Travel management companies-delivering value
 
Airlines have made an art form of creating complexity out of a simple concept- delivering people from one location to another on board an aircraft with several dozen identical seats!

Its’ all part of what is known as ‘yield optimisation’ in other words, it’s about the airline, not about the consumer, and when all is said and done, it is the business traveller who ultimately pays over the odds simply because business often is transacted on the run, and just in time.

So how does a company navigate the minefield which is the corporate travel market? Appoint a Travel Management Company.

The word ‘Management’ encapsulates the essence of what TMC’s do. This word evokes control, trust, credibility, knowledge, professionalism and stability….and these are attributes which are inherent in members of the Association of Travel Management Companies. These companies have made significant investments in their infrastructures in people, plant, technology, and in their unique selling proposition which is independence from airline or other ownership.

It is only through this independence that customers can truly feel that their interests are up front, and not influenced by those of an airline, hotel owner or car rental company.

Take for example one of the most traveled city pairs in the world, Sydney to Melbourne. Right now fares for this trip start from as little as $69 and go all the way up to $405 and then $440 for business class. Of course if you are dealing with an airline you will see what that airline wants you to see, only their products and fares, and it is a frustration to have to go and check a second or third airline for comparative pricing. But chances are you will pay at the upper end of the scale.

TMC’s offer the opportunity to see all of what is available either via a travel consultant or through self booking tool.

But it is not all about the booking process. TMC’s do far more than this and deliver a significant ‘peace of mind’ customer benefit. As a recent large customer commented, ‘we are busy in our business in construction, we want someone to ‘manage’ our travel program and build trust with us so that we can be guided through what is a very complex category of procurement.’ Travel is also the second largest category of a company’s expenditure (behind employee costs) and therefore control is critical.

TMC’s have technology applications which monitor travel expenditure and other elements of a customers’ activity which allows a range of outcomes:

Provides reporting to the customer of total expenditure, by type, destination, fare class, and a variety of other dimensions.

The reporting provide an essential snapshot of the health or otherwise of your travel policy. Typical results of this reporting can deliver very significant savings to a company through better mandating of policy, addressing individuals who are habitual transgressors of guidelines.

Measuring of the company support of preferred suppliers if any and the tracking of achievement of targets.

Support data which, when used correctly, adds significant weight to supplier negotiations.

While technology solutions are interesting and necessary in today’s business, above all, it is the people in travel consulting and account management who add the greatest value to the relationship with the customer. And it these aspects of the TMC work day which make customer interaction enjoyable, sometimes challenging, but always interesting.

Unfortunately there are time of crisis where your decision to channel all your travel through the TMC come into stark focus- these are when you need to know where your employees or colleagues are in the event of a disaster…..TMC’s know…..

TMC’s have provided valuable, professional, independent services to companies for the past 40 years, and will continue to evolve into the future.

Copyright R Dell, Association of Travel Management Companies 2007.