CASE STUDY: Eight tips for choosing a TMC

A wise choice of a travel management company can be the difference between success and failure of a travel programme. Nathalie Ansermoz, global category manager travel and entertainment at Bacardi; Robert Daykin, Corporate Travel Partners; Alexander Glavas, travel manager at H&M and Paul Wait, GTMC shared their experience and thoughts during a panel on Did You Choose the Right TMC? at the Business Travel Show.

Watch a video with Nathalie below, and you can download the presentations too.

1. A successful programme is one where the TMC is chosen because it gives value to the business rather than merely cost savings. All the panellists agreed with this assessment from Robert, but one pointed out that no procurement professional would lose their job for choosing the lowest cost option.

2. Culture is important. Robert pointed out that every company has a culture and the importance of working with a travel management company that shares the corporate culture.

3. Does size matter? Robert thinks that company size is an important consideration and that companies should avoid "being a speck of dust in their world". However Paul believes that "size doesn't matter" because a seeming mismatch could potentially lead to better solutions so long as there was discussion and agreement on objectives.

4.Don't choose a TMC (or any supplier) where you would be 30% or more of its total business. Robert warned of the risks of being too big a client for the TMC.

5. Global companies don't necessarily have to use global TMCs. Alexander chose a national TMC to implement his global programme because it was pioneering a hotel booking solution that other TMCs did not have and its offices were "a 15-minute walk" from his so they were able easily to collaborate on development and implementation.

6. Don't be afraid to look at a regional approach. Nathalie has a global travel policy, data capture and KPIs but TMCs are appointed on a local and regional basis to deliver it.

7. The decision should be made on a 50:50 basis between price and service. Natalie believes the decision is not about culture and that SLAs shouldn't be about answering the phone before a certain number of rings but about support and account management so you can jointly evaluate initiatives and progress with your TMC.

8. There are only ever two good reasons to go to bid. Robert advised that RFPs should only be conducted when the incumbent travel management company was not capable of delivering the corporate client's strategy or if there were internal audit requirements.

Here's the interview with Nathalie Ansermoz