Denise Harman, senior director of programme management for Carlson Wagonlit Travel, says: “If you look at cost, a TMC can gain access to the most competitive rates with added value and more flexible conditions, such as including wifi and breakfast in the rate of your hotel room.” So how much budget must you commit
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or how much must you spend on travel to make using a TMC an effective solution? Most TMCs claim there is no real entry point, although some say that a minimum travel spend of US$65,000 to US$130,000 per year is required to make it worthwhile for both parties.
Shelley Mathews, vice president of sales, Europe, for Corporate Travel Management (CTM), adds: “It’s hard to define what level of commitment is needed because this will vary for different clients, depending on the number of travellers, trips, budget size and
level of service they want. But there does need to be some commitment, otherwise they won’t get the best from their TMC." It definitely makes sense for any SME [small to medium enterprise] with a travel spend in excess of £100,000 [US$130,000] to use a TMC.” Benson Tang goes one further, adding that SMEs in particular stand to benefit from employing a TMC precisely because an SME's resources are more limited. “A TMC’s role is even more indispensable for SMEs, as they have fewer resources and/ or travel management leadership,” he says. “Hence, they can rely on the consultation and advice from TMCs.
“Moreover, the economy of scale when it comes to purchasing power is far smaller for SMEs than for Fortune 500 firms. TMCs can therefore unite the buying power of their SME clients to obtain better deals for those clients.”
QUESTIONS TO ASK If you are seriously considering using a TMC to help you manage your travel requirements, what are the key factors to think about when choosing the company? TMCs may seem to offer the same services but there can be differences in the types of organisation they specialise in – some may focus on SMEs or sectors such as legal or finance, while others cater for industries with very specialised travel needs, such as oil and gas, or shipping. “The key factors to consider when choosing a TMC are whether they have the services, tools and technology to support your specific travel needs,” says Sully. “Traveller needs and preferences vary greatly, which is why we provide a variety of ways to reach our travel counsellors including via app or phone. Our travel support team delivers local assistance by travel counsellors who know the business
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