The UK government has extended travel management agreements with Corporate Travel Management (CTM) despite being among the clients affected by the TMC’s long-running overcharging and accounting errors.
The Home Office and Scottish Government have each extended their agreements with CTM by 12 months, until 31 August 2027 and 11 September 2027, respectively, according to the TMC. The Cabinet Office will also continue working with CTM until 31 August 2027 under the government’s wide-ranging RM6342 procurement framework for travel, accommodation and venue sourcing.
CTM expects the extended contracts to generate approximately £105 million in total transaction value (TTV) over the respective initial contract periods.
In a statement, the TMC described the extensions as “material”, citing the “scale and strategic importance” of the customers involved. The renewals could also prove critical to its binding agreements with affected UK clients to repay 86 per cent of its £118 million liability due to overcharging.
Under those agreements, CTM will refund £87 million to affected customers. It has already paid £11 million, with the balance due in instalments by 30 September 2027, according to a filing with the Australian Securities Exchange. The precise amount owed to the UK government has not been disclosed.
In December, the UK Home Office launched an “urgent investigation” into its contracts with CTM after being made aware of the TMC’s accounting errors. A spokesperson for the Home Office confirmed to BTN Europe this week that its investigation “remains ongoing”, but did not address questions regarding details of its repayment agreement with CTM.
“As part of our ongoing determination to close asylum hotels and cut costs for British taxpayers, we have recouped more than £70 million from asylum accommodation contracts which were not delivering good value for money and saved £700 million in hotel costs alone. By the end of this parliament [15 April 2029], every asylum hotel will be closed,” the spokesperson said as part of a standardised statement.
The Australian government, which also works with CTM, last month concluded an audit of travel charges, fees, refunds and booking practices under its contract with the TMC, finding “no evidence of widespread or systemic overcharging”. By contrast, the New Zealand government suspended CTM from its centralised travel management framework in July, preventing it from tendering for government business.
Despite the scrutiny, CTM continues to secure lucrative UK government work and maintains a range of live public-sector agreements. These include a renewed Ministry of Defence contract for accommodation and venue-finding services under the Afghan Resettlement Programme. The contract runs from August 2026 to 31 March 2029 and has a liability cap of £170.3 million.
CTM said revenue from its extended Home Office contract for asylum accommodation, travel and associated services is volume-dependent rather than fixed. The agreement is expected to generate approximately £65 million in TTV during the extension period.
The Scottish Government agreement covers 93 participating public-sector organisations under the RM6217 procurement framework and is expected to generate approximately £25 million in TTV during the extension period.
CTM also expects its continued participation in the RM6342 framework to generate approximately £15 million in TTV during the initial contract period. Services include business travel management and air chartering.
The multi-supplier agreement, which also includes Clarity, Perk and Navan (formerly Reed & Mackay), is due to end on 30 September 2027. It will be replaced by the three-year RM6408 agreement; the tender process for which is expected to begin next month, with an award due in April 2027.
CTM managing director and group CEO Ana Pedersen said: “These renewals reflect the value CTM continues to deliver to our customers and reinforce our position as a trusted partner to major public-sector organisations in the UK. We look forward to continuing to support these organisations across their ongoing travel requirements.”