Explainer: TMC Profit Margins

It’s not unusual to hear travel management company executives talk about their small profit margins, but their margins are average to above average compared with like industries. 

TMC profits are, however, sensitive to plenty of external factors the companies cannot control. They remain partly lashed to an industry (airlines) that until recently couldn’t post consistent earnings. Because so much of their cost base is for labor, the levers TMCs can pull when things go south by way of a downturn or loss of a large client are limited and painful.

This baggage . . .

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Jay Campbell

Author: Jay Campbell

Jay Campbell in 2004 created travel business newsletter The Beat, in 2006 co-founded Travel Procurement magazine and in 2010 integrated them with Business Travel News. He served as editorial director until 2013. Jay made his travel industry media debut in 1993 at the Air Travel Journal of Boston while earning his undergraduate degree in journalism at Boston University.
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