Overview:The travel management industry is undergoing an evolution so rapid that the manner in which travel services are provided is changing dramatically. More fundamental changes have occurred in this industry during the past five years than in the previous twenty-five.
From sweeping economic changes in commission payments that have created cost centers where companies previously ran profit centers; to new trends in supplier consolidation that require aggressive and innovative purchasing techniques. Added to this, advanced technologies designed to limit human intervention where and when it adds limited value; and finally, to the internet, which has opened up new channels of information and distribution and put the purchasing power in the palm of the buyer.
With these changes also come opportunities. These developments are occurring in the travel
industry during a time when experts claim that a company’s Travel and Entertainment (T&E)
expense is their second largest controllable expense, directly behind payroll and benefits.
This necessary, but rapidly accelerating, expenditure has caught the attention of TMS senior management and has motivated us to seek alternative ways to reduce expenses without the sacrifice of quality service.