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his is a test. Imagine, oh harried event specialist, that you need to host two dozen VIPs at an upcoming product summit in San Francisco. Name the hottest new restaurant in town and describe how you would secure reservations and prime seating ahead of the six-month waiting list.

Next imagine that the following week you’re in charge of evening entertainment for a user conference in Montreal. Customers want a French-speaking bluegrass band (no name specified), and your six top customers want to go backstage and collect autographs. Who is on the bluegrass “A” list? Is there an A list?

Back before multi-tasking became a source of perverse pride, you and fellow exhibit managers and corporate event specialists had time to solve tough challenges like these. You could and did fulfill or even exceed expectations at a predictably professional level. Today is different. With everyone’s plate overflowing with dozens of concurrent and complex projects, almost no one has time to produce compelling, entertaining events in an unfamiliar local environment. When that’s the case, exhibit and event specialists frequently partner with a destination management company, or DMC, whose local knowledge and connections can clean up that plate and leave you to enjoy the dessert.

What is a DMC?
The Association of Destination Management Executives (ADME) defines a DMC as “a professional management company specializing in the design and delivery of events, activities, tours, staffing, and transportation utilizing local knowledge, expertise, and resources.” Almost none handle transportation to and from a destination, and only a few handle lodging. Their focus is on the event, or series of events.

Unlike general event planners, DMCs specialize in corporate and professional events (no weddings or bar mitzvahs). And unlike most meeting or corporate event planners, they focus on auxiliary events, those that typically are built around the conferences, meetings, and product launches in their areas.

A good DMC knows Paris, or Duluth, or Western Canada; has extensive contacts with local venues, suppliers, transportation companies, and entertainment; and can serve as local liaison in all those areas. Individual staff members are referred to as “ground operators,” a relic of the profession’s roots in tour transportation. With the downsizing of corporate meeting departments in the early ’90s, however, the DMCs’ role expanded to include a range of local expertise —“meet and greet,” event staging, venue booking, and coordination of everything from hors d’oeuvres to white-water rafting trips.

When should you use a DMC—and when should you go it alone?
“Not every event needs a DMC,” says Paul Uline, co-owner of Maestro Plus, a Montreal DMC. “If you just want a straightforward business dinner for 20, I’m not necessarily going to add value there.” But what if you want to host an opening-night party for 400 VIP software users — in Kansas City, where you have no idea where to find resources? Or take 150 sales associates on a day trip in Geneva, NY, culminating in a custom scavenger hunt? “If you have unlimited time, or staff, you can do many things yourself,” explains Cris Canning, once a DMC and now proprietor of San Diego PR firm Hospitality Ink, which provides public relations to the travel and meetings industry. “But if you’re wearing multiple hats or producing multiple meetings, a DMC is a valuable partner in the local destination. Meeting planners are experts in your company. DMCs are experts in a particular location.”

DMCs also can provide more polished events, or take a standard event to the next level. Adds Uline: “It’s difficult for people to perceive the value of what excellence might have been.” For example, Maestro Plus might provide entertainment from Montreal’s Cirque du Soleil, or — for a gastronomically adventurous audience — a menu featuring local specialty patés.

Finally, DMCs can take pressure off meeting and event planners, freeing them to focus on the main event and still look good to clients and supervisors. Explains Carla Felicella of Vancouver’s Rare Indigo Destination Marketing, meeting and event planners often take on the pressures created by the CEO’s demands. “We’re there to make the meeting planner look like a star,” she says.

How do you find the right DMC for your event?
DMCs promote themselves as local experts, so you’ll want to find one with expertise in the city where your event will take place. Get recommendations from local four- or five-star hotels, or look to one or more professional organizations or networks for referrals. There’s even an association that offers accreditation: The Association of Destination Management Executives (see www.adme.org). Several DMCs interviewed for this article cautioned against using convention and visitors’ bureaus to garner recommendations, as they often recommend any company that’s a member.

Then hit the phones. Felicella suggests calling between five and eight individual DMCs and asking extensive questions. In her view, “You’ll know in the first 15 minutes if they’re true professionals.” And don’t underestimate chemistry — you want to click with the person you’re talking to.
Here’s what to look for:

Professionalism. Is the person you’re talking to a good communicator? Does he or she give clear, forthright answers to your questions? Professionalism extends to the nuts and bolts: does the DMC have enough trained staff? How many years has the company been in business? How much insurance is carried? ($1 million is minimum, says Darlene Sweeney, executive director of the DMC Network; twice that is better.) Accreditation is another good indicator that you’re dealing with a professional.

