Travel Managment Companies 2017

Businesstravel the

Magazine

TRAVEL MANAGEMENT COMPANIES YOUR

2 0 1 7

GUIDE

They're essential partners for many businesses but the sector is constantly evolving. Find out about the latest news and trends In our annual guide to TMCs Introduction, 3-5 / What's new? 6 / Interview, 9 / Five Reasons, 11 Technology, 12-13 / Beginner's Guide, 15 / Trending, 16-17 / Reader's Rant, 19 Back to the Future, 21 / The Directory, 22-24 / Data, 26

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Our world is you.

You travel well for a reason.

The purpose of your travel is to do business. How well you travel can have a real impact on you, your performance and your success. HRG is a global travel management company offering the perfect mix of technology, services, and control - with people virtually everywhere. We aim to be with you for every step of every journey - from the very first moment you think about a trip to the very last expense claim afterwards. Helping you to travel well and to manage the efficiency, compliance and savings that your business needs.

At HRG we understand your world.

At HRG our world is you.

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Special

POWERS Travel management companies are constantly evolving in order to remain an essential partner but their most basic function remains getting people from A to B, says Gillian Upton

T

he French have a phrase that sums up perfectly the current dynamics in the world of travel management companies: 'plus ça change, plus c’est la même chose' – the more things change, the more they stay the same.

No matter how the industry develops, TMCs’ core services are still anchored in getting business travellers from one point to another in the most cost effective and seamless

fashion, offering value for money and sewing up duty of care. “It’s the three Ss: service, savings and security,” says Tony McGetrick, Director of Sales & Marketing at BCD. The Institute of Travel Management's Chairman, Mark Cuschieri, adds: “We want control, compliance and monitoring so I can buy smarter and ensure it’s easier to book travel. That’s what buyers want.”

While external developments are having 

We want control, compliance and monitoring so I can buy smarter and ensure it’s easier to book travel. That's what buyers want” THEBUSINESSTRAVELMAG.com

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TMCs / Introduction

 an impact, TMCs' business models are still based on being all things to all men, marrying high-tech online booking processes with high-touch white glove, concierge-style service levels for offline. And they are still trying to educate buyers to focus on the 95% of spend rather than the 5% transaction fee.

They are fare auditing up until point of arrival and buying more competitively-priced fares from other countries using virtual IATA licences. The fare auditing systems take into account the re-booking and cancellation fee and are smarter than the airline’s yield management systems, but for how long?

“Our fare auditing service gives us a USP and we’re seeing a lot of client wins because of it,” says Julie Oliver, Managing Director of

Business Travel Direct. “We’re able to tell a different story apart from the booking and are able to talk to different clients that we wouldn’t have before.”

Direct sales is the big worry for TMCs. Hotels are, for example, discounting to clients for a direct booking. The new NDC airline retailing standard presents other challenges although the tide appears to be swinging towards it being a positive move to improve the airline retailing experience.

Some 18 of the world’s top 20 airline groups have now adopted NDC. British Airways, for example, already has corporate fares on the new NDC standard. Its debut matches the desire from travellers for a more personalised and easier experience

that is comparable to their leisure booking experience and the move from travel management to traveller management, delivered in the palm of their hand.

NDC will help take complexity out of the airline booking process too. Click Travel sees it as an opportunity for business processing improvements using one standardised language. And the far richer visuals that it is designed to deliver, including video and images of products, will increase up-selling.

Graham Ross, Head of Sales at FCM Travel Solutions, plans to use NDC to “make a unique product range by bundling things together, and move us from agent to retailer.

Our message will be, ‘You can book everything through us and it’s easy’.“ Corporates worry that the up-selling opportunities will lead to non-compliant travel but Festive Road Managing Partner, Caroline Strachan, counters: “Wouldn’t buyers prefer that challenge in a controlled environment than at check-in at the airport?”

Selling ancillaries is a vital revenue stream for airlines and one that TMCs would like a slice of in terms of extra commission if they’re going to sell more on their behalf – but airlines’ need to reduce distribution costs suggests that’s highly unlikely.

Some of the smaller TMCs are being squeezed in other directions, by the new payment arrangements under BSP. Most TMCs are handling this well as advance warning allowed them to mitigate cash flow issues. This may change if the economic conditions shift. For example, if the credit worthiness of corporates in certain sectors change or if interest rates rise, the owners may conclude those monies standing behind the settlement credit terms would then be

Join us at THE BUSINESS TRAVEL SHOW 2017 WWW. TRAVELEADS.CO.UK 0113 245 7745 0131 718 4000 Untitled-2 1 Introduction_REPRINT.indd 60

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Introduction / TMCs

There’s an urgent need for TMCs to significantly enhance their relationship with travellers and they need a range of technology providers too” better deployed earning interest elsewhere.

Today’s forward-looking TMCs are evolving, again, and those that can’t afford to are looking for exit strategies. The TMCs who remain are investing in the one thing that will drive the industry into the next decade – technology that will bring disparate sources of bookings into one single platform layered with policy restrictions, to help clients better manage spend.

“We see technology as the central method for understanding traveller needs and priorities, and it will be a key enabler for delivering a better, more personalised service for travellers,” says Christophe Tcheng, VP Core Products & Platform Architecture, American Express Global Business Travel.

ITM's Cuschieri believes TMCs have “a huge opportunity to be a content aggregator. They need to review what they do. Their scope of services will be broad and technology will play a significant part of that.”

It’s a big ask and requires deep pockets.

Newly-acquired Portman Travel started early, some three years ago, and has Portman One, a bespoke piece of technology that brings GDS and non-GDS content to the desktop. It’s one product across all channels.

Others are playing catch-up, which has triggered a rash of M&A activity in the marketplace. We have seen BCD on a spending spree, buying Zibrant for its panEuropean events expertise, a Chinese TMC to expand into that burgeoning economy, and a US tech company, Get Going Inc. Meanwhile, Amex GBT acquired KDS for its travel and expense technology, Colpitts merged with Direct Travel, Business Travel Direct acquired Amity World Travel to add scale, Reed & Mackay re-financed with fresh venture capitalist funding, while Wings acquired Grosvenor Travel in the UK and Clarity Travel Management's owner bought Portman Travel and has merged the two.

“The next 12 to 18 months will be quite interesting,” says GTMC Chief Executive,

3 Feb

16 17:16

Paul Wait. “Some businesses have reached maturity and they’ve got to embrace a digital transformation strategy.

“There’s an urgent need for TMCs to significantly enhance their relationship with travellers and they need a range of technology providers. That’s quite a jump for some as it requires a significant amount of investment to do that successfully. Unless you invest in your business, sell it,” says Wait.

There is an upside. “It makes it quite exciting,” says Festive Road’s Caroline Strachan. “Think what could happen in the next few years; it’s not about small fish being eaten by big fish but the slow fish being eaten by the fast fish.”

