In an era defined by constant change, the transformation of the TMC space has become an especially dynamic reality. Not only are choices shrinking, but change continues to accelerate from both an innovation and an adoption perspective. And with the wealth of technology solutions that keep coming online, assuring the best TMC relationship for your company can be more challenging than ever.
“The TMC landscape is in a constant state of evolution, but recent years have seen an acceleration in change, driven largely by consolidation at the top end of the market,” says Julian Russell, executive director of IT & supplier relations at GlobalStar Travel Management.
Perhaps most impactful is the acquisition of CWT by American Express Global Business Travel (Amex GBT). With completion of this acquisition, which was announced in September, Amex becomes an even more dominant player among those providing software solutions and services for travel, expense, meetings and events.
Along with other developments, such as Direct Travel’s acquisition of its strategic partner ATPI, such moves add to a shifting set of challenges to corporate travel managers when it comes to making the most of TMC services.
“There’s no doubt the TMC space is in the middle of major transformation,” says Gabe Rizzi, president of ALTOUR. “Consolidations, new partnerships and shifting client expectations are rewriting the playbook.” He notes that what used to be a straightforward procurement of services is now a mix of technology integration, risk management, sustainability and global service delivery. “For travel buyers, the challenge is that change can create uncertainty, but it also brings real opportunity to re-evaluate whether their TMC is keeping pace.”
Change on Top of Change
Beth Marino, chief operating officer at Fox World Travel, agrees that the speed of change has never been greater in the TMC space. She cites developments with booking automation, content consumption, AI, and data aggregation and visualization.
“The challenge for TMCs is to keep evolving quickly enough to meet customer expectations while also balancing efficiency, cost control and service quality,” she says. Those who can adapt with speed, but without losing sight of the human experience, will be best positioned.
“There’s also more merger, acquisition and affiliation activity within the TMC space over the past several years, and all signs point to this continuing,” Marino adds. “While this can generate headlines, it often comes with unintended consequences for customers.” She notes that when a TMC changes ownership or direction, its attention shifts inward toward systems integration, technology alignment and organizational restructuring. “Unfortunately, that takes focus away from what matters most: Creating solutions for travel programs and delivering stability for travelers.
The role of a modern TMC is to provide the tools that elevate the human element of travel management, turning anxiety into an opportunity for travel managers to show even more strategic value to their organizations, says Michael Sindicich, president of Navan. “But the change we’re seeing in the TMC space goes deeper than that,” he says. “The entire travel marketplace is changing how they want to distribute and engage with corporate programs, and TMCs who are helping to evolve this for the better of the whole marketplace are important.”
Russell adds that while it’s true that consolidation has narrowed the field, especially at the global level, this shift has also sharpened the focus on value, specifically the value of smart technology and enhanced service delivery. “Rather than a race to the bottom on price, we’re seeing travel buyers prioritize solutions that improve the end-user experience,” he says. “This shift benefits both corporates and TMCs, encouraging partnerships built on innovation, responsiveness and long-term value rather than cost alone.”
In fact, the argument can be made that choices are actually expanding.
“We’ve never had more ways to buy smarter, travel smoother, and challenge the status quo,” says Greeley Koch, director, travel services for Acquis Consulting. “Today’s buyers can choose TMCs and platforms that deliver a consumer-like traveler experience while unlocking broader content, stronger compliance and ultimately, savings and happier travelers.” Koch maintains the real question isn’t whether there are enough choices; it’s whether buyers are ready to use them to better align their travel programs with company culture and traveler needs. “And that’s exactly what I’m seeing travel managers do today,” Koch says.
Challenging Technology Choices
For travel managers, a major challenge in the face of rapid change is making wise technology choices. But that may be easier said than done.
“With so many options now available, it’s important to focus on solutions that address real business challenges, whether that’s booking efficiency, policy compliance or data visibility,” says
Billy McDonough, FCM president, Americas. McDonough cautions that technologies should be evaluated strategically based on how effectively they solve these specific needs, not just adopted because they’re new to the market.
“We’re seeing a lot of quick-to-market innovations right now, many of them shiny on the outside but not always functional or fit for purpose once you get under the hood,” Marino notes. Her sage advice to the wise is to dig deeper instead of just taking the sales pitch at face value. This means asking hard questions about integration, scalability and actual user adoption.