Local knowledge.
Do they know and have access to interesting and exclusive venues? “Everything in our business is relationships,” says Karen Gordon of Las Vegas-based Activity Planners. “It’s all based on how much clout you have and how many doors you can open.”

Creative thinking. A good DMC representative knows how to think fast and come up with ideas in response to your needs. He or
she should be able to suggest activities, venues, entertainment options, price ranges, and the like, all off the top of the head. You should leave the conversation excited by possibilities you hadn’t even considered.

Curiosity. Does the person you’re talking to ask the right
questions? Does he or she want to know about your needs, or do you get the feeling you’re being sold a one-size-fits-all solution? A good DMC doesn’t continually recycle events, but rather creates events that fit the client. That means getting to know you.

Availability. Will the DMC be available at 11 p.m. if the power goes out, or at 8 a.m. if the bus gets a flat? Technology is key to availability: the DMC should be reachable by phone, fax, and e-mail. And the bar is getting higher: some clients, like Cisco, won’t hire a DMC without remote wireless capabilities, says the ADME’s Sylvia Rottman.

Enthusiasm. Does the person you’re talking to seem to love his or her job? Do the ideas suggested excite you? The more passion people convey, the more likely they’ll put that passion into your event.

Resourcefulness. This is where “above and beyond” comes in. If something goes wrong, is this someone you want on your side? Uline, for example, once spent three hours searching a hotel for a package — valuable limited-edition lithographs that were to be presented to a group of VIP clients that night. After combing the entire hotel, including the kitchen, the ballrooms, and a giant trash compactor, he found the artwork in a cupboard in a third-floor conference room: “I was freaking out, no question.” But the client was happy, and that’s the point: “We have to get it right the first time, every time.”

References, references, references. The DMC should be able to provide contact info for 10 or 20 clients who hired the company for similar events; several should be from your particular industry. Don’t settle for a handful of letters — anyone can write them, and
a conversation will tell you much more about the experience of working with that particular DMC. And, of course, just asking for references isn’t enough—you need to follow up. “Anyone who doesn’t call references is nuts,” Uline says.

What about getting proposals?

Once you’ve found a few DMCs who pass the test, ask for proposals. There should be no charge for proposals, but don’t abuse the system. Asking for proposals from more than three companies is considered unprofessional, and getting only one is foolhardy. Choose two or three companies that look promising
and move on to the next step.

Of course, information must flow both ways. You won’t get a good proposal if you don’t know what you want. So do your homework and have the following information available:

Your budget. How much do you have to spend? Without this information, a DMC is in the dark. “I can do hot dogs or filet mignon; background music or name entertainment,” Canning says. But she can’t know which to offer without an accurate budget. Uline concurs: “I’m never too expensive. Tell me what to do, and I’ll maximize it beyond belief.” An event should always be professional and innovative; it’s the scope that changes.

A sense of your audience. How many guests will attend? An accurate head count is crucial for an accurate bid. And demographic and psychographic information is just as important: a group of young, urban, mixed-gender sales associates will have different needs than a group of middle-aged, mostly male Midwestern distributors — and both will differ from a sophisticated board of directors sporting what Canning calls “the been there, done that, have the T-shirt to prove it” attitude.

Goals and expectations. Proposals vary in format and scope. If you want a specific format, ask for it, Uline says. Some clients want an itinerary and a total, while others expect detailed line-item budgets with all markups called out separately. The more information you provide, the clearer and more accurate bid you’ll receive. Get what you need, but don’t ask for what you won’t use. Similarly, know your expectations for the event, Canning says. “Do you want to wow people, or just let them mix and mingle?” Both are appropriate, but be clear on your needs.

An open mind. DMCs love working with clients who are open to new ideas, Gordon says. She cautions against the “last year we did XYZ” mentality. Clients who come in with overly rigid notions of what they want, or wish only to replicate a previous event, miss out on the local expertise and contacts that DMCs bring to the table. Each destination is different, and an event that takes advantage of what’s special about the place is more memorable, and effective, than a generic dinner or party. Let a DMC make suggestions; that’s what they’re there for. “A good client,” Gordon says, “uses our expertise.”

