When you are planning a corporate event, choosing a Destination Management Company (DMC) without attention to detail can cost you much more than its service fee. Generalist companies often miss critical details due to low local expertise. That leads to issues such as budget overruns, logistical problems and, which is the worst part, unhappy attendees. Working with the right DMC, on the other hand, means you get a partner in success. With nine questions, the checklist below will help you vet potential partners before making a commitment.
Have you hosted this exact type of event before?
Each event has unique characteristics and is planned in a unique way. DMCs that excel at incentive trips, for example, might struggle to host a conference for 500 guests because these events have very different characteristics in terms of resources, venues and duration.
We recommend you ask for examples of similar events the DMC has managed in the past, preferably those of the same scale and format and for the same industry as the one you intend to plan. Analyzing concrete case studies is much more valuable to guide your decision than vague assurances.
How long have you been operating in this location?
Local knowledge is arguably the most important asset when it comes to working with a Destination Management Company; after all, it is the major argument in favor of these companies compared to typical service providers.
DMCs with years of experience operating in the destination you chose will know everything about seasonal benefits, secluded venues, and the most reliable suppliers. Newer corporate event partners usually lack the lasting relationships which are necessary to obtain priority access or to negotiate more favorable rates.
Can you walk me through your pricing model?
In this topic, transparency is key; it benefits existing clients with honest and predictable costs, and it makes the Destination Management Companies more attractive to new clients in the future. Some DMCs work with flat fees, others prefer to mark up their supplier costs, and there are a few which blend both structures.
It is essential that you request an itemized list of their pricing structure before signing the contract, and it must clarify what services are part of the package you are hiring and which ones are not. This way, you are going to avoid surprises when it is time to receive the invoice.
What is your invoicing process?
The simpler the financial process is, the smaller your headache will be later. Make sure to ask the DMC’s staff about their usual payment schedules, what to know about dealing with multiple currencies, and whether they provide consolidated invoices even if the event planning service you intend to hire requires working with multiple service providers.
Truly professional DMCs want to offer simple and frictionless experience to their clients. As a result, they will do everything they can in order to make financial administration easy and transparent. These destination management companies have nothing to hide and are not likely to try and push unwanted services on your invoice.
What is your force majeure and cancellation policy?
This topic is usually forgotten when the event planner is in a rush – no one wants to plan an event while thinking that things will go wrong with it, right? Unfortunately, it is necessary to acknowledge that this topic is important to keep in mind.
Event planning is susceptible to cancellations for reasons such as inclement weather, occasional strikes, or even global crises. Certify yourself that the DMC’s cancellation and force majeure policy is clear, fair, and aligned with the risk management standards enforced by your company. This is definitely not an item to overlook when hiring these services.
Who will be my on-site contact during the event?
More often than not, corporate events feature multiple activities being executed at the same time. As the host, you need to know how they are going in order to be prepared to act in case of need. While the DMC is hired to help with that, among other tasks, having a single point of contact from their side makes everything easier.
When considering a DMC, you should clarify who will be physically present during the event, what role they have, and what their authority is to make decisions. If that on-site point of contact is strong, you can expect to have any potential problems with the event solved in a matter of minutes, not even hours.
How do you curate your local suppliers?
One of the most valuable assets of an experienced DMC is its network of business partners. More than closing partnership deals, the Destination Management Company contributes to the supplier’s development in the community with ideas and suggestions, not to mention a steady flow of customers year after year.
In exchange for that expertise, the DMC gains benefits such as priority scheduling, more attractive pricing, and exclusive access to products and services depending on the case. The VIP service your group will receive comes from years of hard work to curate a list of trusted suppliers and build a solid relationship with them.
Can you share references or insights from similar clients?
References are an important item to analyze. Saying great things about its own services is easy; truly competitive DMCs will show their value by proving what they say. You should not expect to learn actual names of former clients, of course, but it is possible to inquire about non-sensitive information about past services such as case studies.
Destination Management Companies are expected to collaborate with such requests because that information helps prove their capabilities and expertise. Besides, it can give you new ideas for the corporate event you intend to plan with a DMC. It is a chance for you to leverage their experience and obtain an even better experience.
How do you handle last-minute changes or emergencies?
No event happens entirely according to its plan. There might be flight delays, weather disruptions, or even cancellations from suppliers. Fortunately, none of that has to be a problem. Those factors will only disrupt your event if they are not handled with the necessary expertise.
Make sure to ask for examples of how the DMC managed emergencies during past events. If they are truly capable and competent, they will have contingency plans prepared as well as local contacts on whom they can rely on to address issues quickly.
How to choose a DMC for your event
After reading this event planning checklist, you have learned that asking the right questions is essential to find the ideal partner. Make sure to use it as a guide to evaluate candidates, and head to dmc.travel directory to find DMCs which were vetted by us and organized by destination. The right partner will make your event run smoothly, impress attendees, and deliver remarkable ROI.
