travel harbour

Overview

The easy answer is to say: “In order to save you time and money” but in truth most corporate companies already know this. This document has been written to give corporate companies a clearer indication of where these savings can be made, and where employing the expertise of a Travel Management Company (TMC) can really pay dividends. It is a TMC’s job to manage the business travel requirements of another company, group or organisation. Not just for regular travel bookings, but also its travel rate negotiations, expense management and corporate travel policy compliance. All of which contribute to a cost effective travel management policy. Business travel management benefits companies of all sizes. It's not just large companies or corporate travellers that benefit from business travel management. There is a correlation between the size of your travel spend, and the amount of savings that can be made, but businesses of all sizes can take advantage of using a TMC.

Reducing your overall Travel Spend

TMCs are aware that saving money is key to any corporate company. TMCs are also experts in how to go about making these savings. When choosing a TMC it is highly recommended to look at how a TMC will treat your business, and how they can implement strategies to help you save money. This should be looked at as an overall strategy, not purely on the fees which you are charged. Simply sourcing the lowest fee from a TMC is not the best way to save money. (It should be noted at this point that this document was not written by a TMC!). Here are some tips on how to reduce your costs...

1. See the bigger picture. Asking a TMC to cut their fees is not the best way to reduce cost. Your overall travel spend will be easier to reduce by implementing a travel policy and by consolidating your travel spend. (For example if all your staff were to stay in a particular hotel chain rather than booking randomly, a TMC will be able to negotiate a better rate with that chain on your behalf. The same principle could also be applied to an airline, car hire etc).
2. Reducing Fees. Rather than asking how much? Ask your TMC about how you can keep them as low as possible? Treat the deal as a partnership rather than a contract, a TMC is far more likely to be flexible with their fees if you help minimise their financial risks. The following may help you negotiate better terms. Paying on time, paying by direct debit, using company credit cards, paying more regularly (e.g. every 2 weeks rather than monthly) will all help the TMC’s cash flow. Work with your TMC rather than against them.
3. Reducing the number of fees incurred. Most TMCs will charge you for date changes, ticket reissues, name changes and other services that require their time and expertise. You can help minimise this cost by making sure when you book something, you are booking correctly. Again, this can be improved by implementing a travel policy or an authorisation process. A reputable TMC will be more than happy to assist you with this.
4. Hidden cost. Without exception all TMC and agencies will charge for their services. Be aware of agents offering £0 fees. All companies have to have a sustainable business model, and not charging for their service is just not viable. If you are offered £0 fee, the TMC will more than likely be covering their cost elsewhere, usually with an additional ‘mark-up’ to their fares. Most TMCs are happy to be transparent about where they make their money (usually through the fees), but if you are unsure, ask.

Additional Services

Account management accompanied by big buying power. A great number of TMCs within the UK are members of Advantage Business Travel (the UK largest travel consortium), and this puts them in a unique position. Independent TMCs believe business travel should be personal. From an independent you will receive a friendly and personalised service at all times, and not be handled by a call centre. Their situation within the marketplace is unique because it combines this personalised service with the buying power of the Advantage Business Travel consortium. This allows independent members access to the most competitive supplier deals and the most up to date technology available.

Selecting the right TMC for your Business

Whilst the majority of TMC’s will provide an adequate service, it is always worth spending time finding a TMC that can service your needs in the best manner possible. Bear in mind the following:

1. Size is not always key. Whilst larger conglomerate TMC’s may charge you less, be sure that their service will match your expectations. The largest TMC’s have the largest accounts, it is not feasible for them to offer the same service levels to their Global customers as it is to their smaller corporates. There are a plethora of independent TMC’s in the UK, many of whom are part of the Advantage Business Travel Consortium. These agents can offer you the service levels you would expect from a independent, but have the buying power of the consortium behind them, allowing them access the best fares in the market.
2. Geography.  If a local agent is key to your business, make sure you search out the local independents. Again, Advantage BT consortium members will have the international contacts you require, which stand alone agents may not. If you have an office in Sydney and New York, check the TMC has contacts here, and can service those offices.
3. Technology. This can be key to certain companies. If you require data on travellers, (MI data), booking tools within your office, your own rail printers, CO2 tracking, Corporate Social Responsibility measures discuss this with potential TMC’s. Members of the Advantage BT Consortium have access to cutting edge technology, as will some of the larger TMC’s, be sure to discuss your needs with the TMC involved in the tender.

Conclusions

By developing or refining your corporate travel policies a TMC will work with you to understand and balance your company's goals, whether it's cost savings, efficiencies or even reducing unnecessary business travel. In addition to offering more efficient and effective business travel, a TMC can provide you with peace of mind in the event of an emergency situation through a client tracking tool. Should a situation occur, your TMC is able to track and locate all of your employees; and if needed, work with you to bring them home as soon as possible. TMCs can also offer additional services such as carbon reporting, event management, Self Booking Tools (SBTs), pre- and post-trip reporting and ‘out of hours’ facilities. It is also important to remember that many of these services come at a cost to a TMC, so if you’re looking to keep cost down, don’t demand services you don’t require. These services can be sourced by a TMC at a later date should your need for one of them change.

Business travel is in the top five controllable expenses for most businesses. Working closely with an experienced travel management company can ensure you achieve substantial time and cost savings. Ultimately, the question is not so much “why use a travel management company?”, but rather, “can you really afford not to?”