can relay their personal experiences to travellers in the hopes of generating greater visitation to the destination. DMOs need to think strategically about what aspects of their destination they are going to show tour operators, travel agents and trade personnel; with thought going into the appearance, content and aesthetic of their itineraries. They also need to get the all important buy-in from suppliers to provide their services or experiences on a complimentary basis thus requiring their financial investment in the famils.

Serving up platefuls of inspiration, these destination specialists live for the greater good and to build a better future for their local tourism industry. 

Comparatively, Destination Management Companies (DMCs) are more focussed on planning and booking trips for travellers, and all of the finer details that this entails. While they want to drive visitation to their local destination, they are largely responsible for the organisation of corporate meetings, incentive trips, conferences and events – also known as MICE (yes, yet another travel acronym for you!). 

We all know the saying ‘you can’t be everything for everyone,’ and this is the exact approach that DMCs take with their daily operations. What gives DMCs an added edge over a business or individual corporate traveller booking their trip independently, is that they are widely regarded as experts on the ins and outs of the destination. While those who are needing to organise a meeting or event in their current location may be comfortable with coordinating all of the details, those that are planning trips to another destination can employ the use of a DMC for added confidence and security. Often seen as specialised consultants, DMCs use their expert knowledge of their area’s local customs, language, culture and nuances to craft trips or events that their clients so greatly desire. From considering what operator should meet and greet the travellers upon their arrival and what accommodation provider would best suit their needs, to deciding what dining experiences and activities should be booked, DMCs save their clients hours of time and unnecessary stress. 

Essentially acting as a third party, connecting local businesses with potential travellers, the presence of a DMC means that their clients only have to deal with one point of contact rather than multiple different suppliers. Although DMCs are focussed on pairing the right experiences with the right traveller or group of travellers, they do not operate with impartiality in mind like a DMO. For this reason, these companies usually choose to promote and sell the products of suppliers that they have the best relationships or deals with. By leveraging off their preferred partners/suppliers, DMCs are able to capitalise on the preferential rates and negotiated discounts that consortia and substantial buyer power offers – ultimately passing this on to their clients. 

Looking through the lens of a local business, the establishment of a partnership or working relationship with a DMC is a valuable avenue for tapping into new client bases. While a DMO tries to stimulate greater demand for the local area, the marketing and expertise of DMCs bring local businesses in direct contact with tourists that are looking to spend money. 

Similar to the debate around the relevance of travel agents in the digital world, there have been discussions in recent times about the future of DMCs. It may be true that people are able to more confidently research and book trips on their accord with the help of the internet, but the due diligence, creative ideas, risk management, up to date information and quality assurance that DMCs offer is invaluable. Aiming to take the stress away from travel planning, DMCs create highly personalised, bespoke itineraries and packages . 

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WEEKLY BLOG PUBLISHED HERE

The Differences Between a CVB, DMO and DMC

By Beth Buehler

The world seems filled with acronyms, those pesky-yet-handy abbreviations formed from the initial letters of a group of words. Sometimes an acronym like NASA become more commonly used than the full name: National Aeronautics and Space Administration. The meetings and events industry, like many industries, has plenty so here is a brief insight into deciphering some of the alphabet soup combinations so you can communicate like a pro and know how Colorado CVB’s, DMO’s and DMC’s can help.

What is a CVB? A convention and visitor bureau (CVB) is a local tourism marketing organization that specializes in developing convention, meeting and group business as well as leisure travel to a city, county or region. The Colorado Springs Convention & Visitors Bureau, Boulder Convention and Visitors Bureau, and VISIT DENVER, The Convention & Visitors Bureau are a few examples of CVBs in Colorado.

VISIT DENVER, for example, describes itself a private, nonprofit trade association that is responsible for marketing metro Denver as a convention and leisure destination. The Bureau is contracted by the City & County of Denver to act as the official marketing agency for Denver, governed by a board of directors and employs a staff of more than 60 professionals, including several employees who specialize in convention sales and service and assist other groups as well. As is true for most, the CVB is funded through a voter-approved lodging tax, membership dues and fundraising efforts.

Courtesy VISIT DENVER, The Convention & Visitors Bureau.

