B2B travel companies have a variety of options when it comes to hotel sourcing. They can choose to source from bedbanks, direct contracts, and DMCs. Today we want to focus on why you should consider sourcing hotels from DMCs.
What are DMCs
Destination Management Companies (DMCs) are specialized service providers with comprehensive knowledge, expertise, and resources to develop and execute various activities, tours, transportation, events, and logistics, ensuring optimal utilization of a destination's tourism potential.
The primary objective of DMCs is to maximize the leisure, entertainment, accommodation, transportation, and tourism offerings of a destination in the most effective and efficient manner, allowing travel businesses to leverage their expertise for mutual benefit.
What makes DMCs a good sourcing option
DMCs establish strong relationships with local suppliers, enabling them to gain deep knowledge about the target locations. Since they are hyper-local and can focus all of their resources on a designated market, they are able to obtain preferred rates for the services they provide. These services include transportation, activities, tour planning, event management, and accommodation. Today we will focus mainly on the benefit of using DMCs as a source for your B2B hotel inventory.
Certain DMCs focus on forging long-term partnerships with various accommodation providers in very specific regions, ranging from renowned hotel chains and boutique hotels to luxurious wellness retreats.
By leveraging a DMC's services, travel businesses can save valuable time and effort that would otherwise be spent sourcing products independently. DMCs, enjoy privileged relationships with accommodation suppliers, which usually translates into better rates on hotel rates.
If you plan on adding new and emerging markets to your sourcing strategy, DMCs allow you to quickly access high-quality accommodation sources and great rates.
Conclusion
DMCs are indispensable in the travel product supply chain, offering a wide array of services encompassing ground transportation, accommodation arrangements, tour planning, and event management. As trusted B2B partners, DMCs are able to obtain great rates from their direct suppliers and pass those preferred rates to you, their partner.