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  1. Catering & Design
  2. Rentals

How to Work With DMCs*

June 13, 2005
You know how to pull off a successful event in your own backyard. But when you need to hit the road, staging events in an unfamiliar market can more time-consuming, stressful, and filled with unexpected costs and problems. That's why hiring a destination management company (DMC)—a firm that specializes in planning events for out-of-towners—to serve as your local representative and help make arrangements can be a worthwhile investment.

When It's Worth It
DMCs will plan as much or as little as you need, from booking hotels and arranging airport transfers to planning gala dinners and activities such as batting practice with the local major league baseball team. So what do you outsource? Steven Cutler, vice president for travel and incentives at the Regis Corporation, operator of 10,000 hair salons around the world, says he books hotels himself if Regis has negotiated rates. Last year, he booked the Westin in Times Square for 400 top salon managers at a discount. But when he was planning a meeting in a European capital for 850 managers on short notice this spring, he used a DMC to arrange lodging. "I don't know the city that well," he explains. "If you're totally unfamiliar with a market and you don't want to do the legwork, a lot of times if [DMCs] are strong in a location, they can purchase it more cheaply than you can."

Rena Crisp, director of national accounts for New York-based EGR International, an incentive travel firm that stages events for Fortune 500 companies, says you don't need a DMC if the event is a straightforward meeting with one off-site event at a restaurant. But if that event has lots of different elements that need to
make a big statement, use a DMC just for that. Crisp used a DMC to plan a gala in San Francisco. Instead of booking fancy restaurants, "they got us into City Hall with a staircase filled with violin players," she says. "We don't have that kind of entry."

Minding the Details
You can book the San Diego Zoo yourself, but unless you know its myriad restrictions, you might place the band too close to the animals and be forced to turn the music off. "You can design an event in your mind, but when you get to the zoo, they'll tell you all the reasons you can't do it," says Fabienne Hanks of Meeting Manager, a San Diego-based DMC. "We offer our expertise and our relationships."

DMCs usually get better deals and treatment than onetime visitors. "We can make a planner's life so much easier," says Anthony Napoli, president of Briggs Inc., a New York DMC that has worked with Regis as well as clients including GE, Ford, and Frito-Lay. "We have relationships with venues," he says. "If anything needs to be added to or accommodated, they will [do it for us]."

Napoli arranged for Regis salon managers to see the Broadway production of Hairspray and meet the cast. "The broker I used happened to know the spouse of one of the producers," he explains. "We have connections that money can't buy."

Ask Around
Word of mouth is typically the best way to find a DMC. Travel agents or hotel sales reps will often have recommendations; most convention bureaus provide lists of DMCs, and many are part of referral networks. Kitt Garrett, founder of Discover New York With Kitt Garrett, who plans events for foreign dignitaries and corporate boards, frequently refers local planners to her counterparts in other cities, and they do the same for her.

The Association of Destination Managers has a certification program. Planners with a DMCP credential have met various professional requirements, including planning experience and continuing education, and have passed a test that measures knowledge ranging from proper tablecloth sizes to adhering to Americans With Disabilities Act requirements.

Paying the Bills
DMCs may charge a flat fee, a percentage of each service they book, or a per-person fee; their typical markup is about 20 to 25 percent of the services they book. Planners suggest getting proposals from a few DMCs. If you are wowed by one firm's suggestions but its figures are too high, most will negotiate a better price, says Susan Henderson, president of DMC Atlanta Arrangements.

Deirdre Feeney, director of special events for New York-based trade magazine publisher Lebhar-Friedman, prefers paying a flat fee. She starts with a budget and asks for a cost breakdown for each item so she can pick and choose which parts are worth the money. For a recent banquet, she nixed chair covers and saved $500. "I don't need to spend that if no one is going to notice," she says.

Hold Some Back
Most DMCs require deposits to hold venues, buy tickets, and engage subcontractors. "We never pay 100 percent before an event," Cutler says. "We always hold back 10 percent [until after the event]." After all Lebhar-Freedman events, if a vendor has not met her expectations, Feeney will dispute the charge. At one banquet at a conference in Southern California, she was disappointed with the linens—for an elegant dinner the DMC had ordered short tablecloths that didn't cover the table legs. Feeney had replacements rushed in from Chicago and paid the bill herself. "I took the tablecloths off the DMC's bill," she said.

Cede Some Control
You should always be in charge of your events, of course, but rely on your DMC's representative to handle snafus if they arise. Before the guests arrive, establish a chain of command so you and your staff are all speaking to the same person rather than the subcontractors at the venue. Napoli says he—not his client—communicates with the manager and chef at a venue to prevent mixed signals. "The planner can then deal with their C.E.O. and V.I.P.s," he says, "while we run the event behind the scenes."

—Louise Kramer

Posted 06.13.05

To search for more destination management companies, go to our resource directory.

This story originally appeared in the June/July 2005 issue of the BiZBash Event Style Reporter.
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