www.chinahospitalitynews.com/en/2009/07/23/12670-travel -
[Cached Version]
Published on: 1/1/2009
Last Visited: 10/17/2009
In answering to China Hospitality News' question on the development status of "Travel Management" company in China, Albert Zhong, general manager of Carlson Wagonlit Travel China, said that it's been six years, from 2003, since the "Corporate Travel Management" concept was seriously introduced to the Chinese market.
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Zhong said that most companies do have a designated travel agency through which corporate travel must be transacted, which means they have actually outsourced their travel management to a third party.
However many of these agencies are just doing basic travel fulfillment services minimal focus on data reporting and program optimization.
This is the area that many domestic companies should further focus on when making a selection regarding outsourcing their travel.
CWT China has a large range of multinational clients that include manufacturing, finance, IT, consulting, automobile, medical and pharmaceutical, petroleum and logistics, etc. As a result of years of hard work, CWT China can now provide best-in-class air ticket sales, hotel booking and solutions, travel program optimization, online booking tools, data consolidation and reporting, traveler tracking for safety, visa application, and meeting and incentive services.
Albert said that the services and concept of a travel management company, like CWT, are distinguished from a traditional leisure travel agent.
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Zhong believes there is great business potential.
He said that actually many companies have taken the current economic downturn as a good opportunity to review their existing travel programs and policies.
Most of them are further enhancing their travel management programs e.g. by consolidating all ticketing and hotel booking under one TMC to control travel policy compliance better.
This helps encourage the use of the lowest airfares available when traveling, strengthening preferred supplier relationships to reduce travel cost and migrating the bulk of travel expenses to these preferred service providers to maximize cost reduction.
As for the two main costs in travel: transportation (airplane and train tickets etc) and accommodation costs, how does an effective travel system optimize these?
Zhong said that as companies continue to search for ways to control travel costs in a challenging economic environment, demand management tools can be effective options.