Not sure what a Travel Management Company actually does? This deep dive explains it all – from booking and policy compliance to data, duty of care and sustainability. Tailored for procurement and travel professionals, it's everything you need to know to make informed decisions about your travel programme.
Business travel can be complex and time-consuming to manage. This is where a Travel Management Company (TMC) comes in. A TMC serves as a dedicated partner to handle corporate travel needs, allowing organisations to focus on their core business. In this comprehensive guide, we explain what a TMC is, the services they provide, and how they add value for procurement teams and travel managers. We’ll also explore the strategic role of technology and data, the importance of sustainability in modern travel programmes, and what to consider when choosing a TMC partner. The goal is to give procurement and travel professionals a clear understanding of how TMCs support business goals in a safe, efficient, and sustainable way.
A Travel Management Company (TMC) is essentially a business-to-business travel agency specialising in corporate travel arrangements. Unlike a traditional leisure travel agency, a TMC is focused on meeting the needs of organisations and their business travellers. This means handling all aspects of work-related travel – from booking flights and hotels to managing travel policies and providing support for travellers on the road. In short, a TMC takes on the heavy lifting of corporate travel management so that companies and their employees don’t have to.
TMCs operate as an extension of your organisation’s travel department. They use their industry expertise and supplier partnerships to secure the best options and rates, enforce your company’s travel policies, and ensure trips run smoothly from start to finish. A TMC’s role often goes beyond just booking travel; they provide strategic guidance and continuous support. As one definition puts it, a TMC offers corporate travel services like booking business trips, managing travel expenses, enforcing corporate travel policies, visa and passport assistance, and travel insurance. In essence, combine travel agency services with consultancy and support functions tailored for businesses.
It’s also useful to distinguish a TMC from basic online booking tools or consumer travel sites. While an employee could book a flight or hotel on a public website, that self-service approach on its own can “lack the oversight and guidance that TMCs provide. TMCs offer a tailored approach to corporate travel. using their industry expertise to negotiate favorable rates with suppliers, ensure compliance with company policies, and provide 24/7 support”. In other words, a TMC is a comprehensive solution: they not only find travel options, but also align those options with your company’s policies, budgets, and duty of care obligations. Many TMCs even provide their own online booking platforms for clients to use, offering the convenience of self-service plus the back-up of expert travel consultants. As one source notes, TMCs often supply an online booking tool with the same ease of use as consumer sites, “with extra support from experienced travel consultants who specialise in finding the best rates for business travel”1. This blend of technology and human expertise is a defining feature of modern TMCs.
Travel Management Companies typically offer a wide range of services to support every aspect of business travel. These services can be customised to the needs of each organisation, but the core offerings usually include:
The takeaway: a good TMC operates as a one-stop-shop for business travel. It covers everything from the initial planning and booking of trips, through to traveller support on the journey, and post-trip reporting. This comprehensive service spectrum is delivered through a combination of advanced technology tools and skilled human agents, providing both efficiency and a personal touch.
Why do organisations choose to partner with a Travel Management Company? For procurement professionals and travel managers, the value proposition is multifaceted. Here are some of the key benefits a TMC can deliver to your travel programme:
All of these benefits underscore that a Travel Management Company is not just a booking service, but a strategic partner that can elevate your corporate travel programWith advanced technology, always-on traveler support, and strong supplier partnerships, a TMC can help your employees travel safely and efficiently. Meanwhile, its team of travel pros can help you optimise costs, and design a best-in-class travel program. In other words, a TMC uses a mix of technology, service, and expertise to achieve both operational improvements (saving time and hassle) and strategic improvements (saving money, keeping travelers safe, and aligning travel with business objectives).
Today’s Travel Management Companies are as much technology providers as they are travel agents. In fact, the best TMCs blend innovative tech with human expertise to deliver a seamless experience. This marriage of tech and people is critical: technology brings efficiency and data intelligence, while human consultants provide judgment, flexibility, and personalised service. For procurement and travel managers, understanding a TMC’s technology capabilities is key to unlocking the full value of the partnership.
