A Superior Alternative to Using Travel Agencies for Large Business Travel Operations!

 

Corporate Travel Departments:  Companies with annual air expenditures exceeding $1 million can now maximize cost performance and service quality by replacing their travel agency (or online agency) with their own airline-accredited travel operation, called a Corporate Travel Department (CTD).  In contrast to the price versus service tradeoff inherent in most business decisions, CTDs are unique in that they simultaneously maximize all three key business travel metrics:

  • Cost Savings (through the elimination of costly agency fees and through supplier cost reductions)
  • Service Quality (The travel operation is specifically designed for the host company and its staff serves only one master.)
  • Program Control (Direct relationships are forged with suppliers versus ones filtered and diluted by agency interests. Policy enforcement is facilitated.)

As with any business, travel agencies need to drive profit. The problem is that each agency revenue source represents a conflict of interest for their clients. Travel Consultants Group was formed in 2001 for the exclusive purpose of developing and supporting CTDs. It has over a dozen clients with annual travel budgets ranging from under $1 million to over $40 million. We are compensated by and work exclusively for our clients. Implemented operations include:

  • Standard CTDs
  • Sovereign Entity CTDs (sovereign nation operated CTDs)
  • Hybrid CTDs (integrated CTD and agency-hosted travel operations)
  • ARC-accredited New Independent Entities (travel operations authorized to book travel for external clients)

Our clients' CTDs have operated annually as low as $2.11 per airline ticket issued, far below any other travel management alternative including online agencies.  While the primary focus for CTDs is on operational cost savings, supplier cost reductions can be substantial, due to the elimination of the travel agency's preferred supplier influence.  One CTD client reduced their total spend 26% based on equivalent trip count and our largest client is saving over $2 million annually.  CTD staff productivity for our clients averages 20% higher than with their previous agency-hosted operation and most are using the same personnel.