Airlines’ pursuit of direct corporate business spells trouble

Clive Wratten is chief executive office of the UK-based Business Travel Association

In an era marked by globalisation, rapid technological advancements, and the ever-expanding web of international business, the importance of efficient and strategic travel management cannot be overstated.

Travel management companies have emerged as indispensable partners in the modern corporate landscape, offering a bridge between the demanding travel needs of businesses and the complex world of travel logistics

Some airlines’ constant desire to drive corporates directly to them may seem like a win-win for both carriers and customers, but the long-term repercussions of this habit cannot be ignored.

Airlines like American Airlines are pressuring organisations to bypass established travel policies and systems maintained by TMCs, ultimately leading to a tangled and fragmented travel programme. This not only hinders staff productivity by forcing them to navigate multiple systems but also imposes hidden costs – and risks – on the organisation. The allure of the perks promised by airlines for those booking direct should not come at the expense of efficiency and fiscal responsibility. It’s high time we reconsider the true cost of these programmes.

Let’s not underestimate the indispensable role of TMCs. They do more than just book flights; they handle risk management, provide 24/7 crisis support, offer detailed management data, conduct cost-saving analysis, and deliver sustainability reporting. Airlines simply cannot establish or financially sustain the invaluable support system that TMCs provide, and when airline support falters, TMCs step in to salvage the situation, bearing no cost to the carriers.

Entrusting business travel solely to individual airlines jeopardises organisations by stripping them of oversight, central management capabilities and any choices and booking flexibility. Loyalty schemes and other methods that push customers directly to airlines encroach on TMCs’ territory. And they are not just inconsiderate; they are a direct threat that tie the hands of corporate travel experts and pave the way for industry-wide job cuts. The result? Diminished customer service and support quality. Why are we as industry not protecting the pillars of corporate travel and the value they bring to our businesses?

In today’s rapidly changing business landscape, where climate change and environmental sustainability are at the forefront of corporate responsibility, a consolidated approach to managing carbon emissions data and offsets is more critical than ever. TMCs aren’t just about post-travel reports; they’re the eco-conscious traveller’s secret weapon, offering sustainable alternatives from the get-go.

Opting for solo carrier bookings is a retrograde move that could slam the brakes on corporate net-zero ambitions. Allowing travellers to sidestep TMCs and book directly with airlines is a dangerous gamble. It not only jeopardises our quest for net zero targets but also renders accurate assessments of our environmental impact nearly impossible.

In the age of climate crisis, businesses must recognise the indispensable role TMCs play in the fight for a sustainable future. Bypassing their expertise risks compromising our planet’s wellbeing for the sake of short-sighted convenience. It’s time to prioritise the planet over momentary expediency.

Driving customers towards airline booking systems and incentives must not overshadow the essential role that TMCs play in the corporate travel landscape. While these corporate programmes dangle alluring perks, they can’t replicate the essential human touch that TMCs offer – the input that travellers often crave.

TMCs are the guardians of efficiency, cost control, risk management, sustainability and traveller wellbeing. They empower businesses to navigate the complexities of modern travel while maintaining central oversight and strategic control. Embrace technology, yes, but not at the expense of the professionals who keep our daily travel operations smooth. Businesses must choose wisely to protect choice, service and ensure a prosperous and sustainable journey ahead.