How do I evaluate the proposals I receive?
You’ll receive several proposals. Review them, and choose the DMC that seems like the best fit. A few caveats: it’s unprofessional and unethical to ask one DMC to bid on another’s plan; proposals are considered intellectual property and shouldn’t be shared with competitors. Similarly, asking for proposals just to get ideas and then using them yourself can quickly tarnish your professional reputation. And be careful of DMCs that promise the sun and the moon; the cliché “too good to be true” means it probably is.

Meet with each DMC face-to-face, if possible; for larger events, you may want to schedule a tour of proposed venues. Ask lots of questions; the more you know now, the better the decision you’ll make. And try to determine the differences that go beyond cost. The DMC Network’s Sweeney recommends asking your contact at each DMC: “What sets you apart from your competition?”

And be forthright about deadlines. If you need a proposal ASAP, fine — but don’t impose arbitrary deadlines. (Of course, if a DMC misses an important deadline, it’s a red flag signaling possible problems down the road.) Event deadlines, too, are an issue. In better economic times, event and meeting planners had the luxury of a year lead time for larger events, but now four months,
or even two, is not uncommon. While a good DMC can “turn it around on a dime,” Felicella says, time is always an asset. She once organized a five-day trip to Banff, CO, for dozens of Verizon employees with only two months’ notice — but she wouldn’t recommend it. Give the DMC as much notice as possible, for the little things as well as the big ones.

How can I get the most out of the DMC I choose?
A good DMC will work with you to refine and polish your event, to make it fit your particular needs. This part can be really enjoyable, as you work together to personalize the event for your audience. Remember, though, to maintain both high standards and realistic expectations. No one can work magic, Uline says, but “we can play a valuable role in maximizing budgets.”

As the event nears, remember to keep your perspective, despite the stress. (Canning remembers one client who became incensed with her because city workers had to tear up the street in front of an event to fix a utility line, a decision she had no way of foreseeing.)Remember, DMCs aren’t all-knowing, and guests are
far less likely to notice the little things than you are.

Remember to communicate. If something is confusing, or doesn’t feel right, speak up. “It’s like a marriage,” explains Canning. “Communication is paramount” if you want to make the relationship work. Finally, you have to practice trust. Be diligent, ask questions — but trust the DMC to do its job so you can focus on yours. After all, that’s why you’ve hired an expert: “Our job,” Gordon says, “is to make you look good.”  

It can be difficult to get a sense of DMC-arranged event costs, as they vary widely from city to city. Several DMC owners
recommended using hotel prices as a gauge; they’ll give you an idea of other entertainment costs. But remember: you won’t get the same bang for your buck in New York as you will in Cleveland.

Costs are also dependent on an economy of scale. Some costs, such as venue and entertainment, are fixed, while others, including food and beverages, are directly tied to the number of guests.

You’ll also have to figure in the DMC’s profit, which ranges from 15 to 25 percent of the total. Some DMCs add this on as a fixed fee, while others build it into each element of a bid. Remember, you’re paying for their expertise and your peace of mind.

Proposals vary widely in format and level of detail, and if you’re not careful, you may find yourself comparing apples and kumquats. Some proposals build the DMC’s fee into each line item, while others append it as a separate cost; proposal lengths range from very brief to 10 detailed pages and up. If you want a specific format or level of detail, ask for it — a good DMC will provide as much, or as little, detail as you want.

You are, however, buying an experience. Uline reminds his clients, “We’re not selling a commodity, so don’t buy it as a commodity.” Instead, remember the value of the intangibles — the delight and enjoyment your audience takes away from the event. Don’t quibble over the little things to the exclusion of the big picture.

Also, don’t be surprised if you’re asked to pay a good portion (or even all) of the cost up front. DMCs must put down significant amounts of money to secure vendors, and clients often pay the entire cost in advance, or at the very least make a final payment at the event. Reminds Canning, “The DMC is not your bank." Deposits may be lump-sum or per vendor; again, ask to be sure.

Whatever your budget, focus on bang for the buck, says Felicella, whose clients make sure every cent is well-spent. “True ROI,” Felicella says, “is having the guests walk away and say ‘that was memorable, that was exceptional.
’”
 
Lisa Gluskin
is a freelance writer based in Lake Tahoe, CA
 

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