At the lively conference in London last week organised by Management Solutions (UK), several speakers - mostly but not all from travel management companies - warned that growing numbers of travellers were going outside company travel policy to book flights directly through airline website.
Figures ranged from 10% to 20% of travellers at some companies doing this, both startling figures. Mike Platt, managing director of BTI UK, said one major British company was in danger of losing its airline deal and with it a £100,000 in savings, because some many people were booking direct. This company, he said, was not unique.
It was the “biggest problem facing business travel management,” Mr Platt said and added, in case the point was missed: “Either we bring these travellers under control or it is goodbye to travel management.”
But what is the solution? Mandating travel compliance as some US companies but which is not generally the European way? This does not seem, as yet, a likely option.
The cause of the problem seems more fertile ground for finding the solution. Travellers who see there is, say, a £50 fee charged by the TMC for booking a flight that may only cost £75 rightly wonder if this is value for money.
The fee covers not just the reservation but a dozen and one other services the TMC provides to the company. A BTI survey found that 93% of the travellers questioned had not clear idea what these services were or that they were paid for through the booking fee.
Clearly there is a lack of communication. But, again whose fault?
TMCs spend, they will tell you, much time and money explaining to client company executives just what it is that they do for their money. The TMC bosses rarely miss a chance to spell out what these services are. Witness the PhoCusWright executive conference in Paris where Amex, BTI and CWT ceos all did exactly this.
At the London conference, Chris Crowley, head of sales for The Travel Company, one of the largest independent TMCs in the UK, said that if there was no control, there is “always going to be a certain mis-connect between the traveller and those who make the policy.
“But you don't get successful compliance by laying down the law. To get compliance there must be a two way dialogue.”
He also made the point that many travellers also nowadays know a lot about travel including air fares and hotel rates.
Tim Snow, senior manager in the strategic sourcing department at Prudential, made an equally valid point from the other side: “Good procurement departments like to listen to their travellers and deliver the travellers' needs. But there is a mis-connect between bad procurement departments and travellers.
“There is also a mis-connect between travellers wants and needs. Everyone for example wants to travel business.”
Mike Platt made the further point that the primary skills of a procurement manager were about getting deals but not in communicating with travellers.
The two-way dialogue advocated by Mr Crowley would seem not only the right way but the essential one. TMCs must go on explaining to travel managers of procurement managers exactly what it is they do for their fees and the companies' managers must pass on this and the reason fore the apparently high fees to the travellers.
In turn the travel and procurement managers should also be prepared to listen to their travellers.
But there is a vital element missing which the debate touched upon only once.
Travel policy, like any other company policy, need they firm and vocal backing of the senior executives. This is not always either evident let alone forthcoming.
If mavericks who think they can get better fares all the time know the ceo is not that concerned, compliance will drop through the floor. No one will take any notice of the travel or procurement manager.
Then it is either a mandated policy or goodbye to travel management.
Debate continues here