Christophe Tcheng of Amex GBT – one of the 'big four' TMCs – agrees: “In the longer term, business success will be about owning the most innovative and cutting-edge technology.“ Arguably those fastest off the start line are the smaller TMCs, who are nimbler but don't necessarily have the deep pockets to invest heavily – but that's not the be all and end all.

“It’s about the willingness to adapt. Bigger organisations just cannot do it as quickly,” observed Simon Ferguson, Managing Director, Northern Europe at Travelport at a recent Hays Independence Group conference.

CTM's European Product Manager, Jon Smiles, adds: “The big boys are stuck, particularly now it’s the traveller experience that’s key and not a procurement experience.”

Even if and when technology levels the playing field, TMCs will need to find other ways to level the playing field, but how?

“Today they do it badly,” says Festive Road’s Strachan. “They all say the same, ‘We have the best people, the best service and the best technology’; it’s the same old answers.”

She continues, “They should understand each individual customers’ positioning better. If it’s a pharma client then data provision and reporting is crucial. If it’s finance then data security is key. If it’s an employee-owned organisation then interactions should be the focus.”

Travel buyers have higher expectations than ever before as to what TMCs can deliver. The opportunity is for TMCs to deliver a wider scope of services that clients cannot find in one place elsewhere, and reinforce the value that travel management companies can add to the process.

[

THE FUture?

]

“There is resistance from TMCs to the trend of becoming point and click experts. They’ve got to become more than just a booking system. White glove service is the way to go,” says Advantage’s Director of Industry Affairs, Ken McLeod.

One TMC whose USP is white glove service is Travel Counsellors for Business, the 24/7 home-workingbased business model. “SMEs clients struggle to get high-end personal service,” says Andrew Perolls, Director of Corporate Travel. “Many TMCs push SMEs towards online but SME travel is often more complex than a larger client and it’s never just about the booking; they want more than that.

They think of their TC as one of the team,” says Perolls. “It’s about how to use technology in the customer experience; we use videos in quotes for client hotel selection for example.

Technology for us is more about keeping the customer connected pre- and post-trip.”

The GTMC's Paul Wait sees two TMC types emerging: “A self-service, low-touch model and a concierge type of model with low technology. Either of those models can add value.”

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TMCs / What's new?

SHOWING THE WAY CHATBOTS A R E THE F U TU R E

Attendees at the inaugural Advantage Business Travel Symposium were introduced to Sam, a personal assistant who can help travellers with their itineraries, amend schedules and deliver useful and timely information to them.

Only Sam isn’t a person, it’s a chatbot that uses a mix of artificial intelligence and human input to deliver smart, relevant information to users’ mobile phones.

The more someone uses the app, the more intelligent it becomes and the information delivered more personalised. Sam also integrates a company’s preferred door-to-door, security and expense providers.

Cesc Vilanova, Head of Product at Sam, told attendees at the event that chatbots can be used to increase compliance with company travel policy and deliver

a better experience than open booking.

“Travellers are currently getting a better user experience outside of TMC channels.

Our goal is to reduce the number of bookings lost by TMCs,” he explained, adding that Sam is already working with a number of TMCs. FCM Travel Solutions is one such company, having already introduced Sam – Smart Assistant for Mobile – to its clients in the United States, with a UK launch due in 2017.

“Sam is highly interactive and speaks to clients how and on which chat platform they prefer,” says FCM. “Sam picks up on cues, such as travel patterns and preferences, and updates travellers accordingly. So if it is your first time in a particular city, you will receive more information and recommendations than if it was a standing monthly trip.”

The app also features a “call or SMS my consultant” button for those times when talking to a robot gets you nowhere.

T M C CO NTR ACT W I NS & R E NE WALS • Diversity Travel has won more than £8million of business in the academic sector, including the London School of Economics, the Victoria & Albert Museum (pictured) and, most recently, the Universities of Bradford and Hull • NYS Corporate has been reappointed by the University of York following an eight-month-long, EU-wide tender process. It has additionally been reappointed by O2 to handle its meetings and events requirements • arrangeMY has been appointed by

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Cancer Research UK to fulfil the charity’s transient accommodation, venue finding and event management needs • Inntel is now handling the travel, meetings and event needs of Equiniti and its 4,000 employees • Clarity Travel Management has won the business of the John Lewis Partnership, helping the TMC amass over £100million of new business in the 12 months prior to merging with Portman Travel • Simplexity Travel has been retained by Norwich City Football Club as its official travel management partner.

I’m yet to find a TMC that is perfect globally.

Our policy is the same globally but the service provided is not – some of our regions are happy, some aren’t” So said Rosy Burnie, Office Manager at Luvata, at the Advantage Business Travel Symposium

Travel Counsellors reported a record-breaking September with corporate sales up 14% internationally and 12% in the UK year-on-year.

“We’ve seen a return in client confidence following initial concerns over the impact of Brexit and recent terror attacks,” says UK Managing Director, Kirsten Hughes.

Click Travel launched travel.cloud in November, a tool it bills as a “true self-service online travel solution for teams of any size”. It pulls together content from GDS systems, online travel agencies and directly from suppliers.

Negotiated rates, travel policies and approval processes can all be integrated.

Quintessentially Travel is making a move into the corporate market with the acquisition of Londonbased CJL Total Travel Management. The luxury travel specialist says the deal, sealed for an undisclosed sum, will take its annual turnover to £35million.

Key Travel recently landed the Travelport GTMC Innovation Award. The TMC was recognised for its self-built online booking platform that has reaped impressive buy-in from reluctant users in the NGO and education sectors.

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Get

creative with new ideas that stretch your travel budget further.

Managed travel is all about running an effective travel programme that meets your company’s objectives. But gaps in traditional spend categories can steer travellers away from policy, costing your company money and driving your programme further away from your goals.

BCD Travel shows you the big picture – and the finest details: you can visualise your travel spend by using dynamic and intelligent analysis. With better data, you’ll make better decisions. We provide you with innovative programmes that redefine business travel and guide you into shaping good traveller behaviour that will drive significant savings and increase policy compliance.

Raise the bar. Why settle for ordinary? Experience extraordinary Business Travel Awards 2017 Finalist – Best Travel Management Company (More than £200m UK sales annually) To learn more about how BCD Travel can help you and your organisation’s travel programme, visit www.bcdtravel.com or visit us at The Business Travel Show, 22-23 February Copyright © 2016 BCD Travel N.V. All rights reserved.

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a special relationship

1,000,000 registered users

22,000

180

corporate organisations

travel management companies

In 2016, the 1m+ registered users of the EvolviNG online rail platform paid less on average for tickets than they did 4 years ago.

At the same time, the 22,000 corporate clients of our 180 TMC customers had access to the industry’s most flexible travel policy options, most comprehensive MI and reporting suite, and multiple booking and fulfilment channels.

