TRAVEL management companies (TMCs) are witnessing changes in the way business travel is being bought in China, as clients no longer go for price alone.
Jiqin Fang, vice-president and CEO of TMC Ctrip Computer Technology (Shanghai), said local Chinese companies were slowly beginning to change from making travel purchases based on lowest airfares and room rates, to buying a more comfortable experience.
“Many local companies are using our services because of our huge procurement strength,” said Fang.
Bhart Sarin, a buyer with Ingredion US, concurred, noting that more Chinese companies were making travel bookings through a single TMC, choosing to leverage the negotiation strength of the company rather than making their own bookings online or going through a number of travel agencies.
He said that while companies were willing to implement best practices in travel management and enforce it, flexibility was even more important. “As they are starved for time, (frequent travellers) are willing to pay more for a private car service rather than a taxi; for pricier flights that fit their schedules; or for larger hotel rooms to conduct meetings in.
“Companies are willing to be flexible as these employees are an asset to them.
“Large companies in China are beginning to realise that having travel policies in place is the first step in managing travel spend. They are picking airlines and hotels that fit the culture of the company and are developing policies to match that.”
Radius general manager Asia-Pacific, Roger Pfund, said TMCs were starting to adopt booking engines and other online technologies to make the booking process a more seamless one. Large travel companies were also developing call centre models, he added.
