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Internet is “threat” to TMCs
Business Travel Show London 2005: Online booking is complex to introduce but can dramatically reduce a company’s travel costs, business leaders have been told.
Ron Mitchell, purchasing consultant for Zurich Financial Services, joked at a seminar at the Business Travel Show in London that he was “still needing psychiatric help” after introducing online booking last October.
But the rewards are plentiful, he told delegates – at least on point-to-point domestic flights.
During the first month of using online booking, Mr Mitchell revealed average ticket prices from London to Glasgow fell by 33%, Belfast to Birmingham by 44%, London to Newcastle by 44% and London to Edinburgh by a mammoth 57%.
“I hold my hands up and thought that was rubbish,” he said, “But I got the statistics and they were right.
“We have long haul routes and there are savings but nowhere near as dramatic a short haul.”
The reduction was achieved by staff being able to directly compare flight prices on the system and selecting the cheapest option, he said.
Observers said the results represent another threat to Travel Management Companies as more corporations book travel online.
Mr Mitchell however said more complex itineraries will still require “human intervention” and require the expertise of Travel Management Companies.
Earlier, the seminar heard that implementation of online booking was not without its challenges with staff sometimes reluctant to embrace the new system. “You need to establish a project team –you won’t believe how much is involved in this,” said Mr Mitchell. “You need to publish the result from pilot users – people you know who support the programme – and then pray.”
He added it was critical to ensure the online system was able to transfer between Travel Management Companies and not tied into just one GDS system.
Marcia Van Frederici, director of Interactive Travel Europe for American Express Business Travel said: “We think you need a tool that can book one flight sector through Sabre and another, with a different airline, through Galileo. It is also important for the travel arranger to see everything on the same screen.”
Report by Steve Jones
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