TMC Role: Corporate’s Behavior Study to Increase Efficiency
Corporates that have traveling as a part of their businesses are usually delegating their responsibility of their travel management to TMCs. These TMCs usually use all available systems locally and internationally to ensure that different options, itineraries, and prices are available for the corporates. Their services are mainly targeted toward booking flight tickets, hotels, and transfers. A TMC has the capability for providing these services and more to multiple clients that are working both locally and internationally.
TMC’s responsibility is managing a company’s strategic approach to travel (travel policy), negotiations with all vendors, and day-to-day operation of the corporate travel program, traveler safety and security. One of the main missions of TMCs is to monitor the corporates behavior and ensure that the most efficient procedures are conducted. This is conducted through continuous data analysis of the clients and report generations on monthly basis to indicate which aspect of the travel management can be improved. These aspects include both the TMC and their clients.
Different aspects include Respond time, Request finalization time, Staffs that are holding the case, and any issues resulting after finalization. Aspects that are affiliated with the clients include Request/Booking Date interval, Top departure and arrival destinations, top airlines, and accounting info such as refunds, penalties, and total spending/saving.
The TMC’s aspects are being improved on the daily basis; Behavior studies are essential to acquire different findings. This resulted in improving in aspects such as response times. Within only 3 Months, Answering requests that fall within the (Less than 30 minutes) category have risen from 70% to 90%, while case finalization improved from 59% being solved in the same day to reach more than 70% in only three months. These findings would not be possible without studying the TMC and client behaviors.
The other aspect includes aiming to improve the client’s travel policy to ensure maximum efficiency in cost saving. This is conducted through daily monitoring of travel behavior of the corporates. One of the main aspects includes when a ticket, hotel, or transfer is requested. Many researches show that if booking falls outside the 14-Days area, maximum cost saving occurs while entering the 14-days area will increase cost almost exponentially. TMCs continuously aim to notify corporates regarding their request/booking interval. Other data findings include determining which cities, airports, and airlines are the top frequent for that certain corporates and ensure that out TMC will conduct deals. This has proven when our clients witnessed price reductions in certain hotels up to 60$ difference per night, and airline fares that in some cases are lower than the airline general price itself.
Furthermore, As a Travel Management Company (TMC), certain sets of tools and features can be provided which can help better manage corporate’s travel program such as a fare-tracking tool, SMS service, International SOS, etc…