Business Travel Executive, Dec 2020/Jan 2021

in support and perhaps get used to being less reliant on TMC services and more reliant on a combination of internal resources and technology Any global economic crisis will tend to drive consolidation in all sectors and Bailey notes COVID 19 is no exception as major travel players have already declared bankruptcy or restructured Thats why we recommend prospective clients to take a good look at a TMCs financial situation before contracting them he says Whats Ahead for TMCs The restart of travel is a defining moment in our industry Hartwell says I suspect that the restart of travel is going to be more complex than lockdown He points to the inconsistencies across countries and even within countries with more interruptions and reversals going forward Although green shoots are beginning to show Hartwell cautions I would not expect a fast recovery but more of a gradual recovery over the next 18 to 24 months As a consequence he says in the future every trip is going to be an event and TMCs will need to be with the traveler every step of the way TMCs see new opportunities in providing additional information mainly around expectations before during and after the trip Tate notes removing uncertainty around areas like citing safety protocols screening procedures hotel amenities open or closed and quarantining requirements give TMCs a chance to offer added value Pre trip requirements will be around a while so the additional time and effort is another likely area for restructuring the TMC buyer seller financials he says The pandemic has presented in many cases the opportunity to deepen relationships with our clients Keichline says Were having different discussions and speaking consistently to a wider group of key stakeholders HR for instance or CFOs looking to improve productivity of their teams through smarter integrations with travel and expense tech Many TMCs are looking for ways to be compensated for the advisory and nontransactional service and support they provide For instance Brady says CTM is in the phase where everything is being market tested Like other TMCs in the industry we know we have value besides just cutting tickets Brady says Its an open market and well look to see what the market will bear While its too early to tell what the new normal will be for TMC revenue models Berk says its better for a TMC to control all the components versus having to incorporate or react to external commercial structures of partners I think well continue to see more true consolidation between TMCs and T E tech which will help with differentiation and in the long run be good for competition and innovation he says Tate cautions that 2021 will be the year of changes that 2020 wrought Travel 33 Business Travel Executive askBTE com December 2020 January 2021 2021 Business Travel Snapshot What are businesses planning in the year ahead for their travel The State of the Market global survey of 250 of FCMs large corporate clients and Corporate Travelers SME customers found 90 7 globally plan domestic and short haul international travel within three months of travel restrictions being lifted while only of US businesses plan to travel long haul international 26 74 say volumes will return to pre COVID 19 levels of domestic travel while predict their domestic travel volumes will be reduced Source Flight Centre Travel Group