Navigating the changing landscape of travel management: TMC vs. integrators

The last round of industry consolidation has highlighted how the world of corporate travel management and the role of the Travel Management Company (TMC), in particular, is changing.

The constant changes in the TMC landscape raise a question for those looking for a TMC; does a narrower horizon of choice make it harder to make the right choice, or create the opportunity to consider a different approach?

We asked our Executive Director of Business Travel, Donna Fitzgerald, for her thoughts on this.

The integrators

When we go on holiday, we don’t always book every component of our trips through the same provider. We might book flights through X and accommodation through Y.

Several new entrants to the business travel space offer technology platforms that enable bookers to cherry-pick the content or tools they want. These integrators are essentially joining the dots and interacting with central booking platforms. At least in theory.

The snag with the integrator model is that customers often have to compromise when trying to wrap up everything needed such as policy control, compliance, sustainability, business intelligence and duty of care.

Realising the true value of the TMC

While the integrator model works for some organisations the true value of the TMC goes way, way further. Let’s consider the power of the human.

Travel management today is about using analytics and intelligent automation to optimise spend and governance in travel programmes.

Digital platforms that bring independent, standalone content, tools, and software together in one place are essential. But what happens when you need help from a real person?

After all, you can have all the great tech you need at your fingertips, but if it’s not backed by personal service and someone to speak to when you really need them then where is the additional value and differentiator?

Content and leverage

TMCs were the original aggregators, and still the best when it comes to harnessing the combined power of high volumes of combined spend and rich content.

In a volatile economy, with ever-changing market conditions, the TMC value proposition remains a reassuring constant.

Combining their customers/spend gives TMCs the buying power to secure the best prices from hotels, airlines, train operating companies and others that provide those customers with the biggest savings.

This proposition is even more compelling when those competitive rates are available across multiple channels. Only TMCs can offer so much content choice, especially when it comes to NDC, despite some TMCs adapting quicker than others. [1]

Acquisitions are nothing new

Consolidation in the travel management space is nothing new. We should know, we’ve been making or been part of acquisitions since 1975. Our acquisition-rich history has given us great experience with two standouts:

1. First, great customer service must be a constant at all times.
2. Secondly, every customer is entitled to the same level of service and technology access, no matter how much they spend.

There’s no denying that when two or more TMCs join forces, there are fewer alternatives to choose from. Not so this time around, because of the rise of the integrators.

The TMC and integrator models each have their own benefits and compromises. That’s why travel managers need to assess their specific needs and company culture to make the choice that best suits their objectives.

At Clarity, we can help you navigate the options and find the best fit for your organisation that reaches beyond the limits of tech-only solutions, ensuring policy control, compliance, sustainability, business intelligence, and duty of care aren’t overlooked. Speak to our team to learn how partnering with us can benefit your travel programme.

References

• [1] https://www.linkedin.com/pulse/how-do-tmcs-adapt-ndc-well-ritesh-sinha-mbb-lssbb-pmp-travel-sme--ry0oc/

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