With business travel booming, companies like yours are looking for ways to optimize travel management processes. To streamline bookings and improve cost efficiency, many organizations are turning to third-party travel solutions such as Online Travel Agencies (OTAs) and Travel Management Companies (TMCs).
Both OTAs and TMCs have transformed corporate travel. All this by just simplifying the booking experience and providing access to a consolidated inventory of flights, hotels, car rentals, and more. However, while they may seem similar, they differ in terms of scope, service levels, and overall benefits.
Understanding these differences is crucial in selecting the right solution for your company’s travel needs. In this guide, we’ll break down the key distinctions between online travel agency vs travel management company to help you determine which option aligns best with your business objectives.
What is an Online Travel Agency?
An online travel agency is a virtual marketplace that sells services like flight and hotel bookings, car rentals, cruises, etc., on other companies’ behalf. In other words, an OTA is a website where travelers can go to get good deals on travel-related bookings.
An OTA eases the booking process for personal and business travel; however, it is gaining more popularity in the business world. The primary reason is that business travelers are on-the-go and find OTA’s online booking engine highly convenient. An online travel agency offers instant payment and booking confirmation to facilitate a hassle-free business travel experience.
What is a Travel Management Company?
A Travel Management Company (TMC) is a specialized service provider that helps businesses plan, book, and manage corporate travel. TMCs offer a comprehensive range of services. They include flight and hotel bookings, car rentals, travel policy compliance, and cost management.
While comparing online travel agency vs travel management companies, TMCs focus specifically on the needs of business travelers and organizations. They offer tailored solutions to streamline the entire travel process.
A key benefit of using a TMC is the ability to manage and control travel expenses effectively. All this while ensuring employee safety and compliance with company policies. TMCs often provide dedicated support, real-time travel updates, and detailed reporting.
This helps businesses optimize travel efficiency and reduce costs. TMCs also typically offer access to exclusive corporate rates, making them a valuable partner for companies looking to manage business travel at scale.
Online Travel Agency vs. Travel Management Company
1. Expert Consultation
An online travel agency is only concerned with booking transportation and accommodation.
Hence, unlike a travel management firm, they do not have a team of experienced corporate travel consultants to help with other business travel requirements like travel policy formulation, a duty of care plan, risk management, etc.
2. Booking: Consolidated vs. Customized
While comparing online travel agency vs travel management company, OTA provides a consolidated inventory of flights and hotels. However, thousands of options are available, and your employees must go through each to find the most suitable. In contrast, a modern TMC uses the GDS to tap into a pool of flights and hotels. They provide your employees with personalized booking options based on their past preferences and your company’s travel policy.
3. Concierge Services
Concierge services are the additional requirements that may arise during a business trip like airport lounge facility, car parking, etc. When you book with the help of an online travel agency, you can get concierge services under exceptional circumstances. However, it is neither the norm nor an expectation from an OTA to provide concierge services.
However, good travel management companies always take care of all the concierge services your employees may require, from advance hotel reservations and travel itinerary management to rented vehicles.
4. Customer Support
The customer support provided by an online travel agency is limited to timely and comfortable flight bookings. However, during an emergency or a change in the business travel itinerary, your employees are stuck on their own without assistance.
In contrast, a travel management company provides round-the-clock customer support. Therefore, if your employees get stranded at a completely unknown international destination, they know who to call.
5. Travel Data Insights
An online travel agency doesn’t keep track of your employees’ travel preferences and spending habits during a business trip. Hence, if you use an OTA for corporate travel management, the best travel data insights you can expect is the data available on flight tickets and hotel vouchers.
However, with a travel management company, you can get specialized insights into your employees’ travel and spending habits. Not just that, you can also get department-wise travel expenses and discover cost-heavy and saving-heavy departments.
Travel Management Company or Online Travel Agency
An online travel agency can make your booking process more manageable by eliminating laborious manual processes. You can also easily compare fares and schedules of multiple airlines at once, search for booking options for a future date, and create multi-airline itineraries during your trip.
Additionally, using an online travel agency doesn’t require commitment. You can use one OTA for a trip and switch to another if you find better services.
However, when you opt for a travel management provider, you get an expert partner to manage your entire business travel process efficiently. It can help you create a practical and cost-conscious travel policy while considering your employees’ comfort.
Additionally, a TMC can help you streamline the booking process, making it easier for your employees to book their business trips. You can also benefit from concierge services like business trip insurance, car rentals, etc.
Hence, you should opt for an OTA if your business travel needs are limited to only flight and hotel bookings. However, if you need a comprehensive solution to manage your business travel process efficiently and provide 24/7 support, you should invest in a TMC.
If your corporate travel needs extend beyond booking travel and accommodation, a travel management company is the clear winner in terms of price, offering, and benefits.
Online Travel Agency or TMC: Choose Wisely
As business travel is in full swing, managing it requires more than just an efficient booking tool. You need a comprehensive travel management solution that helps you identify and address any gaps in your travel process. While choosing between an online travel agency vs travel management company, it is important to see the benefits of both.
A travel management company like itilite offers just that. At itilite, we handle all aspects of your travel needs. Our software provides customized booking options for your employees, drawing from a vast selection of flights and hotels. Plus, with our round-the-clock customer support, your employees will always have assistance, especially in emergencies.
To know more about us, reach out to us today!