“Sometimes the most impactful solutions aren’t the flashiest. They’re the ones that quietly solve the real challenges travel programs face every day,” she says. “The best partners are those who prove their tech in practice, not just in a demo, and who can show measurable impact on program goals.”
Russell stresses that to make informed decisions, travel executives must first define strategic goals. Is the aim reducing costs, improving the traveler experience or enhancing flexibility? The answer will guide technology choices.
While cost control remains important, Russell points out that younger generations are increasingly valuing experience and adaptability. “Ignoring these preferences risks losing talent,” he says. “The most effective solutions will strike a balance between cost, risk management and user-centric design.”
Rizzi notes that once priorities are clear, you can cut through the noise and evaluate which tools actually move the needle. “A good TMC should act as your filter and integrator, bringing forward solutions that fit your business and ensuring they all work together seamlessly.” The goal isn’t to have the most technology – it’s to have the right technology that delivers measurable outcomes.
Getting the Right Relationship
For best results, selection of a TMC should include consideration of several factors. “Choosing the right TMC is no longer just about matching service locations or aligning on culture, although those remain critical,” says Penny Watermeier, EVP, customer success, North America for CTM. “In today’s environment, travel executives also need to look at how a TMC is innovating.” With AI reshaping traveler servicing, NDC redefining airline content, and new commerce platforms changing the way programs are managed, a TMC should function both as a technology partner and a strategic advisor, Watermeier notes.
“Start with clear expectations,” McDonough advises. “The strongest relationships are built on shared accountability and open communication, not just service level agreements.” This requires understanding your key pain points – whether cost control, service quality or technology integration – and looking for a partner that can design a tailored program around those needs. “Ultimately, success comes from finding a TMC that acts as a true strategic advisor, not just a service provider,” he explains.
Rizzi recommends thinking beyond the RFP checklist. “Look closely at cultural alignment, responsiveness and the willingness of your TMC to co-create solutions with you,” he says. “The relationship has to feel like an extension of your own team.” He also encourages buyers to test the relationship early, asking how does the TMC respond when something urgent comes up, or when things don’t go to plan?
In building a strong TMC relationship, consistent effort is a must from the start, according to Jorge Cruz, executive vice president, global sales and marketing at BCD Travel. “Relationship building begins in discovery, but it doesn’t end there,” he says. During discovery, it pays to set meaningful goals and be open with your suppliers, along with developing your decision-making process, scorecard and weighting. “The key is to think through where you want to take your program next,” he says.
He notes that workshops can take multiple forms, but real benefit can be accrued from making space for open conversation, more discovery and getting to know one another.
It’s also important to keep the dialogue going with your program manager. “The set-it and forget-it approach doesn’t work with travel programs,” Cruz says. “So stay engaged with your TMC and tap into any resources they have to offer.”
Continuing Fluidity
Looking ahead, it seems likely that consolidation will continue, both among TMCs and technology providers. “This brings a risk that your chosen partner may shift focus due to changes in ownership,” Russell warns. Staying agile and maintaining strong relationships will be keys to navigating this evolving landscape.
Marino also predicts a continued trend toward consolidation. “Many TMCs are facing succession challenges or pressure to hit aggressive growth targets, and that will keep driving mergers and acquisitions,” she says. She also looks for more investment in AI and automation, especially around booking processes that happen outside of traditional online booking tools. “While technology will take a bigger role, I don’t think the human side should disappear,” Marino adds. “Travelers still need expertise, reassurance and problem-solving when something goes wrong, so the future will be about blending high-tech with high touch in the right way.”
The future of the TMC model is going to be defined by convergence, according to Rizzi. “Technology and service won’t be separate tracks anymore,” he says. “They’ll be integrated, with AI driving efficiencies and insights, while people deliver the trust, empathy and creativity that technology alone can’t provide.” He also expects a growing emphasis on flexibility. “The programs that succeed will be the ones that can adapt quickly as markets, regulations and traveler needs evolve,” Rizzi says. “That’s where the right TMC really proves its value.”
Watermeier predicts that the TMC of the future won’t just be a travel agent, but rather a technology platform, consultancy and supplier strategist rolled into one. “Those who cling to legacy booking margins will struggle, while those who embrace data, supplier economics and client advisory roles will thrive.”
