TMCs React to ASTA Survey: We Offer More, Not Less, Control
by Andrew Sheivachman /Business travel experts were dismayed over a recent ASTA survey finding that business travelers are lukewarm about using travel agents.
The "Value of Travel Agents Survey" found that just 16% of business travelers used an agent in the last year. And just 40% of those who have used an agent in the last year said a trip planned by an agent is better than a trip planned independently.
ASTA told Travel Market Report the results were likely skewed because the survey’s sample encompassed many who don’t travel regularly or don’t travel for business.
“We were happy for the percentage, because it had gone up since our last survey,” said Melissa Teates, head of research for ASTA.
“But in hindsight it might have been better to ask if they had ever used an agent, [instead of just in the last year].”
Controlling the trip
Business travelers’ number one reason for not using an agent was control over their trip. But members of the travel agency community said partnering with an agency or TMC improves the control that companies and individuals have over their travel.
“It’s almost a false sense of control [when a traveler books online],” said Wendy Burk, CEO of CADENCE Travel Management in San Diego, Calif.
“When you work with a TMC with buying power and relationships, it actually enhances traveler control.”
ASTA’s take
If the survey polled only those who self-identify as business travelers, for example, the numbers would likely be stronger, according to ASTA.
“In our mind, we wanted to get a better picture of those who are the real travelers because there are a good number of Americans who don’t travel at all,” Teates said. But the results could have excluded business travelers who used an agent 13 months prior to the survey.
The nature of business travel—frequently for some workers and infrequently for others—could also have affected the results, according to Teates.
“In any given company, there are people who never travel and those who travel all the time,” said Teates.
“It just wasn’t going to be a large number because we based our numbers on the total U.S. population, not just business travelers.”
Travel managers’ perspective
Just two in three business travelers who used an agent in the last year plan to use one in the next year, the survey found.
Agents said that some business travelers need to feel in control, but working with an agent or TMC provides benefits they can’t otherwise find.
“Some business travelers just don’t want to be managed; they want to have control,” said Pam Wright, president and CEO of Wright Travel in Nashville, Tenn.
“There is a value they see in agents, but they don’t necessarily see it on simple trips.”
Returning to TMCs
Wright sees more companies returning to TMCs in recent years because of the cost-saving deals that TMCs cut with suppliers. As businesses have ramped up their travel expenses, the need for cost controls has also risen.
“Companies that are growing are moving back to using TMCs because they have more cost controls in place,” said Wright.
“It’s hard to negotiate deals with preferred suppliers like the airlines if you have no managed travel policies in place.”
The TMC value proposition
Often, the most resistance comes from someone entrenched in a company’s hierarchy who may have had a bad experience in the past with travel agents.
“Sometimes it’s one high-ranking person in the company that has strong feelings about not needing an agent or TMC,” said Wright. “But if someone gives them lots of options and saves them money, then everyone can see the value in using an agent.”
Burk agreed that cost-avoidance is the number one value to companies, besides comprehensive service.
“For basic trips, a lot of our customers use an online booking tool we provide,” she said. “This ensures a cost-avoidance companies are looking for, and our agents can handle pre-, post- and layover issues.”
An uphill battle
One travel manager, however, wasn’t surprised with the results of the survey.
“It’s what every travel agent has come to expect: the uphill battle we all face because information is readily available on the internet,” said Karl Koenitzer, sales manager at Brickell Travel Management in Miami, Fla.
“Travelers see they can save money in the short term because you don’t pay a service fee online, but in the long run they don’t realize there is more to travel management than booking a flight.”
While business travelers can book their own airfare easily, the coordination of several trips is more challenging and expensive over time.
Complex planning
“If you’re running a business with complex logistics, you can’t book four or five flights to five or six destinations yourself,” said Koenitzer. “If you do, at one point you will realize it would have been easier and cheaper to use a TMC.”
Brickell Travel Management charges a service fee and promises its clients a 2:1 ratio on savings to fees. The company has never failed to meet its goal, according to Koenitzer.
“When you are a business traveler with consistent volume, taking 35 to 40 trips a year, you’re going to save a lot of money using a TMC,” said Koenitzer.
“You can’t put a price on the purchasing power and connections of a TMC.”
Proving worth
Still, strong marketing is needed to show business travelers that what TMCs do is far more than transactional.
“When a ticket is booked, it is only the beginning of our job,” said Burk. “It’s about the non-booking part of logistics, having knowledgeable professionals to assist with whatever you need.”