Mark Pestronk
Q: Our midsize agency handles business travel for the headquarters office of a multinational corporation. Because of our success in serving the needs of the top executives, the corporation has asked us to consider handling all their corporate travel needs worldwide, including travel for employees stationed in 30 countries. One expert has told us that such service would be far beyond our capabilities and would present legal and operational problems that would be impossible to solve. Do you agree?
A: I do not agree. Midsize agencies can handle multinational clients, thanks to technology and global consortia whose members can serve as subcontractors. Legally, there are no obstacles to such a setup. A U.S. travel agency has the right to make reservations for all modes of travel and issue airline tickets for travelers anywhere in the world.
If the account needs access to rates, fares, and perks that are available only to local travel agencies, the U.S. agency can subcontract with the local agencies. Alternatively, using new technology, and with the consent of all parties, the U.S. agency can access the local agency's system to search fares and even make the reservations.
Similarly, if a country requires local billing in local currency, a subcontracted local agency can provide it, or the U.S. agency may be able to arrange such billing with a credit card company.
Technology can also provide the U.S. agency with country-specific, toll-free numbers, and the numbers will ring at the U.S. agency. If travelers and travel arrangers insist on dealing with a local agency for a more personal touch, local knowledge or relationships, the U.S. agency can subcontract with the local agency to provide that local support.
These subcontracting arrangements can be set up by one of the global consortia of agencies, such as GlobalStar and Radius, that have members in scores of countries. The members join for the express purpose of handling multinational accounts.
While the vast majority of the consortiums' members are large corporate agencies, there is no prohibition on a midsize agency joining as a member, and at least one consortium has a low-dues category for agencies that cannot afford to become full members.
Finally, although it is rare, it is possible for a U.S. agency to set up its own ticketing locations abroad, especially in countries where the volume justifies the expense.
Operationally, the two biggest challenges arise from the need to operate 24 hours a day and the account's requirement to consolidate travel data into one set of useful monthly reports. Both of these challenges can be overcome.
For 24-hour service, the agency can staff its own office, although it is hard to find qualified agents willing to work nights. Alternatively, the agency can use one or more after-hours emergency services with personnel trained to handle overseas callers.
For data consolidation, there are companies that specialize in taking back-office data from multiple agencies and providing consolidated reporting, and the global consortia can perform such work, too.
All these arrangements are, needless to say, expensive and time consuming. So, you need to make sure that the account is willing to pay for them and to provide you with enough time to implement them.