|
Posted Dec 28, 2010
This is an excellent article by Ms. Salcito. I work for a technology company that serves 350 TMCs worldwide. We are often asked to assist with responses to RFPs and many times are asked to speak directly with the issuer of the RFP. Several times the issuer has confided to us that they have no intention of changing and that they are conducting the RFP in order to strengthen their negotiating power with their existing TMC or to meet a mandatory supplier review policy. Neither of these reasons seem to be a good primary reason to issue a TMC RFP. Additionally, a lot of people's time and talents are wasted in an endeavor that will provide no measurable benefit.
For those TMCs who are considering responded to the multitude of unsolicited RFPs, I offer this advice. Do not agree to respond until you can get a two hour meeting with the appropriate decision makers so you can identify the reason for the issuance of the RFP and the measurable outcomes the issuer would like to achieve. If the corporation won't agree, chances are they already have a winner selected and you should spend your time on more profitable ventures.
~ Cornerstone Information Systems SVP of marketing Alan Minton
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 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 May 20, 2010
I genuinely find it interesting to note that very little has changed over the years despite commission cuts/removal, direct sell and net fares. Airlines still need TMCs to sell their seats and TMCs are still just as much in need of airline funding. The essential metrics remain the same and it is only the methodology that has flexed to meet market changes.
Posted May 12, 2010
Farelogix is highly supportive of management and settlement standards being developed around the merchandising process. We have been the leaders in developing the first ARC certified EMD (both EMD-A and EMD-S), which is in full accordance to the IATA reporting standard. Farelogix merchandising solutions also fully support ATPCO fare filings if airlines opt to use ATP instead of alternative merchandising solutions in the market.
However, Farelogix is concerned about the recent announcement to extend the "standards movement" to the actual airline product definition and sales process.
Posted Mar 4, 2010
When I asked TripIt execs last summer what kind of volume discounts their travel management company partners can offer clients on the Pro version of the company's itinerary solution, they didn't say. But according to Salt Lake City-based TMC Christopherson Andavo's blog: "We can get you a huge discount on your TripIt Pro annual rate (huge = almost half off)." The hottest tech story in corporate travel right now is the race to one-up traditional emailed itineraries with robust, interactive applications, and investors have taken notice with a fresh $7 million of investment in TripIt, announced Thursday.
Posted Sept 15, 2009
I’ve consulted for few clients on travel agency selection process, and I must tell you …There are many agencies out there who would inflate their claims of how wonderful their agency is. It is really difficult to differentiate true claims to false ones.
Posted Sept 9, 2009
I was going to write a letter about your The Beat column "What Is a TMC?" but my thoughts fit better in a blog. The column tackles the almost metaphysical question of whether bricks and mortar, or financial ownership are necessary to "have a business." It's a huge question in an era where Nissan's and Toyota's may have more US content than Chevy's, and the primary objective of catalog is getting recipients to vendor web sites. Fortunately, The Beat drilled into some specific questions.
Posted Apr 1, 2009
I heard it again yesterday, and I need to object for the record.
It seems to have become dogma for travel management companies to urge travel managers not to focus on TMC fees so they can focus on much larger travel costs more effectively. The warning is usually uttered with appropriate gravitas by senior level TMC exec in a dark suit, doing their darn-dest to convey the wisdom of age and experience. "Don't be lured by the sirens of quick fee savings," they warn ominously, "lest you be ruined on the craggy rocks of fiscal profligacy." And then the inevitable: "You realize that agency fees are only about 3 percent of total travel spend. Some folks even have pie chart Powerpoints illustrating the comparison between 97 percent and 3 percent. Wow!
|
