Travel managers and corporate executives spend considerable time researching and bidding TMCs, and partnering with the right one to deliver cost-savings and travel efficiency. Occasionally though, the chosen TMC is purchased or sold to another company. In today’s business environment, consolidation is rampant.
Larger companies look to buy-up the competition for many reasons: technology gains, customer acquisition, or simply to eliminate a growing threat. Not surprisingly, the travel management industry can be affected as well. Unfortunately, this can leave the travel managers and corporate executives caught in the middle. I believe, that when looking for a new travel management company, it’s important to consider this possibility. Often times there is too much emphasis on the now, when the past and the future of the company should be considered as well. Companies seeking a long-term TMC should research the following, so that the TMC they choose today, doesn’t change tomorrow:
Questions to consider when looking for a long-term TMC:
- What is the history of ownership?
- Have they previously bought up small companies to grow, and then sold their company in the past?
- Are they portraying the same history under their current TMC name?
- What is their organizational health?
- Are there any ‘red flags’ like poor growth, employee turnover, client retention, or percentage of debt? In an environment of consolidation, weakness equals opportunity.
Bottom-line is that if you want a long-term relationship with your chosen TMC, be sure you understand their past and their vision of the future. Ask questions and ‘peel the onion’ to make a better determination before signing a contract.
Christopherson Business Travel is a corporate travel management company with more than 60 years of experience. Based out of Salt Lake City, Utah, we have been privately owned by Mike and Camille Cameron since 1990. Since then, we have grown to be one of the top travel management companies in the nation, with five offices and more than 380 travel employees. If you would like to learn more about our history or our future vision, please feel free to contact us.