TMCs
Occasionally, the right TMC could put
the wrong people on the account and the flexibility on the part of all parties to change that is crucial. “Once, I started working with a company and it became clear the team I had was not suited to the culture of the business, so I changed the team,” says chief operating officer of Wings Travel, Paul East.
MEASURING VALUE Controlling expenditure and getting value are not mutually exclusive, but cutting transaction fees to the bare bones is not productive. A major proportion of a TMC’s outlay is staff: if you ask them to reduce costs they will, but the peanuts and monkeys analogy applies and that will be detrimental to the programme. In fact, corporate cost-cutting has led to an
airline-style unbundling in TMCs’ charging models and what used to be included free or as a matter of goodwill now comes at a price. “It is very important for clients to know what is included in account management. Some TMCs include everything, others make additional charges for all elements of the service, which may be unknown to clients at the time of contract,” says Statesman’s Williamson. “Beware.” Procurement may be delighted that the
cost is reduced, but if out-of-hours service, for example, used to be included and is now priced separately, on paper, it may look as though the overall price is lower. But there is
Case study
LAST YEAR, TALENT AGENCY IMG WAS TAKEN OVER BY WME and is now part of the recently rebranded Endeavor group. This prompted IMG to put its travel business out to tender to three incumbent agencies, plus another four TMCs, and the travel team consulted HR and its CFO. “We are moving to Concur for expense management and we wanted to increase online booking and to improve our pre-approval process to deliver better savings to our organisation,” says global travel manager Hero Trew. Since WME took over IMG, the company has made several acquisitions and Trew’s team (headed up by Nancy Murray, VP, sourcing, procurement operations and travel) wanted to bring the new businesses into the travel programme to increase buying power.
84 BBT March/April 2018
“Communication was key. We spoke to potential TMCs before and after issuing the RFP because teams need to understand how your people work, your objectives and where you are trying to take your programme. Compatible culture was critical,” she says. IMG’s business is disparate, with day-
to-day transient business travel, plus VIPs, clients, sports teams, media crews and models, all requiring a different approach. The TMC’s affiliate already had a big part of WME business in the US and it won the business in the US, UK and EMEA, and GlobalStar kept APAC. “It was really tough; the last three were all incumbents and we had senior management make the final decision,” says Trew. GlobalStar will be feeding data into the TMC’s reporting tool so that IMG has
one central report. The platform should be ready in late spring/early summer. “We review our reporting to see how our supplier deals are performing and we look at the savings delivered by the TMC, not only with our deals but its own deals,” she says. “But ultimately, we have to listen to our people – it is key that travellers and bookers are really happy and that we are getting the best service and deals. That is how we measure the value of the service. “You need to engage players you think you can have a partnership with; to see their technology, visit their offices, meet their people – they are going to become a very important part of your organisation, so you have to make sure they can fit in with you,” says Trew. “The TMC has hand-picked its people, knowing what our business is like, it matches our needs.”
BUYINGBUSINESSTRAVEL.COM
“A TMC is a catalyst to high levels of service and savings. It is not the main form of savings”
a fallout because a buying team that is con- stantly travelling has inherited fees their cost centre has not budgeted for. But what comes around, goes around. “Customers are starting to say, if we want these things included, what will the new cost be?” says ATPI’s Knights. “We don’t want any surprises.” It is also important to involve your TMC
in any changes within the company, so that it can understand the motivation for the change and change with you. Flexibility and agility are paramount. Inform Logistics’ Flint warns: “Having
a travel service is not a panacea for any problems a company had previously. Partnering with the right TMC will ensure the programme runs smoothly and all the objectives are achieved. A TMC is a catalyst to high levels of service and savings. It is not the main form of savings.”
ADDITIONAL SERVICES The M in TMC is vital – management. “Working together is very important,” says Wings’ East. “We try to have a business plan with clients: what do you want to achieve in 2018? At review meetings, we work towards that; it gives a framework to relationships.”
A TMC should be able to manage an organisation’s suppliers, such as air and hotels, negotiate value-added deals, and consolidate meetings and events spend with transient accommodation for better rates. Also it should take a strategic approach to a travel programme to ensure value and duty-of-care, which should include consid- ering behavioural change, such as moving meetings from peak to shoulder times. This, in turn, is less stressful for travellers, less expensive and makes the business more attractive to suppliers. Expense management is also a wide-
spread option from TMCs, whether they provide bespoke technology, such as HRG and Statesman, or through arrangements with third-party suppliers, such as American Express and SAP Concur. Your TMC should be part of your team and
share your goals. It should confirm what you know and tell you what you don’t, reflect your culture and travel policy, exercise duty- of-care and support your travellers. But any TMC is only as good as its brief and if you are unhappy with the way your travel policy is going, it is worth questioning not only your agent but also your organisation.
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