TMCs must become “as indispensable as Facebook”
Saturday, 10 May, 2010
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Travel management companies risk losing travellers to the internet unless they become as indispensable as Facebook in researching travel.
Just 14% of UK-based business travellers use their TMC as an information source prior to booking compared to 54% who use the internet, according to research by global distribution system company Travelport.
However, most business travellers are still using a TMC or a third party to book their travel, the Guild of Travel Management Companies annual overseas conference in Hong Kong heard.
Olaf Gueldner (pictured), Travelport president and managing director Europe & Brazil, said: “Are you in danger of losing your traveller to Facebook? There is a risk of losing the traveller in the process of booking the trip.
“They are using other sources of information before they go to the TMC [and] you are executing something that somebody else has found.”
However, Gueldner said the web should not be viewed by TMCs as a threat, but as an opportunity.
“The internet might come across as a threat but the key is to combine all that information.
“If you let others do it then it will become a threat. But if you incorporate it then I think it will be an opportunity.
“When you have more information than the traveller himself then you become indispensable.”
He added: “The TMCs need to step up their game.”
Gueldner also revealed that half of all travel bookings will be made online by 2012 – compared to where they are now which is “in the teens”.
His words were echoed by Martin Cowley, senior vice president EMEA of GDS rival Sabre, who said: “This is not so much an opportunity as a pre-requisite for TMCs to embrace this.
“It is now time to step up the pace and adapt this new technology as a real competitive advantage.
“You need to step it up a bit more and move beyond the situation where it is optional.”
Phil Davies
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