The key to managing a worldwide travel program is finding TMC partners that truly fit your global objectives
As corporations send more travelers to more places around the world, the importance of services provided by travel management companies continues to grow. In support of increasingly global operations, corporate travel managers will want to connect with TMCs that make travel more efficient, more transparent and easier to manage. So what does it take to make the right choice?
Businesses need to make sure they’re working with a travel partner that has global capabilities and presence, and can provide a “glocal” view, according to Gabe Rizzi, president of Travel Leaders Corporate.
“It’s a small world with a global supply chain, and forward-thinking companies must consider whether their future plans could lead them outside the US to grow business,” he says. “It’s important to choose a TMC partner that has the ability to confidently guide their clients on international corporate travel.”
Maximum alignment should be the goal, according to Billy McDonough, FCM Travel Solutions president for the Americas. “Understanding your current pain points and long-term goals is critical, and this needs to be matched with a custom approach to delivering solutions,” he says. “Every program is unique, and standard solutions are long gone.” He notes that being aligned with your TMC helps to ensure that the recommendations made are a proper fit for your goals as well as your company culture.
In the decision-making process, the difference in challenges faced in different locales must be considered. “It’s critically important for travel executives to establish what type of relationship and support they need in the different countries and regions around the world,” says Barbara B. Barnard, SVP Americas, customer organization, Carlson Wagonlit Travel.
Companies need to understand that corporate travel involves so much more than simply transacting in countries where a corporation has travelers; it also requires positioning to bring strategic value, Barnard points out. “That takes strong in-country support. This is particularly important in secondary countries where many companies do not have travel managers or employees dedicated to travel.”
Barnard notes that travelers increasingly have high expectations around experience. If a TMC of choice is a loosely assembled group of local travel agencies, it will be difficult to create a global program where travelers have access to a similar experience. Similarly, corporations require clear accountability and tools to manage travel in different countries consistently.
The right TMC should provide robust content as well as competitive pricing so travelers are both engaged with your travel solution and compliant, advises Virginie Pouget, head of global consulting for Egencia.
“Consider a partner that will save your company booking time and money by providing the most exclusive content in the most impactful display possible,” she says. This means taking a closer look at technology innovation in areas such as self-service tools, real time reporting enhanced by data analytics and visualizations tools, and robust risk management features.
Right Sizing For some companies, a relatively small volume of outbound business can pose challenges in selecting a travel management partner. “There’s no sense trying to fit a square peg into a round hole, so businesses should look for travel partners who can handle their type of business,” Rizzi says. “There is an art to small business travel, and a TMC may or may not be prepared to give a small business the highest level of service.” To enhance prospects for a good fit, a prospective partner should have models that account for businesses with few travelers or highly cyclical travel needs.
“Small amounts of spend in certain markets can limit some benefits with things like direct supplier negotiations,” McDonough says. “But that can be supplemented by the TMC’s agreements which are based on higher volumes, so the smaller markets can still receive a measurable benefit from consolidating into the larger travel program.”
Tool deployment is another factor to consider in smaller markets, where a handful of travelers may not require the same setup as in larger markets, he adds. Specific features such as ability to ticket in the US, which can be especially important for the small and mid-sized business market, may also be worth considering.
Michael Steiner, EVP, Ovation Travel Group, agrees that ability to ticket in the US is especially important for the small and midsized business market.
“Often the volume that small and mid-sized business clients bring to the global market makes it a challenge for them to obtain an ROI on expanding globally,” Steiner says. “They just don’t have the volume to leverage to get the proprietary contracts that larger businesses are able to obtain.” He adds that small and midsized businesses also are seeking to ensure consistent, high levels of service for their travelers both inside and outside of the US market.
As a result, the challenge for these players is ensuring they have access to all available content, including local content. The ability to issue tickets in local currency also provides advantages in expensing trips and managing to newer privacy laws such as the EU’s General Data Protection Regulation (GDPR).
