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Diversification and Specialization of Travel Agencies
Is Travel Agency = PCO, DMC, EMC?

Generally, travel agencies sell service packages to a whole range of very different clients from
holiday makers to business people. Most meeting industry experts point out that meetings,
incentives, events and exhibitions are not tourism business at all, but only use tourism infrastructure.
The situation is perfectly clear from the below chart done by Gary Grimmer of GiningEdge:

Meeting Industry* is Different from Tourism
FACTOR TOURISM MEETING INDUSTRY
Participants Tourists Professionals / Business People
Participant Motivations Fun / Pleasure / Relaxation Business / Networking / Learning
Purpose of Visit Leisure Work Related
Customer Needs Bargains High Level of Product and Service
Buyers Tour Operators / Travel Agents Meeting Planners / PCOs / AMCs
Buyer Motivations Fees & Commissions Successful & Profitable Meetings
Decision Criteria Destination Appeal Facilities / Access / Market Issues
Buyer Service Needs Reservations / Itineraries Housing / Registration / Events
Distribution Channels Tour Operators / Travel Agents /
GDS
Corp and Association HQs / AMCs
/ PCOs
Supply Chain Hospitality Industry PCOs / DMCs / Venues / Event
Suppliers
Market Approach Advertising / Marketing /
Packaging
Direct Sales
Securing the Business Strategic / Marketing Oriented Tactical / Sales Oriented
Size of Groups Individuals or Small Groups 100 10.000 delegates
Main Economic
Impact
Direct Spending Trade and Investment
TOURISM OFFICES EXPERIENCED NOT-EXPERIENCED
* Term Meeting Industry here includes all kinds of meetings, incentives, events, exhibitions,
corporate events
Author: Gary Grimmer of GainingEdge, EdgyThinking


Therefore, the approach to meeting industry has to be completely different from that one towards
tourism. Companies dealing with meeting industry organization can be roughly placed into the
following categories:
PCO Professional Congress Organizer
o Provides full service to meeting planners. Sometimes a PCO may engage a DMC for
services in a destination like excursions, dinners etc. or an EMC for themed events. Very
often, a PCO organizes all those happenings itself providing it has got the in-depth
knowledge of the destination.
AMC Association Management Company
o Provides management and specialized administrative services to trade associations and
professional societies running them like businesses. If it has the knowledge and
resources, AMC may also act a PCO or may engage a PCO to organize a meeting.
DMC Destination Management Company
o Provides ground services based on understanding and familiarity of the destination possessing
extensive local knowledge, expertise and resources, specializing in the design and
implementation of events, activities, tours, transportation and program logistics.

EMC Event Management Company
o Provides services in a variety of areas including corporate events, marketing programs
and special hospitality events like concerts, award ceremonies, film premieres,
launch/release parties, fashion shows, commercial events, private (personal) events
such as weddings etc.

Now, which three factors make difference between one of these above and a general travel agency
or tour operator? Number one experience. Number two experience. Number three experience.
Of course, basic knowledge is a must but experience in meeting industry is the key factor that
differentiates, say a PCO, from a classical travel agency. Meeting, incentive and corporate planners
are too well aware of that fact and will look for such partners when planning their events. Therefore,
to meet their expectations, general travel agencies wishing to serve this market niche will surely
have to specialize in order to gain serious business.

To qualify as a Professional Congress Organizer, a company has to be able to provide among
other things the following specific services*:
Abstract Handling
Speaker / Program Management
Marketing & Promotion
Budgeting
Financial Management
Exhibition Management
Sponsorship Management
Registration Process
On-site Management
Congress Materials and Print
Venue Selection
Hotel Reservation / Accommodation
Congress Technology
Social Program, Tours and Transport
General Counseling and Management
Corporate Social Responsibility
* List of standard PCO services adopted by IAPCO (International Association of Professional
Congress Organizers)

Ranko Filipovi has been a meeting industry expert in Croatia for over 20 years. His current engagement
includes his brands PerfectMeetings.hr and Meeting Industry Consultants. He is also a co-founder and Vice-
president of Croatian Meeting Professionals Association serving it on pro-bono basis.

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