Where the DMC Business is Going: 2007
Results of Exclusive GEP Survey of Worldwide DMC Partners Gives Snapshot
of Expectations for the Year Ahead
2007 revenues will be stronger than 2006, though profitability seen as
increasingly hard to maintain -
U.S. partners more optimistic than international partners, especially for
“big events” -
Almost all expect increased revenues from corporate meeting planners -
“Hot” Destinations: London Blows Away the Competition . . .France and Italy
Stay Strong Dubai Emerges as a “Super-Hot” Site for Meetings and Special
D.C. (November 27, 2006) . . . Call it a year of exciting revenue increases
but also a “big squeeze” on profits - with London as the most desired destination
for big events, but Dubai nipping at its heels as an emerging hot locale.
This according to Global Events Partners (GEP), a partnership of destination
management companies worldwide, which today released the results of a proprietary
survey of its partner destination management companies (DMCs), representing
more than 70 countries worldwide, which asked partners to indicate where
they think the business is going in 2007.
For the second year running, the results provide a compelling snapshot
of what next year may look like for the industry around the world, in terms
of anticipated revenues; challenges to DMC professionals; and “hot” destinations
likely to generate the most business from meeting planners and others engaged
in planning corporate events in 2007.
A summary of survey results, and the methodology employed in the survey,
2007 DMC Survey Results
More than two-thirds of GEP’s partners responded to the survey, representing
close to 40 countries worldwide, including Europe, Asia, Africa, North
and South America, and all major markets within the United States.
Among those responding to the survey:
More than 90% of all respondents expected revenues for corporate events
to “increase or remain the same” in 2007, versus 2006.
All but one DMC in the U.S. expected revenues to increase year over
year, with a smaller percentage of DMCs outside the U.S expressing similarly
optimistic views. DMCs in half a dozen international destinations expected
either a decline in revenues, or at best, revenues to remain about
the same as in 2006.
|• While most respondents expect increases in revenue, more
than half expect that profits will be “squeezed,” as corporate meeting
planners demand greater flexibility in planning, more personalized attention,
more service and expanded program options.
U.S. and international DMCs agreed that although dollars will continue
to flow, clients will demand even greater return on, and oversight of each
dollar spent - which serves to make the DMC’s job more time intensive,
and ultimately, potentially less profitable.
The anticipated challenges for 2007 that were mentioned most frequently
1. Short lead times and shifting program requirements requiring
more work, faster - without a concomitant increase in fees.
In a notable departure from the 2006 survey, only a handful of DMCs mentioned
political uncertainty and the weak dollar as major challenges for 2007,
but those who did, consider them a major threat to their individual business.
2. Program budget constraints and stringent procurement requirements,
together, pressuring profits.
3. The difficulty of finding, training and retaining qualified staff
to maintain high quality service.
|• Expectations were split between U.S. and international DMCs in the
area of “big events,” defined as a corporate event involving more than
Among those partners responding, more than 90% of DMCs in the U.S.
expect the number of “big events” will increase in 2007 – by contrast,
about half the DMCs outside the U.S. believe revenues from big events will
either “decrease or stay the same.”
- Among reasons cited for a possible fall-off in “big event”
activity: The large numbers of big events held in 2006 (making year-over-year
comparisons weaker), and increasing interest among meeting planners in
holding smaller, more targeted events in more intimate settings.
|• There were some surprises among the destinations that GEP partners
believe will be the “hottest” for corporate meetings and events in
2006 – among them:
- London and the UK blew away the competition, with
close to a third of respondents, from all parts of the world, listing it
as a most desired destination.
- Dubai emerged as a new favorites, with several partners mentioning
it as the hot destination for 2007.
- In Europe, France and Italy remained strong, and seem likely
continuing as favorites among meeting planners.
- Addtionally cited among “hot” destinations: In the U.S.,
Las Vegas, and Phoenix/Scottsdale drew multiple responses – internationally,
China, Latin America, Mexico and the South Pacific received at least
Commenting on the survey results, Chris White, GEP’s Chairman and CEO,
said: “For a second year running, we are pleased to share these results
with the DMC and meeting planning industries. As we close 2006, a year
that saw strong results for the destination management industry worldwide,
2007 looks like it will be even better.”
White concluded, “The spirit that continues to animate our industry
– worldwide, from Miami to Malaysia to Madrid – is one of optimism and
expected growth, despite a host of challenges that will require even harder
work, tighter and stronger business models, and a greater focus on customized
client service than ever before.”
“We thank our partners for their participation in this study, and applaud
their vision, optimism and energy as we move toward another exciting year.”
Methodology: About the Survey
To obtain survey results, questionnaires were distributed via email
to owners and principals of the more than seventy (70) Global Events Partners
Each partner was asked to respond to five questions:
1. Do you expect revenues for your DMC business to increase
or decrease in calendar year 2007 versus 2006?
Each partner was assured of the confidentiality of his/her responses, but
was advised that each response would be used to formulate conclusions in
2. Do you expect to see “big events”- those involving more than 200
people – increase or decrease year over year?
3. Do you expect to seem more or less revenue from corporate meeting
4. What do you expect to be the “hot” meeting and event destinations
5. What do you see as the major business issues facing DMCs in 2007?
For more information on the methodology of the survey, or to interview
any of the GEP participants for further details, please contact email@example.com.
About Global Events Partners (GEP)
Launched in 1999, Global Events Partners’ portfolio includes more than
70 leading destination management companies (DMCs) around the world.
A DMC is a professional services company possessing extensive local knowledge
and resources, specializing in the design and execution of group tours,
transportation, events, activities and program logistics. GEP partners
provide consistently high quality DMC services in the most desirable locations
worldwide. For more information on Global Events Partners, visit www.globaleventspartners.com.