TMCs


T


HE PAIN OF BREAKING UP has been an endur- ing theme in popular culture for centuries but how hard is it to end a relationship with a TMC – particularly if it’s a long-standing partnership with strong personal and business ties between key employees? In theory, it should be a relatively simple process – a case of just changing a business


supplier after all – but travel management has always been a bit more, well, complex and heartfelt than buying stationery. All buyers know how quick business travellers can be to show their annoyance when things don’t go to plan during their trips. While most TMCs boast about client retention rates of more than 90 per cent, there are still plenty of organisations looking to move TMCs for a variety reasons (see panel, p93). But what challenges face clients who choose to take the plunge and move TMCs?


WHAT TRIGGERS A REVIEW? Nobody likes change unless it’s absolutely necessary, so there have to be compelling motivations to make any organisation consider moving TMCs. Jill Palmer, chief executive of Click Travel, says business


travel is “quite sticky” when it comes to clients staying with their TMC. “Clients generally don’t move unless something goes wrong – and that’s mostly about technol- ogy and service,” she adds. “Our biggest competitor isn’t other TMCs, it’s inertia. “They may choose to move when they just get fed up with the service and know they are getting ripped off. They start to think we can get it cheaper elsewhere.” Palmer says that some organisations may not have


looked at switching TMCs for many years and could be relying on outdated manual processes. “We had one customer where they were still sending


somebody to the rail station to get the train tickets,” she adds. “Those travel managers who haven’t had a look in the market for some time will get a pleasant surprise about what’s available.” Of course, some types of organisations – particularly in the public and educational sectors – have to adhere to strict rules about putting their TMC contracts up for tender every three to five years. Meanwhile, larger companies with vast procurement departments will have regular tendering and benchmarking reviews hardwired into their procedures.


Clients not tied down by these formal procurement rules will often only trigger a review into their TMC when “something is not quite right”, says Simone Buckley, chief executive of TMC Fello. “Something triggers the review – there could be too many service issues or it could be cost. There might be a change in staff at the TMC and it could be that two personalities don’t fit together,” she says. In the SME market, adds Buckley, a change in TMCs can often come about when a personal assistant switches


buyingbusinesstravel.com 2019 MARCH/APRIL 91


ILLUSTRATIONS: BEN SOUTHAN


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