Sales among UK TMCs on the rise

Travel management companies still have a lot to offer corporate clients
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Companies operating in the travel management sector experienced a rise in sales in 2014 compared to the previous 12 months.

That is the conclusion of research conducted by Buying Business Travel, which looked at figures from the 50 largest UK travel management companies.

Combined annual sales from these firms stood at £8.6 billion, which was up from £8.2 billion in 2013.

On average, the companies questioned achieved sales of £171.6 million in 2014, compared to £163.3 million during the previous 12 months.

According to the figures, the average travel management company (TMC) handled some 252,968 transactions with an average value of £430.50.

Buying Business Travel's Mark Frary who compiled the list said: "Business travel volumes have recovered to some extent but some things have changed … companies have embraced cost-saving alternative to travel, particularly in relation to internal meetings."

He suggested that the majority of companies do not send their employees via business class to high-end hotels, but rather economy and to cheaper accommodation options.

Despite this overall boost in sales, some areas performed better than others.

Carson Wagonlit Travel revealed that transactions in Europe, the Middle East and Africa fell by 0.8 per cent. The company suggested this was a reflection of the "delicate economic climate" in the region in 2014.

However, overall transactions increased by 3.3 per cent to 62.3 million. North America experienced the strongest increase of 6.3 per cent.

The Asia Pacific region was the second most successful, with the number of transactions increasing by five per cent. This was mainly driven by strong markets in China and Japan.

Even transactions in Latin America were up, despite Brazil not performing well, there was a 3.3 per cent rise in transactions overall.  

Software like ProCon Solution's ProTAS mid-back office system can help drive TMCs' profits by making them up to 30 per cent more efficient. 

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Phone: +45 4363 2266