The MacNair Travel Leadership Blog

Understanding Where Value is Created in Managing T&E

Posted by Mike MacNair on Jun 25, 2015 4:00:00 PM

travel-management-companies-from-different-perspectivesThe value delivered by travel management companies in managing travel and entertainment (T&E) can come in many places and to varying extents for different businesses and business models. Knowing what your business can and should secure for the investment ensures a better ROI and a more well managed T&E line item.

Travelers and those who manage travel often have different views on the value of a TMC and the fee that they may see being charged because of their limited exposure to the total management system that is usually put in place. Let’s take a moment to look at what travelers often see and what the travel manager should see to jumpstart clarity and value.

For travelers, the TMC landscape usually looks something like this:


Travel managers who maximize the value of their partnership with a TMC for their business have a pie with many more value slices that deliver more value to more people. They will usually look something more like this:


 There are two good uses for this data and these infographics.

  1. Value Enhancement. You can’t get what you want until you know what you want. Knowing what the possibilities are allows you to seek out the right solutions and partners.
  1. Program Adoption. When travelers question the value of the travel procurement process you have selected to meet your business requirements and the fees that correspond with them, its useful to explain and show the front stage traveler value AND the back stage company value that goes along with managing T&E - versus simply procuring some trips.