The short version
- Shortlist three. Not two, not six.
- Verify legal presence, own staff, insurance and references before you assess creativity.
- The reseller test is three questions: headcount, named on-site lead, third-party elements.
- Judge the proposal on what it declines to do, not on the photography.
Building a longlist that isn't just page one of Google
Open search is the worst possible starting point for this particular purchase, because the companies that rank hardest for "DMC in [country]" are frequently the ones whose core competence is marketing rather than operations. A genuine local operator with forty years of coach contracts and a two-page website will lose that fight every time.
Better sources, roughly in order of usefulness: a specialist B2B directory that lists vetted destination management companies by country and specialism; the membership lists of ADMEI and SITE; the destination's own convention bureau, which will usually supply a neutral list of licensed operators on request; and — the most underrated of all — asking two peers who have run a programme in that country in the last eighteen months.
Aim for a longlist of six to eight, then cut to three before you brief in detail. Briefing more than three wastes days of unpaid design work by companies you will not appoint, and it degrades your own ability to compare like with like.
Checks 1–4: is this a real company, in this country?
1. Registered local entity and operating licence
Ask for the company registration number and, where the destination requires one, the tourism operating licence number. Many countries license inbound operators specifically. This takes one email and eliminates a surprising number of candidates.
2. Directly employed staff in the destination
"How many full-time employees do you have in this country?" A twelve-person office and a two-person office are both fine; a zero-person office with a partner network is a different product being sold under the same name.
3. Insurance, with certificates
Professional indemnity and public liability, at limits proportionate to your group. Ask for the certificate rather than an assurance. Check the expiry date and the territorial scope — policies that exclude the activity you have planned are common.
4. Financial standing and deposit handling
You will transfer substantial deposits months in advance. Ask who holds them, in which jurisdiction, and what protection exists if the company fails. If a client trust account or escrow arrangement is available, that is a meaningful signal.
The three-question reseller test
Ask, in one email: (1) How many full-time staff do you employ in this destination? (2) Who by name will be our on-site lead, and what else are they working on that week? (3) Which elements of this programme, if any, will be delivered by a third-party company?
A genuine operator answers all three in a couple of hours. Subcontracting is not disqualifying — most programmes involve some. Concealing it is.
Checks 5–9: can they do this programme?
5. References from comparable work
Comparable means same size band, same season and same programme type. A company brilliant at 20-person luxury itineraries may never have staged a 300-person gala. Ask for two, and actually telephone them — email references are curated.
6. Named on-site team and ratio
How many coordinators, for how many guests, for how many hours a day? On a managed programme, roughly one coordinator per 25–40 guests is a normal working range, plus a lead who is deliberately unassigned so they can solve problems.
7. Supplier relationships, not supplier lists
Anyone can list hotels. Ask instead: "Which three suppliers here would take your call at 11pm, and when did you last need them to?" The answer, and the specificity of it, tells you about leverage.
8. Crisis and duty-of-care protocol
Ask for the actual document. Then ask what happened the last time they used it. A company that cannot describe a real incident either has not operated enough or is not being straight with you.
9. Language and cultural fluency in both directions
Not just English competence, but the ability to explain to you why something you have requested will not work locally. The most valuable DMC trait is a willingness to say no with a reason attached.
Checks 10–14: the commercial reality
10. Pricing model, stated plainly
Net-rate mark-up or transparent management fee? Ask which, and ask for it in writing. Our breakdown of DMC pricing models covers what each one hides and reveals.
11. Commissions, overrides and rebates
"Do you receive any commission, override or rebate from suppliers on this programme in addition to your fee?" Any answer is workable. No answer is information.
12. Cancellation and attrition terms that derive from suppliers
A DMC's cancellation schedule should visibly mirror the terms of the hotels and venues underneath it. A single punitive cliff date that matches no supplier is margin protection dressed as policy.
13. Currency and payment schedule
On programmes contracted a year out, exchange movement can exceed the whole management fee. Agree who carries the risk, and consider staged payments or a rate-fixing clause.
14. What happens to your contingency
It should sit on your side of the line, controlled by you. A contingency inside somebody else's quoted total is just their margin with a friendlier name.
Reading the proposal like an operator
Once three proposals are in front of you, resist the urge to compare the photography. Compare these instead:
- Does it push back? The best proposals decline at least one thing in your brief and explain why. A document that agrees with everything has not been read.
- Are drive times real? Check two of them against a map at the hour you will travel. Optimistic transfer times are the single most common flaw in a weak itinerary.
- Is there slack? A schedule with no gaps is a schedule that fails at the first delay.
- Is the budget itemised to a level you could audit? "Transport — €18,400" is not a line item, it is a shrug.
- Does it name people? Roles and names for the on-site team, not "our experienced staff".
- What is the plan B for the outdoor element? If there isn't one written down, there isn't one.
Every proposal describes the day going well. Buy the one that also describes what happens when it doesn't.
Running a site inspection that is not a holiday
A hosted site inspection is a sales tool, and a legitimate one — but only if you drive it. Three rules make the difference.
Set the itinerary yourself. Left alone, a DMC will show you its favourite venues. Insist on seeing the specific hotel rooms your group will occupy — not the suite — and the actual restaurant at the actual hour.
Travel the transfers. Do the airport run at the time your group will do it. Sit in the traffic. This is the single most informative hour of the entire trip.
Meet the coordinator, not the sales director. The person who sold it to you is very often not the person who will run it. Ask to spend an hour with the operations lead, and judge that conversation more heavily than the pitch.
Before you sign
Read our guide to what a DMC does and what it costs alongside the contract. The three clauses that generate most disputes — attrition, force majeure and currency — are all negotiable before signature and immovable after it.
Frequently asked questions
How many DMCs should I invite to pitch?
Three. Two gives you no commercial tension; five or more degrades your evaluation and wastes a great deal of unpaid design work. Three well-briefed candidates is the reliable number.
How can I tell if a DMC will subcontract my programme?
Ask three things in writing: full-time headcount in the destination, the name and role of your on-site lead, and which elements will be delivered by a third party. Genuine operators answer immediately. Evasion is the answer.
Should I pay for a site inspection?
Expect to cover your own flights, with ground costs hosted once a shortlist exists. Be cautious of a fully hosted inspection offered before any commitment — that expense reappears in your programme budget, and it tends to produce a tour of the supplier's favourites.
Is an association membership proof of quality?
It is evidence, not proof. Membership of ADMEI or SITE means a company has met an entry standard and has something to lose from a complaint, which is genuinely useful. It does not tell you whether they are good at your specific programme type. References still do the heavy lifting.
Keep reading
Next: what a DMC actually costs. If you are planning a corporate programme, go on to the 12-month incentive playbook and the MICE explainer. New to the topic? Start with the full DMC guide.