Business travel finds itself in a period of transformation, with technology advancements and innovation rapidly expanding across all segments of the industry. Most travel managers expect their company’s travel spend to grow in 2025, with projected gains averaging 14% to 15%. Yet amid economic uncertainty, supply chain disruptions, climate change, and sustainability concerns, managing business travel has become more complex than ever.
Expectations are shifting across the travel ecosystem. Travelers demand greater choice, safety, and personalization, while businesses seek enhanced visibility and control. At the same time, suppliers are looking for new ways to directly engage with travelers. Travel management companies (TMCs) must evolve and modernize to stay competitive.
– Sarah Kuberry Martino, Chief Product Officer, Direct Travel
To more effectively support those who manage travel, today’s TMCs need to invest in innovation, deliver real-time insights, and form strategic relationships across the industry. Let’s examine what a modern TMC looks like and how travel managers can maximize this partnership to improve the travel experience for their team.
The Next Frontier: Technology Innovation
The transformation of business travel mirrors the evolution once seen in the Software-as-a-Service (SaaS) sector. Historically, enterprise software solutions were monolithic and required extensive customization. SaaS revolutionized this model by introducing modular, scalable, and customizable solutions. Companies like Salesforce, SAP Concur, and Oracle pioneered cloud-based platforms that allowed businesses to integrate specific modules, offering tailored solutions for unique business needs.
Today, the travel industry is transforming in a similarly groundbreaking way. Our partners at Spotnana are helping lead this shift with their cloud-based travel technology appropriately termed “Travel-as-a-Service.” By modernizing an industry infrastructure that has previously been characterized by closed, disconnected systems, they are laying the groundwork for an improved travel experience and powering the travel platform for Direct Travel’s next-generation tech stack, Avenir.
Excitingly, the collaborative power behind Avenir will only continue to grow from here. In addition to Spotnana, our partnerships with Center and TROOP further enhance Avenir, delivering an intuitive and connected experience for travel, expense, and meetings management. This open-platform approach allows us to integrate with a broad ecosystem of service providers, fostering a secure and connected travel experience.
By embracing innovation and collaboration, we as an industry can reimagine what it means to be a TMC and offer even more efficient travel solutions to meet the ever-evolving needs of travel managers and their travelers.
Unlocking New Value Systems
As TMCs continue to transform, so will the broader travel ecosystem. Open platform solutions will foster seamless integration with other services and applications, encouraging continuous innovation from a wider array of participants. Similarly, data-driven insights will empower companies to make informed decisions that enhance the travel experience for employees while optimizing costs and adhering to corporate policies.
All of this has the potential to reveal new value for businesses, travelers, and suppliers. Travel managers who are looking for ways to further evolve their program can enlist the help of their TMC by consulting on questions such as:
- What relevant traveler data and context can we provide our suppliers? This enables suppliers to deliver personalized, targeted offers and enhance the overall travel experience.
- Beyond the core services of flights, car rentals, and hotels, are there additional suppliers we can partner with? Creating a more continuous and connected journey for travelers results in a new, symbiotic value system between TMCs and suppliers.
- Can we securely share traveler information to identify frequent flyers or reward program members? Suppliers such as airlines and hotels may offer special privileges or incentives to repeat travelers.
- By understanding a traveler’s individual routine, how can we add convenience to their journey? Solutions can be creative and may range from securing a discount at a nearby coffee shop to automatically modifying a hotel check-in time in response to a flight delay.
Timely, personalized service is no longer a luxury – it is a necessity for delivering a seamless travel experience. This is an essential value system not only for TMCs that want to stay competitive, but for travel managers who want to most effectively support their team.
Blurring Boundaries: The Expanding Definition of Managed Travel
This value shift is also driving a transformation in how travel management companies operate. Traditionally, TMCs have managed every aspect of business travel, but today’s travelers are more savvy and technologically advanced than ever before. They expect and deserve a choice in all aspects of their travel journey. While many companies still require the full suite of travel management services, others may wish to select key features of a managed travel program such as duty of care, cost management, VIP services, and crisis support.
This approach lets businesses tap into TMC expertise and resources in their own unique way. Forward-thinking TMCs must adapt to this trend by offering customized features and services that cater to a broader range of organizations with diverse needs.
The Ever-Changing World of Business Travel
As the corporate travel landscape continues to evolve, travel managers should feel encouraged to lean on their TMC for help adopting the newest advancements, leveraging real-time data, and fostering deeper collaboration across the travel ecosystem.
Expect the next generation of travel management companies to deliver more personalized, efficient, and dynamic travel solutions. By adopting these strategies, TMCs can continue to provide unparalleled value to businesses, travelers, and suppliers.
At Direct Travel, we invite you to join us on this journey of collaboration and industry-wide innovation. Our team is eager to support our clients and bring travelers together in groundbreaking new ways. To learn more about how this transformative change can help streamline your corporate travel program and delight your travelers, schedule time with our team.
