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Developing a Better Business Model for DMCs
A new study published by the Incentive Research Foundation (IRF), a non-profit research foundation focused on motivation in business, analyzes the current state of destination management companies (DMCs) and offers specific guidelines to help them reposition themselves to better meet new market challenges—by developing and redesigning their value propositions and relationships with U.S. meeting planners.
The study, Developing a New Business Model for DMCs by Redesigning Their Value Propositions, is authored by Dr. Haemoon Oh, Ph.D., Dean of the College of Hospitality, Retail and Sport Management at the University of South Carolina and was conducted using a mixture of multiple focus groups along with an online survey, which garnered more than 200 responses.
With support from the Incentive Research Foundation, the study explored the current strengths and weakness in the DMC-meeting planner relationship, assessing the nature of competition, the impact of technology development, the variance in business models, and the understanding of existing marketing efforts.