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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 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 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 Mar 4, 2009
For many years debate has raged concerning the correct construction and use of international airline fares. The argument is all about interpretation and clever manipulation of rules which can result in travellers and their employers enjoying major savings if their agent is smart enough to know the "loopholes." Such intelligence was, and still should be, a key differentiator between savvy and average TMCs.
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