Content fragmentation is a major problem for the business travel industry, according to 100% of corporate buyers interviewed for a White Paper released at the BTA Conference in Gibraltar.
But research found the consensus from a supplier perspective was more split, with 60% of suppliers agreeing that fragmentation is a major problem in the industry, compared to 40% who do not think it is.
The White Paper explores the critical role TMCs play in mitigating the increasing levels of fragmentation.
It was produced by Black Box Partnerships and commissioned by the BTA, the Australasian-based Association of Travel Management Companies (ATMC), and the Guild of European Business Travel Agents (GEBTA).
The White Paper concludes that TMCs are essential in streamlining fragmented processes in order for corporate travel to operate optimally for buyers, HR directors, procurement, finance directors, and travellers.
But it notes that achieving this requires comprehensive rate parity and complete access to content.
“Over the years ‘travel distribution behaviours’ have in part morphed to focus on end travellers as opposed to supporting retailers, in some ways portraying an undervalued appreciation in the level of effort and investment from TMCs,” it says.
“The remit of protecting customers covers a wide array of feelings and emotions, from fairness, trust, balance, accountability and transparency, something the travel landscape has issues with.”
The paper says some would argue that the role of TMCs has changed from a servicing agent to a technology led organisation and asks if there is an issue in “constantly treading unstable ground”.
“If TMCs are as agile as they say, countering fragmentation is just another proposition story to build on in the same way as preferred rates, duty of care and itinerary applications are,” it continues.
It says the rise of machine learning, automation and AI has the ability to offer industrywide benefits and efficiencies, but also has the “scope to make a mockery of travel budgets and guaranteed/preferred rates, using personalisation as a trojan story to lift average rates”.
As more channels open up, containment and control are policy behaviours that will enshrine the element of servicing, be it online or offline, more so for future generations, says the report.
“For Gen Z and Alpha, it’s about convenience and immediacy, ignoring the trail of effort to connect the buying journey dots, listening to some industry leaders, that’s the role of today’s TMC,” it observes.
“Ownership of the customer should be secondary to delivering exceptional customer service, which in turn drives both brand and service loyalty, two factors that have been foundations for all travel brands and partners to benefit from.”
Clive Wratten, CEO of the BTA, said: “Content fragmentation is rapidly reshaping how corporate travel operates. This report not only outlines the challenges but offers a path forward for TMCs to bring together and manage their content portfolios, ensuring smoother operations and an enhanced experience for corporate travellers.
“It’s crucial for suppliers to recognise the TMC community as a valuable distribution partner, capable of bridging the gaps in content and driving greater collaboration across the travel ecosystem.”
Speaking to delegates at the BTA Conference this week, he likened the longstanding battle between suppliers and TMCs to a ‘civil war’.
“The industry has been in a civil war for many years but ironically the person it’s fighting over doesn’t give a monkeys,” he said.
Leigh Cowlishaw, Managing Partner of Black Box Partnerships, added: “This white paper represents a significant step in addressing one of the most pressing issues faced by the corporate travel industry today. Our goal is to help businesses adapt to this complex environment by providing actionable insights and solutions.”
thebta.org
blackboxpartnerships.co.uk
The White Paper is available to download now
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