The Perils of Renewing Your Contract With a Corporate Travel Agency in a Crisis
Photo Credit: The effects of the pandemic on travel will also impact the way corporates negotiate with their agency in the future. Unsplash / Cytonn Photography
Skift Take
A crisis can either strain a relationship or cement it. Many travel agencies with contracts expiring on the horizon are about to find out which category they fall into with their corporate customers.
Get the Latest on Coronavirus and the Travel Industry on Skift's Liveblog
Mind the Technology Gap Three months into the crisis, and it's only recently that many travel agencies have rolled out new platforms and features to better look after their clients' travelers, often for free. Which begs the question: why wasn't it there before? An agency's technology prowess is under the microscope; while most travel management companies talk about having best-in-class technology, COVID-19 and its impacts will be putting this claim to the test. One travel manager at an international company, who wished to remain anonymous, told Skift the crisis had exposed some flaws in their travel agency and prompted them to look elsewhere. “We aren’t renewing, and have signed a new contract with another agency,” they said. “Because of what’s going on, a lot of people will want to stay with their agency, and get an extension. But we wanted to go somewhere that was a breath of fresh air." One of the main problems they cited was airline refunds, which have been an ongoing bugbear not just for organizations but consumers worldwide. Their previous provider — a large, global agency — was charging different fees to process refunds across different regions. In some cases, the agency fee for cancelling a ticket, a fee most airlines had waived, ended up costing the firm more than the price of the actual ticket. The travel manager admits this was something that should have been addressed in the original contract, but it was the lack of agility that didn't impress them. "There was less flexibility. The big agencies are more laid back, and not in a hurry to do things. Another issue is that they’re such a big ship, and trying to steer one way or another is impossib