How DMCs are tackling 2024 head-on

In an era marked by geopolitical turbulence and climate concerns threatening the travel industry, success demands adaptability and a focus on meaningful, sustainable experiences.

Destination Management Companies (DMCs) play a pivotal role in reshaping strategies for resilience and relevance. Explore the distinctive approaches of three DMCs as they navigate the complexities of the present landscape.

Ovation Global DMC: Train agility

Rutger Hoorn, VP, global sales & strategic partnerships at Ovation Global DMC, emphasises that agility is key to ensuring that DMCs can adapt their offerings to address disruptions caused by climate change and geopolitics. This involves offering alternative destinations and adjusting event logistics.

“DMCs should be expanding their portfolio beyond traditional events, catering to niche markets and offering virtual components - these can all provide a safety net during volatile times,” he says. “Building strong partnerships is also key. By collaborating with local communities, other DMCs and even international event organisers, DMCs can foster knowledge sharing and create a support network for navigating disruptions.”

Hoorn also suggests that technology can provide an edge, mentioning that embracing innovative technologies like virtual reality and augmented reality can enhance attendee engagement and create immersive, location-independent experiences.

Using data-driven insights can also help DMCs to understand evolving client needs and preferences, helping them to establish targeted marketing and personalized event proposals.

Investing in training and upskilling programs is also crucial to attract and retain skilled staff.

“DMCs can also explore alternative funding models like sponsorships and strategic partnerships, which can mitigate potential financial risks,” added Hoorn. “And staying abreast of evolving regulations related to data privacy, safety, and accessibility is vital to ensure smooth event execution.”

Jane DMC Korea: Build resilience

For Agatha Brendon Lee, director of sales and head of the MICE team at Jane DMC Korea, DMCs can build resilience by diversifying their offerings to include promoting those destinations that are less susceptible to geopolitical instability.

“It involves conducting thorough risk assessments, forging strategic collaborations with local stakeholders, adapting operations to changing circumstances, educating travellers about sustainable practices, and integrating sustainability into their long-term planning,” she said. “By implementing these measures, DMCs can navigate uncertainties more effectively and contribute to the sustainability of the tourism industry.”

Providing resources to clients to help reassure, educate and inform is also important - Jane DMC Korea offers various options to attract clients and boost business.

“These include personalised consultations to understand their needs, tailored solutions to meet their goals, ongoing assistance with implementation and access to industry insights and best practices,” said Brendon Lee.

Addressing concerns such as staying ahead of industry trends and maintaining high-quality service standards, Lee emphasises continuous learning, monitoring market changes, gathering client feedback, and adapting strategies accordingly.

My Duta Tour: Stay competitive

Budijanto Ardiansjah, MD of Indonesia-based DMC My Duta Tour, believes that making prices "a little more competitive" and expanding services are essential for DMC growth. Regarding recent general elections in Indonesia, Ardiansjah highlights that such political situations teach the business to anticipate and sensitively manage geopolitical issues.

“(Political situations close to home) mean we are paying more attention to such issues and (the potential impact on travel), so it makes it easier for us to overcome any similar ones,” he says. “Regarding geopolitics, we could reach out to new destinations, particularly those with reciprocal visas for entry.”