For the second consecutive year an independent survey reveals Travel Management companies, like Alshamel Travel, offer cheaper rates for corporate travellers across flights and accommodation, than can be secured through online consumer travel websites.
The study was conducted by The Online Travel Benchmarking Group, a division of travel advisory firm Harrell Associates. The study compared domestic airfares and hotel accommodation rates of popular online consumer travel websites with search results from the online booking system offered by a leading travel management company
The study analysed 80 business travel itineraries across 20 different routes. It examined a range of cost factors such as: ticket type, length of trip, air route and date of purchase and was completed in June 2010.
“Our research continually debunks the myth that online agencies are lower-cost alternatives for business travel booked online,” says Bob Harrell, CEO of Harrell Associates, principal for the Online Travel Benchmarking Group and author of the study.
Trena Blair, spokesperson for a leading Travel Management consortium commented “There is still the perception among many corporate travellers that they are better off using an online consumer travel website for booking their corporate travel. While these types of websites can offer attractive deals for the leisure traveller, independent research continually demonstrates that a travel management company offers greater overall savings for businesses – whether that business is large or small.
“What distinguishes a travel management company… from consumer travel websites is that we apply business intelligence in an online environment. This allows us to assess and customise the best overall travel itinerary for our clients. We don’t simply assume that the first option is the best option, but rather we look at a range of factors and ensure that all travel is in-line with our client’s business objectives.”
Blair believes that the strength of travel management companies also comes from their ability to negotiate competitive rates with suppliers on behalf of their clients. Aside from monetary savings, Blair says there are many other benefits for small and large companies using a travel management company over an online consumer travel website.
“From reporting tools that allow all travel spending to be captured, to traveller tracking capabilities that allow employers to know their travellers’ whereabouts at all times when they’re on the road, a travel management company offers strategic, consultative advice and tools to optimise the effectiveness of a travel program.”
Concludes Blair, “Experience tells us that the largest uncontrollable travel expense occurs when employees make their own travel arrangements through online travel agencies. With the lasting effects of the global financial crisis placing continued emphasis on controlled spending, it’s crucial for businesses to understand where true savings lie while not losing sight of the vital role travel plays in business.”