What trends must TMCs be aware of to achieve growth in 2018?

Image credit: Bestgreenscreen via iStock
Phone:+45 4363 2266

Travel Management Companies (TMCs) are seeing considerable potential for growth in 2018 - but they need to adopt the right strategic approach to take advantage of that potential.

The recent Global Business Travel Forecast from American Express Global Business Travel has indicated that the outlook for international business travel is generally optimistic at the moment, with demand driven by an improving global economy and rising confidence among businesses and investors.

With demand for business travel seeing a rebound last year, it is forecast to grow further over the next 12 months, with notable gains expected in Europe and Asia, particularly in India and China. However, the various travel sectors are also becoming more competitive, meaning businesses need to be aware of the best ways to stand out.

Airlines, for example, are moving to stave off competition from low-cost carriers by unbundling fares and adding premium economy seating options, while hotels are bolstering profitability by introducing new ancillary fees and stricter cancellation policies, and car rental companies are pursuing a similar strategy.

Overall, the report indicated that businesses offering new, improved services are more likely to be able to thrive in this redefined marketplace, while noting that TMCs should also be aware of any signs of geopolitical instability that could impact upon corporate travel trends.

David Reimer, general manager and North American senior vice-president at American Express Global Travel, said: "In this time of economic rally, travel managers should aim to provide business travellers with the tools and services that will not only ensure satisfaction, but also encourage compliance and mitigate undue risks.

"Business travel is a crucial driver of growth, and now is the opportunity to reaffirm commitment to it with more strategic and traveller-considerate planning."

Contact ProCon Solution now to find out how ProTAS can help your TMC automate its mid and back-office systems, delivering a better standard of service for your clients in 2018.

 
ProCon Solution A/S
Herstedøstervej 27-29
DK-2620 Albertslund
Phone: +45 4363 2266
Email: procon@procon.dk