Together, we’re transforming rail booking and fulfilment performance.

It’s a special relationship no other online rail platform can offer.

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Interview / TMCs

SHEILENDRA TOMAR Sheilendra Tomar is Director of Business Development at Applehouse Travel. He tells TBTM about the TMC and the challenges his sector faces Q What is the number one thing that clients are asking for currently?

Setting and implementing corporate travel policy; self-booking tool and expense management solutions; duty of care and risk management tools; and management information and compliance reports.

Q Does size matter when it comes to selecting a travel management company?

Multinational companies tend to gravitate towards the big TMCs as they have global focus and are looking for a global vendor.

Sometimes they consider medium-sized TMCs when evaluation is based on regional basis. In general, SMEs usually prefer smaller to mid-sized TMCs. Q What problems do you frequently see in corporate travel programmes?

A lack of top management support for the travel policy in an organisation and also a lack of structure to handle travel within an organisation. In some companies travel managers, PAs and sourcing managers are all handling travel and sometimes it's at cross-purposes.

Changes in the New Generation of IATA Settlement Systems for regional and global companies, increased focus on duty of care, diminishing margins and the changing global politico-social landscape are all challenging the cash flow of TMCs. They are elements that also force them to look globally and Applehouse Travel works regionally, including with clients across almost growing through all business sectors, including mergers, acquisitions pharmaceutical, oil & gas, retail, and alliances.

IT, advertising, finance and

Q Name some of the challenges facing the TMC community currently.

Increasing customisation and commitment to duty of care are big right now. This is primarily due to, respectively, the increased presence of investment banking. It is part Q Do you expect to techno-savvy suppliers of the £491million turnover and the changing politicosee further consolidation Southall Travel Group social fabric globally. Both in the TMC sector? involve real understanding of the Consolidation will be increasing client's travel needs and culture. in the future due to pressure on margins and lower ROI. Size will matter Q Is the changing distribution landscape when it comes to accessing preferential making your job as a TMC more difficult? fares and rates from suppliers, while a The changing distribution landscape is not regional presence is needed to service only a challenge but an opportunity. mid-size and multinational companies.

PROFILE

As well as further consolidation in the mid-size market due to diminishing returns, we also anticipate more TMCs offering leisure travel to their corporate clients” Q TMCs seem to be constantly evolving.

What changes do you think we’ll see in the next few years?

As well as more consolidation in the mid-size market due to diminishing returns, we also anticipate more TMCs offering leisure travel to their corporate clients and consolidation of business on a regional basis rather than a country specific or global basis.

Q Finally, what sets Applehouse Travel apart from other TMCs in the market?

Applehouse Travel is a one-stop solution to all services in the travel spectrum and we customise our solution to each and every client, offering personalised service through our own resources 24/7, online and offline.

Our biggest differentiator are the people who service the customer at the account management and operational level. We can't be beaten on service as we dedicate in-house resources 24/7 and, being a brand of the Southall Travel group with a turnover of £491million, our price is always competitive.

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ADVERTISEMENT FEATURE

BALANCING ACT How can you keep a watchful eye on your travellers as well as your costs?

N

ews headlines are dominated almost daily by terrorist attacks, health scares and flight disasters, so it’s not surprising that traveller tracking and risk management have become top priorities for corporates.

How can you ensure your travellers feel safe, but also manage the cost of business travel effectively?

Risk management and traveller safety are nothing new to Wings Travel Management.

The company has carved a niche over the last 25 years as a trusted travel provider for corporates heading to high-risk destinations, particularly in the energy, construction and financial services sectors, where travel is an integral part of their business.

“Wings has always been ahead of the curve in terms of giving clients critical safety support due to the nature of their travellers’ complex travel needs,” says Tony Sofianos, CEO, Wings Travel Management.

“Each of our global offices in North America, South America, UK/Europe, Africa and the Middle East are wholly-owned and operated by us. This is a key point of difference to our competitors, most of whom use partner agencies or franchisees in high risk markets,” explains Sofianos. “ We also operate off our own single global technology platform to ensure that Wings’ staff worldwide can instantly access a client’s travel records – this is crucial for tracking and re-routing travellers.”

But it’s not just about safety. Wings’ people are also experts in managing the cost of business travel for clients in people-critical industries – companies for whom travel is essential to their operations, even if there is a downturn in their market sector. These clients look to Wings to help scrutinise and reduce those costs wherever possible.

“When the price of oil fell dramatically last year, many of our energy sector clients were forced to reduce costs across the board, including travel,” explains Sofianos. “Many of them asked us to generate savings of as

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much as 20 per cent. Our determination to support clients and demonstrate value enabled us to identify, communicate and implement vital savings for them during this difficult time, without comprising on traveller safety,” says Sofianos.

One such client commented: “The Wings team has been extremely supportive and as a result of their specialist knowledge of our industry and understanding of our organisation, together with their highly collaborative approach, we have successfully implemented vital cost saving initiatives.”

Sofianos sums up: “There’s no doubt about it: our staff’s expertise, combined with wholly owned global offices and the latest technology, gives Wings the edge when it comes to supporting clients at all levels, whether that’s with their travel safety challenges, or cost challenges.”

Wings has always been ahead of the curve in terms of giving clients critical safety support due to the nature of their travellers’ complex travel needs”

www.wings.travel infouk@wings.travel @WingsTravelMgmt

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Five reasons / TMCs

[ FIVE REASONS TO... ]

USE A SELF-BOOKING TOOL Stuart Birkin, Director of Account Management at Corporate Travel Management (CTM) UK, names five reasons why your company should use a self-booking tool

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STRAIGHT TO THE POINT

If your company books at least 150 flights or transactions per annum which are straightforward point-to-point routes, you should use a self-booking tool. Primarily this applies to domestic or European routes – London to Frankfurt, for example – although more corporates are now using SBTs for long-haul, point-to-point travel too.

KEEP IT SIMPLE An SBT is ideal if your company’s business travel bookings don’t involve complex itineraries or frequent changes. More corporates are becoming aware of the cost of changing tickets postdeparture. An SBT helps drive the behaviour that once booked it’s more difficult to change.

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MAKING SAVINGS If you are looking for cost savings on transaction fees and airfares then an SBT should deliver.

Online tools can drive airfare savings by up to 10% via visual guilt. A traveller is more likely to take a cheaper fare if it is staring them in the face on a screen rather than being told over the phone. This is particularly true if the SBT is set up correctly so that the traveller has to declare why they might not take a cheaper available fare.

Self-booking tools can help tackle leakage by delivering the experience that rogue bookers are looking for”

DO IT YOURSELF Self-booking tools are great for travellers who like to book their own travel. This is particularly relevant for the millennial generation who want to do everything via their smartphone and an SBT provides the facility for booking on the move.

An SBT can also help tackle leakage. If travellers tend to go rogue and book direct with suppliers on the internet, an SBT provides the online experience they are looking for, but still captures all the data the corporate requires.

