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How does DMC software work in the hotel industry?

  Posted in Resources  Last updated 15/11/2024

What is DMC software?

DMC software is a tool used by destination management companies (DMCs) to manage and coordinate the travel services they provide.

DMCs manage travel arrangements and experiences for individuals and groups, particularly for corporate clientele. They are generally local companies that take care of everything – hotels, transfers, tours, activities and other travel-related services – using their deep regional knowledge to craft custom itineraries to suit their clients’ needs and preferences.

What is DMC software for? It is designed to do everything that you’d expect destination management company software to do: itinerary planning, accounting, reporting and analytics, supplier/partner/client communication, and most importantly for hotels, booking management.

In this guide we’ll take a closer look at DMC software, to find out how a hotel might be able to gain access to the huge number of guests that DMCs need to find accommodation for.

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Why use DMC software as part of your hotel’s strategy?

DMCs represent an incredible opportunity for hotels. They tend to arrange travel for groups, so if you can form a relationship with a DMC, you could win a significant number of bookings. They also predominantly cater to business travellers, so those group bookings can help to fill your hotel mid-week and during low season.

A lot of destination management software offers integrated booking options, allowing DMCs to book hotels directly through the tool. Savvy hotels will ensure that they are listed within DMC travel software, in order to capture these valuable bookings.

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How does DMC software work?

DMC software for hotels works by listing your property within DMC software. When a DMC is looking for accommodation for their clients, your hotel is listed as an option, and bookings can often be made right there in the tool.

Integrate DMC booking software with existing hotel systems

A hotel can’t usually connect directly to DMC software. In order to be listed as a booking option within travel DMC software solutions, a hotel will usually need to connect to an intermediary like Tourplan, which collates accommodation options for DMCs and tour operators.

You should therefore ensure that your hotel systems can seamlessly integrate with leading tour operator solutions like Tourplan, to ensure you can capitalise on the opportunities that DMCs present.

dmc software

Best practises of DMC software solutions

Beyond booking hotels, how might a destination management company use a DMC tool? Here’s how successful DMCs use these purpose-built solutions.

Streamline group bookings and events 

The best DMC software allows DMCs to streamline group reservations and manage room blocks effortlessly. By integrating event management tools, the DMC can seamlessly coordinate any events that might form part of the itinerary – a particularly valuable feature for conferences and corporate travel events, but also for weddings and other private functions too.

Craft unforgettable guest journeys with personalised service

Success in destination management is built on understanding and catering to guest preferences. The best DMC software will help a DMC do exactly that, by capturing data that paints a picture of each client’s wants and needs, and by facilitating easy communication between client and company.

Fuel revenue growth and optimise distribution channels

This is the important one for any hotels looking to attract DMC business. The best DMC tools will present the user with hotel options that they can book within the tool. This means that by ensuring that you are presented as an option, via an intermediary like Tourplan, you can earn valuable bookings to maximise occupancy and revenue.

Boost operational efficiency and free staff from tedious tasks

The best DMC software solutions will allow staff to more easily book, manage and coordinate client itineraries, while streamlining communication with suppliers, partners and clientele. This allows DMCs to boost their operational efficiency, and allows workers to switch their focus from laborious admin to delivering high-end client experiences.

Harness the power of data analytics for smarter decisions

Smooth, memorable and unique client experiences are the bread and butter of DMCs, and the right DMC tool will help to create and deliver them, by using data analytics to paint a picture of what every client wants. The best tools will also help a DMC to optimise pricing, boost operational efficiency and fine-tune their marketing campaigns.

Choosing the best DMC software for your hotel

As a hotel, you won’t choose a DMC software solution per se, because you’re not a DMC. But you will choose if and how you appear as a booking option within DMC tools.

The key is to ensure that you have put yourself forward as a reservation option with the travel management solutions that collate hotels for DMCs to book.

Take Tourplan, for example: a software solution designed specifically for tour operators and DMCs. Along with operational, accounting and quoting tools, it also offers DMCs an extensive list of hotels that they can book for their clients.

SiteMinder is a Tourplan partner, so as a SiteMinder user you can instantly, easily and seamlessly connect with Tourplan, and ensure that your hotel is presented as an option whenever a DMC is looking to book a hotel on behalf of their clients.

By Dean Elphick

Dean is the Senior Content Marketing Specialist of SiteMinder, the leading technology provider delivering hoteliers unbeatable revenue results. Dean has made writing and creating content his passion for the entirety of his professional life, which includes more than six years at SiteMinder. Through content, Dean aims to provide education, inspiration, assistance and value for accommodation businesses looking to improve the way they run their operations achieve their goals.

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