TMCs
caught out with a new TMC is in the area of out-of-hours charges. If the new TMC operates a significantly longer out-of-hours period than the client’s previous agency then the buyer could suddenly face more of these higher out-of-hours charges. But not everything is about price – there is the impor- tance of ensuring you get the type of service you want from the TMC. If there is too much focus on just securing low transaction fees then the service given to travellers may not be up to scratch, and could represent a down- grade on what was being offered by the previous TMC – something sure to be noticed by regular road warriors. “The biggest challenge is that many of the decisions to change TMC are made on price without understanding the full requirements of the end user – the traveller,” says Paul East, chief operating officer, UK, Europe & Ameri- cas, at Wings Travel Management.
MAKING THE SWITCH Having made the decision to move to a new TMC, what are the practical steps that have to be taken to ensure this transition is a success and that the process is not tripped up by any unexpected issues?
One area that buyers can underestimate is in how much planning is needed to make the transition pain- free. Securing “buy-in” from key executives for the change is also a key factor. “Depending on their experience, one of the key areas that clients can underestimate is the amount of resources involved in change management when switching TMC,” says Rob Grant, vice-president, head of global sales inter- national, at American Express Global Business Travel. “We will advise and support them from the earliest stages on what the process entails and provide support throughout. Neither side would want to progress down a lengthy and costly RFP (request for proposal) process, only for it to be abandoned at a late stage.” CWT’s Hillman agrees it’s crucial to secure “executive
buy-in” so that senior managers support the decision to switch. This can be important when implementing a global TMC where some regional offices may be initially resistant about moving away from a local agency they have been working with for years. Another complicating factor is if the corporate client has “implanted” staff from the previous TMC working in its offices. Under the UK’s TUPE (Transfer of Undertakings Regulations) law to protect employees, the incoming TMC is required to take on these implants. This includes any staff who had been dedicated to working on the client’s account at the previous TMC’s office or were providing the same service from their home. Jo Greenfield, UK general manager for FCM Travel
Solutions, explains: “TUPE applies if the incumbent TMC has employed consultants who spent at least 75 per cent of their working hours on one client, so effectively would be made redundant if the incumbent loses the client. As the new TMC, we have to provide those consultants with jobs.” This is not as much of an issue now in the UK as it would have been 10 to 15 years ago as the number of
94 MARCH/APRIL 2019 CASE STUDY: GLOBAL SOLUTION
THE CHALLENGE FCM Travel Solutions was awarded the contract to manage travel for a global food company across 33 countries in 2018. The client had previously used 40 TMCs with wide-ranging inconsistencies in how travel was booked and managed in each market. The client made the decision to ensure global consistency, improve transparency of costs and drive book- ings through an online booking tool (OBT).
IMPLEMENTATION The process started in early 2018 and the first step involved FCM undertaking a “deep-dive diagnostic” to understand how travel was managed in each country, including sending questionnaires to buyers in each market. This was followed by the production of a “statement of work” setting out stan- dards for implementation in each country. In May 2018, FCM’s country managers held a one-day
client workshop to outline the timelines for each market. During the same month, FCM’s IT department began building a bespoke technology platform to meet the client’s requirements. Communication was also a key part of the transition
period with a six-week email campaign to introduce FCM as the client’s new TMC. In the UK, this was followed by a series of roadshows, each attended by around 50 bookers, travellers and PAs.
OUTCOME The client went live in the UK in June 2018 while other markets followed in phases with all 33 countries being implemented by August 2018.
buyingbusinesstravel.com
WE HAD ONE CUSTOMER WHERE THEY WERE STILL SENDING SOMEBODY TO THE RAIL STATION TO GET THE TRAIN TICKETS
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