A challenge for corporations and organisations

Missing initiatives - missing opportunities

  Why is it that corporations and organizations are not taking control of at least part of the distribution territory ?

 I think the most prominent reason for accepting the lack of market balance is to be found in top management policies in the large corporations. Today it is all about down-sizing, lean organizations, outsourcing.

 While we are all told to focus on "core operations" we forget that the creation and acceptance of responsibility and loyalty from your staff can not be outsourced. We tend to look at the means of business travel and meetings as commodities and while we use our business volumes to negotiate deals with suppliers we leave the fulfillment to travel agents, consultants and eventually self service booking systems.

What we often describe as travel management is missing one crucial element - management. 

 Short term versus long term

 In the early nineties we could see a change of perspective in travel management - it was accepted to consider TM a cost center rather than a profit center. It was not too difficult to get approval for a Travel Management function, you were allowed to invest in studies and education, organization development and information systems. You could work out a long term strategy that would eventually not optimize savings the first 6 months but provide a sound base for superior quality and better overall long term economy.

 Today, when we focus on short term savings and outsourcing we may be able to make it look like cost control and eventually cost reduction. A travel management company may convince you that they will reduce your cost by reducing your staff requirements. However, there are factors that do not become apparent at first glance.

 After 38 years of advanced meeting and travel management I am indeed satisfied with retirement. Why then should I publish a site dealing with a discipline that has too many experts already - meeting and travel management ? Honestly, I do not think too many actors on this market are heading towards genuine and lasting success. Some of the essential elements of sound business relations are not present - or at least not visible.

 A small number of large suppliers and system providers are totally dominating the global market. The terms on the market are controlled by suppliers and the big ones each provide opportunities for too many middlemen that add substantial cost without adding substantial value. It seems to me that we have a system that is protecting its own current structure, preventing any changes that would interfere with the balance and multilateral loyalties between all these actors.

Travel service distribution can be described as a fortress. It is up the buyers in corporations and organisations to use their power to increase their influence on this global market  - but they have to start this change by reviewing and if necessary changing their own context.