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Online players ‘not real threat’, says TQ3 chief
Online business agents pose minimal risk to traditional TMCs because they are unable to cater for the needs of large corporations, according to TQ3 Travel Solutions chief executive Marc Hildebrand.
Announcing plans to form the world’s third largest corporate agency following BCD Holdings acquisition of TQ3 and The Travel Company, Hildebrand said it was well placed to resist the challenge from online players such as Expedia and Travelocity.
He said they have started to make inroads into the B to C market and the unmanaged B to B market but only in the US.
“It’s taking off in the UK but in other European markets they are definitely not on the business travel map at all,” he said. “Large corporations with managed programmes will not want or be able to transfer all of their business to an online provider.
“That has been the advantage of a traditional TMC – we are able to offer a hybrid solution. We can offer integrated online and offline solutions and new entrants are so online focused that they simply do not have the capability yet to serve customers in a hybrid way or on an international basis.
“We are watching the situation closely but have come to the conclusion that so far they are not a real risk.”
Hildebrand added however it would be “arrogant and foolish” to think that only three players will share the entire market.
He also stressed that traditional TMCs have aggressively ramped up their online product with between 30% and 50% of transactions now completed online.
“We are no longer in a situation where we can only do offline and GDS bookings and that all of a sudden Expedia and Travelocity have this great new idea.
“It’s the other way round. When Expedia go and see our customers, they say no thank you, we already have an online solution.
“Do I expect more competition? Yes, absolutely. But we have the tools and answers to fight back effectively which we have already done over the past few years.”
Report by Steve Jones
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