Destination Management Company – Benefits of working with Local DMCs


The travel and tourism industry is quite big and travel agencies operate on a large scale. Both online and offline agencies are expected to provide a wide selection of services to a wide range of audiences, so exerting direct control over the resources is quite difficult without getting some assistance from the local agents. For instance, arranging tours in Australia while sitting somewhere in India can be possible only if travel agencies responsible for organising such International tours, have some connection with the local agents or bodies such as Destination Management Companies. With the use of itinerary builder software for travel agencies, you can easily tailor attractive holiday packages with a day-wise itinerary planned for your customers, but in the absence of proper connection with local vendors, how can you arrange vehicles for transfer, guides for local sightseeing and cab for rent during the entire length of the journey? Travel agents have to take care of all these needs as well, and any travel agency software cannot solve this issue without local help.

So, this problem brings us to the next most important question – Who are these local agents? Or, who run these destination management companies? Even better, –

What are Destination Management Companies? 

A destination management company is a professional services company with local knowledge, expertise and resources. It helps in designing and implementation of events, activities, tours, transportations and program logistics. These destination management companies work as intermediaries between local suppliers and travel agencies to further resell travel services to travellers. They operate within the distribution chain of tourism products and services. With the help of travel agency software like DMC Plus, they can easily manage and monitor the performances of the local vendors, keeping a tab of who are in business and whose businesses have been liquidated, what are the prices offered by each vendor compared with the local market rate and so on. 

And, it is these local DMCs who negotiate potential rates, make agreements with different suppliers – local hotels, restaurants, guides, car rental companies, etc., as well as, mix and match the services, bundle them into attractive packages and resell. They are, in fact, a single point of contact for their B2B and B2C clients. A DMC keeps a close watch over the vendors’ activities and ensures the suppliers fulfil their obligations, but is always ready with solutions if some mishap happens or things do not go according to plans.

As you can, travel agencies can highly benefit, if they partner with local DMCs, a few of which are briefed in the same article.

5 Benefits of working with local DMCs

As mentioned earlier, DMCs are largely responsible for taking care of their clients once they arrive at their destination. With the help of destination management company software, these DMCs can easily provide transfers, coordinate accommodations, offer activities and themed events, and much more at affordable rates.

In short, tour operators and local destination management companies work closely to provide a hassle-free, memorable experience for travellers. Every Tour Operator utilizes a specific DMC that has extensive knowledge of and connections within that area. So, here is a list of benefits travel agencies can enjoy after partnering with such destination management companies.

Arrival and departure assistance – This is definitely one of the most basic transfer services with meet-and-greets that DMCs master at. Their services start with taking the help of certain willing locals to wait for guests with a welcome sign at the meeting point, help them with the luggage, transport them to their accommodation, and back to the airport on the day of departure in the prearranged vehicle.

Arranging accommodation and conveyance –  DMCs operating in remote locations can also engage in accommodation and conveyance services there. They are aware of all the good hotels and vendors supplying cars for rent and guides to take tourists around, as well as, such other services at affordable rates. So connecting with them is advisable in order to provide your customers with first-class services right from providing a VIP lounge at the local airport to luxury hotels and villas for accommodation, a/c vehicles for transfer and conveyance so that your guest can enjoy a superior vacation, obviously depending on the amount they paid for their holiday.

Arranging cruises too! – And, not only that. In fact, a local DMC can arrange a whole range of other activities such as safaris, cultural tours, sightseeing excursions, including cruises, of course, and many more exotic experiences that travel agencies won’t be able to provide on their own.

Help with event or activity planning – Maintaining relations with domestic suppliers, hotels, and venues are something the local DMCs are good at. In fact, that is their job. So, connecting with them will definitely be an advantage for travel agents over other travel players in terms of organizing tailor-made activities for groups, themed events, and programs. And, some DMCs, even go ahead with planning and organising weddings, educational programs, concerts, sports events, roadshows, you name it. With their local knowledge, expertise working in the same field for years maybe, and use of proper software for local DMC, they can cover the smallest details from hotels and tee times to transfers and excursions in no time.

Set up site inspections – The DMCs can help travel agencies or agents with site inspections when the latter is visiting the destination on his own but is planning to turn the vacation into a working trip. Just contact a reputed local DMC and all your transportation and site tours will be well-coordinated and arranged as per your needs. 

About the author

Goranga Tech is one of the leading travel software company who develops various Travel Online Software & Travel Applications for the travel industry.