Re: Procurement of Travel Agencies/Corporate Travel
|
|
We are in the same situation, we currently have an outsourced TMC (travel management company) onsite to handle all the bookings for land, air and accommodation and they charge a set fee for per booking. We have a corporate card for air bookings and a card for accommodation for certain establishments for guarantee. The responsibility to recon these accounts are for the TMC and once were are happy, we pay them.
The way airline solutions are now structured since the competition commission began regulating the industry and removed the commission structures/rebates for travel agents, air fare rates show no cost benefit by going out on tender as rates are only improved to the end user when annual spend of one company exceeds R 15 million per annum. Rates are also changeable depending on demand on all carriers. There is a web-based e-Procurement booking solution from MyMarket.com which is set up to operate according to a travel policy. The policy strictly defines who can book what and in the background, preferential pricing deals are set up with specified suppliers. Exceptions to the policy are then clearly traceable through reporting as well as declined savings through not booking cheapest fares etc. The system also accommodates the low cost carriers such as Kulula, Mango and 1 Time.
|
