Challenges faced by Travel Management Companies (TMCs) globally
Corporate travel demand is growing, owing to the strong global economy. With the proliferation of technology, this sector continues to witness disruption across. Barriers to entry are almost non-existent making travel an extremely competitive market. This is forcing established players to protect & grow their market-share. Lack of flexibility of the legacy systems is adding to the challenge as the Travel Management Companies (TMCs) are not able to react to the competition faster.
There is intense competition between suppliers & players as well, putting pressure on pricing and transactions. Airlines have reduced commissions and overrides, adding to the woes of TMCs. Transaction fee is the main source of revenue and thus has become major criteria for negotiation. The current manual processes take a long time and are prone to errors. A complete overhaul of the revenue management system is the need of the hour for the TMCs.