Not all Marriages are made in Heaven!!

Choosing The Right Travel Partner!

Business Travel being an important aspect for several organizations demands for a robust RFP / Selection process for choosing the right Travel partner. This selection process should not be limited to evaluating the services offered by the Travel Management Company (TMC) and at what cost (pricing factor) but also evaluate the right cultural match between the two organizations i.e. evaluating the core values and principles laid down and followed by the prospective partner(s). This process is no less than a marriage and needs a robust evaluation process for the right fitment.

Having spent long years in the Industry, have seen 'pricing' being the most important deciding factor for many. Several organizations are carried away by the fictitious term "ZERO Pricing".

Every business has one of its main objective to earn profits. No business can survive for long if it does not make money. So how does 'ZERO Pricing' make the TMC meet this objective?

Obviously there is something fishy here as the cost of service needs to be collected somehow and many service providers resort to unethical means to earn. So while at the face value it may seem as 'Zero Pricing' the real thing is that money is still being made. It is therefore important to have a transparent discussion and opt for either a "CostPlus" model or pay justified transaction fee with water tight contract to ensure no unethical means of earning can be adopted by the partner.

Enlisted below are some of key points a Corporate should keep in mind while choosing the right Travel Partner:

• TMC Profile - including vision, mission statement, financial health check, customer references, attrition rate, employee demographics, supplier references, accounts currently lost with reason, ability to provide seamless service across various locations (domestic / international as case maybe), legal cases, USP, etc
• Product & Services - capability check with the various products and services offered including third party tie-ups, SLAs, escalation matrix, emergency response services, Duty of Care, etc.
• Technology - Offering patented / in-house Solution or Third Party Tools. Technology partners, third party integrations, Capability to integrate complex Travel Policies as part of solution, etc.
• CSAT - methodology adopted for customer satisfaction measurement including CSAT Score (year-on-year trend), complaint resolution process, etc.
• Reporting & Analytics - what reporting and analytical tools are adopted, sample standard reports, scheduling of reports, timeline for customized reporting , etc
• Pricing Models - Transaction Fee (Bundled / Un-bundled) / Management Fee / Cost-Plus, Commission / bonuses to be shared etc.
• Transparency - regarding refunds, un-utilized tickets, commissions, incentives, etc.
• Value Added Services - Offering any guaranteed savings for a fee or as part of standard offering, any other special services as USP, etc.

Above mentioned are some of the key points that must be evaluated in the RFP process, however the list is exhaustive.

Wishing you all Merry Christmas and very happy and successful 2020! Happy Holidays!

For those looking to have more insight, happy to have a detailed conversation over phone or face-to-face. Please inbox me for details.