Travel Management Companies

Travel Management Companies specialize in corporate travel services, offering end-to-end solutions for businesses. They streamline travel planning, bookings, expense management, and compliance with company policies, significantly reducing costs and enhancing the efficiency of business travel. Their expertise is crucial for optimizing travel logistics and support, ensuring that corporate travelers receive the best possible experience while adhering to budgetary constraints.

Key Takeaways

  • The Importance of Cost and Savings: Assessing fees and savings is crucial, as TMCs offer potential discounts and cost efficiencies through industry contacts.
  • Personalization and Customization: The degree of service personalization TMCs provide can significantly impact the effectiveness of corporate travel management.
  • Technology and Reporting: Advanced technology and comprehensive reporting capabilities are essential for managing and optimizing corporate travel.
  • Global Network and Coverage: A TMC’s extensive global network ensures comprehensive travel support worldwide.
  • Duty of Care and Risk Management: Prioritizing traveler safety with proactive risk management strategies and support.

Table of Contents:

Introduction

Many organizations are outsourcing responsibility for managing their various business travel requirements to dedicated travel management companies. In many ways, TMC companies operate similarly to travel agents, and they can help businesses save time and money. In this article, you will learn more about business travel management’s importance and how you can choose the best travel management company.

What is Travel Management?

Travel management is the term used to describe the strategic management of travel requirements. This can include finding and booking flights, negotiating with vendors, arranging transportation, and booking accommodation. It may also involve managing expenses and taking the necessary steps to ensure travelers are safe.

Travel management can be carried out by, or on behalf of businesses, organizations, or individuals. The most common form of travel management is corporate travel management, which is carried out on behalf of a business.

What Are Travel Management Companies?

A travel management company is a company that specializes in providing travel management services for clients or customers. In most cases, their clients will be businesses, organizations, or groups that want to outsource responsibility for travel management. However, individuals might also turn to a travel manager too.

TMC companies will usually charge a subscription or flat fee for the specific services you use. Businesses turn to travel management companies for convenience, industry expertise, time-saving and comprehensive management of travel requirements. This can be especially important in large businesses, with many business travelers.

Travel Management Companies: How to Select One?

A wide range of travel management companies are out there, each promoting itself as the best option for businesses looking to outsource corporate travel management. So how can you choose between them? Below are six practical tips for narrowing the various TMC companies.

1. The Fees and Savings

For most businesses, the fees involved and the possible savings are likely to be the single biggest consideration when choosing between travel management companies. All travel management companies will require payment for their services, but you need to consider how the money spent may be offset by the potential money saved.

For example, TMC companies tend to have excellent travel industry contacts, allowing them to unlock discounts on hotel rooms and transport that might otherwise be unavailable. It is also important to consider the money saved by travel needs being managed externally, allowing your employees to focus on their day-to-day jobs instead.

2. How Much Personalization?

Next, you need to start looking at the amount of personalization different travel management companies offer. You must outsource travel management responsibilities to a company willing to work with you, rather than try to make you fit their preferences.

To what extent will they tailor their services to fit your specific requirements? Can they help you create a corporate travel policy that works for your business and your business travelers? Can they use data to make intelligent recommendations, based on your preferences? Avoid companies that offer a standardized service to all customers.

3. The Customer Experience

The customer service on offer and the customer experience that can be provided is other major competitive differentiator for TMC companies. Corporate travel can be complex with even the best policies and processes in place. Delays can occur, last-minute plan changes might be necessary, and you need to know a company can step up.

Consider what could go wrong with business travel and find a travel management company that will help you not only fix problems but avoid them in the first place whenever possible. Are they available 24/7 if a corporate traveler needs them? What advice or expert insight can they offer? Can they respond to last-minute requests?

4. Technology on Offer

Corporate travel management is important, so you want to know that you are working with a company that takes it seriously. For this reason, it is worth taking the time to enquire about the technology that different travel management companies are using. In general, cutting-edge, high-quality technology reflects well on them.

Speak to them about their global distribution system(s), but focus on what is available for your business to use too. Do they have a mobile app? Do they offer client software? What makes it special or unique? Online booking systems are vital, but a company offering call-in systems may be preferable for many businesses.

5. Availability of Reporting

Travel management is more than simply organizing business travel when needed. The management component involves setting objectives, making strategic decisions, and monitoring results continuously. For this to work properly, you need to have access to information about how your travel strategy is currently working out.

When comparing TMC companies, look into the availability of reporting. What kind of reporting do they offer? How often will you receive reports? Can you request information when you need it? You should try to work with a corporate travel agent to help you analyze the reports, draw conclusions and make recommendations.

6. Reviews and Client Feedback

Finally, you mustn’t simply take TMC companies at their word. You need to know that they can deliver what they promised, which means seeking feedback. Online reviews can serve as a useful starting point, indicating what people think, but you need to dig deeper.

The best travel management companies will happily provide client references, so do not hesitate to ask. A lack of willingness to provide references could be a red flag. It is also worth seeking out the opinion of other businesses directly, so if you know of an organization that has used the TMC in question, speak to them about their experience.

Benefits of Using Travel Management Companies

You should now understand what to look for in a good travel management company. That said, you may still be wondering about some of the specific benefits of taking this path.

In the article “Travel Management Company: Benefits of Using a TMC Company,” you will be able to learn more about travel management companies and their role. Additionally, you will better understand why so many organizations outsource responsibility for travel management, complete with nine specific benefits.

List of Travel Management Companies

Travel management companies offer a unique opportunity for hotels to attract more business travelers. Hotel owners can achieve this by connecting with the main global distribution systems and forming close and mutually beneficial relationships with specific travel management companies.

In the article “Corporate Travel Agents for Hotels to Gain More Business Travelers,” you will learn more about how travel management companies can help hotels and find eight of the best corporate travel agents.

Travel management companies offer numerous advantages for businesses with corporate travel needs, but finding the right company requires a careful process. In particular, you need to consider aspects like the cost, the potential savings, the level of customer service and personalization, and the company’s track record.

More Tips Regarding Corporate Travel

The corporate travel market is receiving an increased focus from many in the travel industry, partly business travelers often spend more money on their travels, especially when their employer covers their costs. However, more importantly, business travel is growing, thanks to factors like globalization and the availability of flights. In the following articles, you will find more information about the corporate travel market:

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This article is written by:

Martijn Barten
Hi, I am Martijn Barten, founder of Revfine.com. I am specialized in optimizing revenue by combining revenue management with marketing strategies. I have over 15 years of experience developing, implementing, and managing revenue management and marketing strategies and processes for individual properties and multi-properties.