Traditionally, travel managers have relied on travel management companies (TMCs) for their travel needs. TMCs are known for finding great deals and saving time. However, travel managers at larger companies, who oversee global travel programs, are beginning to realize that TMCs alone are no longer sufficient.
The need for visibility
The primary issue that travel managers face with TMCs is a lack of transparency. TMCs often do not provide sufficient data to give travel managers the visibility they need. While TMCs rely on their internal data, they do not always share it with their clients, leaving travel managers uncertain if the best options are being found for their budgets and needs. Instead, managers often rely on past performance, trusting that TMCs have consistently delivered good results.
However, travel managers now seek solutions that offer complete transparency, showing all available options. This allows them to ensure they are getting the best prices, finding flights that meet their needs, and exploring every possible opportunity. A solution like Oversee offers this complete visibility, providing travel managers with the confidence that they are making the most informed decisions.
The Shift in Corporate Travel Management
As travel managers search for alternatives to traditional travel management companies (TMCs), they prioritize the ability to “reshop” — comparing fares for the same flight, seat, class, and cabin. Reshopping ensures the best possible deal for travel requirements and is highly valued for its cost-saving potential. A recent survey by Festive Road found that 85% of travel managers prefer TMCs that offer reshopping capabilities.
Paul Tilstone’s op-ed, “Op-Ed: Paul Tilstone on New TMC Needs in a New Era,” highlights these survey results and emphasizes the evolving needs of travel managers. Each solution or TMC that offers reshopping does so in unique ways. For instance, Oversee uses proprietary technology to efficiently complete fare comparisons.
The demand for new solutions
The Festive Road survey also revealed that a quarter of corporate clients are considering alternatives to traditional TMCs, driven by technological advancements. While some managers may still use TMCs, they are supplementing them with other tools, such as online booking and comparison platforms.
Travel managers have realized that TMCs often lack the transparency needed to fully trust the booking process. Despite TMCs having access to extensive data, the growing demand for visibility has created opportunities for companies like Oversee to step in, either complementing TMCs or operating independently.
At the same time, TMCs are adapting their solutions to meet the increasing demand for transparency. However, they are often reluctant to invest significant resources into these changes, especially if the majority of their clients are unlikely to switch providers.
This slow adaptation by some TMCs creates opportunities for new players in the market. Companies that can cater to the demand for increased visibility and enhanced technological solutions are well-positioned to succeed in this evolving landscape.
New solutions are always on the table.
Two-thirds of respondents in the survey indicated that TMCs would remain their “primary service partners.” However, this doesn’t preclude the growth of new solutions. The emphasis on “primary” suggests that while businesses plan to continue using TMCs, they are also open to supplementing them with additional options.
Tools like Oversee can partner with global TMCs, allowing travel managers to benefit from both familiarity and enhanced visibility. This hybrid approach enables travel managers to leverage the strengths of TMCs while gaining the transparency offered by newer solutions. As a result, some travel managers who initially intended to maintain primary relationships with TMCs might reconsider once they experience the advantages of these supplementary tools. Over time, they may even become less reliant on TMCs.
