As business travel makes a cautious post-Covid return, travel management companies are optimistic about their prospects for 2022, according to research conducted for BTN Europe's Leading TMCs 2022 report, which surveyed more than 100 TMCs across the region alongside more than 160 travel managers.
More than a quarter of TMCs (43 per cent) expect to see a boost in sales beyond 2019 levels, with 26 per cent predicting an increase of up to 25 per cent. However, most companies (52 per cent) are predicting lower sales for the year while seven per cent expect to see no change.
The key growth driver behind this optimism will come from winning new customers (according to 57 per cent of respondents), followed by increased activity from existing customers (18 per cent) and the end of the pandemic (14 per cent). However, snatching business from competitors may prove more difficult than expected as two-thirds (67 per cent) of the travel buyers surveyed said they were quite or very satisfied with their TMC, while one in five (22 per cent) declared their satisfaction levels neutral.
Inking new business will depend on a meeting of minds – rather than cheaper rates – as 43 per cent of buyers identified ‘cultural fit’ is a key part of the process when selecting a TMC partner. The survey also showed that overall value (36 per cent) was more important than lowest transaction fees (26 per cent).
Unsurprisingly, rampant staff shortages remain a concern with nearly one in five buyers (18 per cent) unhappy with their TMC’s offline servicing. Meanwhile, 91 per cent of TMCs identified recruiting skilled staff as a key challenge, along with lingering fears over coronavirus and other pandemics and geopolitical tensions such as the war in Ukraine.
Service history is also a factor influencing business. Some 40 per cent of buyers have worked with their TMC for four to ten years and 15 per cent have long-standing relationships of more than ten years. One-third of buyers have partnered with their TMC for one to three years, while 12 per cent have selected and implemented a new TMC during the Covid-19 pandemic, having worked with them for less than a year.
Explore Europe's Leading TMCs 2022 here, where you'll find indispensable information on leading TMCs in the UK, Germany and France and, for the first time, standalone rankings for Spain and Italy.