The TMC's are now shifting to online

By Praveen Gandhi
CEO India, Carlson Wagonlit Travels

The market size of the business travel market has been growing at a rate of 8 to 12 per cent, per annum and it will only continue to grow in the future. This phenomenon in turn is helping the travel management market to grow further as compared to the market growth of business travel.

With business going global and the importance of business travel being realised, travelling would mean more expenses on the corporate, and to handle this travel management companies (TMC) are emerging.

Business travel is mainly driven by the IT and travel and entertainment industries and at this time when the economy is bullish, business travel will surely increase. This in turn is worrying the corporate in getting more compliance optimised that will help them drive the bottom line of their sales.

Focus on the travel management companies is growing with growing consolidation. More than actual bookings it is the consulting that is increasing. Also the issue of security is a growing concern especially in today's scenario. TMCs are thus heavily investing in giving value additions to corporates and making policy objectives.

The TMCs help in making policy objectives for the corporates' and help in optimisation of the policy. As outsourcing is the key services these days, it is more of a special skill.

There is a unique phenomenon that is existent these days with the market boom and the rising fares and therefore the corporates are insisting on lower rates, which gives us an opportunity to perform. Therefore, there is pressure along with opportunity.

The business model is still working on the implant-based model, and there is a serious shortage of trained travel professionals in the industry.

Online travel management services are the latest trend. The benefits of this is that it helps drive costs down, with no dependence on manpower, besides being more efficient.