Integrated Travel Platforms: Most TMCs offer an online booking tool or platform (often branded specifically for that TMC) where travellers or travel arrangers can book trips under your company’s account. These platforms aggregate a wide range of content – global flights, hotel inventory, car rentals, rail options – often via both global distribution systems (GDS) and direct connections to suppliers. By “automating different travel components – like lodging, flights and ground transportation – into one online booking platform,” a TMC makes the booking process more efficient and easier to manage. Everything is in one place, with a consistent interface and your policy and preferences built in. For example, ClarityGo is Clarity’s proprietary booking tool that allows clients to “book and manage all your business travel bookings from one platform, while streamlining your travel programme with tech-driven and people-centric features”. Users of ClarityGo have an intuitive, content-rich system at their fingertips, backed by Clarity’s support team – making corporate travel easier than ever to manage. This kind of platform is often accessible via both web and mobile app, so travellers can handle bookings or get updates on the go.
Policy and Profile Integration: The technology platforms provided by TMCs are typically configured to each client’s travel policy and integrated with traveller profiles. This means when a traveller searches for a flight, the results can be filtered to show in-policy options first (for instance, lowest logical airfare, preferred airlines, or hotel caps as per your rules). If someone tries to book something outside of policy, the system can either prevent it or alert the user/manager for approval. Integration with profiles also allows personalisation – the system knows the traveller’s loyalty programme numbers, seating preferences, etc., applying them automatically. All of this happens behind the scenes to streamline the experience and enforce compliance quietly.
Mobile Apps and Traveller Tools: Modern TMC tech includes mobile applications that travellers can use for managing itineraries, receiving alerts, and contacting support. For instance, travellers can get push notifications about gate changes or safety alerts, and with a tap, reach an agent via chat or phone. Some TMC apps even include chatbots or AI assistants that can answer simple questions (e.g., “what time is my flight?”) or make quick bookings. These tech tools are crucial for supporting travellers in real time and giving them self-service capabilities when appropriate.
Data Insights and Reporting: One of the most powerful aspects of TMC technology is the data it generates. Every booking and expense can flow into analytics dashboards for your company. TMCs collect and analyse a wealth of travel data, which gives your business insight into spending patterns and trends. Through data visualisation and reports, you can spot opportunities to improve. For example, data might reveal a high volume of last-minute bookings in a particular department – a chance to encourage advance planning to save money. Or it might show your top 5 city pairs for travel, which you could leverage in airline negotiations. TMCs often provide online reporting portals where procurement and travel managers can run custom reports, track KPIs (key performance indicators) like average ticket price, and measure compliance. Some TMCs even employ data scientists or use AI to deliver predictive insights, like forecasting next quarter’s travel spend or identifying travellers at risk of burnout based on their travel frequency.
Benchmarking and Programme Optimisation: With the data collected, TMCs can also benchmark your travel programme against industry or peer metrics. They might show, for instance, how your average hotel rate in London compares to similar-sized companies’ rates. These insights help demonstrate programme success and pinpoint areas to improve. The TMC’s consulting experts will work with you to adjust policy or supplier strategies to continuously optimise the travel programme’s performance.
Example – Technology in Action: To illustrate, consider how Clarity leverages technology in its services. As mentioned, ClarityGo provides a single, user-friendly platform for bookings, ensuring that travellers have all options in one place and that every booking is within policy and captured for reporting. In addition, Clarity’s platform emphasises traveller safety and sustainability – for instance, when booking with Clarity, travellers can even filter search results by lower CO₂ emissions to choose more eco-friendly travel options. This not only helps reduce the carbon footprint but also aligns with company ESG goals (more on sustainability shortly). Meanwhile, for meetings and events, Clarity’s MeetingsPro tool shows how technology can simplify a traditionally manual process. MeetingsPro lets you “search live availability, book direct and manage meetings within one easy-to-use platform, with a complete view of meeting spend, preferred venues and policy guidelines”. It essentially brings the same level of control and visibility to meetings as we have had for transient travel. Both ClarityGo and MeetingsPro demonstrate the value of having a robust tech platform: clients get convenience and oversight, and procurement gets the data and compliance they require, all under one roof.
