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Business Travel/Updated Study?

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Question
QUESTION: Hi Norm,

I ran across your study "Corporate Travel
Technology Trends and Market Analysis
April 2002 Update" and found it to be very helpful.  I was wondering if you have updated the study since with more current information?  Would love to see how things look in the current travel environment.  Thank you!

ANSWER: I am afraid I have not updated the analysis as I have been mostly writing for specific engagements. If you have a specific question please let me know.

Norm

---------- FOLLOW-UP ----------

QUESTION: Thanks for the quick reply.  My area of interest lies with the corporate travel agency and business relationship.  Specifically, I'm looking to learn:

1) who pays who in this setup?  (does the corporation pay the agency or vice versa)
2) who negotiates the rates with the airlines?  does the agency do it on the company's behalf or does the corporate travel manager at the business do the negotiating directly with the airline sales team?
3) how much power does the travel agent have in what airline the traveler ultimately books with?  do they try to sway the traveler to the airlines where they have the most incentive?
4) I'd love to hear your thoughts on what you feel is the future of the managed corporate travel?  do you see more companies going to toward hiring corporate travel agencies?

I would appreciate any insight you have on the topic.  I really appreciate it!

Thank you,
Lynne

Answer
1) The client (corporation) generally pays fees to the agency (TMC).  If you mean by setup - creating traveler profiles and setting policies that is usually part of the overall fee arrangement.
2) For larger companies the corporation negotiates with airlines.  For smaller companies the agency may do that.
3)Depending on the size, the TMC may have significant power.  They are compensated on the back end with incentive based commissions called overrides. Dependent on the TMC, region and corporate client they may certainly push specific carriers to maximize their compensation.
4)Corporate travel is already mainstream in established countries and growing in emerging countries.  There continues disruptive impact of technology, especially mobile, but for now the managed approach is the norm.

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Norman L. Rose

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Any questions related to technology and the travel industry. This includes online travel trends, changes in travel distribution practices, emerging technology to manage corporate travel, corporate self-bookings tools, expense management systems and data warehouse initiatives.

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Past/Present clients
Technology Companies: BroadVision, Extensity, Fetch Technologies, ImaginOn, Netscape Communications, Oracle Corporation, PeopleSoft, Peregrine Systems, PointsNorth Digital Technologies/Peragis, Site2, Sun Microsystems

Travel Companies: Carlson Leisure Group, Carlson Wagonlit /WTS, Datalex, Maritz Travel Company, The National Business Travel Association, Perillo Tours, Reed Elsevier/OAG, Rosenbluth International, Sun International Resorts, US Bank, Worldspan, WorldTravel BTI

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