TTM - The Business of Travel Management PDF

TTM - The Business of Travel Management protocols, financial exposure, and border rulings are necessary. Business Setup New des...

TTM - The Business of Travel Management protocols, financial exposure, and border rulings are necessary. Business Setup New destinations, offline flights, service disruptions, repatriation rules, and border/immigration Understanding Services- Effective travel management guidelines are just some of the details that need to be requires a clear presentation of travel needs, simplifying closely monitored. subsequent processes and enhancing service delivery. With or without the pandemic, there are advisories that need to be sorted out and are of much Business Setup Components- A successful setup includes importance for the travelers' awareness. budget management, skilled personnel, market analysis, and a technically trained team with both hard and soft skills. Guide and Review of Travel Policies In corporate travel, ethical practices, due diligence, Flexibility and Adaptability- Travel management in the and travel policies are crucial. Philippines must be adaptable, utilizing a flexible structure to Official travel only covers designated requests, with optimize manpower and respond to unique scenarios. anything outside of that being unauthorized. Legal implications should be thoroughly reviewed Dynamic Organizational Flow- Organizations should before any travel, ensuring that professional handling implement an "interim" flow that can evolve while staying remains within appropriate limits. aligned with objectives, rather than adhering to rigid Collation of Reports for Data and Reference templates. To evaluate corporate travel expenses, companies need to maintain accurate records of trips and travel Key Departments- Essential business functions should agendas. encompass three primary departments: executive, sales and Analyzing expenditures, including routes and supply operations, and administration and finance. optimizations, is essential for assessing overheads and providing budget projections for future travel. Travel Management Detailed records of expenses, fare types, and This intends to help businesses and its organization discounts can inform effective decision-making and augment in a very productive way their travel policy development, ultimately leading to more needs. It involves organizing, monitoring travel efficient travel program design. expenses, and strategizing the thorough handling of travels. Current Systems and Methodologies Booking systems, software, and tools in travel Travel Management Companies management are frequently updated, often annually Travel management companies develop strategic or more frequently. value propositions to meet clients' travel needs Travel management companies adopt enhancements while considering budget constraints. Their to streamline services and respond quickly to last clientele includes corporate entities, individuals, minute requests. families, and organizations seeking professional By using these services or systems, clients can save travel handling. time and focus on more critical agendas unrelated to Travel management companies create policies, travel. negotiate with suppliers, design travel products, execute plans, and document processes for future Better Relationship with Suppliers improvement. Airlines, hotels, transportation services, and event In the Philippines, they set parameters, while travel venues are essential for travel arrangements, and agencies handle reservations and bookings within travel management companies act as intermediaries those guidelines. to enhance relationships between suppliers and the market. Travel Management Companies’ Areas of Service These companies benefit from high transaction Professional Insights and Updated Advice: volumes, allowing them to secure favorable Colleges, universities, and training centers contracted rates. collaborate with the tourism industry to create As a result, their clients enjoy lower prices due to relevant curricula that prepare practitioners for its these advantageous tariffs. evolving demands. These programs include onsite training and exposure, supported by current Economical Rates for Airfares, Hotels, and Transportation publications and insights from industry suppliers. Travel management companies can secure In tourism economics, revenue management can be discounted rates on accommodations, airfare, and complex, with varying fare levels and restrictions transportation through volume sales, giving them that require expert guidance. leverage to negotiate exclusive fares. Travel consultants provide essential updates and Suppliers often offer "preferred" contracted rates to interpretations to avoid costly misunderstandings, their top producers, allowing these companies to especially for itineraries with multiple destinations, remain competitive even after adding service fees. ensuring all necessary documentation and visa Occasionally, large clients reward their travel requirements are properly addressed. management companies with incentives based on savings achieved, fostering best practices that benefit Travel Advisories, Warnings, or Alerts both parties. In the travel industry, there are many issues that affect travel plans and their implementation. A very timely instance is this pandemic situation whereby information to safeguard the health Round the Clock Support System: 24/7 Help Desk: A Bona fide Sense of Peace of Mind  This means providing appropriate recommendations The primary challenge in managing corporate and considering all viable options to ensure a positive accounts and incentive markets is dealing with travel experience, which only a qualified travel sudden schedule changes and urgent situations management company can deliver. during trips.  The organization should also be able to measure the A 24/7 help desk is essential for providing quality of its services and adhere to agreed-upon immediate support, ensuring clients feel the travel standards. management company is responsible for their arrangements. Departmental Functions This service handles emergencies like flight changes There are three basic areas that need to be manned and cancellations, offering reassurance that in order to operate a travel management company. assistance is always available. These may slightly vary depending on the structure Some companies utilize third parties to manage that fits the demand of the targeted clientele. urgent concerns, which requires careful staffing and is a key indicator of quality service. 