Deciding between a travel management company vs travel agency? There are several things you’ll want to consider before you make a decision either way. Both options come with their pros and cons, and this decision will significantly impact your Travelers.

Both a travel management company (TMC) and a travel agency, of course, can help make your travel booking process easier. If you’re currently managing all of your company’s travel in-house, then they’ll definitely take some things off your plate. However, the degree to which they can help you, as well as what they can help you with, differs vastly.

Here’s what you need to know when making the crucial decision to work with a travel management company vs travel agency.

What Does Each Do?

First, let’s just start with a simple overview of what each does.

Travel agencies, like those you might imagine when booking individual or family vacation travel, are becoming increasingly popular again. A travel agency’s primary job is to help you book travel, and while the majority of travel agencies focus on leisure travel, some can help book business travel. They can help with deciding what exactly you want to book and what might be a good fit. They can book the travel on your behalf. They can offer you special deals and rates that you might not have access to otherwise. However, that’s really where things end, though.

In contrast, a travel management company specializes in services that are more comprehensive and beneficial for business travel. It’s all in the name, really. A travel management company helps you “manage” (all aspects of) your travel.

Depending on the company you partner with and the specifics of your partnership, this might mean helping you analyze your existing travel policy and helping you adjust it or build a new one. It might mean equipping your Travelers with advanced technology and booking tools to make their trips easier and safer. It might mean helping you with duty of care. It might mean helping you meet certain goals, whether those are budgetary goals or sustainability goals. It might mean being available to your Travelers in the event of an emergency.

However, above and beyond all this, a travel management company will also do all of those things that a travel agency will do. They’ll help you book your travel and leverage their connections to help you get better deals on your travel.

So, when weighing a travel management company vs travel agency, and deciding which is best for you, consider your desired services. While a travel agency may offer enough for some, others may clearly need the help of a travel management company.

What Level of Service Does Each Provide?

Looking at the above, then, you can probably make some safe assumptions regarding the level of service provided by a travel management company vs travel agency.

A travel agency is relatively hands-off. They do the job that you paid them to do — booking your travel — but they’re not exactly going to dig into the nitty-gritty of how and why you’re traveling to help you determine the best options for your overall company. They’re not necessarily there to act as a trusted advisor.

In contrast, a travel management company is exactly that. Their end goal goes far beyond just ensuring your Travelers get to where they need to go safely. They also want to ensure that your company meets its overarching goals, and they see travel as just one part of the puzzle in meeting those goals.

As such, you may find that a TMC is a little more involved and proactive, really getting into your operations and helping you find the best solutions for your individual needs.

How Big is Each Option?

Another factor that differentiates a travel management company vs travel agency? Size.

Often, TMCs are rather large. They have a large global reach with many offices and diverse employees and, as such, have access to the benefits that only a large global company can obtain.

In contrast, traditional travel agencies tend to be smaller, have limited global reach and are local to your community. If you have a handful of travelers and need to work face-to-face with a small, local team, for example, you can find a travel agency that offers those sorts of relationships.

That’s not to say that you won’t still get personalized, hands-on service from a travel management company. If you partner with the right one, you definitely will and will quickly form relationships with the individuals working on your company’s behalf.

How Much Does Each Cost?

Of course, one of the biggest questions when deciding between a travel management company vs travel agency? Cost.

You might assume that a travel management company, being on the larger side, with more services and bells and whistles, is going to cost more. However, that’s not actually the case! Thanks to travel management companies’ sizes, they can offer better deals and rates. Think of it like buying from a large corporation versus a small mom-and-pop store. Often, the small mom-and-pop store has to charge more for their services, to make ends meet. Meanwhile, the corporation can offer better, larger discounts, due to their volume of business.

Travel Management Company vs Travel Agency: How to Decide

In summation, these are, again, the elements you need to consider when deciding between a travel management company vs travel agency:

• What services do I want or need?
• What level of service or involvement do I want?
• Would I prefer to partner with a large or small team?
• What’s my budget?

As you consider the answers to these questions, we would encourage you to do further reading on the benefits that come with working with a travel management company vs travel agency, and how to choose a travel management company when the time is right.