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The Beginning
Sometime during the 1960s, as a response to meeting and convention planners' desire for custom group leisure activities during their programs, a new business was born. Referred to as ground operators, they were mostly small entrepreneurships operating in a single destination. These local companies offered basic services, including airport meet and greet, trans-portation, tours, and recreation (mainly golf) for groups. -
Phil Lee
Phil Lee coined the term destination management, many of this companies added custom parties and themed events, as well as spouse/guest programs, to their list of services. -
DMCP
During the economic boom of the 1980s, destination management companies (DMCs) flourished, further expanding their role in the meeting, convention, and incentive travel industry. New DMCs were popping up everywhere, bringing fierce competition to many markets. By the end of the decade, several regional and national destination management companies had emerged. -
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Recession
Then came the recession of the late 1980s and early 1990s, and with it a couple of major shifts. More companies were competing for fewer dollars. Organizations were forced to cut their meeting (recreation) budgets. Other suppliers like hotels, decorators, and transportation companies began offering similar services. -
Expansion
We witnessed aggressive national expansion of the destination management business through institutional investment and venture capital. Mergers and acquisitions, joint ventures, rollups, cooperative marketing agreements, and even franchise offerings changed the face of destination management. -
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21st century
Clients have reported that it’s not efficient to have 20 to 30 independent DMC suppliers, and they would prefer to work with three or four national partners instead. At the same time, clients have said they prefer to work with locally owned and operated DMCs. -
Perfect Storm
It was a “perfect storm” of economic, social and political scrutiny of corporate excess, namely travel and recognition events, leading to the sudden cancellation of thousands of meetings across the country. Many DMCs and event planning companies struggled to stay afloat, and some were forced to permanently close their doors.