BBT editor Paul Revel talks to Chambers Travel Group’s CEO Chris Thelen
2015 is shaping up to be an eventful year for Chambers Travel Group and its CEO Chris Thelen. The start of the year saw the TMC become part of global firm Corporate Travel Management (CTM) after Thelen signed a £39m buyout deal.
Since then Chambers has announced £10 million of new business, won the Best mid-sized TMC at the 2015 Business Travel Awards and launched its new SME service in February.
Meanwhile, having won the Houses of Parliament travel account last year, the TMC is gearing up for the general election on May 7. Thelen says the constitutional change to fixed-term parliaments helps with the travel programme.
“It means we can plan more, and be prepared for the election,” he says. Every MP will have a travel icon on their mobile device, he says, which will guide them on how to book travel and help establish “best practice across the board”. The online booking tool has “big implications and big exposure within the House,” he adds.
I ask Thelen about the decision to sell Chambers to Australian-based CTM. The deal sees Chambers retain its brand name and staff, including a commitment from Thelen to stay as CEO for at least three years.
“I’ve come to know CTM over the last eight years,” he says. CTM is part of TMC network Globalstar, which Chambers joined five years ago, and has previously approached Chambers about a buyout.
“Before, I’ve said ‘no’. But I’ve watched them consistently deliver on what they’ve said they’d do: success in the US, buying Westminster Travel in Asia, a successful IPO [initial public offering].” He points out the stock launched in Australia at Aus$1 (£0.50) and is now trading at around Aus$12 (£6.20).
“They liked our approach to Europe – we’re essentially a UK TMC with a European footprint, delivering a pan-European, regional service to our international clients.” Thelen thinks expansion is likely in Europe, with Chambers as the “anchor” agency. “For me it was critical that we kept our identity, our team and our relationships. And that’s what they wanted."
With new technology, booking channels and behaviours, plus suppliers’ apparent keenness to “disintermediate” and sell directly to travellers, is the TMC as we know it under threat? Emphatically not, according to Thelen.
“Will the TMC model change? Absolutely. It already is, it’s constantly evolving, it’s one of the most dynamic models out there. TMCs will continue to add value in new ways. Even now, from London we can issue tickets in seven different currencies, and local BSPs [billing and settlement plans] – that’s a natural way you are trying to evolve the model. The client is looking for best practice, for cost-saving and service, and the ability to tailor. Doing it regionally on a global basis works best – that’s what we’re seeing.”
And he dismisses the attempts of hotels and airlines to sell directly to the business traveller. “It will all fall on its face. A well-run travel programme requires a TMC to partner with it,” he says. This is even more the case now, he adds, because of the increasing emphasis on duty of care and the issues around geo-political instability and terrorism.
“A managed programme delivers cost-saving benefits and traveller benefits, and it’s very short-sighted for suppliers to take the direct approach – I think they will see shifts away in market share because of it. It’s sabre-rattling.” He adds that while the technology is all there for NDC, nobody seems to be in a hurry to take it up.
In future, TMCs will serve more of an “outsourced travel manager role,” believes Thelen. And technology is increasingly be a key part of the offering – he gives the example of correlating data on people’s movements leading to more efficient taxi shares that for one client lead to savings £175,000 on taxi costs.
“We integrate [data] on top of the self-booking tool, so you see when’s the most cost-effective time to travel, when hotel rates are low – you can quickly look across the trends, the peaks and troughs. Obviously some trips you have to go at certain time regardless, but others are more flexible.”
Thelen also points to the rise in business from SME clients, which lead to the launch of his Cloud 9 product specifically for the sector. “You’d think the SMEs would be the first to leave a TMC and book direct. But we’re seeing really strong growth. It’s about tailoring services for them – guaranteed savings, visibility and control of costs. And they’re looking for traveller experience, better seats, rooms, upgrades. They want that level of service but provided in a simple way, without the lengthy contracts and implementations that are often required for large corporates.”
So, as far as Thelen is concerned, the future’s bright and TMC clients will never stop looking for value and service. He cites the legal sector as an example of those traditionally associated with “white glove” travel. “We’re seeing many more law firms want to get best practice in their travel policies. They do still want best level of service but they want to have perspective of cost and what they could and should be doing. And they want that with fries, and on a global level.”
Chambers joined a preferred partner programme with expense management firm Concur in late 2015, offering clients Concur’s software for capturing and centralising expense data. Thelen says the relationship goes from “strength to strength”, but there has been very little take-up of the system’s “open booking” capability – allowing travellers to book outside designated corporate channels and capturing the booking data.
“We’re able to integrate a Concur client very quickly, and the preferred relationship is very strong from that aspect,” he adds. “But I don’t think most travel managers or finance directors would encourage their employees to do their own thing. Our travel managers want control and transparency of what’s going on in their programme.”
Similarly, he sees clients very concerned about the rising popularity of sharing economy providers such as Airbnb, from the perspective of insurance and liability.
Thelen’s optimism about the TMC’s future was particularly evident at the Business Travel Awards in January, on winning Best Travel Management Company (£50-£200m UK sales).
“To win for three consecutive years is exceptional. It’s an amazing achievement for Chambers and tops off what has been an incredibly exciting 12 months for the company,” he says. “This is the Oscars of the travel industry.”
Chris Thelen joined Chambers Travel Management as commercial director in 1999. Five years later he led a successful management buyout of the TMC to become CEO and majority shareholder. Over the next ten years, the company grew to become a leading independent TMC with an annual turnover of £146 million, employing 214 staff. Following an acquisition agreement at the end of 2014, Chambers became the European anchor for Corporate Travel Management (CTM), one of Australia’s largest global TMCs.