Effective travel management for businesses is essential as organizations grow and travel services move beyond individual capabilities. As global efforts become more common, being able to interact with customers, co-workers, and collaborators in person is essential.
With so many travel options, it can be challenging to identify what your company needs in a travel partner for corporate travel services. Many terms and phrases populate the space, so it’s helpful to distinguish between two at a high level: Travel Management Companies (TMCs) and Corporate Travel Agencies (CTAs) to determine which is best for your business.
What is a Travel Management Company (TMC)?
A Travel Management Company (TMC) is a travel agency that specializes in arranging corporate travel for businesses of all shapes, sizes and needs using both service and technology led capabilities.
Services offered by TMCs
Online booking tools (OBT)
Online booking tools do as they say – they offer easy and simplified ways to book online. So, you can reserve flights and rail, arrange lodgings, hire cars, and organize other transportation options yourself, without the need to speak to a travel agent.
Travel policy enforcement
Creating and following a travel policy compliance guide is essential to an organization’s duty of care and risk management obligations. It also supports equitable travel experiences across teams and departments. A TMC will help you make sure your travelers are safe and booking within policy without having to retrospectively check yourself.
Reporting and analytics
TMCs provide detailed travel data and insights to understand travel trends and enable strategic business travel management decisions at multiple levels.
Corporate travel agents
Corporate travel agents are imperative when it comes to supporting larger requests and needs. With a TMC, you’ll have access to experienced professionals who can help you navigate complex requests, while supporting you throughout the trip.
Benefits of using a TMC
Arranging travel isn’t always easy. Particularly when it comes to group trips with multiple destinations. There’s also the subject of cost and knowing whether or not you’re getting the most out of your spend. A TMC will simplify your travel arrangements, get you great deals and save you time. All while making sure you benefit from:
- Cost savings through negotiated rates and AI/ Machine learning capabilities that can optimize booking spend automatically.
- Dedicated support and assistance which are essential for traveler safety.
- A streamlined booking process. Most TMCs also integrate platforms for travel expenses such as, Amex GBT Select and Amex GBT Neo1 (Neo1).
What is a Corporate Travel Agency (CTA)?
A Corporate Travel Agency is a bit more specific than a TMC, offering more customized booking itineraries for customers and making the most out of the travel experience of savvy corporate travel agents. You’ll get a focused personalized service and customization with hands-on travel experience to locate great rates, itineraries, and schedules.
Benefits of using a CTA
It can go without saying that there are huge advantages when it comes to partnering with a CTA, if you’re after a more customizable approach. Not only do you receive tailored travel solutions to your travel arrangement preferences (individually and organizationally), you also enjoy more flexibility and agility for real-time adjustments to your travel booking, thanks to a direct point of contact. They also offer a more relationship-based approach and while a good TMC will offer self-service management tools, a CTA puts you in touch with travel professionals for travel management services – allowing for detailed requests and explanations every step of the way.
Key differences between TMCs and CTAs
Although both arrange travel, there are some key differences to keep in mind when you’re deciding which to partner with. For example, if you’re looking for a more service based approach, CTAs emphasize personalization and client-specific needs, while TMCs typically follow standardized processes and technology-driven solutions.
If it’s the size of the solution that’ll likely determine your final decision, TMCs are often larger companies with a global reach and extensive resources, whereas CTAs can be smaller firms with more localized services but can provide a more niche offer.
However, if your budget is at the forefront of your mind and you prefer a fixed cost over fees that depend on various moving parts, TMCs will often charge based on volume or transaction fees, whereas a CTA’s pricing may vary based on services rendered and client needs.
Factors to consider when choosing between TMCs and CTAs
If you haven’t yet decided what will influence your final decision, there are a few things you should consider:
What is your company size and travel volume?
While the human touch for travel can be a great feature, it’s often not sustainable for enterprise companies. On this occasion the sensible choice would be to partner with a TMC who’s travel tools can be easily scaled and used.
Specific travel needs and preferences
This might seem obvious, but it’s worth thinking about the specific needs of your business when it comes to travel. Do you want to give your travelers autonomy to book for themselves on a user friendly platform? Do they prefer to self-serve and go? Or, do you want them to enjoy the high-touch treatment with a handpicked travel consultant? What will benefit your business the most?
Budget considerations
Everyone wants a better rate, but depending on the travel mode, a TMC and CTA can offer different savings. While a TMC might be the obvious choice, offering negotiated rates with suppliers, a CTA can specifically optimize itineraries to minimize costs and negotiate favorable terms on your behalf.
Level of service and support required
Can your employees self-service through a mobile app? Or do they require human interaction for complex travel needs and itineraries? Everyone is different, so it’s important to understand what your travelers prefer and what style of travel management will get the best out of them.
Geographical scope of travel
Not every TMC or CTA operates in every country or region. Research your options to offer traveler support for your travelers.
Corporate culture and values
What are your values? Your company goals? A good example of this would be sustainability which is at front of mind for many businesses these days. Travel can leave a significant imprint on the globe and for some, it’s imperative their travel makes as little impact as possible.
A TMC provider such as American Express Global Business Travel (Amex GBT) can offer a suite of solutions and initiatives to offset that balance.
Conclusion
Choosing the right travel management solution is critical for supporting your business travel program and growing your business.
To determine if corporate travel management or a corporate travel agency is right for your organization, evaluate your business trip travel needs carefully before making a decision.
Below, we’ve added a list of TMCs and CTAs to help you decide what’s best for you.
Examples of TMCs
- Amex GBT Select: A tailor-made booking experience for large and enterprise organizations with high travel spend that require scalable or fully customized solutions. With a wealth of industry experience, Amex GBT Select provides businesses with access to a wide range of travel options, negotiated rates and exclusive deals.
- Amex GBT Egencia (Egencia): Tech led intelligent end-to-end travel management which offers a comprehensive suite of travel management, reporting and analytics. With an open AI platform to build robust integrations, it helps businesses automate and simplify travel management. Through intelligent reporting tools, it provides data driven insights to empower businesses to make informed decisions.
- Amex GBT Neo (Neo): A configurable online booking tool that seamlessly pairs with the Amex GBT Mobile app and allows for expense management in one single platform. Neo is the only truly unified platform that combines best-in-class online booking with industry-leading expense management.
Examples of CTAs:
- Amex GBT Ovation (Ovation): Offers high-touch travel management that provides a personalized service tailored to meet the unique needs of every business and their travelers. They provide engaged, personal attention and an impeccable service from hand selected travel specialists.
- Amex GBT Lawyers Travel (Lawyers Travel): Provides personalized business travel that delivers a high-touch service to lawyers and tailors every business trip to meet their needs.
Still need help deciding? Let’s talk.
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