BEHIND THE SCENES A self-booking tool works really well when you have a TMC behind the scenes that can support your bookers and travellers with training. The TMC can also provide detailed reporting on adoption levels and identify rogue non-SBT users. A TMC can, in most cases, also bolt on an approval tool so the corporate can be assured that trips remain within policy.

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TMCs / Technology

on the

BUTTON Travel technology is evolving at break-neck speed, propelled by those TMCs and sector specialists with the financial clout to develop their own solutions, writes Gillian Upton

T

ravel management companies that turn over more than £30million have sufficient funds to develop proprietary technology to future proof their companies, the theory goes. Below that thereshold, any hefty investment can be challenging.

These smaller TMCs buy technology from third parties who they hope will give them the same flexibility and nimbleness as an in-house IT development team of their own could deliver.

But it doesn’t stop there, outlines BCD Travel’s Director of Sales, UK & Ireland, Tony McGetrick. “For smaller TMCs to compete with the likes of Concur who invest millions in their product, is a challenge,” he says. “They need to constantly invest in newer versions and manage upgrades, otherwise the content suffers.“ Smaller TMCs have even more challenges.

The Advantage Travel Partnership has a mix of smaller business and leisure agencies, including 64 corporates under the Focus Partnership umbrella.

The company’s Director of Industry Affairs, Ken McLeod, warns of a widening chasm in the industry if certain things don’t change.

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“There is a danger that unless technology becomes cheaper, small agencies won’t be able to keep up with it,” he says.

And playing devil’s advocate he adds: “Clients ask for the ‘buzz’ stuff but do they really need it? Duty of care is the big thing – making sure clients know where their travellers are at any time.”

Online booking tools are still point-to-point and there's still not a really decent one out there.

They're all OK but there's nothing great” Ian Scholes, Director of European Operations at Colpitts World Travel, says, “The technology lags behind the dream.

We all know what we want but there isn’t a single unit that does the whole job, which falls into our hands – ie, the human solution. Technology plus travel management company equals solution.”

Online booking tools (OBTs) are ”still point-to-point and there’s still not a really decent one out there,” says McLeod.

“They’re all OK but not great.”

Speeding things up

Built on legacy systems, online booking tools are the pinch point in the new wave of technological advances as they can be cumbersome and slow.

Mark Cuschieri, Chairman of the Institute of Travel & Meetings, says it is the shortcomings of OBTs that often push buyers into direct booking with suppliers.

One that claims to be industry leading is CTM's Lightning. As the name suggests, it’s a fast booking system. It is built in-house on an agile platform and was launched in September across Europe. It can process 1,000 bookings each day with a user experience that’s a cross between a leisure and a corporate interface.

The tool integrates with Smart Forecaster (its fare forecasting tool), so users can search a greater range of dates and be informed which would be the cheapest date to fly. It is a game-changer in online booking tool technology, claims CTM.

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Technology / TMCs

Mobile performance

There are other game-changing technologies out there, particularly on mobile platforms, which are proving the critical facilitator for delivering personalised service to the traveller.

A rash of new smartphone apps out there are testament to the trend, providing a proactive service, sending relevant, realtime data such as flight information, gate changes and weather forecasts.

Not all apps are useful, as statistics from Localytics testify. A survey of 2.7billion devices and 37,000 mobile and web apps, highlight that only 46% of users in the United States are still using apps one month after they downloaded it. That means over half of users, 54%, have churned and are no longer using the app one month after they downloaded it. Furthermore, 22% of users only use apps once, while 39% of users return to the app for 11 or more sessions.

Nevertheless, apps are critical for those without the resource of a company armed with a team of PAs. Tim Clark, President of Emirates, reckons apps will help shift distressed inventory in the long run.

Detractors point to the average of seven

A rash of new smartphone apps is testament to the trend of personalisation. They provide a proactive service with relevant and real-time information” changes per booking that makes it easier to pick up the phone. Variable wifi coverage around the world will also affect take-up.

Divided opinions

Adam Knights, Managing Director UK of the ATPI Group, questions the need for central booking capabiliy on an app. “You don’t worry about using your Apple Music app for music and then using your fitness app to track your health, so why do you need booking of rail and air, for example, integrated into one single app?”

One standout app is BCD mobile – part of BCD’s generic TripSource offering – which delivers the booking in one place and drags content from other areas outside normal

channels too. Non-compliant bookings can also be dragged back into the app so that data can be collated, be reported on and acted on. “It’s the nirvana really,” says BCD's Tony McGetrick.

Launched five months ago in the UK, it was built by Get Going Inc on open architecture that can be added to and acquired by BCD. There will be a TripSource hotel app – already available in the US and launching here in 2017 – that will bring content in from disparate sources such as the GDS, Expedia, Booking.com and all direct-sell providers such as Travelodge and Premier Inn. It also links to HRS, hotels.de and many other aggregators.

“It’s a mini GDS in its own right,” says McGetrick. “It will work out for the end user who has the best deal.”

The Roadmap app – claiming to be the ultimate all-in-one travel app – also fills the gap in the traveller centricity piece, pulling together the email for hotel check-in, the email for the taxi transfer and the BA app for check-in, all in one itinerary in your smartphone. “It’s very cool,” as Caroline Strachan, Managing Partner at Festive Road, succinctly puts it.

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Reimagining travel, meetings and events New research conducted by the Business Travel Show on behalf of The Business Travel Magazine suggests that travel management companies will remain essential partners for business, as long as they evolve.

That’s exactly what we’re doing; combining relevant data sources to extract powerful insight that helps UK organisations transform traditional business travel into smarter working practises.

Intelligently analysing organisational data, coupled with cutting edge technology through our partnership with Concur, underpins our revolutionary strategy of enabling each and every one of our customers to realise the value of smarter working.

Find out more by speaking to a member of the team: capitatravelevents.co.uk travelevents@capita.co.uk 0330 390 0340

Capita Travel and Events Limited. Registered office The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU. Registered in England No. 01094729. Part of Capita plc. www.capita.co.uk. All rights reserved.

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Beginner's guide / TMCs

COUNTING THE COST TMCs charge for their services in a number of ways and changing distribution models could add costs, as TCG Consulting’s Paul Fernandez explains How do TMCs generally charge for their services?

TMCs charge for their services – the processing of business travel transactions and/or programme management – in a number of ways. Fees can take many forms, including transaction based models, direct operating expense (DOE) + transaction hybrids, and broader management fee models. With corporates increasingly focused on obtaining the best available content, TMCs have needed to restructure their pricing models while remaining competitive and profitable in an evolving landscape.

What’s the most frequently used model in your experience?

Transaction fee (or fee for service) continues to be the most common model.

The DOE + transaction fee and management fee models are fading largely because of a lack of cost transparency.

Is there anything travel managers need to be particularly wary of?

