Recently, I was in a conversation with a corporate travel manager. This travel manager, who had just released an RFP for several travel services, expressed some amazement and frustration that the prospective bidders in the RFP knew so little about the company they were bidding  to serve, its travel management program, and how they as providers might best be able to meet this company’s needs. I assured the travel manager that they are not alone in these thoughts and concerns.

Another travel manager I encountered recently was concerned about the level of organizational knowledge among existing travel suppliers in the company’s program. Going into more detail, this travel manager related stories of less experienced supplier account managers, concerns about supplier training programs, and the resulting need for the travel manager to “bring the supplier personnel along” just to have the opportunity to improve and maximize the travel management program.

While these less-than-optimal situations exist in many cases, we can find some solace in the probability they are short term. We are currently exiting the largest upheaval among travel supplier personnel in history. To survive the COVID-induced decline in business travel, most travel suppliers had to dramatically reduce personnel. The economics of the situation required many of those personnel reduction to be from the ranks of experienced, more highly paid staff members. No one anticipated the dramatic return to travel now being experienced. Therefore, travel suppliers were “caught short” of the personnel needed to support the business. (This is true for many other industries, like food services, education, and manufacturing.)

Then a third travel manager, who was experiencing similar service shortfalls, told me, “This is a situation none of us created, and all of us must deal with. The primary concern is to receive value for money paid for services at a level at least at that of the pre-COVID world. I’m willing to take the time to help, and even facilitate, the educational process, but I need the assurance of my suppliers that the level of service will then be maintained. What I can’t allow to happen is to get supplier personnel up to speed and then have them transferred to another account or leave because they can make more money for the same job somewhere else, or to be overwhelmed because they have more accounts than one person can handle.”

Suppliers also have concerns about getting to know their customers and potential customers. One supplier told the story of a company which shared travel patterns expected to exist in 2022 and 2023. These patterns were almost identical to the patterns experienced in 2019. Certain facts were not provided to the supplier. One plant had been closed permanently; others had been expanded. Travel data is already reflecting the significant differences resulting from these changes, differences the company tells the supplier will continue for the indefinite future. This supplier states they would have structured their corporate program differently with this knowledge – differences which would have driven more volume to the supplier and more discount for the company.

So, what are the possible solutions to the current (and recurrent) problems expressed by these travel managers and suppliers?

Communication is key. Travel managers need to succinctly state the needs and goals of their travel programs. Too often the travel manager assumes supplier personnel are well versed in the intricate aspects of their travel management program. This is simply not true. Travel management programs are often complex with multiple policies, competing suppliers, multi-party goals – senior management, operations, finance, safety, and security – and travelers who just want to do their jobs as efficiently as possible. Accomplishing all of this requires high levels of communication and knowledge sharing from both buyers and suppliers.

Trust must be established and maintained. Open discussions of matters affecting the travel program must be had as soon as possible. This applies to both travel managers and suppliers. For example, where acquisitions or divestitures might occur, or airline route frequencies change, or hotels close for renovations, the information must be shared with the other party early in the process. Any concerns with the progress of the travel program need to be brought up before issues expand and negatively impact relationships. And, most importantly, an “us-versus-them” mentality cannot be allowed to develop.

Data sources must be agreed upon. I’m not aware of any instance where buyer data and supplier data have been in sync. This is the result of the many sources of travel data available, the disparity between when travel is booked and taken, changes made in route, and other factors. (Current technology has mitigated the differences in data, but as an industry we are still far from perfection.) Therefore, the best data source, or combination of data sources, should be agreed upon to allow for the best negotiations possible.

Travel managers should allow suppliers limited access to the company’s travelers where practical. Even with all the available data, and travel manager access to travelers via e-mail or other intracompany forums, there is nothing like face-to-face focus meetings with groups of travelers. The supplier community is generally receptive to these opportunities to meet with some of their best customers, learn their concerns, understand what is working well and what is not, and to talk through potential changes to improve the traveler experience.

Generate an internal marketing plan. When I was a travel manager, I failed to do this effectively. I did not understand the power of an internal marketing campaign developed from a formal, comprehensive marketing plan. Suppliers can play an integral role in the development and implementation of the marketing plan. They have material and resources which can be of value. Doing this will bring the travel manager significant return on investment – far more than I once believed.

For suppliers to know their customer, and customers to know their suppliers, would seem to be easily accomplished in a successful travel management program. Experienced indicates, however, this is not the case. Both buyers and suppliers need to dedicate substantial resources and effort to develop an optimal buyer/supplier relationship. Taking the steps we have outlined here should improve knowledge sharing, build deeper relationships, and result in improved travel management programs with happier customers.

Mark Williams is a Managing Member of Yellow Cardinal Consulting. Previously, he served as the Managing Director, Americas for Nina & Pinta, and prior to that, served as a partner with GoldSpring Consulting. Mark was a Principal at Advito, the consulting division of BCD Travel, and has held roles in the Business Transformation Outsourcing practice at IBM. Mark started in the travel industry in the late 1980s with WorldTravel Partners, followed by 10 years as the Director of Travel for Price Waterhouse and PricewaterhouseCoopers.