man in airport lounge watching plane fly off illustratng the value to hotels of consortia and travel management companies (TMCs)

A Consortia is an organization made up of independent travel agents and agencies joined to increase their buying power, commissions, and amenities which they can provide clients worldwide. Examples include ABC Global Services, CCRA, CTM/Radius, THOR, and Virtuoso.

NB: This is an article from TCRM

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A Travel Management Company (TMC) manages a company’s complete business travel requirements. TMC’s employ their own agents, who work on behalf of the companies the TMC contracts with. While smaller/mid-sized TMCs are often affiliated with a Consortia to access better rates, larger TMCs have their own hotel programs and therefore exert more control over their agents’ point-of-sale. Examples of Travel Management Companies include Amex GBT, BCD Travel, CWT, and SAP Concur.

In exchange for offering better rates (in some cases) and/or commission to these TMC’s & Consortia, hotels receive listings under their dedicated GDS rate codes, hotel directories, and intranets for additional exposure to all member agents. Viewership of Consortia rates in the Global Distribution Systems (GDS) is restricted and only affiliated agents will be able to view and book those rates. If a travel agent searches for hotels in your city under the Consortia rate code and your hotel is not listed with the Consortia, your hotel will not show up, which makes listing with major Consortia groups invaluable for your GDS production and competitive exposure.

Benefits of Participating

Amplifying Visibility and Reach

Consortia and Travel Management Companies act as pipes, channeling a stream of potential guests toward hotels. Through their extensive networks and collaborations with mid-sized and large companies and with travel agency networks, these entities amplify the visibility of hotels. This expanded reach opens doors to a wider audience of travelers seeking diverse lodging options.

Access to Diverse Markets

Partnering with Consortia and TMCs enables hotels to tap into diverse markets that might have been otherwise challenging to reach independently. These alliances provide hotels with access to segmented markets, attracting specific types of travelers, whether corporate, leisure, luxury, or niche segments, thereby increasing the potential for greater occupancy and revenue.

Negotiating Power and Strategic Alliances

The strength of Consortia groups and TMCs lies in their negotiating power and ability to consolidate travel. They secure favorable terms and benefits for their travelers and affiliated hotels, ensuring advantageous deals for travelers and competitive rates for hotels. In the case of mandated travel programs, participating hotels can benefit from increased occupancy from corporate accounts, or shift share of business from competitors.

Read the full article at TCRM