Is it Time to Rethink the DMC Business Model?

A new white paper from ADMEI lays out ways planners can strengthen their relationships with destination management partners. One of the key resources for many meeting planners is the destination management company that helps them select a location for their event, scout venues and assist in almost every aspect of a gathering. When a planner needs local, insider knowledge they lean on their DMC partners. But the halt to many in-person events that began last spring revealed the vulnerable position in which many DMCs find themselves and the disadvantages of their current business model. This issue is the focus of “Evolution of the DMC,” a white paper produced by the Association of Destination Management Executives International. Drawing on industry research and focus groups, this report suggests best practices for adjusting the current arrangement between many DMCs and meeting planners, providing a way forward for a more open partnership that will benefit all involved. The full white paper is available at northstarmeetingsgroup.com/DMCwhitepaper. On this episode of Eventful: The Podcast for Meeting Professionals, we spoke with two people instrumental in this effort: Lorenzo Pignatti, ADMEI president as well as CEO and founder of Italy-based TerraEvents, and Jill Tate, CEO of Corinthian Events & Newport Hospitality, a DMC Network Company and a member of the ADMEI Focus Group/Task Force. They discussed the ways the current business model often falls short and some simple measures that could create a better situation for meeting planners, DMCs and attendees. Among the points discussed: How the pandemic exacerbated longstanding problems with the model for many DMC-planner partnerships. (4:20) How a more simplified RFP process could benefit planners as well as destination management companies. (7:55) How a letter of engagement can alleviate one of the biggest weaknesses in the current RFP process. (11:37) Why now is a good time to rethink the industry’s standard approach to site inspections. (14:10)See omnystudio.com/listener for privacy information.

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