You may have recently come across an airline targeting business Travelers directly. But is it really a good idea to bypass the middleman and book directly?
Airlines benefit from direct sales. Yes, airlines do commonly sell airfare via a third party, such as through a distributor like a Travel Management Company, travel agent or online travel deals aggregator. When they do, though, they miss out on a lot. They not only lose out on money. They also lose out on data.
When airlines have Traveler data at their disposal, they can then use that data to market directly to a consumer. They can offer deals that are more likely to persuade a consumer to make a purchase. Or, on the opposite side of the spectrum, they may only display higher prices. They might know that a consumer is willing to pay those higher prices based on past data.
You can see why there are many reasons why an airline, then, might want to bypass these external distributors and third parties. An airline targeting business Travelers directly can make more money with an initial purchase. Then, in the future, they can make more money by using those business Travelers’ data to effectively market to them.
But is cutting out these third-party distributors the best choice for you? When an airline targeting business Travelers persuades you to neglect your normal booking routes for booking direct, you may find that your organization suffers as a result.
Here are five ways you could be negatively impacted by an airline targeting business Travelers directly.
1. Booking Directly Puts Your Travel Policy at Risk
Encouraging employees to remain compliant with your organization’s travel policy can be difficult. However, working with a Travel Management Company (TMC) and their booking processes can make compliance easier. There’s more control over what a Traveler can and cannot book, so there’s a greater likelihood of policy compliance.
When you take these safeguards away from the process, though, and Travelers book their flights and other travel directly with an airline, anything can happen. Travelers have nothing in place to keep them compliant. A Traveler could forget about a certain aspect of your travel policy. A Traveler might consciously decide not to adhere to a certain travel policy, for whatever reason. Whatever the case may be, when Travelers are not compliant with the organizational travel policy, it risks both Traveler safety and your bottom line.
2. Booking Directly Puts Your Travelers at Risk
On that note, booking directly puts your individual Travelers at risk, too. An airline targeting business Travelers directly doesn’t necessarily care about your Travelers’ safety, beyond safely getting them from Point A to Point B. After that, it’s all up to the Traveler.
That’s not the case, though, when your Travelers book with a TMC. A TMC that offers Trip Disruption Assistance and/or Travel Risk Management can help ensure Traveler safety and organizational duty of care. This means that every element of a Traveler’s business trip is monitored to ensure that the Traveler remains safe, healthy and able to return home, no matter where they’re traveling.
Unfortunately, a Travel Manager can’t provide the same level of protection and the same duty of care if the Travel Manager is left out of the flight booking equation.
3. Booking Directly Puts Your Travel Budget at Risk
As mentioned, an airline targeting business Travelers directly is attempting to use all the data it has on those business Travelers, to the airline’s advantage — not to the Traveler’s advantage. The airline is looking to make a profit. While the airline may promise spectacular savings and great deals to business Travelers, at the end of the day, it’s only going to offer those savings and deals if it thinks that will yield profitable results.
A Travel Manager or TMC, however, is working for you, not against you. They want to secure, on your behalf, the best deals on airfare and other travel possible. They want you to remain a happy, content client. They’ll use their relationships and connections to secure those deals, too, for savings that the business Travelers can’t secure on their own, no matter how many deals and specials an airline might promise a Traveler in exchange for booking directly.
4. Booking Directly Means You Miss Data and Other Valuable Information
Whether you’re planning your travel budgets or calculating your carbon footprint, if you need data on your company’s business travel habits, you need a Travel Management Company. They’ll be able to help compile all of your valuable business travel-related information into one place, easily and quickly. They’ll also help analyze that data and provide actionable insights. As a result, you can make informed decisions.
When you book with an airline targeting business Travelers directly, however, this data becomes fragmented and easily lost. Without a TMC compiling that data as travel is booked and trips are taken, who’s going to compile that data when you need it? An airline certainly isn’t, and your employees likely have more important tasks on their plates.
5. Booking Directly Could Make Your Business Travel Less Sustainable
We’ve seen more airlines paying attention to the demand for sustainable travel. However, if you’re really trying to put sustainability first this year, you need a knowledgeable TMC on your side. They’ll help you make environmentally-conscious decisions — even if it means taking fewer flights (something an airline targeting business Travelers directly definitely won’t want you to do).
Book Your Next Trip with JTB Business Travel
Don’t manage your organization’s business travel alone. JTB Business Travel can help, ensuring that you’re getting the best travel deals possible, while keeping your travel budget and traveling employees safe. Whether it’s helping with booking or managing duty of care, we can help with every step of the business travel process, from planning the initial trip to expense reporting after the fact.
