Do TMCs need unbundled tech?

WHILE the trend
abroad is for travel
buyers to opt
for unbundled offerings,
especially when it comes to
technology, local TMCs pride
themselves on providing
clients with one-stop
solutions.
 Internationally, it is
common practice for
corporates to contract
directly with technology
providers – and contract with
their TMCs on a separate
basis, says Jim Weighell,
director of Anvil Corporate
Solutions Group (Anvil) in
South Africa. For example,
Sabre Getthere and Concur
Expense are contracted for
General Electrics, while their
TMC is CWT, he says.
In South Africa, however,
most travel management
tools are marketed by travel
consortiums under reseller
licences, says Jim. This
current market condition has
resulted in ‘bundled’ travel
services and OBT (online
booking tool) packages,
which are limiting the
corporate buyer to one TMC/
OBT combination. “It also
requires that a corporate
client relinquish its OBT
every time it terminates a
TMC agreement,” says Jim.
 Newly launched Simpliflyer
plans to provide local buyers
with GDS- and TMC-agnostic
online business travel
technology solutions – an
offering that would change
the ways buyers partner
with TMCs.
Providing best-fit
technology
There are already
TMC- and GDS-agnostic
products available in the
South African market,
says Jim. Travellinck is a
locally developed travel
management tool and is
unaligned with any TMC
or other group, as is
Quicksoft and its Quicktrav
back office system. He
explains, however, that
Simpliflyer is different as
the company doesn’t
develop its own technology
but only provides a
recommended ‘best-fit’ OBT
based on the company’s
specific needs.
“The TMC then acts as the
specified fulfilment partner
for OBT transactions. Should
the corporate elect to
change TMC, the TMC would
simply be replaced by the
newly appointed TMC. This
ensures that the ‘trauma’
involved in switching from
one OBT to another is
avoided, and all of the
profiles and company policy
remain intact.”
He adds that the key
aspect of Simpliflyer’s
offering is not the
technology as such.
“Provision of local
implementation and support
will be our key focus,” he
says. The company will offer
tried and tested travel and
expense systems, many of
which are currently available
or in operation in South
Africa.
According to Jim, Simplifyer
has so far seen significant
interest but the company
is still in the process
of recruiting the best
candidates to provide the
support services. “Our
business is as much about
the support team as it is
the travel management tool
itself.”
Wally Gaynor, md of Club
Travel, has welcomed the
proposition of ‘agnostic’
technology. He says that it is
definitely in the corporate’s
best interest to be able
to independently access
technology solutions. These
solutions will also allow the
TMC to focus more on its
services as a travel adviser
and less on the technology
it needs to offer.
“The cost of technology is
fairly substantial, especially
developmental cost. For this
reason, we would use third
parties to provide technology
to support our TMC value
proposition,” agrees
Rod Rutter, coo of XL Travel.
He adds that clients will
select their TMC service
provider based on a
variety of factors, not just
technology.
However, Claude
Vankeirsbilck, chief sales
and marketing officer for
Tourvest, says Tourvest has
made significant investment
in its product development
in order to deliver a
comprehensive end-toend
travel management
solution to meet the value
propositions that local
corporates are seeking.
“The success we are
experiencing is testament
to client satisfaction. We
have incorporated local
nuances for which most
global solutions are unable
to cater, and we have
complete control of our own
development, which most
clients are happy to hear, as
this speeds up development
and provides flexibility.
From a cost perspective
it’s palatable as everything
is based in SA rands not
euros, dollars or pounds.”
A corporate will ultimately
determine the overall value
proposition of a TMC and
the products they can offer,
says Claude. “It’s all about
service, local support,
costs and meeting client
expectations.