oktober 6, 2022

TMCs: HOW TO (WILL YOU) SURVIVE IN A WORLD WITHOUT TRANSACTIONS?

Are you ready to give me the opportunity to help you with your business trips? - ENG

Contact me and let`s start the process

Er du klar til at give mig mulighed for at hjælpe dig med jeres forretningsrejser? - DK

Kontakt mig og lad os starte processen

Ole Hammer Mortensen

Ole Hammer Mortensen

We gather knowledge from around the world and bring it to you and your business - ENG

Ole Hammer Mortensen

Ole Hammer Mortensen

Vi samler viden fra hele verden og bringer den videre til dig og din virksomhed - DK

Share This Post – ENG:

Share This Post – DK:

Recently I was travelling with a good friend from outside the travel industry and we were discussing inflation, Ukraine and of course if business travel ever will return to 2019 level. We both agreed that it will never return but develop very differently from one region to another. At the end he asked me the question (the headline) and since then I have reflected upon it.

His argument was: There are so many online tools and booking engines available so why should you use one specific?

TMCs have built their business model on being neutral because everyone used the Global Distribution Systems (GDS) to book flights, hotels and car rental all around the world. Today the picture is far more different because:

  1. The airlines have aggressively improved their direct selling options and bypassing intermedia’s
  2. Google, Booking.com and hotel.com are dominating the hotel and car rental world
  3. Business travel has become much more than just a trip with added risk, delayed and cancelled flight and trains with Covid-19 still hovering above us.

At the end of the day travellers will ask the question: Why should I pay a fee just to get access to a tool I can get for free in the open market? A recent GBTA survey showed that 50% of travel manager thought that their current online booking engine did not live up to expectations.

I am fully aware that all the TMCs around the world will begin to explain the value they add by saving time, compound data, risk overview, 24/7 service, advice, and help with supplier relations. I am aware that some global and regional companies will continue use TMC, but I believe the majority of small and medium sized companies will not spend time and effort to consolidate their trips. In short, the traveller will take control with a new toolset.

In any company travel always have (and will in the future) a lot of stakeholders and signalling effect for management. This is why it adds value to offer consulting, help, advise, ideas and arranging events. The key is focussing there, rather than on transactions.

Consulting
Several of the existing players have already invested in a consulting division. Now is the time to define that area as the key area for the future. Expand the knowledge areas to Metaverse, doing business outside homeland and document ROI on physical travel.
Events
Due to less physical travel, many companies will have to increase social gathering for departments represented in many countries, company update and plans and education in an ever-changing world.

Travels to truly complex or difficult destinations
There will always be areas where unrest rules, countries with specific and very different culture, bad public infrastructure and ways of doing business. This will need to be handled by experienced staff (leisure?) with big knowledge of that specific destination.

So, time has come to redefine travel and move away from transaction focussed business model to consulting, provide true knowhow and not just cryptic language commands.

Read & Learn More

More From The Blog

Inspirational content to help you shift your life into the path of success

Book Your Free Session Now

Fill in the form below to book a 30 min no-obligation consulting session.
I will reply within 24 hours.