TMC to get under the skin of the client, really understanding that they need and, therefore, installing more trust in the TMC resulting in better business all-round.”
WORK vs LEISURE Travellers’ expectations in terms of how of one shops and books travel are radically different from, say, five years ago. Away from work, most people have sophisticated smartphones and use a variety off intuitive, user-friendly apps to shop and book a range of products and services. Sodexo’s Marsden says: “Travellers
are forever criticising the corporate self- booking tool [SBT] in comparison to leisure travel channels. Some of this is due to the policy restrictions, but much is due to the lack of content and flexibility [offered by TMCs and technology companies].” Josh Gunn, head of digital communica- tions for Statesman Travel, says the variety of booking tools available in the public market make it difficult for OTA-type agencies to deliver value to the corporates. “They look at partners that can deliver the whole package,” he says. “If all the benefit a TMC provides is wrapped up in a booking tool, then it’s harder for travel managers to convince rogue travellers of the benefits of using the TMC, when they’ve got dozens of free apps that do the same on their iPhone.” FCM’s Ross says the mobile channel, despite its supposed popularity, has not, until now, achieved a significant amount of market penetration. That could, he admits, be about to change. “Mobile is certainly increasing, but not at the rate we expected and anticipated a few years ago,” he says. But predictions made at a forum organ-
ised by Amadeus and ITT (the Institute of Travel and Tourism) centred on that trend gathering momentum this year: traveller booking habits and demands around open booking and sharing economy items will, in their view, have a bigger immediate impact.
BSP AND CONSOLIDATION Later this year, TMCs will have to pay their airline bills through IATA’s BSP (billing and settlement plan) fortnightly. For many years, payments were made monthly, and TMCs’ cash flows were based upon four-weekly cycles. The big question is: will more frequent remittance impact the TMC-client relationship?
62 BBT MARCH/APRIL 2016
“Travellers are forever criticising the corporate self- booking tool in comparison to leisure travel channels”
Probably not, is the opinion of most.
CTI’s Wratten says: “As long as the TMC can demonstrate value in the services they provide then there should be little impact. However, if the TMC acts primarily as a credit facility for their clients’ travel spend, they could be in for a shock.” However, some smaller TMCs could find
the new financial arrangements tough to cope with. This could see more consolida- tion in the marketplace. Statesman’s Wil- liams says: “The BSP changes, coupled with a need for serious investment in technology
Out-of-policy amnesty
THE TERROR ATTACKS IN PARIS SENT A CLEAR MESSAGE to corporate travel and security departments across the UK: there are no safe destinations. Before the November atrocities, one London-based company had a relaxed attitude to out-of-policy rail and short-haul flight bookings. The proximity of the shootings in France forced a change of approach, as a number of its employees were in the country at the time of the incident but not trackable. To garner employee support for a policy change, the company introduced a temporary out-of- policy amnesty for any booking to any destination in the world. Staff were asked to come forward with details so they could be manually uploaded to the system. The amnesty covered a three-month period. However, the new policy stated that any out-of-policy bookings following the amnesty would not be reimbursed as expenses. So far, compliance levels have increased dramatically.
to keep pace with the industry, will cause some owners to view this as a fight they’re unlikely to win. “We expect more than a few at the under- £50 million mark to be looking for an exit. Conversely, the impact of BSP changes will hit the biggest TMCs very hard and make them even more financially risk-sensitive, reducing spend on innovation and progress in their offering.” The TMC-client relationship has gone
through its ups and down over the last two decades. But like any solid marriage, both sides take time to sit down and discuss their problems when the time is right. That’s not to say they couldn’t survive without each other; it’s just that they’re probably better off together.
BUYINGBUSINESSTRAVEL.COM
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124