What is a DMO? A destination marketing organization (DMO) often is the local CVB, but not every DMO is a CVB. Why the difference? Some destinations don’t have extensive meeting and event facilities or it isn’t a big focus for the local tourism office, even if a decent amount of space is available. In several smaller mountain towns, much of the function space is mainly at the ski resort, so that entity handles most of the convention and conference sales.

Chambers of Commerce in some towns are the DMO, with examples being the Aspen Chamber Resort Association and Visit Greeley (also the Greeley Chamber of Commerce). In Vail, the organization is Vail Valley Partnership, which focuses on destination sales and marketing, Chamber activities and economic growth and advocacy.

Courtesy Aspen Chamber Resort Association.

Courtesy Greeley Chamber of Commerce/Visit Greeley.

How do CVBs and DMOS help? Both offer many services for free to meeting and event planners and should be among the first points of contact in a destination, as they can offer a helpful overview of their geographic area, insights and an extensive network of local contacts and partners. Staff can help planners save a ton of legwork by directing them to properties, venues, restaurants, outfitters and destination management companies that work with groups. Some also have a request for proposal (RFP, yes another acronym!) process that planners can use to avoid all the time necessary in contacting individual entities.

What is a DMC? A destination marketing company (DMC) is totally different than a CVB or DMO. DMCs are businesses that specialize in meetings and events, work in particular destinations and charge for services. The Association of Destination Management Executives International defines a DMC as “a professional services company possessing extensive local knowledge, expertise and resources and specializing in the design and implementation of events, activities, tours, transportation and program logistics.” I also like ADMEI’s description of DMCs as “architects and general contractors for meeting professionals.”

Courtesy AXS Group.

Courtesy Destination Services Corporation (DSC).

What is Destination Colorado? Now you are probably asking, how does Destination Colorado (there is no acronym!) fit in? Destination Colorado is a nonprofit organization designed to provide Colorado resources and information for meeting and event planners. Among Destination Colorado’s more than 120 members (including several CVBs, DMOs and DMCs) and within the organization’s website, planners can find solutions to every requirement and planning challenge. So essentially, Destination Colorado is Colorado’s CVB!

Don’t get too bogged down in the acronym jungle. Use this brief overview to understand some of the key ABCs of the meeting and event industry in Colorado and beyond.

Beth Buehler is editor of Colorado Meetings + Events and Mountain Meetings magazines, has planned numerous meetings and events and enjoys exploring Colorado in all seasons.

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What are the differences between Online Travel Agencies and Travel Management Companies in Business Travel Management?

by kiranmohan | Jun 26, 2018 | Business Travel

Online travel agencies (OTAs) and Travel Management Companies (TMCs) have proved to be a game changer in the corporate travel industry. Booking leisure travel has become common nowadays with the average consumer and so is business travel with OTAs and TMCs. But how does an OTA differ with a TMC in terms of their offerings and benefits. Let’s discuss the differences and see what’s right for your company’s managed travel program.

First, the disadvantage with OTAs is that they fall short of trained and tenured professionals, characteristic of a good corporate travel program. OTAs do not employ experts or field call or custom-built online booking tools; they look to enhancing their profits alone. If you think these savings are rewarded to the consumers (or in this case, business travel management), you may be wrong.

Further, not every OTA has all the airlines or hoteliers for you. The vendors on OTAs pay major chunk of the fees for their rooms or flight bookings to be displayed when users search and make bookings.  As a user, you aren’t guaranteed of getting the lowest price – only that what the OTA would want you to see.

On the contrary, a Travel Management Company (TMC) employs a Global Distribution System, or GDS, as a reservation tool. By integrating this system with one’s custom-built booking preferences (i.e. selected vendors), experienced travel agents can give business travellers the best available choice on the basis of his/her travel policy by comparing reservation options.  TMCs allow you to select your preferred vendors. You can choose the particulars of your business travel program (with or without assistance, of course).  Most TMCs do not charge anything extra to have rooms or flights selected or featured.

Therefore, as seen above, OTAs and TMCs have their own merits and demerits. This is where a full service business/corporate travel management suite like Tripeur, an end-to-end corporate travel management platform, can drive travel policy adherence, enable seamless booking and handle travel data better, thereby saving costs and enhancing operational efficiencies. Simply give us a shout to learn more about how Tripeur works and how we can help manage your business travel program better.

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