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Posted Aug 31, 2010
In my last two pieces on this subject I explained that airline suppliers still incentivise travel management companies in the belief that this will bring them greater volume and share despite the inroads they themselves have made direct with the corporate sector. Also because some fear what they may lose if they don't as they get denied access to TMC bookers and account managers if they are not "in the programme." I also explained how the shape of these deals has changed in order to react to the removal of commissions and subsequent new style management fee and transaction fee contracts.
Posted Aug 23, 2010
After 42 years in the business and three years out, I am still aghast that almost all corporations I meet and hear about have not been able to crack the compliance issue. By this I mean their directors, executives and workforce being given a travel policy and complying with it.
Posted Aug 12, 2010
OK, so we got to the point where we ascertained that TMC/agents still get incentives from suppliers, albeit presented in a different shape. I also mentioned that, in my opinion, this need not necessarily be a bad thing for corporate customers if managed right. What I did not go into in any detail was a) what these deals are b) how TMCs do (or do not) shift business and c) how such deals could benefit all. So let me address at least one of these points now and deal with the others another time.
What kind of deals?
Posted Aug 2, 2010
Ever since airlines created travel agencies as the most efficient way of consolidating and distributing their product, they have had to incentivize them. Somewhat ironic really that in many ways they created their own Frankenstein's monster which, despite their best efforts, they cannot kill.
Posted Jul 23, 2010
It is now getting really disappointing as, after the most recent ballot, the Unite union claims another mandate to strike. They claim the cabin crew are behind them but I would question that after looking at the following vote results.
Posted Jul 7, 2010
In many of the key driver markets like the United Kingdom, the desire by travel management companies to move back into the small and medium enterprise market has grown and grown without any sign of let-up. A strange phenomenon, one might think, considering they have spent the last few years actively trying to get them off their books. There must be a good reason for this re-think and of course there is. It's because of that good old trio: economy, technology and supplier strategy. As a result there is never a better time to be a small customer in business travel.
Posted Jun 28, 2010
I think one of the most disappointing outcomes from contract negotiation is that between corporations and TMCs. You can practically guarantee that one side or the other, or in time both, are not enamoured with the end results. The corporation wants total priority and service delivery at the lowest unit price whilst the TMC spends its time trying to figure out how to comply whilst clawing back profitability elsewhere in the deal or through caveats.
Posted Jun 15, 2010
It has been quite a few years now since globalisation, or should I say attempted globalisation, became the trend. Travel management companies amalgamated, acquired and re-launched just so they could offer a solution that crossed all geographical boundaries.
Posted May 31, 2010
Before I launch into this subject I think I had better make one thing very clear. What I write about this and all the other subjects past, present and future is my view and not necessarily those of any company I have worked for. I am sure they are very capable of giving their own opinion if asked! I am in a position where, within reason, I can say what I want now that I have retired.
Posted May 27, 2010
My old firm HRG has just announced its results and I must say I am impressed. It seems they can and have managed without me quite well. And there was me thinking I was indispensable.
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