Getting in on Biz Travel? Don’t Forget Ground Transportation

by Harvey Chipkin May 29, 2014

Agents who sell corporate travel can enhance their value to customers – and their own profits – by managing their customers’ ground transportation needs.

At ASTA’s recent Business Travel Exchange in Alexandria, Va., a panel on ground transportation updated agents on how – and why – they should partner with rental car companies and private car services for their corporate clients.

One big reason: it pays.

Potential revenue generator
Car rental companies pay agent commissions – usually 5% for accounts of under $100,000, with negotiated rates for larger accounts, said panelist Debbie Arett, regional travel manager for Avis Budget Group.

Private car services also pay 5% commissions, according to Alex Malek, president of Worldwide Transportation, and Dean Sivley, CEO of GroundLink, who joined Arett on the panel. Worldwide Transportation and GroundLink are both chauffeured car services.

Following are highlights of the panel:

• Private car service companies such as GroundLink and Worldwide Transportation increasingly are seeking out travel agents’ business, including by making their products available through various booking tools in addition to GDSs. Legacy companies like Carey and Boston Coach have been available in GDSs for years.

• Corporate clients do not have to be large to negotiate partnerships with ground transportation companies. Even a one-person account, such as an individual lawyer or consultant, can negotiate for privileges such as upgrades, guaranteed car of choice, etc.

• Agents should come to the supplier negotiating table prepared with data on how many travelers their clients have and how much they spend on ground transportation.

• While many companies do not keep track of ground transportation spend, the rough rule is that travelers spend 10% of what they spend on air on ground.

• Before implementing a ground transportation program, it’s important to establish whether the program will be voluntary or mandatory. Agents should even ask clients about personal traits of their travelers, such as the height of travelers (because tall people may have face safety issues with smaller cars).

• Among the advantages that agents can offer clients is their insider knowledge about ground transportation. For instance, with airport taxes and fees for car rental pickups soaring, agents can help find affordable options and offer tips on avoiding extra charges.

The Uber challenge
Panelists also discussed how and why agents can steer corporate clients away from Uber, the popular mobile app for finding local transportation that is being used by more and more travelers, including business travelers.

Agents should stress to corporate clients the benefits of partnering with established car service companies, they said. For example: car service drivers are licensed and screened; passengers receive alerts that a car is on the way, and the car service will stay on top of passengers’ flight arrival times.

In addition, there is no “surge pricing” with private car companies, whereas Uber may charge multiples of the fare, depending on demand.

Another point in their favor – car service companies can help corporate agents’ in their duty of care responsibilities around traveler safety and security. For instance, private car services would know if road construction will force a change in route.