When companies begin to discuss the value of working with a Destination Management Company (DMC), they often focus on the service fee it charges. The truth, however, is that companies should be pondering “how much does NOT using a DMC cost”.
The right DMC does a thorough job that includes mapping hidden costs and dealing with crises or even preventing them altogether. As a result, they can actually save money along with time and stress. This article shows six reasons why hiring a specialist pays for itself.
Local Expertise You Cannot Find on Google
Attention to detail is one of the major components of a good corporate trip. It can appear on pleasant aspects, such as finding the most appropriate venue for an event, taking advantage of regional aspects, and gaining VIP access to special experiences… and on necessary aspects like complying with local regulations and obtaining required permits in advance.
The vast experience reputable DMCs have in their destination of focus comes from years of solid work. They have learned everything about local habits and culture, they stay up to date regarding regulatory changes, and they keep strong relationships with local vendors. They do not need to “google” how to fulfil your requests; they will use their own knowledge.
Relying on such expertise brings benefits in the same categories mentioned earlier: there will be pleasant ones, such as enjoying regional perks which you would probably not find anywhere else, and necessary ones such as having paperwork matters properly addressed. In other words, your event will run smoothly from day one and without unnecessary risks or costs.
Access to a Network of Trusted Suppliers
It is widely known that DMCs have lists of preferred hotels, restaurants, transportation agencies, and other vendors. However, those are not simply referral deals. The best destination management companies are actually committed to the development of their region of focus, so they use their knowledge and influence to actively contribute to the growth of such establishments.
In the end, they form a business community whose members help one another. When it comes to the DMC, it can obtain faster response times, negotiate better prices, and even offer priority availability during peak seasons. They get such benefits in exchange for their effort towards making all those establishments stronger and more competitive in their respective fields.
Remote and/or generalist agencies do not have such connections simply because that is not how they work. As a result, they can only offer the standard options which are accessible to everyone else. While that scope is enough for some, it definitely will not fulfil the requirements of companies wanting to plan the best incentive trips, product launches or large-scale conferences.
Smart Budget Management
By having such strong local experience, DMCs know everything they need to prevent surprises. That means compiling all permits your group might need, clarifying the actual extent of “all-inclusive” offerings, anticipating situations which normally bring hidden costs, and even optimizing logistics – they can plan the most efficient arrangements and routes to drive the corporate team.
In corporate event planning, keeping the total cost down is desirable, of course, but avoiding surprises is even more important. After all, facing an extra charge all of a sudden not only increases the event’s total cost, but also creates urgency. The trip leader needs to go through the company’s entire governance structure to obtain the necessary funds but that is rarely easy or fast.
As you can see, DMCs do more than close good deals; they make those deals clear to you. Instead of selling leisure activities, venue uses, and transportation itineraries with buzzwords and complicated jargon, they provide itemized lists of what every service offers and calculate anything else you might need so you can create precise estimates before making the final decision.
On-site Crisis Management
Flights may be delayed or even cancelled. The weather may take a turn for the worse. There may be a riot on the street of the hotel you booked. Event planners know that there are many possibilities of problems, and some will always exist no matter how hard they work to prevent them. That is why the strategy of trying to anticipate and prevent problems is simply not enough.
Besides carefully planning the corporate event according to your exact requirements, experienced DMCs can also provide robust contingency plans and list local contacts which can step in almost immediately to help. It is not a matter of not trusting their primary work; these agencies are committed to making your event run smoothly regardless of what happens outside.
If a crisis ever happens, that structure is simply impossible to match. When the event is booked personally, there is a chance that the coordinator does not know anything about its city. In case of generalist agencies, they might have to send professionals from other regions to help. Either way, it would be so difficult to provide a solution that the damage could become irreparable.
Top-tier Guest Experiences
Now that everything is being standardized and simplified, authenticity is more valuable than ever. Whether you are planning a press conference, a product release, or an incentive activity, people want something different. They want the serenity of the Alps; the energy of a Spanish summer; the style of a German downtown. They want their investment returned somehow.
Destination management companies can use their expansive knowledge to find the best venues, and their strong relationships to effectively offer such experiences. They make sure to talk to a representative of your company because they want to understand what they really want. Then, they will identify which resources will be useful and make the necessary contacts to use them.
Generalist agencies resort to chain hotels and restaurants because they are convenient and get standard access to mainstream venues because it is easier. However, none of that is really attractive for people who came from another region. By hiring a DMC, you get a solid opportunity to impress the attendees and deliver a much higher event planning ROI than what was invested.
Time Savings
Planning a corporate event implies taking care of many details. The coordinator has to obtain internal approvals, contact vendors and ask for estimates, analyze the event’s brief and determine concrete goals to pursue, and negotiate with all service providers. Considering research, negotiation and overall coordination, this task can easily consume a hundred hours of work.
When you choose to work with a DMC, you get an opportunity to talk to its specialists and express everything you want for the event. You will be able to define its nature, set measurable goals, and delve into technical aspects such as number of attendees, location requirements, mandatory dates and times, and any special requests there might be, such as VIP transportation.
This way, you are essentially leaving event planning to a team of experts. While the DMC takes care of everything to make your event happen, you can focus on internal tasks such as notifying the stakeholders, defining details of their performance during the event, and establishing desired outcomes. With that division, each of those groups can stay focused on what they do best.
Final Step: Find an Experienced DMC
As you can see, hiring a destination management company should not be considered an expense; it is actually an investment. It is an opportunity to use its knowledge, contacts, and experience to plan a corporate event according to your exact requirements and optimize resources and deliver ROI in a way that personal booking or generalist agencies could never match.
Use the DMC.travel directory to find vetted DMCs for your next corporate event.
