Building Better DMC—Agent Business
by Doug Gollan /WASHINGTON D.C. -- How and why travel agents use DMCs was a key concern at ASTA’s first Global Travel Exchange (GTE), held Saturday. More than 120 international delegates—representing a diverse range of countries including Nepal, Spain, the Philippines, Mexico, Iceland, Argentina, Spain, and Cuba—took part.
The Exchange took place during the 2015 ASTA Global Convention here at the Omni Shoreham. This year’s convention drew more than 900 attendees.
The mission of the debut event was to promote networking on an international level. It’s envisioned as a first step toward connecting ASTA’s international members with U.S. members for their mutual benefit.
One discussion during the Exchange came in response to a question from international ASTA members, many of whom are DMCs: “How do we get on consortia lists? What are the objections?” according to ASTA president and CEO Zane Kerby.
Providing the unique
Roger Block, president of Travel Leaders Franchise Group and ASTA chair, said the reason travel agents work with DMCs is they provide products beyond what is available from “mainline” tour operators, including sun and fun destinations as well as shore excursions for cruises.
An example: In a country like India, a DMC that offers specialized tours of religious sites might provide something not available through tour operators. “That creates a market for something we can sell,” said Block.
Block and Kathy Sudeikis, CTC, of Acendas and a former ASTA president and chair, agreed that successful DMCs are the ones that offer something different from tour operators' and cruise lines' shore excursions. “Where the rubber hits the road [is providing clients] something special,” she said.
Sudeikis noted that tickets to shows and sporting and cultural events not tied to multi-night hotel stays are often in demand. Other reasons to work with DMCs include their intimate knowledge of local restaurants, ability to get reservations and after-hours access to museums, and their ability to customize tour options for clients.
In order to capture business from U.S. agents DMCs need to be prepared to meet the requirements of American travelers and their advisors, Block and Sudeikis added.
Strict criteria
Block said consortia have strict criteria before entering preferred relationships with a DMC. Ensuring consumers have a good experience is paramount, and no amount of commissions or overrides can make up for poor service, he added.
Among the criteria Travel Leaders reviews are years in business, Block said. The group accepts only DMCs that have been in business for five years, and requires that they have been servicing U.S. agencies for at least that long.
The DMCs are also required to take credit cards and checks in U.S. dollars, issue preferred commissions in U.S. dollars, and insure on-time payments. Invoices need to be clear and accurate and documents have to be at a quality high enough to pass on to the end customers.
DMCs must also have staff fluent in English for both agents and customers, with English-speaking staff available 24 hours a day. This is critical for guides, as customers want to be able to ask questions and communicate easily, Block said.
Focus on staff
Other areas Travel Leaders considers include whether staff is employees or independent contractors, if vehicles are owned or leased, the age of vehicles, and if agents can request particular guides.
DMCs must also provide letters of recommendation from U.S. agencies they’ve worked with, Block said. They should ask those agencies which consortia they belong to so they can be easily identified. “Most of you do not do that,” Block said.
Other key ingredients are a prompt response “by the next day” and bank charges and additional fees that are part of the net rate, said Sudeikis.
She said DMCs that require invoices from agents should make that clear so agents don’t have to chase their commissions. Sudeikis advised other requirements: Vouchers need to be in a PDF format and include contact information and itineraries must include full addresses, phone numbers and emergency numbers.
Sudeikis warned DMCs about dealing directly with consumers and consumers who pose as home-based agents looking for discounts and complimentary travel. “There are too many takers,” she said. And she encouraged DMCs to check if agents are ASTA members.
Sudeikis suggested that with the surge in inbound travel to the U.S., it might make sense for U.S. agents to consider whether they can establish DMC services for their locale.