So I've spent some time recently considering the role of the travel management company relative to its clients. This is not an easy question to answer because everyone is looking for something different in their travel management company. No two travel programs are identical.
Having said that, there are some basic concepts that any TMC should accept as their responsibility. I'm talking about the basic concept of managing travel. Essentially this is what the client is paying for. This list isn't meant to be all-inclusive. It really is just an opportunity to start a discussion.
As a travel program administrator, I see this question from two perspectives: from the perspective of my travelers, and from my perspective as the program administrator.
Looking at it from my travelers’ perspectives, there is really only one question--can I get where I need to go at the best price? For the most part, the traveler doesn't care if they work with AMEX, BCD, CWT, or anyone else. What they care about is how hard it is to book travel and how long it takes them to make the reservation. They care about whether their ticket is issued, so they can get on the plane when they get to the airport. The only time they really even notice which agency the company uses is when something goes wrong and they are looking to resolve a customer service issue.
So the traveler's question is a deceptively easy one to answer. Either it's easy to book, or it's not. Either they have a ticket when they arrive at the airport, or they don't. Assuming most agencies have a similar track record from the traveler’s perspective, the real issues are from the perspective of program administration.
First and foremost, the relationship between a TMC and its client should be a partnership. The TMC's client account manager and the client have to work together to create and maintain a successful managed travel program. The client has to be available to meet with and discuss issues with the TMC. The TMC needs provide value in those discussions, to make it worth the client's time.
Second, the integrity of the data is crucial. If you can't trust the information provided by the TMC, then you will have to spend a significant amount of time validating data rather than managing the travel program. The TMC has a duty to provide timely and accurate data. Data validation still needs to occur, but it goes a lot faster if the client can trust the information they are being given.
Another aspect to this point is that the agency should not be charging extra to provide data to its clients. The cost of the reporting should be included in the existing fee structure, regardless of whether it's an advisory fee + transaction fee model or a transaction fee only model. A basic part of managing the travel program is to run reports and review data. There are times when you need additional reports during the month, and it shouldn't cost additional to retrieve your own data.
Third, the TMC should know the business of travel and the TMC's representative should have a clear understanding of what is involved in travel management. The client shouldn't have to educate the TMC; they shouldn't have to define terms like PNR, GDS, or open jaw. The agency representative loses credibility when the client has to explain travel basics to them. If I'm going to use a consultant, I expect them to be an expert in their field.
Fourth, the agency should provide good and useful technology. They shouldn't be pushing a specific technology just because it drives up the TMC's revenue. They can invest in technology; they can even make money on their technology. If the agency is pushing for an inferior product, it only shows that the agency is more interested in profit than in partnering with the client to create the best program possible.
Fifth, customer service issues should be quickly and satisfactorily resolved. It shouldn't take six months to get a refund on a charge that was obviously an error. The agency's different departments should be knowledgeable and willing to listen to an explanation before they make a determination. There are few things more frustrating then having proof that you're right and not being able to get a response because the agency isn't willing to listen.
Finally, the agency has a responsibility to its clients to be continually improving their process and their service. An agency can't rest on its laurels; it can't afford to ignore the fact that there are a lot of TMCs out there. Visit any business travel trade show and you'll see just how many there are, each one vying for my business. The travel industry is too dynamic for an agency to remain stagnant just because they're the biggest, or because they're local, or for any reason. If an agency wants to keep their clients, they need to have the best product at the best price period. Especially as the economy continues to struggle, companies are going to look closer than ever at value.
So a travel manager has to ask whether their agency is meeting these basic needs with the obvious follow-up: Would another agency meet these needs better? It's entirely possible that your current agency, whatever it is, does meet your needs. That's great. It means your agency has listened to you and is meeting those needs.
As I said previously, this is all information I have shared with my agency. I believe in setting clear expectations. That's part of my responsibility as a client.
What do you think? Did I miss something basic? I'd like to hear from you, whether you agree or disagree.
Nate
