Consortia like the Advantage Travel Partnership are in a unique position by not only supporting 130 TMC members but also providing services for leisure travel agents. After a panel in our webinar were asked whether TMC networks are still relevant, BTiQ caught up with the group's global product director Neil Armogie to wrap up the sector's challenges and issues as part of our DeepDive month into TMCs.
BTiQ: For those that don't know, what is Advantage's members made of and are they all in the UK?
NA: While based in the UK we've built a TMC network that is in 72 countries now, sharing business and air fares. It's really started to grow and now accounts with more than £1 million spend are being won internationally which is great for all especially the small and medium sized companies. It means that when a company expands or consolidates then the TMC can still look after their account in new countries.
Across the network they each need to build trust and know that one is as good as the other, otherwise if they screw up then they will lose the business overall.
BTiQ: You've worked in travel for some time; how do you think TMCs have evolved?
NA: Traditionally TMCs have been seen as the travel booker but it has evolved to so much more; it's more about traveller management now. Travel managers have always been about driving price but there's been more education to say that it's more about that, such as traveller safety and security. TMCs don't always sell the choice and breadth of what a TMC provides, whether that's access to special fares, quality control or even handling changes and cancellations.
For example one of our TMCs has a Red Alert system, so during recent weather disruption in the UK they were able to locate and rebook easily. The traveller didn't even know what was happening; they just got the email with new details. The TMC was able to pre-empt and give them information ahead to those that were affected.
BTiQ: Why do you think TMCs have not sold themselves well?
NA: When the buyer focuses on price then the TMC spends most of its time justifying it. I was on a panel at Business Travel Show this year where I suggested buyers should focus on the 95% that makes up the cost of travel and not just the 5% of fees. You pay for the service of a lawyer with no questions so we've got to be better at saying we're offering a professional service.
A sea change is happening particularly around areas like traveller tracking and security; it is a more robust travel offering.
BTiQ: Advantage's members come in all sizes and shapes, are there any common concerns?
NA: Regulation such as GDPR and PSD2 are a big focus. Consortia like us can take a macro view and provide guidance; this is especially useful for the small and medium-sized businesses as they have smaller teams and not so many resources to work through what can be taxing red tape.
NDC is on everyone's lips and then access to private fares, whether that stops access to our own fares and what affect it has on GDS relationships.
We've kept our finger on NDC since day one but it really gathered pace in Q4 2017 with the British Airways announcement. It went from announcement to development almost overnight so it bought it into stark reality. There had been a lot of smoke and mirrors from key people in the argument and while we knew a change was coming the way it came about was a surprise, and actually similar to those around commission cutting.
BTiQ: Has this also affected conversations around technology?
NA: GDS has sat at the heart for so long and it's a little up in the air if it's still that case moving forward. TMCs relied on GDS then Concur came along and the likes of Traveldoo which eroded the position of the GDS so it'll be interesting to see what happens.
Some TMCs have really invested in technology and have become technology companies as much as a TMC. Each member has its own platform and uses various solutions; a member like Click Travel is 95% online while Stirling is 55% online and others are at the other end of the spectrum. All TMCs are individually building API connections. I do however wonder if it would be possible for us as Advantage to take those supplier feeds into one and offer one feed out. If we could do that there is a cost saving on time and personnel.
We're taking on an innovation officer as we have a weakness in the technology area. That person will take a helicopter view on the technology sector and review it so we can provide a filter to members and say "this is the right fit for you". There is a close relationship with members and we really understand the businesses so this is a gap we need to fill.
BTiQ: Does that also shift their models, perhaps into the meetings space?
NA: The balance of online/offline has become more important. Some members have been made on their customer service and the level they give, so not all want everything to move online. They've built personal relationships and also booking online is not what every traveller wants. For members and travellers it's also more about servicing door to door whether it's destination information on the road or pre or post-trip.
A number of members are putting meetings and events (M&E) desks in place. Some have their own facility while others need more hand holding. We have helped with venue finding and hotel negotiations in a small way and have a Meetings Master Forum in London this June. Now to support members we're launching a rounded service so that we can run it under the brand of a TMC or offer to hand hold if needed. We surveyed 65 members and 88% are either already in the M&E space or want to be, so a full division is due to be launched in May.
BTiQ: Have they been affected by consolidation?
There's anecdotal evidence of members winning accounts that were bidding against Amex GBT and HRG as some don't want to be part of the monolith.
There's a good recruitment opportunity and a chance for start-ups to come into the market.