It’s important there is transparency in the revenues earned by client-negotiated agreements with suppliers. This area is often overlooked and should be reviewed. Returned or retained, there should be an open book policy or agreement for an audit of revenues.

What might be charged as ‘extras’?

Extra fees often include access to non-GDS content, amenities that require additional resources and enhanced

The cost of investing in technology to access non-GDS content is likely to be passed on to clients”

technology. In addition, organisations should negotiate and measure a very clear and specific account management fee structure.

A recent study by TCG Consulting shows that an average of 17% of clients’ TMC costs are for account management support.

Conducting a detailed analysis of your company’s travel patterns, transaction types, volumes and travellers’ booking behaviour will create the business case for which TMC fees provide value and which are misaligned with your organisation’s needs.

Is the changing distribution landscape going to add cost?

As the demand for full content tops client wish-lists, the significant investment in technology to access non-GDS and web-only content is likely to pressure TMCs to pass these costs on to clients.

Organisations must assess the full impact of these costs in the broader context of the value of the service and overall relationship.

An announcement from American Express

Global Business Travel to its clients this summer communicated additional fees for bookings made with some airlines – Ryanair, Eurowings and Vueling, for example – that do not follow the industry-standard approach to fare filing, payment or bookings.

Do you foresee any imminent changes in fee set-ups?

As the corporate travel ecosystem continues to evolve, and as traditional methods for cost optimisation produce diminishing returns, organisations are looking at new programme management approaches such as the integration of travel, meetings, payment and expenses using a total cost of ownership approach.

As organisations continue the trend of unbundling supplier offerings, travel management companies will strive to strike a balance between the need to differentiate themselves and provide superior client service while still delivering revenue and profits.

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TMCs / Trending

WHEN TWO

BECOME ONE

The number of mergers and acquisitions in the TMC market is picking up pace, but why now? Gillian Upton and Andy Hoskins report

M

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aking the headlines at the beginning of November was the announcement from Clarity Travel Management that its owner would be purchasing Portman Travel and merging the two TMCs to create a £400million business.

The figure puts the combined business among the top six or seven largest TMCs in the UK and diversifies its client-base, part of the rationale for the deal.

Clarity's Chief Executive, Pat McDonagh, says the merger gives the business “increased buying power, international reach and expertise through a significant shareholding in Radius Travel, a broader base, market leading technology and best in class service.”

Regarding the sectors in which the two TMCs work, he adds, “Clarity has a high level of public sector and higher education clients while Portman has more of an international flavour. Portman also has strength in professional and financial services and we have common success in the fashion and retail sector.”

Asked if further acquisitions are in the pipeline, McDonagh says Clarity's owner, Mawasem Travel & Tourism, is interested in the “right opportunities at the right time, but

we will definitely see more mergers to come elsewhere in the industry.”

So why is the trend currently accelerating?

One leading M&A specialist broker, Argate Meridian, has introduced and brokered seven successful TMC acquisitions in the past three years in the UK and advised on a number of due diligence company acquisition programmes. The deal sizes have ranged from £15million to £150million.

The company’s Managing Partner, Colin Goldney, explains: “The weakness of sterling provides an opportunity for international investors which at the moment seems to be outweighing any Brexit uncertainty.

“Some take the view that a post-Brexit world will necessitate UK PLC doing a lot more long-haul corporate travel.”

In addition, the exceptionally low level of commercial lending interest rates means funding is readily available.

Clarity’s McDonagh agrees. “There’s a fair amount of private equity around at the moment and people are looking to part with it,” he says. “We’ll see mergers happening at all levels but, at the smaller end, TMCs are being challenged by both the move to more frequent remittance and the economic environment. Some are looking for an exit.”

What’s more, the UK market is more attractive to potential investors than its

2/10/17 12:50 PM

Trending / TMCs

continental European counterparts because the UK market has many business travelonly TMCs, says Goldney.

“In other markets one is more often faced with potentially acquiring an enterprise which is a blend of both business and leisure travel, and not everyone wants a leisure arm,” he says.

Deals on the horizon

Goldney anticipates two notable acquisition deals within the next three to six months and potentially two or three SME deals too.

Investor interest is in specialist agents with a presence in the MICE, marine and charity sectors and it remains strong regardless of company size.

“We predict further thinning of the middle tier over the coming years. That is those with turnovers between £30million and £100million, with mergers within this tier,” says Goldney.

“Acquisitions of TMCs with £10million to £25million turnover will then take the enlarged TMC into the next tier up, of £100million-plus turnover, and attract a growing interest from the multinational TMCs in that tier,” he explains.

Goldney believes that for those TMCs in the £100million upwards tier, deals are increasingly dependent on a robust digital transformation strategy.

He is positive about the prospects for the SME sector, particularly those that look after

[

BUY a nd BUIL D

]

The ATPI Group has over 100 offices worldwide and an annual global turnover of over £1.2billion. Parts of the business have been trading since 1936 but the group as it is known today was formed in 2002 through a series of mergers. Acquisitions in the US, France, Netherlands and Singapore have followed as it adopted a ‘buy and build’ strategy to stretch its reach globally.

In the last three years it has bought Australia’s Voyager Travel and UK-based Griffin Travel which, combined with natural businss growth, took ATPI’s annual turnover from £720million in 2013 to £1.2billion in 2014. More deals have followed, with Malaysia’s DTC Travel acquired a year ago and both Melbournebased Plan B Travel and New Zealand’s Business World Travel added last summer.

clients with high-touch, offline business focused on local, regional and personalised service. “There is lots of opportunity for those companies out there to continue to grow,” he says.

Nonetheless, he sees challenges for SMEs. “The challenge will be their exit strategy because if the middle tier thins out it will remove potential suitors to buy them as their volume will become less significant. In companies of £100million and below there is also the natural generational factor – a lot of people are coming to retirement age.”

Some take the view that a post-Brexit world will necessitate UK PLC doing a lot more long-haul business travel”

Growth by acquisition

One TMC which has added scale through acquisition is Business Travel Direct. Its purchase of Amity World Travel has springboarded it into a meaningful size and created a business travel solutions provider, says its Managing Director, Julie Oliver.

“We’re now less about the booking and more about risk management, tracking and benchmarking and being a true partner to the client,” she says.

“The client says, ‘We want a TMC for bookings’, but if technology allows clients to do that themselves we’ve got to remain relevant to them,” she explains.

The company’s plan is to make up for less booking revenue by charging for different services. “It’s our new ecosystem,” says Oliver. Now at £80million, further acquisitions will take them to the £100million turnover tier. “Watch this space,” she says.

Achieving a similar figure is Essex-based Gray Dawes which acquired Cambridge Business Travel and Travel Management Group early in 2017 to take its annual turnover past £100million.

Another success story is Wings, which successfully turned 360 degrees in the last 18 months, from 70% oil and gas clients and 30% corporate, to 70% corporate and 30% oil and gas after the latter market shrank dramatically.