1. The Executive Management 2. The Finance and Administration Attributes of a Good Travel Management Company 3. The Sales, Marketing, and Operations  Commitment to excellent service relies on consistency and expertise, regardless of travel The Executive and Management complexity.  This is comprised of the top officers of the company.  A travel management company's reputation, built They are in charge of creating policies that concern through partnerships with legitimate suppliers and the finance and operations of the company. industry endorsements, affects its ability to secure  Vital decisions are formulated by this group. They are preferential rates and support. considered the think-tank group.  Professional companies must provide suitable travel solutions, supported by both technology and Composition: President, Chief Executive Officer, Directors, skilled personnel. Department Managers Reliable The Finance and Administration  The history of delivering products and services is  The fiscal management team oversees operational important for establishing reliability. costs and handles tax, tariff, and credit obligations.  A list of past clients can show this reliability.  Their main role is to control the budget and manage  Being new to the travel management community financial matters efficiently, including human doesn’t mean you can’t get opportunities; the market resources related financial obligations. often invites various companies to bid for contracts.  They ensure accurate accounting and reporting,  New companies can qualify if they have a reliable maintaining the company's overall financial health. and competitive team.  When a company demonstrates reliability, it builds Composition: Vice President for Finance, Finance Director, credibility over time Chief Accountant, Director for Human Resources Competent The Sales, Marketing, and Operations  This refers to the ability to provide a positive travel  The primary function of this team is sales acquisition, experience by carefully selecting the best supplies to maintenance, and servicing, which generates revenue meet client needs. for the company.  As competition among travel management  They are responsible for customer relations, companies increases, they must help clients managing travel arrangements, and ensuring maximize their budgets by offering tailored solutions effective service delivery. and competitive rates that benefit their accounts.  Additionally, they handle advertising, product distribution, and positioning, earning them the Knowledgeable nickname "farmers" of the company.  This refers to the professional support and advice provided by a knowledgeable team. Composition: Vice President for Operations, Sales Director  The tourism industry offers various options, along or Sales Manager, Marketing Director, Reservation with updates and current trends, all backed by well- Manager, Travel Consultants, Web Managers, IT Managers trained travel counselors who have access to valuable information. DOT Accreditation  A certification issued by the Department to a tourism Resourceful enterprise that officially recognizes it as having Most tourism supplies, like air tickets, hotel rooms, complied with the minimum standards for the and conference venues, come with restrictions and operation of tourism facilities and services. cancellation policies that can limit options. Travel management companies need to thoroughly Revenue Sources understand these policies and provide viable Commission Systems alternatives that fit clients' budgets.  Travel management companies serve as Being solution-oriented and demonstrating due intermediaries for airlines, hotels, and other tourism diligence are key attributes that foster client loyalty services, managing tasks like contracting and and trust. negotiating to earn commissions.   In the Philippines, the shift to net fares means  However, as travel requirements became more commissions are less guaranteed, leading suppliers extensive, they have gone beyond this criterion. to offer perks or freebies instead of standard commissions, which creates challenges in their The wide range of coverage travel services management relationships with intermediaries. can provide are illustrated in the cycle be: Market Segment Mark Up Mechanics  The sales cycle begins with the market, which serves  Travel management companies may belong to a as the source of revenue. consortium or act as wholesalers for tourism  This market can include corporate accounts, products, receiving lower contracted rates known incentive programs, or organizations requiring as "net/net" rates. specialized services, as well as individual travelers,  They can add an extra fee to these rates, generating families needing special arrangements, or couples additional revenue through what is called a exploring new destinations. markup.  Essentially, any customer that generates income for the organization constitutes the market in the sales Service Fee principle.  Due to limited budgets for travel, travel management companies often have to apply a Identification of Travel Requirements specific service fee for each completed transaction.  This stage involves initial contact between clients  This fee can be negotiated and agreed upon with and travel managers to discuss specific travel clients, varying based on the level and type of requirements, ranging from simple business trips service provided. to complex itineraries for families or special groups. Performance Bonus  It is critical for demonstrating the professionalism  Some corporate accounts challenge their travel of the travel management company, which must management companies to help achieve savings on focus on all details beyond booking. their annual travel budget.  The main responsibility is to ensure smooth  They can agree to share a percentage of the total execution of travel arrangements while adhering to savings, which may result from careful sourcing or ticket rules and cancellation policies. discussing alternative options.  This arrangement is not standard but can be Suggested Guidelines- Identification of Travel beneficial for both parties. Requirement Prompt Booking Key Concepts  Booking travel details early is beneficial, as longer Business Setup/Business Structure lead times typically result in lower fares and more  This is the foundation of standard operating. It available choices. involves manpower potential and systems to  This allows travel management companies to take determine task provisions and responsibilities to advantage of published promotions and avoid the deliver organizational objectives. higher prices associated with last-minute bookings.  