One result, however, is that these new services can create overlap between the bureaus and DMCs, a problem in particular for those DMCs which also are dues-paying members of the CVB they're now suddenly in competition with.
The San Jose, Calif., CVB was one of the first bureaus to start this trend, offering DMC services five years ago. It created its own in-house DMC recently, called Access San Jose, advertised as a DMC and included under DMC listings.
"We handle everything from top to bottom a client could need," said Dan Fenton, president of the San Jose CVB. "Even if a group chooses to use a private DMC, we're the point people. We sold the client on the destination in the first place and we're making sure the service is delivered."
In the past, housing and registration services from CVBs had been pretty standard fare, but now some bureaus arrange site inspections and handle contract negotiations with vendors, on-site assistance, ground transportation, and special events and entertainment management.
Bureaus say these new services help them secure more business and allow them to control the group's experience in the destination.
Minneapolis offers a one-stop shop called Meeting Services Minnesota. Orlando has its Destination Meetings Services Team. And the Palm Beach CVB launched its With Our Compliments program about eight months ago. The bureau is the liaison between the group and all the supply companies for the entire meeting.
"The CVB is still the prime branding and destination vehicle, but to be competitive, you must bring in a high level of service, particularly for meetings," said Christine Hamblin, vice president of sales for the Palm Beach County CVB.
Mixed Feelings
Many DMCs understand that CVBs often bring in more business overall by providing these services, and everyone benefits. They also realize that most clients using these programs are small groups that couldn't afford or wouldn't use a DMC anyway.
Yet others are concerned.
"It is a challenge. We are paying our dues and want to make sure we're included in promotions," said Sam Thompson, president of metroConnections, in Minneapolis, and a former president of the Association of Destination Management Executives. "This issue came up quite a bit at our annual meeting last month."
Noted Jacquie Brave, president of another DMC, Accenting Chicago Events & Tours, "The bureaus are handling things themselves and sometimes not sending leads to the DMCs. We have this problem with the bureau every so often and it's very distressing to DMCs."
Thompson said there are hidden costs in dealing with a CVB's in-house DMC.
"When a bureau offers free shuttle transportation, someone has to pay for it. The bureau will make sure the rooms get marked up to cover the cost, or it will mean higher dues for CVB members," he said.
The Minneapolis CVB's Madonna Carr, director of convention services, said the service is paid from revenue-generating sources, such as housing, advertising and membership dues, which seems to support Thompson's claim.
Still, bureaus say groups are the ultimate customer.
"We're very sensitive that our jobs sometimes overlap," said Janice Telstar, assistant director of convention services for the Philadelphia CVB. "But nobody wants a client upset because they paid for a service they could have gotten for free."