"The TMC industry has matured and is here to stay": CWT's Berthold Trenkel

Travel Distribution Summit Asia 2008 Special

Be it for increasing number of employees booking their own travel or business travel becoming segmented with a travel consultant being required predominantly for complex itineraries, the corporate travel distribution model has changed over the years.

Some GDS' categorically state that their current obsession is adoption as an organisation buying a corporate self-booking tool is not the end of the story. In fact, encouraging adoption within an organisation is considered to be a case of changing habitual behaviour.

Making a future prediction for corporate travel distribution model and how will business customer buy their travel, Berthold Trenkel, EVP Traveler & Transaction Services and President, Asia Pacific
Carlson Wagonlit Travel says, "Back in the early 2000s – the TMC business was classified as a dying business. Looking back now in 2008 – the absolute opposite is true. The value of effective travel management is even higher today than five years ago."

"Large TMCs with an integrated network and strong value proposition continue to thrive. The continued fragmentation around content, emergence of LCCs, duty of care, corporate social responsibility, carbon foot print, etc. have made the business for the corporates even more complicated – and hence strengthened the value proposition of the TMCs. The TMC industry has matured into a professional services industry and is here to stay," Trenkel told EyeforTravel.com's Ritesh Gupta ahead of Travel Distribution Executive Conference to be held in Singapore (on March 18 and 19).

As suppliers reduce or eliminate travel agent commissions, agents have to evolve their businss models to survive and have had to seek alternative revenue sources including the sale of additional products and services. An additional requirement is for agents / TMCs to operate more efficiently and maintain cost efficient processes.

Assessing the situation in Asia currently, Trenkel said, "We welcome the maturing of this industry. So the elimination of agent commissions is a positive move for us. The difficult part is the transition – and in particular the 'medium' stage where commission levels have been reduced – but not yet reached zero. The quicker the change the better for the TMC industry."

On changes witnessed in the way travel suppliers want to sell to the business traveller, Trenkel shared, " Over the last three years more changes have happened on the customer side – travel managers appreciate the value of travel management and we saw a big push for program consolidation, i.e., companies opting for one TMC across the region or even globally."

"At the same time not too many changes happened on the supplier side, with the exception of the surge in low cost carriers – and the supply/demand imbalance in hotels and in some markets in air. But even the LCCs after their initial focus on the leisure sector have started to pay attention to the corporate sector. So availability of inventory via the GDS or direct connects etc. has become important to facilitate the corporate travel needs."

CWT, along with speakers from Expedia, AirAsia X and Abacus, are scheduled to take part during the inaugural session of Travel Distribution Executive Conference to be held in Singapore.

For more information, click here: http://www.eyefortravel.com/tdsasia/executive-conference.asp