[Phileasfoggtmc]

No – TMCs add more value to larger clients – as referred by other contributers of smaller SMEs have a small volume of transactions, they can make a calculated rationale as to the value of a TMC to their business aside from just the transactions processing – management information, credit facility, 24 hour service, etc. as as commission has decreased and continues to decrease to offset the fee, the corporate can decide whether the net fee represents value to them or not – as in the case of a couple of contributers it doesn’t for their circumstances.

[BABenji]

I admire passion, even if I don’t agree with the cause.

Let’s look at this from a different perspective. I am going to Oz in August.

I will depart LHR on 6th for ADL. 11th depart for SYD. 15th depart for MEL. 18th depart for CNS. 23rd depart for LHR. I need to stay at the Hilton in Cairns, that aside, it’s CBD all the way for the others. International legs are in business class. Domestic are economy. I want to fly with one world and preferably stay at hilton’s all the way.

What does a TMC offer me?

[Legroomneeded]

Hey Philleas , there’s an opportunity to possibly secure a new client, if ever i saw one !

[Phileasfoggtmc]

A good TMC would present all the options for you, suggest alternatives that may be more cost or time effective, provide leverage on the hotel rates, perhaps suggest some alternatives offering either a saving or soft benefits (upgrades etc). They’d do this whilst you could get on with doing something else. They’d bill you for it, provide meaningful management information and trend analysis for this one as part of the total volume of transactons

I’d expect as a minimum parity with anything you transact yourself, but then we’d charge a transaction fee for the air and hotel, you’d received all the commsion applicable which for multiple hotel bed nights should be more than the additional agent fees

[VintageKrug]

I think it’s fair to say TMC’s offer most value when used in larger organisations where there is value from enforcing travel policies, providing Management Information and managing billing/credit etc.

What I do wish is that those setting travel policies – and TMCs who enforce them – would adopt a more pragmatic approach to restrictions which, for instance, focus on absolute cost rather than class of travel restrictions, which are often flawed a way of delivering hoped for economies.

[LuganoPirate]

Good point VK. A friend of mine working in Switzerland for a large French co. is mandated to use their TMC. To cut costs they enforced a Y class travel policy on all Long Haul flights. The absurdity of this is the engineers now refuse to work on the flight. No power points and too cramped. They then need a day to recover as they rarely get to sleep, adding to cost, but the insult to injury is that discounted C is often cheaper than full fare Y!

Like anything in life I’m sure there are good as well as bad TMC’s out there and what work’s for one may not work for another. For example, I sit on the board of a University. We use a TMC to save time and probably money. With 500 students +50 faculty on Academic Travel, twice a year for 20 days to 20 different destinations worldwide we find our TMC invaluable – and not only to prevent faculty from claiming “Students took all the seats, only F was left for me!!!” Not that they would of course!

From my perspective I book all hotels for myself, family and staff. That way I get upgrades and good deals. Air travel SH is booked by myself using airline websites. Long-haul I use a small TMC who is wonderful. Direct line, mobile number and always available. She gets some amazing fares and will happily tell me if I’m better off booking direct. (As I did using one Forum Member’s head’s up for LH’s special Buisness long-haul Easter deal).

Where she comes into her own is while traveling, and I need to book CPT – BLM or SIN-BKK unexpectedly. She just takes care of it and bills me when I get home. I don’t know if I’m getting a particularly good fare or not as she does not necessarily have the local knowledge, but I’m happy to pay a few €’s extra for the sheer convenience.

[VintageKrug]

Noticed BT has published (online?) an article singing the praises of TMC’s. Judging by the sentiments expressed in the thread above, I am not so sure the article was as balanced as it might have been:

http://www.businesstraveller.com/archive/2010/may-2010/special-reports/time-for-a-tmc

[Tom Otley]

Afternoon,

It’s online and in the May issue, so I hope your copy has arrived

The article was intended to be balanced. It is currently behid the subscription barrier, that wall we hope will somehow encourage people to pay for content rather than getting it for free, so many forum posters won’t yet have seen it, but to give a flavour….

Travel management companies (TMCs) are used to adapting to changing circumstances, but the past 18 months have been particularly hard for them. Not only has the volume of business travel being booked dropped, but as budgets have been squeezed, companies have looked for ways of making their travel expenditure go further. For some, that meant getting rid of their TMC and moving their procurement in-house.

So now things have – whisper it – started to improve, should those who have been surfing the web for the best deals return to letting the professionals do it? And how do TMCs justify the “management” fees they charge?”

and we go on to question the TMCs claims, for instance….

TMCs say they can tell you the best way to get from A to B, whether by air or rail, and advise you on the best hotel for your needs, including factors such as location and facilities. Whether this is true or not largely depends on (a) how much you know and (b) how much your adviser knows, although there’s little doubt that you can save considerable time if you pass the research to an external party. Most of us are quite capable of booking point-to-point travel and a hotel, but complicated multi-itinerary trips are more labour intensive….

The article can be read in full here

http://www.businesstraveller.com/archive/2010/may-2010/special-reports/time-for-a-tmc

if you are a subscriber.

[VintageKrug]

Interesting article.

[VintageKrug]

Splendid. My TMC is Amex.

My PA is banned from using them.

Nonetheless, it’s well worth others exploring your generous offer to benchmark services as it may suit their needs.

As an “amuse bouche” for the forum members, perhaps you might take a look at the thread “Sydney in Business” and set out in that scenario why choosing to book through a TMC might be advantageous.

[Schlosshotel]

What most people forget or do not even know about is the fact that first of all what they do is “selling”. Just like a generel travel agency or DMC.

But the most worst part is the double fact they do sell things and products they do not know. By experience for example. Especially travel experience in this case.

So how do you catch the people? First you tell them you do big consulting. But how can you consult on things you do not really know. You could say they are the bankers of the travel industry. And last but not least with the phrase “You can save big money”!

All that works in the most businesses.

[IanFromHKG]

The bank I work for used to mandate three local travel agents, who rebated part of their commission to us, and were helpful and efficient. Then we switched to a global TMC, who charge us $37 for every phone call we make to them (!) and even charge for every e-mail.

Yes, they do a good job of keeping our corporate security people notified of where people are – useful in the recent Japanese earthquake. And yes, they also enforce our (ridiculous) travel policy – but they don’t do that so efficiently. I recently asked for a booking at a particular hotel and was turned down because it was over our budget for the city in question. By $1.27. So I volunteered to pay the difference personally and was told the following day that now the rate was under the limit because the exchange rate had fluctuated slightly overnight. Madness. Oh, and no doubt we got charged for the e-mails to the tune of rather more than $1.27.

More to the point, though, more than half the time I try I can better the hotel rates they get – so what value are they supposed to add? I have NEVER seen them save any money on my trips. Not once.

Separate whinge while we are on a related topic – what is it with travel policies nowadays? Ours seems designed to engender staff dissatisfaction and fatigue. Personally, I think every person who invents or approves a travel policy should be forced to comply with it continuously for a week…

[Author]

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