Acquisitions helped accelerate the change, says CEO Tony Sofianos, doubling the size of the business in the last year. He aspires to a 50/50 split of client types through further acquisitions and a public listing in 2018. “We want to be known as a specialist and generalist TMC,” he says.

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11/24/16 01:23 PM 24/11/2016 12:35

Reader's rant / TMCs

HERE WE GO AGAIN...

An anonymous travel manager bemoans TMCs’ revolving door of good account managers

TMCs seem to change their account managers every five minutes and it’s totally frustrating!

No sooner have you built up a good relationship with someone who has a real understanding of your needs, they’re off.

A good account manager is worth their weight in gold but unfortunately TMCs seem to lose them – or simply move them around clients – at an alarming rate.

I get the impression they sometimes do it because they feel an account manager needs a fresh challenge but it just makes the client think the TMC isn’t interested in their business.

Every client is different so TMCs shouldn’t think they can arbitrarily move their account managers round without it having a negative impact on their clients.

You can spend a lot of time and effort building relationships with account managers who in turn are quick to respond and know your company’s idiosyncrasies.

But when they move on – or are moved to another client – that whole process must start again.

And when that happens you have no

choice of which account manager you’re appointed. It would be great to have a choice but normally you’re just left hoping for someone who you work well with and gets to grips quickly with your company's needs.

The problem isn’t exclusive to TMCs, of course. It’s all suppliers. With one of the airlines I deal with, I was really surprised when I found out how many companies the account manager looked after.

How can they have enough time to dedicate themselves to so many clients? I think they’re often overworked, but in the end it comes down to profits and money.

On the flip side, I have also requested to change account managers on occasion if I felt they didn’t have enough experience or they would not get on with us. And usually the TMC or supplier is pretty accommodating, especially if you are a good client for them.

More often than not, though, I think people don’t have the strength to ask for changes.

TMCs need to make sure that when they employ people in the first place, they employ the best – that would help address the problem. I think they should also be thinking really carefully how they match account managers with clients.

All suppliers should bare in mind that a good account manager is not only keeping customers happy but also protecting their brand.

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Back to the future / TMCs

[ BACK TO THE FUTURE ]

ENDANGERED SPECIES In 2008 we reported on research that suggested TMC usage was declining, prompting some to forecast the demise of travel management companies. The GTMC sets the record straight

THEN...

As reported in the March/April 2008 issue of The Business Travel Magazine: “Travel management companies are being shown the door,” said HRS’ Commercial Director, Grant Appleton, at the launch of the second annual edition of the UK Companies Business Travel Report.

“Specialist agencies and booking direct are gaining ground and companies are increasingly brokering their own discounts direct with suppliers,” he added. “TMCs need to address their business models if

they want to be here in five years’ time.”

The report, which surveyed 50 FTSE500 companies and 250 businesses with over 200 employees, revealed the number of companies using a single TMC has dropped by 14% to 47% over the past 12 months, while the number of FTSE500 companies that have decentralised their travel procurement now sits at 71%, up to 23% on 2007. Appleton argued the trend is fuelled by the rise in usage of specialist agencies in a ‘best in breed’ approach.

2008 NOW...

Paul Wait, Chief Executive of the GTMC, brings things up to date “This piece is an interesting read and couldn’t really be more wrong. Almost a decade on, more so than ever, TMCs are really showing their worth.

“While technology has evolved to bring us into an era of multiple channels, devices and touch points for booking travel direct,

Booking direct without the support of a highly skilled team of experts is a risk that companies simply cannot take nowadays”

businesses continue to recognise that TMCs provide valuable advice, insight and management information.

“As we know, booking directly with a travel provider adds time and effort – and therefore cost – and amending that booking takes even longer. Furthermore, with duty of care becoming an increasingly important part of a business travel programme, booking direct without the support of a highly skilled team of experts is a risk that companies simply cannot take nowadays.

“Travel experts can negotiate the best deals and schedules while planning a trip that allows employees to be both as productive and comfortable as possible.

“The complexity of business travel planning is dealt with seamlessly by TMCs, something I am certain that if we review again in another ten years will continue to be recognised by businesses around the world.”

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TMCs / The Directory

TMCs: Who does what

Your guide to a selection of leading travel management companies in the UK, including turnover and transaction figures and the sectors in which they have particular expertise

Travel management company ABT UK

Annual turnover

Annual transactions

Company size

Head office (UK)

Established

£8million

30,000

10 staff / 2 offices

London

2001

120 independent UK TMCs / 190 locations

London

1978

135 staff / 4 offices (UK) and 52 offices globally

London

1991

London

2014

Specialist sectors served: online, gaming, IT, geophysical, telecoms, finance, medical, recruitment, energy, media Advantage Business Travel

£1.8billion (combined UK)

Not disclosed

Specialist sectors served: Members serve all sectors of the economy Altour

£112million UK / $2.6billion globally

535,000 (UK)

Specialist sectors served: finance, law, media, offshore, manufacturing, fashion, insurance, music touring, film production, touring shows American Express Global Business Travel

£1.3billion+ UK / c.£24billion globally

Not disclosed

960 UK staff / 12,000 staff globally

Specialist sectors served: professional services, finance, insurance, healthcare, retail, manufacturing, media, entertainment, mining, energy, technology, information services Applehouse Travel

£27.3million

54,600

46 staff / 1 office

Iver, Buckinghamshire

2008

275 staff / 9 offices worldwide

London

1988

55 staff plus 1 implant

Worcester

1990

2,187 staff / 100+ locations worldwide

London

2002

Specialist sectors served: finance, information technology, energy, SMEs, retail The Appointment Group

£151million

400,000

Specialist sectors served: business, banking and finance, law, touring and entertainment, oil and gas, TV and film, events, sports, private clients ArrangeMy

£21million

65,500

Specialist sectors served: car manufacturing, retail, charity, care ATPI Group

£1.2billion globally

Not disclosed

Specialist sectors served: from retail, engineering and fashion to financial and legal. ATPI Griffinstone serves shipping, energy and offshore sectors; ATPI Sports Events for events and clubs Barrhead Business Travel

£15million

55,000

15 staff / 2 offices

Glasgow

1976

23 staff / 1 office

London

1883

578 staff / 8 offices and 12,000 staff globally

London

1981

Specialist sectors served: law, marine, finance, oil and gas, automotive Baxter Hoare Travel

£11million

70,000

Specialist sectors served: SMEs, food and drink, medical, pharmaceutical, media BCD Travel

£579million UK&I / $24billion globally

Not disclosed

Specialist sectors served: finance, film & TV, entertainment, professional services, advertising, media, pharmaceutical, FMCG, energy, defence, technology, consulting, sports, SMEs Blue Cube

