How Can TMC Affect Your Travel Management?
There is often confusion between delegating ticket booking to a travel agency, and delegating all your travel policy to that agency. It is essential to understand the differences between a travel agency and a TMC. A travel agency does a small percentage of what a TMC can do. TMCs will provide Day to Day procedure in addition to deciding how employees will travel, what class, and how credit cards are used. This allows for greater control over the travel policy of the company and leads to better efficiency and less cost.
Traveling within a business is a double-edged Sword. It can be a big financial burden, while it can also be an investment. TMCs will ensure that companies will not undergo slip ups that usually occur during a business travel. These include saving on fares, travel management, loyalty programs enrollment etc..
Every Business will undergo certain pitfalls when conducting business travel. The main and most frequent pitfall is the flight booking. Studies show that booking made 14-20 days before the departure date are 24% cheaper than those made 7 days before. For a company that spends $100,000 annually, this is a $24000 Return. One of TMCs main task is to ensure that travel management will not result in hasty and Last-Minute decisions. This will reduce cost significantly
Another pitfall is the lack of consistency in choosing brands and airlines when it comes to frequent locations or frequent fliers. Most companies have a frequent location for their business travels. Research shows that business travelers are 4 times more likely to get rewards than normal travelers. The benefit of choosing one brand of hotels and airlines is taking advantage of reward points. These points are considered cost saving when built up since they result in free tickets, free stays, and other perks. TMCs ensure that each company will benefit from a certain brand in a certain location to minimize cost and take advantage of reward points.