DMO vs DMC: Who Does What in a Destination

A DMO works for the destination, a DMC for the group that arrives. DMO vs DMC from the client side: who bids, who invoices, who answers the night call.

Mertcan Tekin9 min read
Two professionals discuss the waterfront convention district from an elevated terrace.
Contents
  1. Who does the destination body actually speak for?
  2. The company in the hotel lobby at two in the morning
  3. Why do the two get confused so easily?
  4. A congress bid shows the hand-over clearly
  5. Hotels and DMCs often treat the bureau as a lead service
  6. Which one should a planner phone first?

Pick up the printed program of any familiarization trip and look at the first page. The city’s promotion body is usually named as the host, thanking the guests for coming. A few pages later the transfers, dinners and venue visits are in the hands of one or two local companies whose names appear in much smaller letters. One trip, one group of guests, and two very different kinds of organization sharing the same piece of paper.

Those two are the DMO and the DMC, and the difference between them is who they work for. A DMO, the destination marketing or management organization, promotes and coordinates a place on behalf of everyone in it, while a DMC, a destination management company, is a private firm paid to deliver the ground arrangements for a group that comes there. The letters are almost identical, the people often know each other well, and they meet at the same fairs and site inspections.

Who does the destination body actually speak for?

The answer is nobody in particular, and that is the point. A DMO, a destination marketing organization or in its broader form a destination management organization, is the body whose job is to promote a place and, depending on its mandate, coordinate the many businesses and institutions that make up its visitor economy. It may be a national tourism board, a city’s convention and visitors bureau, or a regional body set up by several partners together. The UN Tourism guidelines on strengthening DMOs describe how the role has been widening from promotion toward management, sustainability and the relationship between residents and visitors, although that does not mean every DMO has the same powers or budget.

It does not represent one hotel or one agency. It represents the destination, which means it is supposed to stay neutral between the businesses inside it. Ask a good DMO for a congress hotel and it will give you several, not its favorite. Its work runs wide: campaigns and the destination brand, a presence at international fairs like ITB, WTM or IMEX, visitor information, research and data, hosting journalists and tour operators, and supporting bids for congresses and events. In the meetings world the convention bureau side is the one planners deal with most, because that is where bid documents get prepared, site visits are organized and an association is introduced to the right local hosts, sometimes with a letter of support that only a neutral body can provide. A good one thinks across all the types of tourism a place can host, not only the kind that fills hotels in August.

Around the world this work is spread across very different structures. In many countries a national promotion agency carries the country’s brand abroad and runs the national stand at the big fairs, while large congress cities keep their own convention and visitors bureau. Elsewhere the role is played by regional tourism offices, development agencies, chambers, hotel associations and industry representatives sitting around the same table, discussing anything from cultural tourism routes to the next congress bid. The names and shapes differ from place to place, but the logic is the same: someone has to speak for the destination as a whole, because no single business can do it.

The company in the hotel lobby at two in the morning

A DMC, a destination management company, is a private business rooted in one destination that designs and delivers the ground arrangements for groups coming there (the industry association ADMEI describes a DMC as a professional services company located in its destination and specializing in local expertise and resources): congress delegates, incentive winners, a dealer meeting, a film crew, a sports team.

Where the DMO helps you decide, the DMC delivers. It manages the hotel blocks, plans the airport transfers and coaches, finds the gala dinner venue and the AV supplier, arranges tours and guides, puts hostesses on the registration desk, handles permits, and is the one standing in the lobby in the middle of the night when a coach fails to show up. It knows which supplier brings backup equipment and which one disappears when something breaks. That knowledge is the product.

And it is paid for. A DMC quotes, negotiates, earns a margin and competes with other DMCs for the same job. I don’t say that as a criticism; it is precisely what makes it useful, because a company that has to win the next contract has every reason to make this one work.

Why do the two get confused so easily?

Part of it is simply the letters. Part of it is that the roles do overlap at the edges. Some DMOs run booking platforms or sell city cards, which looks commercial. Some DMCs promote their destination at fairs so energetically that they behave almost like a tourism board, especially where the official body is small. And during a site visit the planner is often hosted by both at once.

Language makes it worse. In many markets, ours included, “DMC” is used loosely: a travel agency running airport transfers calls itself one, and so does a tour operator with a meetings desk. Meanwhile “destination management” in a strategy paper, such as a destination management plan, can mean public coordination, while in a sales brochure it means a company that runs groups.