In summary, technology is a core pillar of what modern TMCs offer. However, it’s the combination of tech and service that truly makes the difference. A global online booking tool alone is not a full solution, as it “lacks the oversight and tailored guidance” of a managed travel programme. The TMC’s experts behind the scenes use these tools to deliver proactive service – for example, a good TMC might run reports and proactively suggest: “We noticed many travellers are booking expensive last-minute flights to New York. We can help by setting up an approval step for trips under 7 days out to encourage advance purchase.” This kind of insight comes from technology, but the consultative action comes from experienced travel managers. When evaluating TMCs, it’s important to look at both their platform capabilities and how their people utilise technology to support your travellers and objectives.
Sustainability has become a significant focus in corporate travel programmes. With growing awareness of climate change and corporate social responsibility, organisations are looking to reduce the environmental impact of business travel. For many companies, travel (especially air travel) contributes a large portion of their carbon footprint (often counted as Scope 3 emissions). A modern TMC can play a crucial role in helping a business travel programme become more sustainable and aligned with Environmental, Social, and Governance (ESG) goals.
Measuring and Reporting Carbon Emissions: The first step to making travel more sustainable is understanding its impact. TMCs help by tracking carbon emissions associated with trips – for example, calculating CO₂ output for flights, hotel stays, and car rentals. They provide reports that quantify the total emissions of your travel programme and even break it down by department, route, project, etc. Having this data allows companies to set baselines and targets (e.g. to cut travel emissions by X% next year). As one TMC practitioner explained, the challenge is “getting meaningful data and putting it into a context that’s relevant to the customer. [TMCs] harness data that evidences the impact of doing the right thing... broken down into tangible buckets so they can decide how to mitigate or reduce their emissions.” In other words, a TMC can translate big data on travel into digestible insights that help you take action on sustainability.
Enabling Smarter Choices: A TMC can actively encourage and facilitate greener travel choices. This might include configuring the booking tool to highlight or favor the most sustainable options. For example, displaying rail options prominently for short trips that might otherwise be flights, or indicating which hotel partners have sustainable practices or certifications. As noted earlier, Clarity’s system offers “an eco-friendly option at the time of booking” and even allows filtering by CO₂ output, so travellers see a clear indicator of which choice is greener. By making the sustainable choice the easy choice, TMCs can nudge traveller behavior towards lower-carbon options without mandating it. Additionally, TMC consultants can advise on travel policy adjustments like requiring approval for trips that could be replaced by video conference, or encouraging longer but less frequent trips (combining multiple meetings into one journey) to cut down total flights.
Supplier Sustainability Partnerships: TMCs also work with travel suppliers on sustainability. They can help you choose airlines with more fuel-efficient fleets or carbon offset programmes, hotels that have strong environmental policies, and car rental agencies with electric/hybrid vehicle options. Some TMCs maintain a list of preferred “green” suppliers or provide ratings on suppliers’ sustainability metrics. This information can be incorporated into your program – for instance, steering more bookings toward a hotel chain that has committed to net-zero emissions. Over time, your spending can be leveraged to support suppliers that align with your sustainability values, creating positive reinforcement in the market.
Carbon Offset and Reduction Programmes: If your company has a carbon neutrality goal, a TMC can assist with implementing carbon offset programmes for travel. This could be through partnerships with offset providers where, for every trip booked, a calculated fee can be contributed to carbon offset projects (like tree planting or renewable energy initiatives). Some TMCs integrate this so that reports show not just emissions, but also the offsets applied, to keep you on track toward net-zero travel. Beyond offsets, TMCs increasingly help companies with reduction strategies – essentially travel demand management. This might involve analysing if certain trips are non-essential or if remote meetings could substitute, thus actively reducing the amount of travel without harming business outcomes. As we say it, “working smarter” includes conversations about ways employees can contribute to success while also travelling and connecting in the safest and most sustainable way.
