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GTMC conference report: Suppliers must pay if they increase agent workload
Travel management companies should charge for services currently expected by airlines, hotels and other travel suppliers for free, said Hogg Robinson Group MD Mike Platt.
In a presentation to the GTMC, delivered on Platt’s behalf by GTMC chief executive Philip Carlisle, Platt said suppliers should be more like a client of the TMCs.
“Suppliers are increasingly asking TMCs for additional things but are not paying for it,” explained Platt.
“From a commercial perspective, we have barely scratched the surface of what we could do for suppliers, if we view then in a different light.
“Some of this is covered within SMAs (supply management agreements), but there is much more we can do in areas of support, outsourcing solutions etc.”
Speaking to Travelmole after delivering Platt’s presentation, Carlisle said an example might be charging airlines for collecting APIS (Advance Passenger Information System) information.
“The TMCs are swallowing the costs,” he said. “Maybe it’s a little bit wishful thinking, but if they want an extra job done and it costs, then why don’t they pay the cost, plus profit. That’s what would happen in any other market.”
Another example would be charging an airline if there is an error with the ADM (agency debit memo), he added.
“When the agent argues about it, even if the airline is wrong, sometimes they won’t withdraw and even if they do, they leave their own administration change. All this costs money for the agent.”
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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