By Jay Boehmer, editor-in-chief of The Beat
Engineering TMC Deals
Travel management company structures & how buyers source TMCs
Travel management com- panies are the operational backbone of most man- aged travel programs. As
close allies to travel managers, TMCs
can take on many roles for the orga-
nizations they serve. They often act
as transaction enablers, assisting with
planning and booking travel, pro-
cessing reservations, fulfilling trans-
actions and supporting travelers en
route. But they also report, analyze
and consolidate data that illuminates
the management of travel. They help
implement core travel technology or
provide clients proprietary mobile,
booking or reporting solutions. They
can assist in the formulation, imple-
mentation and enforcement of trav-
el policy and are key players in risk
management and security programs,
owing to their capability to track
travelers and pinpoint them in crises.
They also can lend support in suppli-
er negotiations and relationships or
share the savings of their own nego-
tiated discounts.
Structuring a Relationship
Transaction fees remain the dominant method through which travel
buyers compensate agencies for travel
management services.
