GTMC COLUMN PAUL WAIT Blurred lines
As travel distribution continues to evolve, the benefits of indirect sales channels should be put in the spotlight
W
HEN IT COMES TO SALES CHANNELS, many travel suppliers cling on to the belief that direct is
best. Over the years we’ve seen providers move from targeting travel managers with the holistic benefits that TMCs can bring to competing purely on price. But, in doing so, have we lost sight of the experience of the actual end user – the always- on business traveller? As the lines between B2B and B2C relationships become increasingly blurred and the technology that travellers now take for granted continues to evolve, it’s clear that companies neglecting those indirect routes may be courting their own self-destruction. Our new report, Impaired Vision, was written in partnership with the Travel Intelligence Network to review the valuable role that indirect sales channels still play within corporate travel. It put the spotlight on the
MOVERS & SHAKERS
Paul Wait is chief executive of the Guild of Travel Management Companies (
gtmc.org)
age-old challenge of prioritising cost-savings over value-gains. I’m not denying that cost will always be a priority for business travellers, travel suppliers and TMCs. But where is the tipping point between saving on the bottom line and delivering value to customers? In more recent times, with the ongoing threat of terror attacks, there is a stronger focus on duty-of-care as well as cost. Likewise, flexibility, responsiveness and a more forensic focus on management information are all paving the way for value to supersede cost. What does this mean for the travel industry? It provides TMCs with an opportunity to demonstrate their own value, from arranging alternative bookings and coordinating new itineraries to employee tracking, compliance and delivering financial control. For example, TMCs can kick into action immediately while those who
booked direct are left to grapple with managing administration costs for changing their existing booking. Suppliers are faced with a conflict
of interest when marketing to the traveller. The belief is that direct sales offer lower costs and higher returns. However, TMCs also access supplier websites to get the best deal. There can be little doubt if suppliers were required to replicate the management services of a TMC, that cost would be passed on to the customer. As a result it is pretty much impossible for suppliers to compare like-for-like costs between direct and indirect. What’s the answer? Price parity across all channels with a focus on value as well as cost. This will pay dividends and be a win-win for all.
IRINA KEEN
Irina Keen has been appointed as global account manager at US accommodation specialist National Corporate Housing. She is the first UK-based associate for the company, and will be targeting UK business. Keen previously spent four years at SACO.
130 BBT May/June 2017
NANCY MEDOFF
BCD Meetings & Events has appointed Nancy Medoff as vice-president of global sales. Previously with Marriott International in various roles, including senior global sales director. Medoff also served as an adjunct professor of strategic marketing at Boston University.
MARTIN WHITTAKER BMI Regional has appointed Martin Whittaker as chief operating officer. Whittaker joins from Babcock International Mission Critical Services, where he was a board-level executive. He has over 35 years’ experience in the aviation industry.
JASMEEN KAUR
Jasmeen Kaur has been appointed as head of product & solutions for the EMEA region at Travelport. With over 20 years’ experience in the travel industry, before joining Travelport in 2012 Kaur was director of revenue generation EMEA at Pegasus.
BUYINGBUSINESSTRAVEL.COM
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