The TMC’s role is to help define what the “right” travel looks like and educate or incentivise travellers accordingly.Traveller Wellbeing and Sustainability: Interestingly, what’s good for the planet can be good for travellers too. For example, encouraging use of rail over a short-haul flight not only cuts emissions but can reduce stress (since city-center train travel has less hassle than airports). Likewise, cutting down on same-day turnarounds by allowing an extra night might slightly increase cost/carbon for the hotel, but greatly improve traveller well-being and productivity. A savvy TMC will help find that balance and advocate policies that are sustainable and travleler-friendly. Indeed, many travel buyers now consider travleler well-being and carbon footprint together as key pillars of programme management. In summary, sustainability in business travel is about making conscious choices to reduce negative environmental and social impacts. A capable TMC supports this by providing data transparency, tools for greener bookings, and strategic guidance to shift behaviors. They become partners in your company’s sustainability journey. Where a customer has a sustainability program in place, [the TMC can] provide support through our commitment to driving change toward decarbonisation. This might range from simple steps (like promoting paperless itineraries and electronic tickets to reduce waste) to more ambitious initiatives (like helping craft a travel carbon reduction roadmap). For procurement and travel managers, leveraging your TMC’s expertise in this area can be invaluable, ensuring your travel programme not only meets cost and service goals but also aligns with the broader mission to operate responsibly.
Choosing a travel management company is a strategic decision. The right TMC will become a long-term partner that works closely with you to achieve your organisation’s travel objectives. As every company’s needs are different, it’s important to evaluate TMCs on a variety of factors to find the best fit. Here are some key considerations for procurement and travel professionals when selecting a TMC:
By weighing these factors – experience, technology, global reach, duty of care, service quality, scope, cost, and cultural alignment – you can make an informed choice of a TMC partner. It often helps to involve key stakeholders (travel arrangers, frequent travellers, HR, finance) in the evaluation, as their perspectives will ensure the selected TMC meets all user expectations. Remember that transitioning to a new TMC is a significant project, so also inquire about their implementation and training support to ensure a smooth rollout.
In the world of corporate travel, a Travel Management Company can be an invaluable ally. A TMC brings order, efficiency, and expertise to what can otherwise be a chaotic process of managing trips, expenses, and traveller needs. For procurement and travel professionals, understanding the role of a TMC is crucial to leveraging business travel as a strategic asset rather than just a cost center.
In this guide, we covered how TMCs function as specialised corporate travel agencies that handle everything from bookings and policy compliance to 24/7 support and risk management. We highlighted the rich services they provide and the benefits – from saving time and money, to enhancing traveller well-being and safety, to delivering data insights that inform better decisions. Modern TMCs also harness technology and data to elevate travel programmes, using innovative platforms like ClarityGo and MeetingsPro to simplify processes and provide real-time visibility into travel activity. Importantly, TMCs have evolved to support corporate sustainability goals, helping organisations travel more responsibly through carbon tracking and greener travel options.
Ultimately, choosing the right TMC comes down to finding a partner that aligns with your business needs and values. A strong TMC relationship is collaborative: the TMC’s team works closely with yours to continuously improve the travel programme and adapt to new challenges or objectives. When the partnership is right, a TMC will get your people where they need to be – safely, securely, and in the most sustainable way possible while keeping an eye on your bottom line. For any company looking to elevate their corporate travel management, investing in a quality TMC partnership can pay dividends in cost control, employee satisfaction, and risk mitigation.
Business travel is about enabling growth and opportunity – meeting clients, opening new markets, forging partnerships. A Travel Management Company ensures that those journeys are efficient and well-managed, so your travellers can focus on the business at hand. With the comprehensive support of a TMC, procurement and travel professionals can rest assured that their travel programme is in expert hands, driving value and aligning with the organisation’s broader goals. In short, a TMC makes your travel programme “do the business” for your business, delivering brighter outcomes for both the company and its travellers.