Managed Travel 2.0 has a huge implication for travel management companies (TMCs).
Namely, the business model for TMCs is going to change.Here’s how I see it:
Fifth in a series on Managed Travel 2.0
First, let’s start with the core issue – the booking transaction. It’s the center of the TMC’s universe. They organize and price their business around this function. Everything else is basically an ancillary service. It’s all about the transaction fee.
No surprise that clients view the transaction fee as a bull does a red cape. It’s highly visible, a tempting target, and instinctively from a procurement perspective, it’s something to attack.