Grapevine, the intelligent re-marketing platform that helps TMCs drive revenues, has unveiled a TMC Revenue Calculator designed to highlight the ancillary revenues that TMCs are currently leaving on the table.
It says whilst business travellers book almost all flights and rail via their TMC, up to 80% of the remaining trip bookings – such as hotel, car hire, airport parking, ground transport and lounges – are currently transacted off-platform through non-compliant channels.
Not only does this create duty of care compliance, expense management and productivity headaches for corporate employers, but it also results in significant missed revenue opportunities for the TMC, according to Grapevine Founder and CEO Jack Dow.
“TMCs often seem happy with a hotel attachment rate of 20% or less, as this has historically been an acceptable benchmark” he said.
“We know business travellers are staying somewhere, so the TMC should be better placed to fulfill the demand than anyone else. With a simple integration, TMCs can now capture far more bookings which is good news for both the TMC and their clients.”
According to the calculator, a TMC that books 25,000 overnight flights for clients but only captures 20% of hotel bookings (known as the hotel attachment rate), could be missing out on £3m in sales, or £300,000 in commissions.
It says this figure could be even more when combined with other missed ancillary opportunities.
“There has long been a huge opportunity for attachment rates to be improved across all travel verticals’, says Julie Lo Bue-Said, CEO of the Advantage Travel Partnership, which partnered with Grapevine earlier this year.
“We’re excited that solutions like Grapevine are now available to our members to help them claw back revenues as business travel returns”.
Dow added: “Every day TMCs are not tackling this issue, they are unnecessarily losing bookings and revenues, and travellers don’t get the end to end experience they deserve.
“Duty of care compliance and employee well-being are particularly in-focus for corporates post-Covid, so tools like Grapevine that encourage travellers to book in-platform create value for all stakeholders in travel.”
The calculator is available now and free to use for any TMC.