Getting On Board For any size organization, several features and their benefits bear close examination. One is the ability to deal with reporting and pricing standards across the world. “Raw data is everywhere, but it’s useless unless it drives action for your company,” Pouget says. “Being able to access and visualize data is a crucial element to tell the story of your travel program.” She says that a travel management company should offer the reporting tools needed to simplify your data so you can gather and present insights on your travel program in a way that’s easy to understand and digest.
Global travel buyers have the challenging task of managing local expectations and needs, as well as handling relationships with local clients in various markets, Pouget explains. To alleviate some of the pressure and to maintain their buying power, larger companies can enlist a TMC to leverage their negotiated rates in destinations with lower volume, as well as manage the various intricacies of operating a global hotel program.
Without doubt, technology that supports the company’s travel objectives is a must. And recent advances are promising. “Business travel continues to evolve with advancements in technology as well as emerging technologies such as voice and artificial intelligence,” Pouget says. “The responsibility of a TMC is to support its partners through a robust platform that can quickly adapt and evolve with these technology advancements and ever-changing traveler expectations.”
It’s not just a matter of routine developments in technological capabilities, according to Steiner. “In a perfect world, there would be technologies that worked in the same way in every country without exception,” he says. He believes we’re getting there incrementally, but because of the various laws governing global transactions and data security, as well as differences in the availability and cultural preferences toward technologies worldwide, it’s important to be flexible in this area.
Steiner recommends a best-in-market solution, noting that increasingly that is going to be a truly global solution. “But sometimes, like with online booking tools, it makes sense to adopt technology market by market,” he adds.
Tech at Home on the Road With managed corporate travel in the midst of a digital revolution, business travelers now expect the latest technology innovations available, Pouget says. Managers need solutions that will not only meet that demand, but also improve overall compliance and cost savings.
Inevitably, this technology is also generating an overwhelming amount of data. “Having customized reporting tools that will help you simplify and make sense of the data, so you can then evaluate the overall performance of your travel program and present key insights to your stakeholders, is becoming even more critical today,” Pouget says.
She notes that with the emergence and penetration of smart speakers and virtual assistants, companies are exploring how voice and chat technologies can replace traditional methods of shopping and booking travel. At Egencia, a new data visualization and analytics platform, Egencia Analytics Studio, is aimed at making it easier for travel managers to optimize spend across travel categories.
“It’s imperative that TMCs stay ahead of the curve when it comes to technology solutions, as this ultimately leads to cost savings, a key focus for every company,” Pouget adds. When travelers are satisfied with their business travel experience, it also leads to increased usage of the platform, and ultimately, compliance.
“The right TMC will reflect your company’s culture and goals in the tools they provide to optimize your travel policy and will continue to modify their product offerings to continuously improve the business travel experience,” she says.
“While situations like weather events or acts of violence can’t be predicted, companies can make sure they have properly briefed their travelers, know where they are on their trips, and can offer immediate assistance if necessary,” he says. To address this need, his company is rolling out a solution this fall dubbed CARE.
The new tool employs artificial intelligence and data science to update travel managers with 24/7 alerts about emergency situations. It offers helpful information and validates social signals through social media and local presence to help them avoid false alarms. It will also offer optional on-the-road mobile tools and evacuation assistance.
Effective risk management tools should enable you to both react quickly when the unexpected or “black swan” events occur and leverage an expert support network, according to Pouget. “We recommend customers consider specialized services including traveler tracking and alerts, international healthcare, medical assistance, security services, ground security and expatriation for organizations,” she advises.
Making the ChoiceIn looking for global travel management support, one option is to avoid selecting just one partner. “While a single TMC may be the optimal choice for some companies who need regional support, others with truly global programs in twenty or more countries may be best suited to a multi-TMC approach,” Rizzi says. “This is providing the primary TMC has the data analytics sophistication and abilities to provide a single view of their travel program.”
For most businesses, though, a single TMC will suffice. “The right TMC can supplement the internal support needed across the globe,” Barnard says. This starts at the onset of the sales process when creating a strong statement of work, she advises, through to the implementation and ongoing process of ensuring a program’s success.
And a strong global TMC leadership team can drive a consistent product, process and strategy from which the program is based. From there, differences from one country to the next are more readily accommodated while preserving the integrity of the program.