THE NAKED TRUTH BEHIND MANAGEMENT FEE-BASED vs COMMISSION BASED MODEL

We are asking the leading global and local DMCs to give us their opinion on the matter of budget transparency and charging for work.

Barbara Hunt Vodopivec worked in the tourism industry in London, Paris and in Brussels. She then started working with Slovenian tourism suppliers to sell destination in France and internationally via her own websites. Currently, she is leading a Mice team at Kompas DMC, organizing incentives, seminars, conferences, and events for mostly foreign partners in Slovenia and the entire region.

Q: Are clients savvy and understand what DMCs are?

In many cases clients (foreign event agencies) see DMCs as just another actor between the destination and their client, so they prefer to skip the DMC to keep the lower price. In this case they would go directly to the hotels and direct suppliers, but there are also clients that realise the value and the added value that the DMC can bring. Unfortunately for us, there are more and more of the first ones and hotels on the destination are not helping either.

Q: Are DMC’s competitors to event and marketing agencies?

Yes, they are, but they (can) also work together hand in hand very successfully.

“We mostly work with break-down prices, so I don’t have problems with the rise in budget transparency”

Q: Do DMCs provide better local access and pricing?

Yes, of course. Working with the same suppliers all the time and bringing them traffic makes better prices.

Q: What do you think about the rise in budget transparency?

We mostly work with break-down prices, so I don’t have problem with that.

Q: What do you think about this statement:  We should be charging for what we do?

It must be by someone who thinks that he or she cannot charge enough for their work.

Q: Do you charge a fee for site inspections?

No, if the group has been confirmed; otherwise it depends on the case.

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