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Corporate Travel Management News and Tips

Agency Fees: Are You Getting What You Pay For?

November 8, 2018 | For Finance & Procurement, For Travel Managers

When customers are choosing a new company for travel management services, there is one aspect that is always a point of contention: fees. Contract negotiations can be delayed over a dollar here or two dollars there. Despite most travel management companies moving to a more consolidated pricing model, with fewer line items, companies are still getting hung up on the cost of transaction fees. But transactions and issuing tickets are just the beginning. A travel management company can offer so much more in the way of value to your organization, especially if you’ve chosen a travel management company that has demonstrated they understand your goals and objectives. Here are three aspects of travel management that validate services fees:

1) A Travel Management Company provides Control
Travel, as a spend category, has changed over the last decade. It has gone from its own department, with dedicated and experienced travel managers at the helm, to being under procurement, sourcing, or even HR. Ownership of the travel process has been overwhelming for these internal departments, and many don’t know where to start when it’s time to change or improve. This is where a travel management company is invaluable. The right TMC will dissect the current program and make the necessary recommendations that influence and change traveler behavior. Even better, the best TMCs provide innovative technology and tools that can further optimize and automate policy compliance. This is the foundation of any well-run travel program.

2) A Travel Management Company provides Safety
When disaster strikes, do you know where your travelers are? Can you communicate with them quickly and easily? Can you put a price tag on the lives of your employees? In an emergency, minutes count and it’s vital to have the right information and tools at your disposal to ensure the safety of all your travelers and employees. A travel management company will work within your company culture to increase compliance first. When travelers book within the policy, your travel management company can quickly identify which people are affected and provide location information. A travel management company can also provide technology to make communication quicker and more effective.

3) A Travel Management Company provides Savings
When evaluating the cost of a travel management company, it’s important to remember that over 98.5% of your travel spend lies “below the surface,” in ticket costs, meals, parking, ancillary items, and much more. Fees make up only a small fraction of the total and the hard-dollar savings that a travel management company can offer will far exceed this amount. Savings are realized through a variety of channels that will vary depending on both your TMC’s expertise as well as proprietary technology. As an example, Adelman has automated the process for obtaining the lowest airfare and hotel rates, even after ticketing. This ensures guaranteed savings month after month.

To learn more about how Adelman offers value beyond the typical travel management services, contact us!

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