The TMC's have the technology
Everyone has the technology. It's been around for years and years. The Global Distribution System (which any business travel agent, of any size, has) has everything anyone will need. Self booking tools, instant itinerary emailing, ability to amend or check-in on-line, alerts for delays, weather forecasts, where you can book a dinner for ten. They have all been there for a long time and frankly, those self booking tools produced by the "big four" GDS systems, leave any inhouse system standing - no matter who's inhouse system it is. Technology is wonderful - the internet offers great opportunities. The internet will answer any of your questions. Two points remain - 1. Are you asking the right question in the first place and 2. Are you getting the answer from the right source?
By their very nature, SBT's are unable to include wrinkles and workarounds. They are unable to see beyond a set travel policy, so are rigid in their interpretation. De-humanisation of the travel booking process can leave one open to paying very much higher fares - or much less value for money fares - than an experienced business travel clerk may be able to book.
Another downfall of the SBT is just that; you have to do it yourself. From experience, I know that many bookings are made from the back of taxis, during a few moments snatched from an important meeting or by a very busy PA who has just enough time to say "Book the boss on the 11:15..... " and put the telephone down. The SBT requires full attention, to log on, to know how to work the system and of course, to understand what the SBT is trying to tell you. At the end of the day, you employ a salesman to sell, not as a surrogate travel agent.
Not all TMC's will even "consider" your travel request. I recently came across one company, who was paying $50 a ticket and all the TMC would do is book the required itinerary - no research, just book what the client dictated. If you wanted advice about how to best set the itinerary up, that would be another $50! This is one of the fundamental differences to consider before taking on a TMC - Do you really want a TMC - or do you want a travel agent?
The size of the Pond
It is a fundamental mistake to be a small fish in a big pond. Travel spend accounts as the second largest cost item in many firms accounts. To you, it is an awful lot of money. Airlines and TMC's think differently. An airline thinks in terms of about a million British Pounds and that as premium revenue (or at least revenue getting on that way) and a TMC is not far behind. Remember that you will only see "travel" as, say £150,000 each month. A TMC will see that as £6,000 or £7,000 - worth having. A turnover of £15,000 each month, to a TMC means about £600 - hardly worth the fuss, but they will have it anyway. To a smaller agent, it is worth having and the small/ medium sized accounts are their bread and butter. They will bend over backwards to keep them.
Here, I want to take a step backwards. Let me remind you of a statement in a previous article (and at the beginning of this) - "The quickest and easiest way to save money on travel, is not to travel in the first place" This statement must be taken along with everything said here. None of what I say here or elsewhere is relevant if the trip could be avoided. If it cannot be, then better to have someone who really understands travel - and who really understands you - to make the arrangements.
Self Booking Saves Money
Well, it may make a fee cheaper - or will it? The actual fee paid for issuing a ticket is minimal compared to the cost of the ticket (or should be). Many smaller agents still operate at £15/ £20 per ticket, most around £25. Many smaller agents will include for this fee, the easier and simple amendments that may be required. They will not charge you every time you ring up to find out what time it is. For this money you receive personal attention and if you are a large fish in a small pond, pretty smart attention as well.
Travel Management Companies
All those reports, self booking tools and training come at a price. The TMC has to make a profit as well.
How can they save money? A lot (as I keep talking about) depends on how your company views their travel (not their travel policy!) If your organisation is such that people regularly have to book on Friday to travel on Monday on a busy commuter route, it does not matter one iota how you book or where you book - it will cost. Even with a small agent, reporting = global reporting - is easily possible with the assistance of one of the credit cards that specifically set out to undertake that task.
So, what now?
Is your system broken? If it isn't, do not try to fix it! Before you make any judgement, interview your travel agent. Find out what he or she really knows. By travel agent, I do not mean the boss. Speak to the front line troops - the people that make decisions about how best to resolve each travel request on a day to day basis. Visit their premises (do not be surprised if it is an upstairs room in a cluttered shop!) What you are looking for is people who really know their stuff.
Read my other articles and take a long hard look at your organisation and how you think about travel. If you need reporting systems, look at those people that develop reporting systems - Diners, Amex, Visa and AirPlus. Above all, when you do find a good, knowledgeable agent, keep them and nurture them for they are a dying breed!
Always be aware, real savings do not come from a fee being £25 or £35. They do not come from saving £10 on a return London to Amsterdam. Real savings come from managing to avoid a trip that would have cost £3,000.
This is not media advertising where gloss and impression are important, it is not about presentation; it is about hard experience and knowledge. Do the travel clerks work from intuitive knowledge or work from a rigid policy (both yours and the agent's)? Preferably a combination of both - a policy that allows the front line troops to use their skills in fullest measure. If you find your agent has that experience and knowledge, work with them and grant them an element of trust.