TMC - Travel Management Company
Why is it necessary to have a TMC and how would I
benefit from one?
Questions asked so very frequently. Welcome to the
new era of travel management.
Travel Expenditure (TE) is the second highest form
of expenditure in many small to medium size firms.
Often TE is misrepresented in account departments
particularly when air is made by someone; hotel and
car, someone else; foreign currency & traveller's
cheques by yet someone else and the list goes on.
DBT made the TMC transition in 1993 when we realised
you wanted far more than just seats in aircraft. You
asked for a fully reported travel service and we became
an extension of your own firm.
We were given travel budgets and obliged by sourcing
best 'fare of the day', negotiated car and hotel contracts
on your behalf as well as arranging visas, Traveller's
Cheques, Insurance, Currency, Rail and your Conferences.
Expectations have grown since then, and so have we.
Technology and personal agency growth has allowed
us to go a few steps further.
A small to medium operating company like yours requires
the expertise of DBT Travel Management.
Winning your trust is our first and foremost task.
We'll at the same time identify areas that need attention
in your expenditure and introduce foolproof travel
policies that will ensure you'll enjoy new and ongoing
savings at a high travel management service level.
Then, we'll report electronically, in writing; your
spend by Company, Cost Centre, Department and even
by 'name' on a monthly basis. Then if necessary, arrange
to meet with your FCO at a time where we feel you
could be doings things more cost effectively.
If your annual spend is below $A10m, you fit the criteria
for need of a professional TMC. Knowing where your
money is going and just how much is being spent and
on what, is critical to your own survival.
How much does a TMC cost?
A TMC bases service charges on an individual transaction.
Needless to say, if you require Air, Hotel and Car
Hire, you'd make the one call to one service provider. DBT
DBT fees are structured in three main ways:
- Best Fare of the Day, plus negotiated Hotel and
Car rates etc - by transaction
- Management fee - where we cost fares and apply a periodic transaction fee, plus negotiated Hotel
& Car rates etc (Includes Internet Fare Search)
- Packaged Travel Management Fees - Annually, quarterly
or monthly depending on your spend, based market or route deal fares, plus negotiated Hotel &
Car rates etc. Or a combination of 1, 2 and 3 personalised
to best save you money.
There is no difference in the levels of service you
receive from DBT, nor the levels of reporting. It's
more about which structure will allow you to make
savings in the big picture of TE. With or without
a rebate/subvention in place.
Before you sign an agreement that promises rebates and refunds, talk to us. There is no such thing. Promises of savings by rebating is much a myth as is, free flights or free automatic upgrades. It just doesn't happen.
Rebates (or subventions) rely on the booker reserving full priced seats, and the TMC rebating the difference between those and the lesser priced (sold) seats back to the company. It is in the better interests of business to offer the customer the "best fare of the day" (BFOD) and make the savings up front - per booking.
Your savings are in both the cost of any seat booked on a particular flight along with how much you paid a TMC to professionally procure that for you.