In this week's Big Interview ABTN talks to Maurice Veronique, who took over as chairman of the Guild of Travel Management Companies (GTMC) -having been deputy - in January this year. His day job is as joint chairman and CEO of The Appointment Group, a TMC he founded with his partner John Gianquitto in 1988
How has the relationship between TMCs, suppliers and clients changed? Can TMCs still make companies savings, even in the .com era where people can search and book direct themselves?
The relationship has changed totally. We now work to find the most cost-effective travel solutions for our corporate clients, whereas hitherto we have acted as a kind of sales force for the suppliers.
Those clients don't want their employees scouring the internet looking for travel ”bargains” - they're wasting company time, and it's not their core function. You don't ask your staff to clean the office windows, any more than you ask the tea-boy to do the company accounts.
Travel management is far more than merely sourcing and booking travel arrangements. It's about negotiating special rates, establishing and policing travel policies, advising on purchasing tactics and strategies, providing comprehensive support service - 1,001 things the average traveller wouldn't know how or where to begin with.
You've said TMCs must adapt to thrive in this new environment - what will they offer in future?
Change isn't in the future, it's happening now. Aided by new technologies, TMCs are offering an ever-wider range of products and services - airport car parking, passport and visa services, centralised taxi reservations, that sort of thing - and that will continue.
Some major companies now offer staff relocation services as part of a ”total mobility” package; I can see larger TMCs taking a wider purchasing role, or moving into the human resources arena; if we are helping to manage travel and entertainment spend, why shouldn't we help manage other expenditure?
At the same time, we can already see a greater degree of specialisation emerging. Smaller TMCs can offer a highly-personalised service to similarly-sized client companies; some may focus on a geographic region - China and Russia are obvious possibilities - others will focus on industry sectors such as IT, mining, or pharmaceuticals.
The future is all about providing quality, cost-effective service.
You've recently been elected to the chairmanship of the GTMC - what is your mission - do you have a vision?
One word - communication.
There is a lingering confusion surrounding the change that TMCs have undergone. Since the end of the old commission system, we have moved from being the agents of the travel suppliers to become the agent of the corporate client. We need to get that message across, loud and clear.
Similarly, there are a great many decision-makers and opinion-formers who do not fully understand our business or appreciate the role of the TMC within that business. We need to get that message across, too.
And we have to acknowledge that communication is a two-way process. We need to listen to clients - buyers, bookers, the travellers themselves - and to specialists and experts both within and outside our industry, and to learn from them.
Just how important are TMCs today, specifically to a) large companies b) SMEs?
We often hear the term ”commercial world” ” and that's why TMCs are vitally important. To maintain a competitive ”commercial” edge, companies need to cut and control costs; because companies do business globally, people need to travel.
Different TMCs will suit different corporate clients, but the effective, professional management of a planned travel programme is essential to every organisation, regardless of size.
What is the role of travel managers/TMCs in ensuring employee safety? Are there technological tools that you can use or would like to make sure staff are aware of risks and can avoid them?
Ultimately, it is the employer who is responsible for the health, safety and well-being of his or her staff. TMCs cannot take on that responsibility, but we can certainly help companies meet their duty-of-care obligations.
There are some very sophisticated tracking systems on the market today. However, technology is only part of the package - where risk is involved, human intervention is absolutely essential.
Travellers need to be made aware of the risks they might face, to be advised how best to avoid or lessen those risks, and how best to deal with a situation should it arise. The advice needs to be tailored - a lone female medic travelling to sub-Saharan Africa is going to need rather more support than a company director sitting in the first class carriage on a train from London to Birmingham.
Assessing needs, communicating timely and appropriate advice, and providing an end-to-end support service - that's what we do, day in, day out.
How effective is travel policy compliance and why should employees be persuaded of its importance?
Historically, compliance has been seen purely as a financial issue - travel with Airline X because the company gets a discount for every 100 trips, or whatever. That is no longer the prime reason for driving compliance.
Employees need to understand that if they book within policy, they can be traced quickly and offered professional assistance in the event of an emergency. It”s in their own interests, and those of their families and friends, that they can be tracked at all times.
How do you view GDS applications for low-cost carriers and in fact, how are low-fare airlines viewed within your business and the industry in general?
Low-cost airlines do have a role to play within the managed travel arena, although I personally believe it is a relatively small role. Most business travellers require a high degree of flexibility where air bookings are concerned, and although budget carriers” base prices are low, they more than make up for that when it comes to charging for changes.
To what extent is technology moving forward and how detailed a knowledge do travel managers/TMCs need?
Technologies are advancing at an incredible rate, with no sign of deceleration. Travel professionals, in common with professionals in every other industry, need to understand how technological innovations can best be used - if at all - to further their own business efficiencies.
Can umbrella organisations such as yours help travel managers/TMCs? Could they be better and if so, how?
The Guild is often branded as a ”talking shop”, but I don't see anything wrong with that. We provide a forum for the exchange of ideas and initiatives, between ourselves, corporate travel buyers and bookers, and between ourselves and the opinion-formers and decision-makers who can have a huge impact on the wider business travel industry.
And yes, we can always evolve and improve - we wouldn't survive if we didn't.
www.gtmc.org