p24 biz Sept25 22/9/09 15:03 Page 24
Business travel
Martin Ferguson
020 7921 8011
maferguson@ttgbusiness.com
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Indies’ fear as big
GTMC delays
TMCs target SMEs
manifesto
THE GUILD of Travel Management Companies has
decided to delay publication of its business travel
Martin Ferguson.
election manifesto until after its annual general
INDEPENDENT travel management companies meeting in January.
are ready to do battle to protect their core The document, which will set out the guild’s
business after a second multiple told TTG it political agenda for the next general election, had
was moving into the small to medium-sized been planned to be made public in December.
enterprise market. Cavendish Communications, an independent
Carlson Wagonlit Travel said it was intending public affairs and media relations consultancy,
to target the sector after HRG unveiled a product was appointed by the guild last year to help build
targeting SME business (TTG September 18). relationships with political decision-makers.
The launch of HRG’s Simply HRG tool enraged The document is likely to address subjects
owner-managers of smaller TMCs, who fear they such as climate change, the third runway at
could lose valuable accounts to the multiples. Heathrow and Iata bonding.
Dominic Joyce, managing director of Philip Carlisle, the GTMC’s chief executive, said
Grosvenor Travel, accused the multiples of the manifesto would be the culmination of more
“arrogance” and claimed SMEs would be wise to than two years’ lobbying.
steer clear of them. tough time convincing SMEs to buy their services. “The delay gives us a little more time to gather
“HRG claims many SMEs don’t want the “Simply HRG is only after the SME market opinion,” he said. “People think all you need to
bespoke services demanded by larger compa- because its large accounts are not attracting the do is throw a drinks reception at the House of
nies. But in our experience SMEs steer clear of income they did in previous years,” he said. Commons or send out a blanket letter to MPs.
the large TMCs precisely because they don’t get “What is going to happen when big business “It takes a lot more work than that. We have
bespoke service from them,” he said. from their large corporate accounts returns? Will to make sure we get this manifesto right.”
“With the usual arrogance of the larger player Simply HRG simply vanish?”
they think they will attract smaller companies by CWT director Nigel Turner said the TMC repre-
dumbing down their offering and making it sented “the full spectrum” of business travel,
‘simple’ enough for them to understand.” adding: “We base service around clients’ needs
HRG consultancy
Ken McLeod, corporate director of Advantage rather than size. No matter how much a company
Travel Centres, said the multiples would have a spends on travel it is significant to them.” division expands
HRG has created an international arm of its client
‘Small firms may have to merge’
consulting division.
The travel management company said it
expanded the team in response to growing global
PLANS by multiple travel manage- “It’s not surprising that the larger demand for expert advice.
ment companies to target small and TMCs are making a more concerted The department, which will be lead by head of
medium-sized enterprises could effort in the SME market right now,” client consultancy Paul Dear, was set up to help
trigger consolidation in the inde- he said. HRG’s corporate clients save money on their
pendent TMC sector, according to “It opens up potential markets global programmes.
Institute of Travel and Meetings chief at a time when even the smaller The team will advise on airline, hotel, car and
executive Paul Tilstone (pictured). companies could be looking for ground transportation, as well as corporate
He said the moves by HRG and greater management, automation cards, carbon emissions, self-booking tools,
Carlson Wagonlit Travel to target business from and control. meetings and events, and travel policy.
smaller companies outside their traditional “If the pricing and servicing is right to engage Dear said he would be leading a team of
market were a logical response to the economic the sector, it could add to the difficulties of the “highly experienced” project managers and
downturn. smaller TMCs and start further consolidation.” analysts, adding: “I have absolutely no doubt of
ITM members would be watching the situation But he added: “A number of the niche, smaller the value they will bring to our clients through
with “great interest”, said Tilston, who believes players are confident in their servicing ability their knowledge of the industry and appreciation
it could lead to mergers of smaller TMCs. and sell against the multiples on this basis.” of our clients’ business objectives.”
24 25.09.2009
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