The Business Travel Association (BTA) has today launched an accelerated consultation on how travel management companies structure their relationships with corporate customers.
Pricing models developed over a quarter of a century ago remain in use today, with the need to develop a new approach to TMC pricing evident for some time. The consultation, originally planned by the BTA for 2021, is now being accelerated given the devastating impact of Covid-19 on the business travel sector.
As the representative association for the business travel community, with its TMC members accounting for over 90% of managed travel booked in the UK, the BTA is the natural leader for the development of a new approach to industry pricing models.
The BTA has partnered with leading industry consultant Nina & Pinta to develop a white paper that explores approaches to three industry pricing models: transaction fees, subscription fees and management fees. The paper has been developed with insights and feedback from representatives from leading UK-based corporations and TMCs.
In the next eight weeks, the BTA will be consulting with the TMC and corporate travel buyer communities on each of the pricing models, and working with them to develop new industry standards that will help ensure any new approach to pricing is rolled out effectively and with best practice.
Clive Wratten, CEO of the BTA, says: “In recent years, there have been growing calls for evolution in the way TMCs price their services. The impact of Covid-19 on our industry has made that need more vital than ever, and the BTA is committed to leading the industry with this catalyst for positive change.
“For our industry to evolve, especially in these challenging times, there needs to be an open, honest and constructive dialogue between all of the key stakeholders, and that is what the BTA will be seeking to achieve in the weeks ahead.” A copy of the White paper can be downloaded here