Opinion: The great TMC shift is here

For decades, the value of the TMC has been clear, but it is losing its relevance, warns RIANN VON SCHEER.

For decades, the value proposition of the travel management company (TMC) has been clear: we book travel, issue tickets, and find fare savings.

Our pricing models, our language, and our core identity have all been anchored to these transactional functions, but in today’s rapidly evolving landscape, clinging to this old identity is a roadmap to irrelevance.

The future, which is arriving fast, belongs to the travel servicing company (TSC).

The fundamental truth is that making a booking is no longer the unique skill it once was. In an era of rising automation and direct access, the transaction elements of a TMC’s job are becoming commoditised.

Yet, while the industry obsesses over distribution technology like EDIFACT versus NDC, your clients’ expectations have shifted to a completely different plane.

They don’t care about jargon, they care about their journey. The modern corporate traveller expects a proactive service that begins where the old model ended – at the point-of-ticketing.

For a TSC, issuing the ticket isn’t the end of the job; it’s the beginning of the service mandate.

The real value lies in managing the entire travel experience, and solving problems before the traveller is even aware of them.

Imagine this service reality: A flight is delayed? An automated alert has already informed the hotel of a late check-in. A missed connection? We anticipated it based on airport data and have already rebooked the next leg of the journey.

The traveller hated their hotel room? It’s instantly added to their dynamic profile, ensuring it’s never booked again. They forgot a suit for a big meeting? We arrange a hire one in their size at the destination.

This is the tangible value clients are willing to pay for, and it is a shift from being a booking agent to a journey manager. The technology to deliver this personalised, proactive service at scale exists today – what’s missing is the mindset shift.

The question every TMC leader must now ask is ‘what can we change in our operations, our pricing, to start delivering value like a TSC?’

Riann van Schoor is the founder of the UK-based travel data platform for TMCs, Agentivity.

Got an opinion to share? Let us know in up to 400 words via email to info@ traveldaily.com.au

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