SMEs BY MARTIN FERGUSON
he says. “But once you sit down and go through spend patterns, they soon realise there are opportunities. They may also employ someone in-house to look after travel for the staff. But when you compare the value of that salary against the cost of TMCs’ fees and expertise, it becomes a very easy decision for them to make.”
GROWING SHARE The potential for travel intermediaries to grow their share of managed travel in the SME sector is nothing new. When global conglomerates slashed travel budgets post-credit crunch, the big TMC players, such as Carlson Wagonlit Travel, HRG and American Express Global Business Travel all quickly rolled out products and strate- gies to attract the type of business that was, until then, considered small potatoes. FCM Travel even created a business called Corporate Traveller to specifically target the SME sector. At the time, indepen- dent TMCs and consortia said their larger competitors would not be able to provide the intimate service demanded by small organisations. The debate continues. For the most part, SMEs have the
same travel and meetings management requirement as larger organisations, says Inntel’s business development director, Jane Dibble. “Many of our SME clients are market leaders in their own sectors,” she says. “But whether they are large or small is irrelevant in some ways. We still have to look at travel patterns and company culture to identify the best solution.” Dibble is one of those who believes SMEs receive a better service from independent intermediaries, because they offer a more intimate service.
BUYINGBUSINESSTRAVEL.COM
The SME-TMC relationship should be more like a marriage than a long distance relationship
KEEPING IT CONNECTED TMG Corporate director David Moore agrees, saying the SME-TMC relation- ship should be more like a marriage than a long-distance relationship. In large organisations he believes there is often a “disconnect” between those respon- sible for buying travel, the TMC and the travellers themselves. “Travel policies are, therefore, often geared towards control- ling travellers with whom you have very little actual contact,” he says. “In SMEs, generally speaking, you’re dealing with the owner and senior staff, who do both the procurement and the travelling. They don’t just need a booking service. You need to be a full-time travel consultant advisor and consultant to their business.” Moore believes it is the consultative
approach that helps differentiate modern TMCs from old-fashioned agencies. He says breaking into new markets, especially in far-flung destinations, is one of the SMEs’ biggest challenges when compared to larger, multi-region competitors. “What may have started as a domestic business may now have the opportunity to break into potentially lucrative international
markets,” he says. “In large organisations there is already a well-trodden path in terms of knowledge and processes. Not so for the SME. A TMC should, therefore, assist on all aspects of travel and ground logistics. That can be anything from com- mercial advice for the sales team through to translation services. It is more than just someone on the end of the phone to make a booking.” TMG takes this a step further by working closely with the UK Depart- ment for Business, Innovation and Skills, as well as chambers of commerce, to help SME customers take part in trade missions to new markets.
BETTER AND QUICKER DECISIONS The absence of large procurement depart- ments can work to the advantage of SMEs looking to formulate a travel programme. Travel Leaders’ Whittaker believes dealing directly with owner-managers means better and quicker decisions can be made. “The beauty of SMEs in this respect is that they are nimble. Procurement in larger companies often makes decisions based on cost, as if travel were a commodity,” he says. “It’s simpler for SMEs to take a more holistic approach to implementing a travel policy and programme, and so everything can be traveller-centric.” Paul East, chief commercial officer of Wings Travel Management, says conversations should also involve, where relevant, office managers and executive PAs. But what is the starting point for an SME that has never encountered managed travel before? East first suggests a meeting with head of finance to understand the department’s key criteria before moving on to the HR
BBT JULY/AUGUST 2014 41
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