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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 31, 2010
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 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.
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 8, 2010
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.
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