What is a DMC?
Acronym for Destination Management Company. A for-profit organization that promotes and sells services in a specific destination.
DMCs often work with local hotel and tour & activity operators to sell tourism related products to travelers visiting a destination. In many cases, DMCs act as an online travel agency negotiating net rate contracts with local operators and reselling tours and activities to travelers online. These DMCs are the merchant of record for the credit card transactions and provide front end customer support.
When working with a DMC, tour operators need to ensure they provide enough margin in their pricing to support the DMC’s net rate or commission requirements. When DMCs resell a tour on behalf of a local provider, they will provide the consumer with a voucher that they can use to redeem for the tour or activity that they have booked. It is important to ensure that the voucher is valid for the customer and, as such, if the DMC offers a verification mechanism such as a web check-in, the operator should ensure that they use such a mechanism.