Three years into running my travel agency, I was working with 15 different DMCs across Asia. Seemed smart—more options, better rates, flexibility. Except I was constantly dealing with miscommunications, inconsistent service, and zero leverage when things went wrong.
Then I attended a conference where a veteran agent told me something that changed everything: "I work with three DMCs. Been with them for eight years. They answer my calls at midnight, they fix problems before my clients notice, and they give me rates you won't find anywhere else."
I thought he was limiting himself. Turns out, I was the one missing out.
Why Most DMC Relationships Don't Last
Most agents treat DMCs like vendors. You need a Singapore tour package, you send RFQs to five DMCs, you pick the cheapest one, done. Next month, repeat with different DMCs.
This approach has real costs:
- No relationship equity: When you need a favor, there's no goodwill to draw on
- Inconsistent service quality: Every booking feels like working with a stranger
- Zero negotiating power: Why would they give you their best rates?
- Problem resolution nightmares: When issues arise, you're just another customer
The veteran agent I mentioned? When his clients' flight to Thailand got cancelled at 2 AM, his DMC partner rebooked everything—hotels, transfers, tours—within 90 minutes. No additional fees. Try getting that from a DMC you've used once.
The Three-DMC Strategy
Here's what changed my business: I cut my DMC roster from 15 to three core partners. Each specializes in specific regions:
- Partner 1: Southeast Asia (Singapore, Malaysia, Thailand, Vietnam)
- Partner 2: Middle East and luxury markets (Dubai, Maldives)
- Partner 3: East Asia (Hong Kong, Japan, Korea)
I committed to giving each partner 80% of my volume in their regions. In exchange, they committed to:
- Dedicated account manager (same person, always)
- 24-hour response time on quotes
- Priority service during peak season
- Annual rate review with locked-in pricing
- First look at new products and special offers
This wasn't a formal contract—it was a handshake agreement based on mutual value. And it transformed my operations.
What DMCs Actually Want From You
I asked my three core DMC partners what made them willing to go the extra mile for certain agents. Their answers were surprisingly consistent:
Predictable Volume
"We can plan our operations better when we know an agent will consistently send X bookings per month," one DMC director told me. "That predictability is worth more than occasional large bookings."
This doesn't mean you need massive volume. It means consistency. If you send three Singapore packages per month, every month, that's more valuable than sending 15 packages one month and zero for the next three.
Clear Communication
DMCs hate it when agents send vague requests: "Need Singapore package for 4 pax in December, send options."
What they appreciate: "Need Singapore package, 2 adults + 2 children (ages 8, 10), arriving Dec 15, departing Dec 19. Mid-range hotels (4-star), prefer Orchard Road area. Interested in Universal Studios, Gardens by the Bay, Night Safari. Budget around SGD 3,000 total."
Clear requests get faster, better responses. They also signal you're a professional worth investing time in.
Reasonable Expectations
One DMC operations manager told me their biggest frustration: "Agents who expect peak season rates during Christmas week to match shoulder season pricing, or want 24-hour cancellation policies on net-rate hotels. It's not realistic."
Understanding industry realities builds credibility. When you do push back on pricing or terms, they know you have a good reason.
The Relationship-Building Timeline
Building a real DMC partnership takes time. Here's what the first year typically looks like:
Months 1-3: Testing Phase
Start with 3-5 bookings. Mix of complexities—some straightforward, maybe one challenging request. You're evaluating:
- Response time on quotes
- Accuracy of information provided
- How they handle changes or problems
- Quality of supplier relationships (are they actually getting good rates?)
I once tested a new DMC by sending them a complex European multi-city request I'd already quoted through another source. Their quote came back 20% cheaper with better hotels. That told me they had real supplier relationships, not just access to the same booking platforms I could use.
Months 4-6: Communication Patterns
By now, you should have an assigned contact person. Use them. Not just for bookings—also for market intelligence:
- "What's trending in Singapore right now?"
- "Any new hotels you're excited about?"
- "What dates should we avoid for peak pricing?"
Good DMC partners love sharing this stuff because it helps you sell more, which benefits them too.
Months 7-12: Partnership Solidification
Around the 6-month mark, schedule a review call. Share your booking data with them:
- "We've sent you 18 bookings this half-year, averaging SGD 1,200 per booking"
- "Our client satisfaction score for your services is 4.6/5"
- "We're planning to expand in [specific destinations] next year"
Then discuss: "How can we structure our relationship to be mutually beneficial moving forward?"
This is when committed partnerships form. You've proven you're serious, they've proven they deliver. Now you can negotiate better terms, faster service, exclusive access to new products.
