DMC Survey: Revenues Up, Profits Squeezed

While a majority of destination management companies expect revenues to increase in 2007, many don’t expect to see a rise in profits, according to Global Event Partners’ annual survey of its worldwide consortium of more than 70 DMCs.

More than 90 percent of respondents believe that revenues from corporate events will increase or stay the same in 2007 compared to 2006. However, roughly half say that profits will be “squeezed” as corporate meeting planner clients demand a greater return on investment and more service and attention for their dollar. This will make the job of the DMC more time-intensive and potentially less profitable, according to the report. Short lead times and shifting program requirements; budget constraints and procurement requirements; and difficulty of finding, training, and retaining qualified staff to maintain high service levels are cited as key challenges that could pressure profits.

The survey also asked GEP members about hot destinations for corporate meetings next year. London and the U.K. led the way, cited by one-third of respondents as a “most desired destination.” Other hotspots include France, Italy, Orlando, Scottsdale/Phoenix, Las Vegas, China, Latin America, Mexico, the South Pacific, and Dubai.

Finally, expectations are split between U.S. and international DMCs on the topic of “big events,” defined as corporate events with more than 200 participants. More than 90 percent of U.S.-based DMCs expect big events to increase in 2007, while just half of DMCs outside the U.S. expect an increase in big events.

         Subscribe in NewsGator Online   Subscribe in Bloglines

Want to use this article? Click here for options!
© 2008 Penton Media Inc.

The Meeting Planning Blog

Face2Face Latest Posts

Webinars

Is This Meeting Really Necessary? Owning Visibility and Control of Your Company's Meetings Spend

Tuesday, June 24, 2008 at 1:00pm ET

Join Corporate Meetings & Incentives’ newest columnist, Betsy Bondurant, formerly of Amgen and now a meetings management consultant, for a free eye-opening web seminar on strategic meetings management. Discover how you can better control your corporate-wide meetings spend without losing the strategic value of your meetings and events. Webinar Registration


Back to Top

Explore Our Newsletters

Meeting Planner Survival Guide

NEW & IMPROVED! Whether you're a novice planner or a veteran, this compilation of must-read articles is your meeting planning resource.

Suppliers/
Facilities/CVBs

MeetingsNet makes it easy to find the CVB, tourist boards, and facilities you need for your next meeting.

Deals &
Discounts

Special group hotel offers brought to you by MeetingsNet.

Find A Job

Targeted to all aspects of the hospitality and special events industry.

Education
Central

Upcoming Events, Live and Online

Inside Current Issue

Association Meetings

June 2008 AM

CMI July

July 2008 CMI

FIM May

May 2008 FIM

June 2008 Medcial Meetings

June 2008

RCM June

June 2008 RCM

Browse Back Issues