Pro’s and Con’s for working with a Travel Management Company (TMC)
4th June 2013
As a board director or decision maker I’m sure a discussion has or will take place to eliminate transaction or booking fees charged by your Travel Management Company (TMC) and who can blame you in these extreme trading conditions where every penny helps.
If you are considering to apply the Do-it-yourself (DIY) approach to managing your business travel please take a few minutes to digest some financial considerations and potential repercussions before making such an important decision.
Employer’s responsibility to their employees
- Corporate Social Responsibility – How do you guarantee your travellers comply with your traveller safety policy?
- Major Disaster – Can you locate all your employees whereabouts within 1 hour in case of a major disaster?
- Data Protection Act 1998 – Where to store all your employees travel personal details & credit cards?
- The Environment – How to measure & report on your CO2 emissions target?
- Travel Policy – How to identify those abusing the guidelines?
- Strike – How quick can you react and be pro-active to rebook?
- Cancellations – Due to weather etc… Who’s responsible for rebooking and how quick before the alternatives go?
- Management Information – What process is most suitable for collection of data?
- Data Transfer – Corporate deals require supplier electronic data transfer?
- Industry Updates & Regulations – How will you know?
- How to police & control how much your travellers spend?
- Cost of employee’s time & loss of production?
- The lowest fares are not always on the Net – how will you search other distribution channels?
- The internet search engines screen scrape for lowest fares usually more expensive on confirmation?
- Have your employees the experience & knowledge to fulfil immigration requirements?
- Multi flights are still a problem for the Internet?
- How to break the journey & take advantage of preferential currency rate of exchange?
- Multiple supplier accounts to set up & pay?
- What cost to process hundreds of supplier invoices or increase volume of T&E expense claims?
- Most travel suppliers add a credit card charge to each purchase typically 2-3%?
- How to measure cost savings & travel trends for improved corporate deals?
- Benchmarking to know you are obtaining competitive rates against your competitors or market place?
- The cost of processing refunds & customer service complaints?
- Supplier negotiations – Data is king without it the Airlines & Hoteliers will not be interested?
If you can comply with most of the above, there may be an argument to drop your travel management company. If not I hope you have a clearer understanding of what your fee covers as the physical booking process is a mere tenth of the charge.
Business travel management company – Personal service, expert advice, and modern online booking
To reduce your fee why not consider our comprehensive self booking tool? It’s easy to use and has an impressive adoption rate. Find out more about business travel company services or to request a free demo please contact our sales team on 01844 299 750.