An SME might not need to outsource travel entirely to a Travel Management Company (TMC). What are your other options?  

If you’re a Travel Manager at an SME and you need help with certain portions of your travel management, you may’ve considered working with a Travel Management Company. Then, however, you realized you didn’t quite need all of the robust offerings that many TMCs provide. 

There’s good news, though. Yes, it’s quite common for organizations to use a TMC’s full suite of travel program services. That said, it’s also not out of the question for you to outsource travel to a TMC on a more select basis. With those TMCs that offer à la carte services, you can choose just the support you need. Consider, though, that just opting for à la carte services might not be a great fit for every organization or team.

Here’s what to think about when you’re weighing whether you should entirely outsource travel to a TMC, or if you should just outsource part of your travel needs to a TMC.

Key Takeaways

• Fully outsourcing travel management to a TMC has pros such as cost savings, access to tech tools and greater negotiating power with travel providers.
• Fully outsourcing travel management to a TMC has cons such as cost and a potentially time-consuming onboarding process.
• The primary benefits of partial outsourcing of travel management to a TMC include lower costs and the opportunity to leverage TMC expertise only in the areas where you need it most.
• Outsourcing only parts of your travel management to a TMC may make travel needlessly more complex.
• The right choice for you will depend on your company’s budget, current resources, culture and amount of travel. 

The Pros and Cons of Outsourcing All Travel Needs to a TMC

There are many reasons why you might choose to outsource all your travel needs to a TMC. 

For one, a TMC’s comprehensive offerings, wealth of experience and number of industry connections and partnerships can greatly benefit your SME. 

For example, Business Travel News recently conducted a study on travel management at SMEs, and found that, in many cases, SME travel buyers felt that, when entering negotiations with travel suppliers, they held the weaker position. Others similarly reported that they encourage their Travelers to sign up for loyalty programs on their own, as they’re unable to provide some of the perks that a loyalty program might be able to, as an SME with little negotiating power with large corporations. 

A TMC, meanwhile, does have that leverage. They can use their negotiating power to get better deals from travel companies, as well as better perks for Travelers.

Likewise, a TMC can provide travel tech that can prove valuable for Travelers. This is often tech that SME travel buyers may struggle to find the bandwidth to source on their own. Business Travel News found that the majority of SME travel buyers source their booking tools through their TMC, for example.

Furthermore, a TMC can use its combined tech and expertise to provide insight and data that can clue you in to Traveler behavior and needs, policy compliance and more. 

All things considered, though, fully outsourcing travel to a TMC does have downsides for some organizations. For instance, you may have specific, unique needs that require more flexibility than a TMC’s standard processes provide. Additionally, the upfront investment may seem costly, even if the eventual ROI is worth it, and the initial onboarding and/or RFP process can be time-consuming. 

The Pros and Cons of Outsourcing Only Part of Your Travel Needs to a TMC

Partial TMC implementation also has its pros and cons. When you only outsource part of your travel needs to a TMC, you can get the more time-consuming or difficult tasks off your plate. This allows you to focus on the other elements of your role that you have fully in hand, while allowing the TMC to offset any internal weaknesses with its own expertise. You’ll also save on your initial TMC investment. 

This does, though, come with the downside that you may not get the full amount of cost savings or convenience that you might enjoy if you were to fully outsource your travel program needs to a TMC. Additionally, you may notice a greater need for coordination and communication, as different aspects of your travel program are managed internally and others are managed through the TMC.

How to Decide the Best Way to Outsource Travel

So which option should you choose? Should you outsource travel in full to a TMC? Or only outsource travel as needed? 

You’ll want to consider a few different factors. 

What is your company’s size and how often do your teams travel? If your teams are always on the go, full TMC implementation can help with cost savings and Duty of Care, as costs rise and risks increase, the more your Travelers are on the road. 

Think about the complexity of your travel needs. If they’re too complex for standard TMC procedures, you might manage the complexities in-house while relying on a TMC for specific services. However, if the complexities are related to your team’s needs for greater Duty of Care or tech tools that you can’t provide on your own, then full TMC implementation may be suitable.  

Consider your company’s budget and resources. Do you not have the resources to properly manage all your travel in-house, so you need a TMC to support you on a greater level? If seeking that greater support, do you have the budget necessary, as well as the time necessary to adopt a new travel management system?

Lastly, you need to consider your company culture and Travelers’ preferences. Ultimately, you’ll want to prioritize choosing an option that will work in your Travelers’ best interests. 

Remember, though, that you can get creative with how you separate travel, outsourcing some needs to a TMC and keeping some tasks in-house. You can lean on a TMC for travel booking technology, as an example, while keeping the majority of your travel management in-house. You can use a TMC to book certain parts of your travel—such as air, hotel or car—if a specific type of booking is causing you budgetary concerns. Maybe you work with a TMC for one-off meetings and events, when you have more Travelers attending and more complex Travel needs.

Test the Waters and See What’s Right for You

If you’re still unsure about how to outsource travel, start slowly. Rely on a TMC for partial support only and see how it goes. If you’re seeing the benefits, you may just want to expand your TMC relationship further. 

Get in touch with JTB Business Travel today to get the process started.