TMC industry consolidation leads to TMC market power, which
creates the ability to be more selective about selling opportunities. Buyers
will see this in even greater numbers this year as TMCs become more inquisitive
about their prospects before agreeing to enter a sales process. Some will
require client interviews up front (with some requiring senior management attendance)
while others will pre-qualify via intake surveys.
As TMCs have morphed into combo distribution hubs, service
centers, hotel content providers, and mobile enablers (all while still
processing core transactions), the definition of a TMC customer can mean many
things. TMCs will holistically evaluate each of these opportunities against its
peer share commitments, growth markets, employee capacity, technology maturity
and client fit. And, unless there is a clear path to value, TMCs will be more
and more reluctant to fully bid.
It is imperative that buyers anticipate this trajectory and
ready their company’s value propositions. Last decade’s “we are the customer”
mantras are lost on these new TMC focus areas. Buyers must present compelling
reasons for potential supplier change, plans to mitigate any risks,
improvements hoped for, and very importantly, the level of senior management
support achieved. Lining up these key areas prior to considering a bid will
help guide the TMCs to choose to participate.
No doubt some buyers will see these as pre-sales tactics,
not very different than years before. However, TMCs have now quantified
opportunities fully with multinational
travel buyers as expensive sales propositions and must make internal
justifications before proceeding.
Savvy buyers will prepare and control their storylines prior
to going to market. Finalizing key points for consistency in talking with the
entire market simplifies the discussions to relevant, hard value points which
are easy to digest for all concerned.
Ultimately, both TMCs and buyers want qualified
opportunities from each perspective. Answering all large questions creates a
trust up front that benefits all parties as the process plays out. Jack Welch
said it well: “Strategy is simply resource allocation. When you strip away all
the noise, that’s what it comes down to. Strategy means making clear-cut
choices about how to compete. You cannot be everything to everybody, no matter
what the size of your business or how deep its pockets.”