£30million

21,000

32 staff / 4 offices

Richmond upon Thames

2003

122 staff / 4 offices

Uxbridge

1970

Derby

1972

Specialist sectors served: finance, law, oil and gas, retail, technology Business Travel Direct

£85million

294,000

Specialist sectors served: SMEs, services, security, defence, multinationals, marine, education, medical Capita Travel and Events

£500million+

Not disclosed

850 staff / 6 offices in the UK & Europe

Specialist sectors served: all sectors including construction, education, energy, engineering, finance, legal, logistics, manufacturing, professional services, public sector, retail, telecoms, utilities Carlson Wagonlit Travel

$24.2billion (globally)

61.4 million (globally)

1,292 UK&I staff / 27 UK&I locations

Potters Bar, Hertfordshire

1980

Birmingham

1999

65 staff / 3 offices

Glasgow

1989

140 staff / 3 offices

Edinburgh

1890

London

1998

Specialist sectors served: all sizes and sectors, including finance, media, manufacturing, energy, pharmaceutical, telecoms Click Travel

£145million

1,414,000

172 staff

Specialist sectors served: legal, retail, public sector, recruitment, utilities, telecoms, charity, education, technology, infrastructure Clyde Travel Management

£45million

140,000

Specialist sectors served: marine, oil and gas, corporate Colpitts World Travel

£110million

Not disclosed

Specialist sectors served: oil and gas, pharmaceutical, life sciences, arts, financial services Corporate Travel Management (CTM)

£178million UK & Europe / £2bn globally

543,000 (UK)

280 staff / 17 UK & Europe offices and 2,200 staff globally

Specialist sectors served: legal, finance, insurance, pharmaceutical, media, advertising, retail, technology, architecture, energy, public sector, plus Event Travel Management division Cresta World Travel

c.£7.5million

52,500

21 staff / 1 office

Altrincham

1969

Specialist sectors served: education, public sector, chemical industry, media, pharmaceuticals, healthcare, engineering and sporting bodies

22

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The Directory / TMCs

Travel management company CT Business Travel

Annual turnover

Annual transactions

Company size

Head office (UK)

Established

£23.4million

Not disclosed

64 staff / 3 offices

Tunbridge Wells, Kent

1988

Specialist sectors served: include but not limited to finance, media, technology, pharmaceutical, recruitment, energy, fashion, retail, education, insurance CTI – Trusted Travel Partner

£84million

430,000

145 staff / 6 offices

Manchester

2013

Specialist sectors served: all sectors including manufacturing, telecoms, professional services, energy, retail, technology, plus divisions for marine travel, MICE, sports travel and fashion CTM

£47million

135,000

65 staff / 2 offices

Redhill, Surrey

1987

Specialist sectors served: SMEs, travel technology, education, government, security, retail DialAFlight Corporate Travel

£116million

262,000

125 staff / 4 offices

London

1980

154,500

116 staff / 3 offices

Manchester

2007

London

2002

3,000+ employees globally / 66 countries served

London

2002

6 staff / 3 offices

Dunfermline

2011

Specialist sectors served: SMEs Diversity Travel

£56.6million

Specialist sectors served: charity, academic, not-for-profit, humanitarian, cultural and religious organisations EFR Travel

£15million

17,800

11 staff (corporate) / 3 offices (group total)

Specialist sectors served: manufacturing, property, legal, advertising, finance, sport Egencia

$5.42billion globally

Not disclosed

Specialist sectors served: serves companies off all sizes and sectors Information supplied directly by TMCs to The Business Travel Magazine. Annual turnover figures quoted refer only to business travel in cases where a company also deals in leisure travel

EQ Travel Management

£13million

10,000

Specialist sectors served: includes pharmaceuticals, biotech, clinical trials, finance, telecoms, engineering, construction, professional services, legal, manufacturing, utilities, oil and gas Eton Travel

£36million

100,000

70 staff / 2 offices

Eton, Berkshire

1969

828 UK staff / 6,500 staff worldwide

New Malden, Surrey

2004

Specialist sectors served: pharmaceutical, IT, finance FCM Travel Solutions (incorporating Corporate Traveller) Flightline Travel Management

£659million

1,755,700

Specialist sectors served: over 50 industries including energy, pharmaceutical, healthcare, financial, legal, engineering, SMEs, events, entertainment, sport £3.6million

23,450

6 staff / 1 office

Haddenham, Buckinghamshire

1999

Amersham, Buckinghamshire

2002

32 staff / 2 offices

Woking, Surrey

1997

48 staff / 3 offices

Hull

1833

97 staff / 3 offices

Colchester, Essex

1927

London

1982

Farnborough, Hampshire

1845

Specialist sectors served: law, automobile, finance, manufacturing, medical, aircraft, public relations Giles Travel Management

£46million

129,200

75 staff / 1 office

Specialist sectors served: various, but particular experience in retail, automotive, oil and gas, pharmaceutical Global Travel Management

£26million

50,300

Specialist sectors served: brewing, medical, media, SMEs Good Travel Management

£19million

60,000

Specialist sectors served: SMEs, oil and gas, manufacturing, construction Gray Dawes Travel & Expense Management

£53.1million

160,000

Specialist sectors served: all sectors, but primarily finance, distribution, mining, telecoms Hillgate Travel

£170million

300,000+

171 staff / 3 offices

Specialist sectors served: recognised as a City specialist – over 60% of clients in this area HRG

c.£16billion worldwide

Not disclosed

14,000 staff globally / locations in over 120 countries

Specialist sectors served: specialist staff for all sectors plus expertise in government, marine and energy, meetings, groups and events, sports, VIP services Ian Allan Travel

£40million

141,000

87 staff / 2 offices

Shepperton, Surrey

1964

123 staff / 1 office

Colchester

1982

Specialist sectors served: corporate, academic, charity, not for profit, events Inntel

£60million

330,000

Specialist sectors served: finance, professional services, transport, logistics, media, distribution, manufacturing, specialist in meetings and event management and groups Kanoo Corporate

£29million

34,000

45 staff / 10 offices

Birmingham

2007

265 staff / 8 offices

London

1980

Petersfield, Hampshire

2002

Specialist sectors served: SMEs, corporate, leisure, groups, incentives Key Travel

£150million

360,000

Specialist sectors served: not for profit, NGOs, charity, humanitarian, faith, missionary, academic organisations Meon Valley Travel Group

£40million

100,000

81 staff / 2 offices

Specialist sectors served: emergency medical assistance, insurance, retail, manufacturing, recruitment, oil and gas, travel club fulfilment, SMEs

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TMCs / The Directory

Travel management company Midas Travel Management

Annual turnover

Annual transactions

Company size

Head office (UK)

Established

£25million

Not disclosed

28 staff / 1 office

London

1998

Liss, Hampshire

1981

York

1977

London

1972

Manchester

1959

Specialist sectors served: all private sectors including finance, legal, communications, media Norad Travel Management