The simplest way to tell them apart is to ask who sends an invoice: the DMO helps you decide on a destination without charging you, while the DMC is paid to deliver what happens once you are there.

If you are a planner and unsure which one is in front of you, it is perfectly fine to ask straight out whether they are representing the whole destination or offering to run your event. Nobody serious will be offended by the question.

For a planner new to a destination, this is roughly how I would lay the two out on one page:

DMODMC
Works forThe destination as a wholeThe client who signs the contract
Paid byPublic funds, partners or members, depending on the placeThe client, through a quote with a margin
Typical workPromotion, fairs, bids, site visits, data, introductionsHotel blocks, transfers, venues, tours, staff, the run of show
What it can promiseNeutral advice and support within its mandateDelivery of what is written in the contract
When to call itBefore the destination is chosenOnce the destination is chosen or nearly so
Who answers the night callRarely the DMOThe DMC

Real organizations blur the middle rows now and then. The bottom row almost never moves.

A congress bid shows the hand-over clearly

Congress bids are where you can watch the two roles pass the work from one to the other, and they are the corner of event tourism where a city needs both most.

Let’s say an international association is choosing between three cities for a meeting a few years ahead. The convention bureau in each city prepares the bid: the case for the destination, venue options, hotel capacity, air access, the local scientific community, the support it can offer. It invites the association’s decision makers on a site visit. Up to this point the work is neutral, and the destination side carries most of its cost.

Once the city is chosen, sometimes already during the bid, the DMCs step in. The association or its professional congress organizer asks a few of them for proposals, and now the work turns commercial, with real rates, real transfer plans and real social program options. A good bureau keeps following the event, makes introductions and helps with local institutions, but it does not run the operation.

During the site visit itself the two usually work side by side, and that is the moment a planner can see whether a destination is well organized. When bureau and DMCs have agreed in advance who shows what, the visit feels like one prepared day. When they haven’t, the guests notice quickly: two people quoting different capacities for the same hall, a dinner nobody briefed, a hotel manager who did not know the group was coming.

Hotels and DMCs often treat the bureau as a lead service

If you ask me where the system works least well in most destinations, I would point at the habits of the private side, my own industry included.

Too many DMCs treat the DMO as a source of leads rather than as a partner. They wait at the national stand during a fair for a planner to walk past, they expect the bureau to bring them business, and they give very little back. Hotels are often similar. When a bureau tries to build data on meetings held in the city, it receives partial figures, because properties regard them as confidential sales information. Without that data the bureau cannot write a convincing bid, its plans for sustainable tourism rest on guesses, and the same hotels then complain that the city keeps losing congresses to its rivals.

Cooperation between DMCs is the other weak spot. During a bid the destination should come first and the competition between companies second. Yet the competition often starts on day one, and the planner ends up hearing four slightly different stories about the same city. No new institution is required to fix this. What it takes is hotels that share their meeting figures with the bureau in an agreed format, DMCs willing to help prepare a site visit even before the contract is theirs, and a habit of agreeing on the destination’s story before anyone starts selling their own piece of it.

Which one should a planner phone first?

Running operations for international forums, I learned to call them in a particular order, and I still think it holds. If the destination is not chosen yet, start with the DMO. It will give you an honest overview, introduce several venues and suppliers, and tell you things no single company would, such as which weeks collide with another big gathering or which district has roadworks planned. It costs you nothing but time, and it gives you a much better basis for what follows.

Once the destination is decided or nearly decided, go to the DMCs. Ask two or three for proposals and pay attention to what they ask before they quote. A company that sends a price straight away is probably selling a standard package; one that wants to know who the participants are, why they are coming and what the meeting should achieve, is already thinking about your event. The rest of the comparison, from references at your scale to its own team on the ground and a clear contract, is ordinary supplier selection. An introduction from the bureau is not an appointment, either: when a DMO suggests three companies it is opening doors, not vouching for every service they will deliver, so the contract and the operating plan still have to name who is responsible for each part. The mistake I see most often is the reverse order: a planner hears about a city from one company, receives a full proposal, and only later learns that the bureau could have offered support or a site visit that would have changed the whole picture.

A destination needs both sides to be strong. A city with a capable bureau and weak DMCs wins bids and then delivers forgettable events, while a city with excellent DMCs and no real bureau runs fine events but struggles to reach the shortlist at all. The printed program with two sets of names on it is a fair test of this. Where the arrangement really works, the guests finish the trip without being able to say where the bureau’s part ended and the company’s part began, and that seamlessness is the clearest sign the two have understood their different jobs.