‘We Work For Travellers, Not Airlines’

TQ3 Travel Solutions global chief operating officer, Toby Joseph informs Bhisham Mansukhani that his company regards its final customers’ best interests as its own which is only logical as the customers are the only ones who pay TQ3

Why call TQ3 a travel solutions company?

We call our company TQ3 Travel Solutions because when we launched the company, we had our eye on the past as well as present and future trends. The days of the travel agent who just sort of looked after a corporate client, effectively worked for the airline as he survived on the commission he was paid by the airline. As a travel and expense (T&E) management company, we work exclusively on behalf of our customers. Our customers are discerning and expect us to provide value customer delight if you like, which they will pay for, and eventually the move towards travel solutions away from the orthodox travel shop where we earn our income based on the service fees our customers pay us.

Could you dwell on the profile of your company?

We are a one stop window on a global basis. We represent 1200 locations in 80 countries across the world with US$ 11 billion worth of sales. In all those locations, we service a wide spectrum of customers from some of the largest multinational corporations down to the small and semi business in every country. In all cases, the full range of corporate travel services are made available including the basic airline ticket as well as end to end expense management process.

What is travel management in the current context?

Travel management, here and now, is about cost efficiency. It is about managing our customer’s budget hence the optimiser methodology that we use. Optimiser is an approach towards providing T&E management. The optimiser focuses on processes, suppliers, negotiations to get the best possible rates, expense mechanism, travel policies. We look at all the key drivers of a travel programme and optimise that to manage their budget. Some of our clients can testify saving millions following the application of optimiser, in some cases taking the average price of an airline ticket down by 15 per cent. Some of our customers include Exxon Mobile and Daimler Chrysler enjoy an advantage as they generate the critical mass that allows us to leverage their expenditure to reduce their travel cost considerably and use our tools and methodology to streamline the process. Travel is typically the third largest commodity that company expends on preceded by HR and IT and yet until recently, it was the least controlled. Only the last ten years have witnessed the genesis of travel management as an cognisable skill. Some events in the last three to four years have helped this process along.

What, then is your relationship with the airlines?

Our relationship with the airline is a professional one. We continue to distribute airline products and in some areas of the marketplace, we sit alongside our larger corporate clients and we help them choose and negotiate with their airline partners. It is now, almost a triangular relationship rather than the agent working for the airline. Travel agents who are still looking to survive on airline commissions have it in their best interest to sell the highest priced ticket while in a transparent fee based environment, while it is the exact converse for us.

Should corporates, in your opinion, have their own inhouse travel agent or outsource?

That trend is swinging backwards and forwards and there are compelling arguments being articulated on both sides. In some part of the US and Europe, there exist inhouse travel agencies. There are though a lot of other companies that have realised that travel is not a core competency and have adhered to outsourcing everything that is not a core competency. Today the market has become very complicated. A lot of disintermediation is playing out within the industry and so many more channels are opening up and the complexity of the financial structure of the travel arrangements have become more apparent. Many corporations today are somewhat surprised that what was originally perceived as a profit centre such as an inhouse travel agent is fast becoming a cost centre. Whether they wish to outsource this cost centre is a discussion. The trend, I think, is more towards outsourcing. The question really is as to what degree to which the companies chose to outsource.

What are your plans for India?

The Indian operations began over three years ago. Our local travel partners have grown considerably. The growth has been 30 per cent year on year while the overall market has grown by just seven per cent. There are currently six offices in five cities and fourteen onsite locations in large corporations and plans to open up four more locations, basically to cover all the major metros with a strong corporate presence. Aventis and Hexaware are some of our major clients already. The market may not be of the scale that one come across in the US and Germany but in terms of significance, India is right in the middle of TQ3’s radar screen.