FEATURE SME SECTOR
➔ “I’m cynical as I’ve watched suppliers as
we got bigger. It’s really not been easy. It depends on the company name and how well you’re known; it’s what you can bring to the table – the kudos as well as the volume,” she says. Thompson is critical of how TMCs treat SMEs: “Someone random picks up the phone; you’re put in a team of eight.” And of airlines: “They still treat you badly”. And hotels: “Some will cut a deal if they need a little client to bolster the figures. You really have to gather up the crumbs from the table as an SME.” Thompson is however enthusiastic about supplier loyalty schemes. “They are invaluable as you’re getting some recognition,” she says. With a spend of £400,000, Peter Macey,
facilities & central purchasing officer at MDDUS in Scotland, knows he’s a minnow but expects to be treated as a valued customer. “Certain suppliers treat us seriously and some don’t,” he says. For this reason, he picks his suppliers
with care. “I’ve had rejections in the past from TMCs who have said I’m too small.” MDDUS uses an independent TMC, Barhead – one of the largest in Scotland. Thompson may have felt downtrodden
as an SME but Macey doesn’t feel so disadvantaged. “I’ve taken my time to identify suppliers who value us,” he explains. “They’re all good for us and we’re good for them.” Macey books hotels and rail direct and
uses Barrhead for air, which is a fairly typical pattern among SMEs. “I tried booking direct for air but we make a lot
of changes which is time consuming and costly so I use a TMC for convenience,” he explains. He appreciates that the transaction fee his company pays accesses the TMC's expertise.
The part TMCs play And that, in a nutshell, is what TMCs offer. The SME can concentrate on their core business and the TMC on what they do best. SMEs tend to gravitate towards smaller, independent TMCs (as do some large corporates), synonymous with high-touch, personal service and who will treat them as an important client – a big fish in a small pond. In contrast, does an SME want to be a small fish in a big pond? Some do, as the big four TMCs – American Express, CWT, HRG and BCD – have turned their focus on SMEs and all quote significant SME market penetration. BCD claims that 50 per cent of its
European clients are SMEs, while CWT claims 55 per cent of clients have an annual spend of less than £1million. Big or small, TMCs can start to manage
the spend, bring bookings through one central channel, track patterns through MI and start to leverage spend. Account management by a team over
the phone is a minimum, although some offer a dedicated, named individual who the client will meet. The norm tends to be an online service and all TMCs will manage the account, from taking the booking to reconciliation. In terms of deals, it’s more value add
than discount, although net fares are ➔
“You really have to gather up the crumbs from the table as an SME. Some suppliers will cut a deal if they need a little client to bolster the figures”
36 THE BUSINESS TRAVEL MAGAZINE
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