What do destination management companies do?

A destination management company (or DMC) is a business that encompasses a wide variety of professional services at a travel destination to help remove some of this stress. DMCs help event planners sort out critical event details, taking care of a large number of tasks on the endless planner to-do list.



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DMCs negotiate preferential rates and make agreements with different, separate suppliers on the spot: local hotels, restaurants, guides, car rental companies, etc. Then, they mix and match the services, bundle them into attractive packages and resell.

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DESTINATION MARKETING ORGANIZATION (DMO) The DMO can provide assistance in scouting, negotiating, and supplier vetting. Some DMOs market only to leisure travelers, while others market solely to meeting planners. Both CVBs and DMOs provide their services for free to the meeting planner.

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Broadly speaking, “destination marketing organization” characterizes any entity that specializes in destination marketing. For example, in small cities where a considerable CVB is not present, a chamber of commerce could quality as a DMO.

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Components of a Destination Management plan
  • Define the destination. Defining the destination is important when multiple stakeholders with various perspectives are involved. ...
  • Define the vision. ...
  • Data, research and analysis. ...
  • Strategic fit. ...
  • Brand positioning. ...
  • Target markets. ...
  • Experience and product development (Attractions) ...
  • Access.


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5 types of tour operators
  • Inbound tour operator. An inbound tour operator creates and markets tours showcasing their home country for overseas tourists. ...
  • Outbound tour operator. ...
  • Domestic tour operator. ...
  • Ground operator. ...
  • Receptive tour operator.


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Crucially, destination management includes the planning, development and marketing of a destination as well as how it is managed physically, financially, operationally and in other ways. Various terms have been used for the process of planning and managing tourism or visitors in a destination.

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To effectively execute destination management, destinations can follow these four steps:
  1. Strategy Development. Define the destination's vision, goals, and target markets. ...
  2. Collaboration and Engagement. ...
  3. Marketing and Promotion. ...
  4. Performance Measurement and Adaptation.


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The main difference between destination marketing and destination management is that destination marketing is an approach that may be used as part of a destination management plan.

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Many DMOs receive their funding, or a portion of it, from hotel occupancy taxes, which vary state by state. Guests pay transient occupancy tax on hotel reservations, which may be passed on to local government organizations, like a DMO or CVB.

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