Streamlining business travel is essential to improve administration, cost efficiency, productivity, and the travel experience. However, managing these variables in-house can be a cumbersome and tricky situation for corporates. Hence, travel management companies are hired by organizations to manage their corporate travel requirements. Further, travel management companies can avail of handsome discounts and perks from airlines and hotel chains. Additionally, top corporate TMCs can help corporates in real-time crisis situations.
What is a travel management company (TMC)?
A travel management company or TMC is a specialized organization responsible for managing travel for a particular corporate or a professional. A TMC company saves clients’ time and money by controlling travel spending and managing the organization’s travel needs.
Allowing employees to manage their travel and negotiate rates for travel booking may not be practical if several employees travel frequently. Companies often lose administrative power and cost control because of complex itineraries and employees’ personal preferences. Further, managing corporate travel is challenging as it involves booking flight tickets, reserving accommodation, booking local transport, and negotiating rates for cost-effective business travel without impacting the travel experience of employees. A TMC helps control travel costs through effective expense management and adherence to a company’s travel policy. The emergence of travel management companies opened doors to a broad spectrum of TMC careers. Dedicated travel managers for organizations and executive travel assistants are some new roles in the travel industry.
Modern travel management companies leverage SaaS-based corporate travel management platforms like Paxes to enhance the effectiveness of the individual travel program of the company. These platforms allow round-the-clock access to employees and other stakeholders for booking features and emergency assistance.
Travel management companies activities
A travel management company empowers the organization by enabling access to cost-effective airfares and accommodation. They partner with Global Distribution Services and regional LCCs to help clients save high costs. An established TMC company can help your organization in several ways, including:
1. Mitigating travel costs
Companies can effectively minimize travel expenses by leveraging negotiated rates to save transportation and accommodation expenditures. The right TMC helps businesses avail of rates that may not be possible without the vast domain experience of TMC companies.
2. Streamlining the booking process
An advanced corporate travel management platform can automate the entire travel booking process, saving time and effort for employees and travel managers. A SaaS-based platform by travel management companies enables a user-friendly dashboard that integrates multiple travel booking options for road, air, and rail, along with accommodation and local transportation.
3. Seamless travel policy compliance
Businesses can hire TMCs to integrate travel policy to ensure compliance at all employee levels. Advanced travel management platforms enable travel policy optimization to prevent deviations. Since the travel management platform restricts choices to comply with travel policy, employees need not spend hours searching for suitable suppliers. The platform does not allow itinerary deviations if these are not within the travel policy guidelines.
4.Creating and managing travel itineraries
A TMC company can facilitate creating custom travel itineraries for employees by booking travel and accommodation at the most competitive prices. Employees can use online travel management platforms used by TMCs to change their itinerary because of unavoidable circumstances.
Qualities of a good travel management company
An organization in pursuit of a good travel management company should check whether the following features are available:
- Centralized booking process
- Round-the-clock access to the travel management platform via a complementary app
- Built-in processes for instant approval
- Expense reporting
- Travel policy integration
The right TMC company enables real-time visibility into travel reports. Travel managers and finance staff can generate reports to track policy compliance and travel spending. These reports offer meaningful insights to help the business make policy changes and improve travel and expense management. Instant access to itinerary tracking and travel expenditure boosts the company’s ability to analyze travel trends.
SaaS-based travel management platforms improve the company’s compliance with Duty of Care obligations. Travel managers can track employees in real-time to ensure their safety in the event of any emerging threat. Employees have access to reliable emergency support and real-time notifications.
Conclusion
A travel management company makes life easy for travel managers, accounts staff, and employees by offering end-to-end travel management services. It streamlines the travel booking process and assures cost control and compliance with the travel policy.
Employees can leverage an automated corporate travel management platform used by TMCs to create itineraries and expense reports. Paxes is a comprehensive travel management platform for corporates and travel management companies providing instant access to a vast inventory of travel suppliers. Organizations can integrate travel policies and set up multi-layer approvals to ensure seamless policy compliance.
Suggested Read: Business Travel Etiquette That You Should Know On Your Next Trip
Travel Management Company FAQs
Is there any difference between TMC and a travel agency?
A travel agency focuses on booking travel, while a travel management company manages all aspects of business travel besides travel booking.
What is corporate travel management?
Corporate travel management involves creating a travel policy and organizing employee travel, besides tracking and controlling travel costs.
What is the role of a travel manager?
A corporate travel manager ensures travel policy implementation, negotiates with travel suppliers, controls travel costs, and provides a better travel experience for employees.
What are the three primary roles of a travel management company?
Booking travel to save costs, ensuring travel policy compliance, and providing duty-of-care solutions are the three principal tasks of a travel management company.
What does a travel management platform aim to achieve?
A travel management platform aims to be a central resource for planning, booking, and recording business travel.
