TMCs Seek Rejiggered Hotel Revenue, Drawing ‘Shell Game’ Accusation

Big travel management companies are beefing up their hotel programs. They say it's a content play. Aggregating inventory, special prices and perks counteracts fragmentation. It gives their clients' travelers less reason to stray from managed programs. That improves reporting and risk management. All good stuff. But, wait. Follow the money.

First, a bit of history. U.S. airlines chipped away at base commissions in the years before and after the turn of the century. That led to an overhaul of TMC economics. Transaction fees charged to clients became the norm. But TMCs didn't forego revenue from suppliers. They . . .

The full content is available to subscribers

Author: David Jonas

David Jonas in 2006 co-founded business media firm ProMedia.travel after ten years as a journalist with Business Travel News. David rejoined BTN in 2010 as executive editor when its parent company acquired ProMedia, and in 2014 co-created The Company Dime. David has a bachelor's degree in communications from Cornell University.

Comments

avatar
  Subscribe  
Notify of