Red Flags to Watch For
Not every DMC relationship will work out. Here's when to cut ties:
- Consistent communication failures: If you're regularly chasing them for updates, that won't improve
- Hidden fees appearing post-booking: Surprise charges that weren't in the original quote
- Blame-shifting when problems occur: Professional DMCs own their mistakes and fix them
- Declining service quality: If your fifth booking gets worse service than your first, something's wrong
- Unwillingness to provide references: Established DMCs should have agent references they're happy to share
I ended a relationship with a DMC after they blamed "the hotel" for a booking error three times in a row. Good partners don't deflect—they solve problems regardless of where the fault lies.
The Power of Exclusive Arrangements
After two years with my primary Southeast Asia DMC, I approached them with a proposition: "If I commit to 90% of my Singapore and Malaysia bookings to you, what can you offer in return?"
Their response exceeded expectations:
- 8% rate improvement across all hotel bookings
- Dedicated WhatsApp line for urgent requests (response within 1 hour)
- Quarterly in-person meeting to review new products
- Access to their "VIP allocation" hotels during peak season
- Net-rate pricing on most services (no hidden markups)
That last point was huge. Transparent pricing meant I could accurately calculate my margins without worrying about hidden costs eating into my profits.
Leveraging Technology While Maintaining Relationships
Platforms like DMCQuote let you access multiple DMC rates instantly. Does this contradict the focused-partnership approach? Not at all.
Here's how I use B2B platforms alongside core DMC relationships:
- Core destinations: Use my established DMC partners (better rates, better service)
- New destinations: Use B2B platforms to test markets before committing to a new DMC partner
- Price verification: Occasionally check platform rates to ensure my DMC partners remain competitive
- Overflow capacity: When my core partners can't accommodate a request, platforms provide backup options
Think of it this way: your core DMC relationships are like having preferred airlines you fly most often. B2B platforms are like having access to flight comparison sites when your preferred airline doesn't serve a route.
The Economics of Loyalty
Here's what concentrated partnerships did for my bottom line:
- Better margins: 12-15% improvement on average rates versus what I was getting with scattered relationships
- Time savings: 60% reduction in quote management time (less RFQ juggling)
- Lower cancellation rates: 8% client cancellation rate versus 12% industry average (better pre-trip communication from DMC partners)
- Operational efficiency: Fewer payment issues, fewer invoice discrepancies, standardized booking procedures
But the biggest value was intangible: peace of mind. When you send clients to Dubai and know your DMC partner has your back, you sleep better.
How to Handle Multiple Destinations
Obviously, no single DMC covers every destination. My approach:
- Tier 1 (Core destinations - 70% of volume): Deep partnerships with 2-3 specialized DMCs
- Tier 2 (Regular destinations - 20% of volume): Developing relationships with 2-3 additional DMCs
- Tier 3 (Occasional destinations - 10% of volume): Use B2B platforms or vetted ad-hoc DMCs
For example, I do huge volume in Southeast Asia, so that's where my deepest partnership is. I'm building relationships in Sri Lanka and Bhutan because I'm seeing increased demand. For one-off requests to South America or Africa, I use platforms or recommendations from trusted industry contacts.
What Success Actually Looks Like
You know your DMC relationship is working when:
- They call YOU with opportunities ("We just got allocation at this new resort, want first access?")
- Your dedicated contact knows your preferences without asking ("I didn't include that hotel because I remember your client feedback last time")
- Problem resolution happens before you notice ("Your client's transfer was delayed, so we upgraded them to a nicer vehicle at no charge")
- They refer other agents to you ("We told them you're the expert for corporate travel in our network")
- Invoicing and payment processes are seamless (automated, accurate, no surprises)
These things don't happen with vendors. They happen with partners.
Making the Transition
If you're currently working with too many DMCs, here's how to consolidate without burning bridges:
- Identify your top 3 destinations by volume: Start your partnership focus here
- Evaluate current DMCs: Which ones have performed best in these destinations?
- Initiate partnership conversations: "I'm looking to deepen my DMC relationships. Here's what I can commit to. What can you offer in return?"
- Gradually shift volume: Over 3-6 months, move bookings to your core partners
- Maintain secondary relationships professionally: Keep doors open with other DMCs for backup capacity
I didn't completely cut ties with the 12 DMCs I de-prioritized. I just stopped sending them regular business. If my core partners can't handle a request, I still have those relationships to fall back on.
The travel industry runs on relationships, not just transactions. The agents who build deep, committed DMC partnerships consistently outperform those constantly shopping for the cheapest quote. Stop treating every booking like a one-off purchase. Start building partnerships that compound value over years.
Your DMC partners should feel less like vendors and more like extensions of your team. When you get there, everything else—better rates, faster service, preferential treatment—follows naturally.
