November/December 2006
Working with destination management companies
Tips on locating, hiring and contracting with destination management companies

By Linda C. Chandler

Locating a DMC
• Referrals from other show managers.
• Suggestions from the local convention and visitors bureau (CVB).
• Recommendations from hotels.
• The Association of Destination Management Executives offers a searchable member directory at www.ADME.org.
• Consider branches of a national network. If you’ve been happy with the standards and service in one place, you may like their sister DMCs in other cities. But don’t rely on that alone. A great reputation in one place doesn’t guarantee it elsewhere.

What to ask prospective DMCs
• How long have you been in business in this locale?
• How many full- and part-time staff do you have? Who are they and what’s their experience? What certifications do your staff members have?
• What professional industry groups do you belong to?
• Is your focus corporate or association clients?
• What references can you supply from similar groups?
• What type of programs and size of groups do you consider your specialty?
• What are the most creative things you’ve done for other groups?
• What elements are subcontracted? Who are your suppliers?
• Can you provide a copy of your insurance coverage?
• What’s your civic involvement? Do you have municipal contacts to help achieve special road closures for street parties or fun runs, for example?
• What activities can you provide that people can’t do on their own? What unique or unusual venues or tours can you get access to?
• What other commitments do you have during our dates? Will you be stretched too thin to accommodate the needs of our event?

What to include in your RFP
• Your budget and a detailed list of the services/activities expected
• The objectives of the programs
• The demographics of the attendees/guests involved
• The number of people to be accommodated
• Specific staffing you require, such as one staff person aboard each bus, number of airport greeters, etc.
• Dates and other details already confirmed, such as convention center, hotels and other venues
• History — what has worked or hasn’t worked in the past for the same/similar event

What to include in your contract
• Clarifications of all services/programs to be provided, including where, when and number of people expected to be involved.
• Time line for when all tertiary services will be secured and when notification will be provided to client.
• Payment terms. Negotiate and put in writing, whether it’s 100 percent 30 days out or some predetermined fractions to be paid at two or three intervals.
• Staffing ratios of DMC personnel to the group.
• Communication expectations — how often and by what method.
• Cancellation terms and refund policies.

Rules of thumb
• Do a credit check on a potential DMC. Because they offer umbrella services and pay additional suppliers, you need assurance that anyone you partner with is financially responsible for all subcontracted services.
• Interview DMCs when you go for a site visit. Ask questions you would of any employee or team member because the DMC will be a vital partner in your event planning.
• Always check references. Find out if past users thought the DMC was easy to reach, flexible with changes, quick to respond and professional at all times.
• Be sure to discuss contingency issues. Work out a Plan B with the DMC, covering everything from weather to traffic to no-shows of entertainers.

Sources
• Melissa Faubel, CMP, Public Library Association, (312) 280-5022, www.pla.org 
• Byron Frazier, PRA Destination Management, (214) 647-0300, www.pra.com 
• Sharon Geraci, Meeting & Incentive Management, (702) 798-3031, www.meetingincentivemanagement.com 
• Lise Puckorius, CMP, SmithBucklin Corp., (800) 539-9740, www.smithbucklin.com

Tips on communicating with DMCs
• Get names and contact information of key contacts, including cell phone numbers and a 24-hour contact number.
• Create a timeline for securing different elements of the contracted services, from transportation, to tours, to entertainment.
• Expect to communicate more often as the date of the event nears.
• Don’t micromanage but do clearly communicate your expectations, both in the contract and in pre-event and on-site meetings.

How DMCs charge
• Cost plus. DMC presents bills from tertiary suppliers and adds a percentage for their services to coordinate and/or staff all the elements.
• Project rate. DMC and organizer agree on a list of services to be provided for a flat fee.
• Hourly plus expenses. Organizer pays for expenses of tertiary suppliers and pays hourly rates for the services involving the DMC.

Payment options
• Expect to make at least a partial, if not full, payment up front. Since DMCs have to pay the tertiary suppliers, they don’t often want to float the expenses.
• You may be required to pay 75 percent to 80 percent up front and the remainder after the event.
• You may be asked to pay 50 percent upon signing the contract and the remaining 50 percent before the event.
• Add-ons and on-site orders may be billed after the event.