As the travel date approaches, cheaper fares often Organizations Variations become unavailable due to demand, leading to the  From a basic and standard organizational flow, an use of higher fare levels. organization implements an adaptation and  These pricing rules also apply to hotel room rates alignments as dictated by the market requirements. and event venues. It guarantees functionality and a responsive business model. Organize the Trip "Minutely"  This stage serves as a "run-through" of the travel Travel Management Cycle requirements, allowing for evaluation and Introduction adjustments as needed.  A complete travel experience involves a systematic  Any changes should consider the relevant rules cycle that begins with gathering and scrutinizing and restrictions to avoid unnecessary fees related client details and requirements. to cancellation, rebooking, or reinstatement.  Travel management companies must identify  Clients can be guided through this process to essential supplies and services while prioritizing ensure compliance with their contract or policy, efficiency, budget, convenience, reliability, and minimizing potential charges. safety.  The expertise of travel agents is crucial, along with Optimize the "Travel Investment" a robust support mechanism.  If there are official agendas or side trips planned  Finally, post-travel evaluations are necessary to during a trip, it's important to recommend an efficient assess the execution and overall satisfaction, route. completing the travel management cycle.  This can help save money and make the most of the travel experience. Managing Travel Services  Travel management companies have changed Consultation Proper radically. They used to be known only for the  At this stage, the travel requirements are discussed in organization of a certain aspect of travel that detail. involves transport tickets, reservations, and  Covering specifics like meal types, accommodation accommodations. categories, preferred locations, travel dates, airfare,  coverage details, and applicable travel policies. This Market thorough discussion ensures all aspects of the trip  At this stage, the documents can be received by either are clearly defined and agreed upon. the actual traveler or an appointed representative.  It's advisable to have a transmittal document If the travel is international, this is the best stage to confirming the receipt of all processed documents, discuss the documentation details. This can cover: ideally in duplicate.  Travel consultants often send scanned copies via a) Checking of passport/s validity. If a passport is not email for easy access in case of loss. valid, the passport holder needs to get a new one or have the existing passport be renewed as needed. Implementation/Delivery Proper b) Visa advise, if required. Discuss the requirements  At this stage, the completion of products and and timetable to get the necessary visa/s. Discuss the services from suppliers is finalized and reconfirmed. specific visa type to be applied.  Exceptional travel management companies offer c) If a vaccination certificate is required. 24/7 support to monitor the delivery and ensure d) Any other immigration documentation requirements that clients feel their presence throughout the entire such as an exit clearance and a re-entry permit. travel experience. If travel is domestic, whether the traveling passenger is a Post-Arrangement Evaluation local or a foreigner, it is important to, likewise, check if  The main objective is to gather and evaluate pertinent documentation is required such as health information from the execution of the travel regulation certificate among others as needed. arrangements for future reference.  This data allows for analysis of expenditures and Planning/Counter Counseling critiques of the arrangements.  During this stage, the travel counselor shares their  Based on the travel agenda or specialization, the expertise and up-to-date information about various travel management company can develop rubrics to travel options, including airlines, accommodations, improve future travel planning. visas, vaccinations, and other essentials.  They gather the minimum requirements to identify Key Concepts potential supplies that can be offered. Travel Management Cycle  This information is then consolidated and analyzed  This refers to the comprehensive process of travel to create the best possible travel plans and solutions management, encompassing verification of for the client. requirements, planning, accounting, travel implementation, and evaluation. It includes fund Supply Acquisition management and quality control of supplies to  Based on the agreed arrangements, the travel ensure effective travel arrangements. management company can now purchase the specified supplies and services. Market Segmentation  The final acquisitions will adhere to all relevant  This involves grouping potential buyers based on restrictions and inclusions. shared characteristics, allowing companies to focus  All arrangements are documented with official on their target consumers. This segmentation serves purchase vouchers and payment agreements. as a guide for evaluating marketing strategies and customizing approaches. Product Presentation  Final arrangements should be communicated in Travel Requirements detail to the end user by the travel consultant, who  These are the specific necessities for travel, will recap the agreed-upon arrangements and categorized based on the individual traveler's needs finalized supplies. and the destination's conditions.  The main goal is to ensure all details are addressed, and any necessary changes can be discussed at this Travel Policies stage.  These are the rules and guidelines established by  If changes occur, they will need to be rebooked and organizations to regulate the travel management reconfirmed. process within companies.  Additionally, cost analysis can be provided to highlight any savings compared to the approved budget. Document Turn Over/Predeparture Orientation  In this essential stage, travelers are informed about the finalized arrangements, covering both initial and final requirements.  The travel consultant provides a detailed overview of the trip and hands over important documents like passports, visas, and vouchers.  If an in-person pre-departure orientation isn't feasible, a written summary should be included.  For larger incentive groups, a special venue can be used to discuss the tour program flow.