The stuttering economic climate in the UK is providing opportunities for travel management companies targeting small to medium sized businesses (SMEs), according to a senior business travel executive.
Speaking to ABTN at the Business Travel and Meetings Show in London, Matthew Pancaldi, director of sales for Simply HRG, said SMEs were in a situation where every pound mattered because of the challenging and unpredictable nature of doing business in the UK.
“The SME feels the squeeze much more [than larger companies],” he said. “Every £1 spent comes off of the bottom line. They need to find ways of buying smarter, and that’s where we can help.”
Hogg Robinson Group (HRG) launched Simply HRG in late 2009 to target the SME market. Around the same time HRG’s global rival American Express Business Travel launched similar brand called Axentis, and Carlson Wagonlit Travel (CWT) stepped up its focus on smaller accounts.
At the time, a former HRG director, Mike Platt, said the major TMCs had taken their eyes off the SME market for too long, and had been focusing disproportionately on winning global accounts.
There was also criticism from the independent TMC sector. It was obviously worried about the big players encroaching on its turf, but it questioned whether or not major agencies would be capable modifying their service model to satisfy smaller companies.
Pancaldi laughed off any notion that Simply HRG couldn’t properly service smaller accounts.
“When someone calls to make a booking they are spoken to by a highly experienced and qualified consultant,” he said.
“We have the buying power to get the best rates and fares for SMEs, and the technology to support their travel programme.”
Pancaldi said he expected the TMCs business to continue to grow in 2011 in spite of difficult trading conditions.
He said also said an increasing number of client were choosing to book point-to-point trips online.