Krisam Group's White Launches Internat'l DMC Brand

<B> Krisam Group's White Launches Internat'l DMC Brand</B>

By Chris Davis

Chris White, founder of the Krisam Group, has moved to a new venture: a branded chain of destination management companies throughout North America and Europe.

After a failed attempt to purchase a chain of DMCs, White has created the Global Events Partners brand, tying together 23 independent DMCs that will share information and services.

White, who will serve as chairman and CEO, said he was inspired by the spate of consolidations in the travel industry. "Airlines, hotels and incentive houses have all been consolidating, and we had a niche in this market," he said. "We wanted to create one name and one brand under one operation to compete more effectively in a fragmented market."

The result, he believes, will be peace of mind, and room for negotiating bulk buying agreements, for planners and DMC owners. "One-stop shopping should offer the opportunity for some leverage in dealing with us," he said.

Planners also will save time because GEP will share information among its agencies. "If you do business with us one year, we've got all of your specs, and can just feed them on to the next DMC. It saves a lot of anxiety," he said.

GEP now includes 16 domestic and seven international DMCs, but White expects in three years to have 40 or 50, including some in South America and Asia.

GEP also has forged agreements with other service providers, including Boston-based Caribiner for production and Washington, D.C.-based Carey International for limousine service.

When White first decided to form a DMC chain in early 1998, the plan was to purchase 20 major companies in North America and Europe within two years. He put together an extensive business plan, and held "a multitude of conversations with four major investment banks, who loved the idea and asked us to proceed." Three companies had agreed to sell before "Infamous September, the worst month of the decade to raise the money," he said. As the stock market dipped, and his backers withdrew their offers of capital, White and his prospective partners agreed that a brand name, even with independent ownership, still would bring a competitive edge.

With the capital it already had raised, GEP plans to buy some of the 40 or 50 DMCs that eventually will make up the group. The rest will pay a marketing fee.

Independent DMCs would be wise to align themselves with a brand, White said. The companies already on board all are successful, but "recognize that two or five years downstream, unless they are part of a global brand that's instantly recognizable in the marketplace, they will have trouble competing."

GEP is not to be confused with Krisam Group's DMC Global Connection, which was disbanded Dec. 31. "It's totally different," White said. "DMC Global Connection was a lead service, where DMCs paid us to ask clients we were placing in hotels if they needed DMC services."

GEP also is not affiliated with Krisam, while DMC Global Connection was a Krisam subsidiary.