£39.5million

136,000

59 staff / 3 offices

Specialist sectors served: all sectors with particular specialities including marine, energy, yachting, shipping logistics NYS Corporate

£44million

205,000

66 staff / 1 office, supported by remote workers

Specialist sectors served: telecoms, finance, pharmaceutical, retail, industrial, healthcare, public sector Omega World Travel

£34million UK / £715million globally

Not disclosed

34 staff / 2 offices (UK) and 590 staff globally

Specialist sectors served: finance, private equity, pharmaceutical, engineering, media, oil and gas, marine, government Portman Clarity (merged November 2016) Redfern

£400million

c.2,000,000

700 staff / 18 offices across the UK, Ireland and Netherlands

Specialist sectors served: professional services, construction, manufacturing, retail, engineering, public sector, higher education, charity/NFP, sport, oil and gas, marine, MICE £310million

3,250,000

119 staff / 1 office

Bradford

1937

400 staff / 5 offices

London

1962

25 staff / 3 offices

Handforth, Cheshire

1982

14 staff / 1 office

London

2011

7 offices

London

1975

18 staff / 1 office

Dartford, Kent

1973

20 staff / 2 offices

Bristol

1940

62 staff / 3 offices

Leamington Spa, Warwickshire

1986

Manchester

1994

Specialist sectors served: clients across public, private and third sectors Reed & Mackay

£250million

Not disclosed

Specialist sectors served: law, insurance, finance, energy, media Review Travel

£10.7million

73,000

Simplexity Travel Management

£7.4million

Not disclosed

Specialist sectors served: Fashion, film, music, sport Statesman Travel Group

£151million

Not disclosed

Specialist sectors served: finance, legal, media, advertising, technology, energy Sunways Business Travel

£10million

Not disclosed

Specialist sectors served: finance, accountancy, pharmaceutical, law, IT, insurance, film & TV production, building services, architecture, SMEs Thornton's Travel

Not disclosed

20,000

Specialist sectors served: SMEs, legal, engineering, media, public sector, insurance TMG Corporate

£38million

163,000

Specialist sectors served: construction, financial services, manufacturing, professional sport Travel Counsellors for Business

£114million globally

105,000

1,568 Travel Counsellors globally / 6 offices

Specialist sectors served: sports organisations, information and communication, finance, insurance, professional, technical, public administration, defence Traveleads

£33million

115,000

70 staff / 2 offices

Leeds

1971

London

2005

London

1981

45 staff / 3 offices

Stoke-on-Trent

1903

18 staff / 2 offices

London

1972

42 staff / 2 offices

London

1970

64 staff / 4 offices (UK) and 400 staff globally

London

1992

Warwick

1993

Specialist sectors served: education, energy, technology, manufacturing, sport, media and broadcast, legal, finance Travel Leaders UK (incorporating Tzell UK and Protravel International UK) Uniglobe Travel

£80million

71 independent agents / 15 staff

105,000

Specialist sectors served: finance, legal, music touring, entertainment, fashion, medical repatriation £223million (UK)

490,000

46 UK locations

Specialist sectors served: media, IT, marine, telecoms, finance, legal, fashion, pharmaceutical Wayte Travel Management

£34million

60,000

Specialist sectors served: all sectors served; specialising in business travel since 1980 West End Travel

£12.5million

31,000

Specialist sectors served: corporate travel core, plus specialists in sport, groups, conference and incentive travel Wexas Travel Management

£26million

51,000

Specialist sectors served: finance, legal, retail, creative, insurance, group travel Wings Travel Management

£69million (UK)

176,000

Specialist sectors served: oil and gas, marine, security, finance, emerging markets Zip Travel

£750,000 Specialist sectors served: academic, MICE

24

1,000

3 staff / 1 office

Information supplied directly by TMCs to The Business Travel Magazine. Annual turnover figures quoted refer only to business travel in cases where a company also deals in leisure travel

Specialist sectors served: legal, finance, media, credit agencies, sport, education, manufacturing, construction

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TMCs / Data

THE FUTURE IS BRIGHT “Reports of TMCs’ death have been greatly exaggerated,” so Mark Twain might have said if he were in the business travel industry. New research conducted by the Business Travel Show on behalf of The Business Travel Magazine suggests TMCs will remain essential partners to businesses for the foreseeable future – as long as they evolve. Indeed, the notion of TMCs being an industry dinosaur couldn’t be further from the truth.

“For almost a decade TMCs have been warned they need to change or face the prospect of extinction,” says Business Travel Show Event Director, David Chapple. “Looking at the results of the survey, which show that 79% of buyers who use TMCs are happy with the service they receive and 89% believe they have a future, it’s apparent that TMCs have succeeded in adapting their service offering and are keeping their clients happy.”

• The Business Travel Show takes place on February 22-23 (businesstravelshow.com)

DO TODAY’S TMCS HAVE A FUTURE? YES, IF THEY EVOLVE 66%

YES 24%

NOT SURE 7%

NO 3%

ARE YOU HAPPY WITH THE SERVICE YOU RECEIVE FROM YOUR TMC?

Customer service – 32% Data provision and analysis – 25% Consulting and advice – 23% In no areas – 9% Others – 7% TMCs FALL SHORT...

A selection of travel managers’ anonymous comments from the BTS/TBTM survey LACKING VALUE

“We are running a tender process at the moment because we didn’t feel our current TMC contributed enough value to our cooperation. Our compliance was too low – we had too many people booking through other channels – so our agreements weren’t used. The TMC didn’t help us improve compliance despite knowledge of our dissatisfaction. We see TMCs as the experts and expect them to help us to improve compliance as part of the account management set up. The consequence is that we have started a tender process and expect to change to another TMC.”

THUMBS UP

“TMCs will remain indispensable if corporates focus on service and compliance, especially for international, multi-leg travel. Only the travel agent is able to manage the process.”

Yes – 73% No – 17% We don't use one - 10% IN WHAT AREAS DO YOU THINK TMCs FAIL TO DELIVER A SATISFACTORY SERVICE?

SPEAK UP!

PASSING THE BUCK TECHNOLOGY

42%

Survey respondents additionally cited the following subjects as areas where they feel their TMC falls short: support in negotiations, policing hotel rates, provision of content, global coverage, reporting and reconciling spend with invoices

“My moan about TMCs is the good cop/bad cop approach that seems to be taken in some instances when handling ‘difficult’ bookers who don’t like the policy, restrictions or process.

The consultant appears to ‘blame’ the travel buyer – 'so and so says we must do this' – rather than explaining the policy and logic behind it. They do anything to deflect the issue from their door which therefore lands it squarely at mine. Where’s the partnership focus in this!”

The survey sample comprised over 100 travel managers and buyers, 60% of which were UK-based buyers with the remainder based in continental Europe. Over three-quarters had annual travel budgets of over £1million.

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visit us at Stand B630

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