Is It Time for Your DMC to Reassess the FIT Opportunity?
The Free and Independent Traveler (FIT) segment has rapidly become one of the fastest-growing sectors in global travel. As more travelers embrace online platforms and AI itinerary builders, we are seeing a sharp move away from traditional group tours. This shift presents both a challenge and an opportunity for Destination Management Companies (DMCs).
In this article we’ll compare and contrast the FIT and MICE sectors for Destination Management Companies, to help inform strategic planning for decision makers.
MICE: A Strong but Evolving Market
The Meetings, Incentives, Conferences, and Exhibitions (MICE) sector has shown resilience, particularly in the post-pandemic landscape. In 2022, the global MICE and group tourism market was valued at approximately $42.8 billion, with a projected compound annual growth rate (CAGR) of 7% through 2032 (Source: Global Market Insights, November 2023)
Government investments in infrastructure and a revival of business travel have fueled this growth. By 2024, the market is expected to hit $970.76 billion, potentially doubling to $1,932.73 billion by 2032 (CAGR of 8.99%) according to research from Fortune Business Insights, Jan 2025
FIT: The Undocumented Powerhouse
Unlike MICE and group travel, the FIT segment lacks comprehensive global valuation figures. However, industry trends clearly indicate strong and consistent growth, driven by the rise of digital platforms, enabling travelers to plan and book independently.
A demand for hyper-personalized travel experiences. A generational shift, with tech savvy travelers prioritizing customization over inflexible fixed packages. Yet despite its momentum, FIT remains deprioritized by many DMCs. Why?
The Perceived Challenge: High Effort, Low Return
For decades, DMCs have favored group travel and MICE over FIT. The reasoning is straightforward:
A single group itinerary serves hundreds of travelers at once. FIT itineraries demand individual customization, rapid responses, and frequent adjustments—making them far more resource-intensive. FIT travelers tend to be impatient; slow responses often lead them to book elsewhere.
With these factors in mind, FIT has long been viewed as high effort for limited returns. Is it time to reconsider FIT business?
For DMCs, ignoring these changes in FIT preferences is becoming an increasingly risky strategy. We’re more likely to see a move towards hyper personalization.
So how can DMCs embrace FIT without overwhelming their operations?
AI is Changing the FIT Game
The core challenge with FIT itineraries has always been the manual workload—balancing speed with high-quality, customized proposals. But AI is rewriting the rules.
There are a number of booking systems that have introduced AI functionality to make booking simpler and faster for reservation agents. Mostly these are from new generation start-up booking systems, without the proven reliability of legacy systems favored by DMCs and the industry.
Itinerary Assist AI can be integrated with DMC booking systems (like Tourplan). When integrated, Itinerary Assist AI enables DMCs to:
✅ Instantly generate FIT itineraries based on travel agent requests.
✅ Select the best available rates with the new Rate Choice feature.
✅ Scale FIT bookings without increasing operational strain.
✅ Deliver personalized proposals faster, boosting conversion rates.
By leveraging AI-driven itinerary creation, DMCs using Itinerary Assist AI can now capture FIT revenue without the traditional headaches.
Final Thoughts
For years, FIT has been dismissed as too complex and unscalable. But with AI-powered automation, that barrier is disappearing.
MICE and Group travel remains compelling and we expect that to be unchanged into the future, so we’re not advocating for any DMC to drastically shift resources away from MICE.
If your DMC created a FIT strategy 2 or more years ago, then we simply recommend re-evaluating it. The customer trends and technology innovations have significantly changed. The question is no longer whether FIT is worth the effort—but whether your DMC is ready to seize the opportunity before your competitors do.
