What is TMC Company?

Do you want to simplify business travel organization and execution? As worldwide business travel sector spending keeps growing from $1.07 trillion in 2022 to $1.8 trillion in 2027, travel management company becomes the ideal solution for most corporate travel needs.

This article will help you understand how the travel management company works.

What is TMC?

TMC acronym refers to the travel management company. According to the organization's travel policy, the company is essentially used to manage corporate travel needs such as booking flights, hotels, visas, insurance, airport transfers, etc.

Travel management companies emerged in the mid-20^th century purposely to address complex issues affecting corporate travel. TMCs offer travel software to streamline bookings and seek appropriate airline and hotel deals for large organizations.

The introduction of the Global Distribution System (GDS) in the 1980s allowed TMCs access to real-time inventory, making bookings quicker and more efficient. Today, TMCs leverage advanced technology and AI, like data analytics and expense management, to offer tailored solutions to enhance efficiency, travel safety, and policy compliance.

Functions of a TMC

Booking and Itinerary Management

A travel management company offers flight, accommodation, hotel, and activity bookings for corporate travel clients, ensuring a smooth and efficient travel experience.

Negotiating corporate rates

Travel agencies have higher bargaining power that helps them secure discounted rates with hotels, airlines, and transport providers, offering better value for businesses.

Travel policy enforcement

TMCs help corporates uphold uniform travel policies by ensuring all staff make reservations per company policy.

Expense management

A travel management company offers travel expense management tools, allowing companies to monitor expenses, ease reporting, and budget compliance.

Traveler safety and security

TMCs address emergencies, monitor global conditions, and offer real-time updates, assuring clients of safety and security while on the go.

Benefits of Using a TMC

Cost savings

A TMC can guarantee you always accrue points on your loyalty program membership while they negotiate discounted rates with airlines, hotels, and other service providers.

Increased efficiency

Modern TMC will offer travel software solutions that collaborate on booking flights, accommodation, car rentals, etc., in one dashboard rather than switching between different platforms.

Improved traveler satisfaction

Since TMCs manage travel from booking to arrival, it is easier for travelers to have the optimal travel experience.

Data-driven insights

TMC offers data analytic tools to help clients monitor their travel expenditures, identify areas for cost reduction, and refine their travel policies.

Services Offered by TMCs

Airfare bookings

TMC corporate travel management tool for flight bookings and schedules through competitive rates to meet their corporate client demands.

Hotel bookings

Depending on company travel policy, TMCs help secure respective in secure respective hotels at discounted rates.

Car rentals

At the destination point, TMC ensures corporate clients get cars of their choice at an affordable price.

Ground Transportation

TMCs ensure efficiency and convenience to their customers by offering transportation from airports to hotels and meeting areas.

Meeting and event planning

Meeting logistics like venue, catering, and accommodation can be a hassle for most corporates. However, TMCs offer all necessary logistics for meeting and event planning.

Understanding TMC Fees

Transaction and management fees mainly compensate Travel Management Companies (TMC). A transaction fee will vary depending on the booking. However, the management fee is normally a flat rate. Most TMCs apply a common fee structure, including flat fees, transaction-based fees, performance fees, management fees, and service fees. These rates can normally be negotiated between TMCs and corporate clients.

Conclusion

Are you encountering challenges in corporate travel planning? TMCs are the best option for offering tools to help you with flight, accommodation, car rental, etc., and booking while tracking your expenses and other costs. Sign up in seconds to learn more about our TMC services.