The Role of TMCs in Data-Driven Decision-Making
Corporate travel is evolving at a rapid pace. Data has transitioned from a valuable asset to an indispensable necessity. Travel Management Companies (TMCs) are no longer just service providers booking flights and hotels; they are strategic partners helping organizations navigate the complexities of business travel.
Through advanced analytics and data-driven insights, TMCs empower corporate clients to optimize their travel programs, enhance traveler experiences, and achieve cost efficiencies.
The Power of Data in Corporate Travel
Data-driven decision-making has become a cornerstone for organizations aiming to stay competitive. With access to detailed travel data, organizations can:
Identify savings opportunities: By analyzing travel spend patterns, companies can negotiate better contracts with suppliers. According to the Global Business Travel Association (GBTA), organizations can save up to 20% on travel costs through data-informed contract negotiations.
Enhance policy compliance: Data provides insights into how well employees adhere to travel policies, highlighting areas for improvement. A study by CWT Solutions Group found that companies with robust data analytics programs see a 15% higher compliance rate.
Mitigate risks: In an era of global uncertainty, data can help organizations ensure traveler safety and address disruptions proactively. A growing number of organizations now prioritize traveler risk management, leveraging data to respond effectively to emergencies.
TMCs are uniquely positioned to help organizations harness these benefits. With their expertise and technology, they consolidate, analyze, and present actionable data in ways that enable smarter decision-making.
TMCs as Data Stewards
TMCs have evolved into stewards of data, providing clients with comprehensive insights into their travel programs. Here’s how they contribute to data-driven decision-making:
Centralizing Data
Corporate travel data often resides in silos—booking platforms, expense management systems, credit card providers, and supplier reports. TMCs act as a hub, consolidating this data into a unified view. Solutions from Grasp Technologies can integrate disparate sources to create dashboards that deliver insights at a glance.Enhancing Visibility
Visibility into travel spend, policy compliance, and supplier performance is critical. TMCs use advanced tools to provide granular visibility into these areas, helping organizations make informed decisions. For example, analyzing CO2 emissions data allows companies to align their travel programs with sustainability and ESG goals.Predictive Analytics
Gone are the days of merely reporting on past performance. Today’s TMCs leverage predictive analytics to forecast trends and enable proactive planning. For example, by analyzing historical booking data, TMCs can predict high-demand periods, allowing clients to book in advance and secure better rates.Customizing Insights for Stakeholders
Every organization has unique needs, and so do its stakeholders. TMCs excel at tailoring data presentations to suit different audiences—from high-level summaries for C-suite executives to detailed reports for travel managers. This customization ensures that every decision-maker has access to the insights most relevant to them.
AI’s Role
Data is the fuel for artificial intelligence and the quality and quantity of data serve as the lifeblood for any AI implementation. TMCs can be at various stages of their AI journey and the path is not a linear one. Some may decide to leverage their third party providers for AI expertise, others might be diving into an AI tool with AI experts outside of travel, and some could be working on the use cases on how best to use AI (chatbots, automation, etc).
And some may even consider developing their own large language models. However, that brings with it the challenge of sourcing quality data. Despite the allure of bespoke AI, many recognize that without comprehensive, normalized data, even the most sophisticated AI might fail to reach its full potential.
Practical Applications of Data-Driven Insights
Supplier Management
Supplier negotiations are a key area where data makes a difference. By analyzing past booking patterns, spend volumes, and traveler preferences, TMCs enable companies to negotiate contracts that maximize value. Organizations leveraging TMC data can save quite a bit of money on supplier contracts.
Traveler Well-Being
Business travelers are the backbone of corporate travel programs, and their well-being directly impacts productivity. By analyzing data on travel frequency, flight durations, and hotel stays, TMCs can recommend adjustments to reduce traveler fatigue and increase satisfaction.Policy Optimization
Outdated travel policies can hinder compliance and inflate costs. TMCs use data to identify areas where policies can be refined. For example, data might reveal that employees frequently book outside the policy due to unavailability of preferred options, signaling the need for updates.Sustainability Initiatives
With growing pressure to align travel programs with environmental goals, TMCs provide data on CO2 emissions and offer insights into how organizations can reduce their carbon footprint. Data-driven reports empower companies to take meaningful action toward their sustainability commitments.
Overcoming Challenges in Data Utilization
While the benefits of data-driven decision-making are clear, organizations often face challenges in fully leveraging their data. Common hurdles include:
Data Silos: Disparate systems and platforms make it difficult to access a complete picture.
Data Quality: Inconsistent or inaccurate data can undermine decision-making.
Complexity: Interpreting large volumes of data requires expertise and advanced tools.
This is where Grasp Technologies steps in, offering solutions that simplify data management and ensure accuracy: Tools like graspIQ score data quality and platforms like graspPAY which streamline reconciliation processes.
The Future of TMCs in Data-Driven Decision-Making
The role of TMCs will only grow as organizations demand deeper insights and faster access to actionable data. Future trends include:
Hyper-Personalization: Tailoring travel programs to individual employee needs based on behavioral data.
Increased Focus on ESG Goals: Using data to achieve not just financial savings but also environmental and social objectives.
Seamless Integration: Expanding partnerships between TMCs, technology providers, and clients to create ecosystems of connected data.
Conclusion
TMCs are essential allies in the shift toward data-driven decision-making. By centralizing and analyzing data, they help organizations uncover opportunities, reduce costs, and enhance traveler experiences. With the right technology and expertise, TMCs enable companies to turn raw data into actionable insights that drive real-world impact.
As the demand for smarter, more efficient travel programs grows, the role of TMCs in shaping the future of corporate travel has never been more critical. Their ability to transform data into strategy will continue to redefine what it means to manage travel effectively.
Want to learn more about Grasp and how we can help your TMC? Contact us today
