Corporate travel agency: what it does and how to choose one

When business travel stops being occasional, handling everything in-house starts to get expensive: employees spending hours comparing flights, purchases spread across many cards, no reliable reports and nobody to sort out a flight cancelled at 11 p.m. That is when many companies start considering a corporate travel agency.

In this article, we explain what a corporate agency does, when it is worth hiring one and what to evaluate to choose the right partner.

What a corporate travel agency is

It is a company specialized in planning, booking and managing business travel for other companies. In the market it is also called a TMC (Travel Management Company). Unlike a leisure travel agency, its focus is cost control, compliance with the travel policy, speed and employee safety.

What a corporate travel agency does

• Bookings and ticketing: flights and bus tickets, hotels, car rentals, transfers and travel insurance.
• Online booking tool: self booking systems (OBT) where employees make their own bookings within the company policy, with manager approval.
• Travel policy enforcement: limits, advance booking and rules configured in the system and monitored by consultants.
• Rate negotiation: agreements with airlines, hotel chains and car rental companies.
• 24-hour support: assistance with cancellations, delays, changes and emergencies during the trip.
• Travel documents: guidance on passports, visas and the requirements of each destination.
• Management reports: spending by cost center, requester, supplier and savings achieved.
• Centralized invoicing: one consolidated invoice with flexible payment terms, instead of dozens of separate expenses.
• Corporate events: conventions, trade shows, meetings and incentive trips, with negotiation of hotels, transportation and suppliers.

When it is worth hiring a corporate agency

Some signs that your company already needs one:

• Trips happen every month, for several people or several departments.
• Nobody can say precisely how much the company spends on travel.
• Employees buy tickets on their own and ask for reimbursement later.
• Changes and cancellations generate credits that get lost.
• There is no one to call when something goes wrong outside business hours.
• Finance spends too much time checking receipts and invoices.

How to choose a corporate travel agency: 8 criteria

1. Corporate experience

Ask how long the agency has been serving companies and which industries it knows. Corporate travel requires its own processes, different from leisure tourism.

2. Dedicated, human service

Technology matters, but when a flight is cancelled, what solves the problem is a person who knows your company. Check whether there will be consultants dedicated to your account and how the service works.

3. Real 24-hour support

Ask how the after-hours service works: who answers, through which channel and how quickly. An emergency abroad does not wait for business hours.

4. Booking and approval technology

Ask for a demo of the online booking tool. See whether it lets you configure your policy, create approval workflows by cost center and track where your travelers are.

5. Reports and transparency

A good agency shows clearly how much you spent, with whom and how much you saved. Ask for sample management reports and how often they are delivered.

6. Clear fee structure

Understand how the agency is paid: a fee per transaction, a fixed monthly fee or another model. Be wary of proposals with no apparent cost, because the fee may be built into the fares.

7. Negotiating power

Ask about agreements with airlines, hotels and car rental companies, and whether the agency can negotiate specific rates for the cities your company visits most.

8. Invoicing terms

Check payment terms, invoice format, allocation by cost center and how easily it integrates with your finance department.

Questions to ask before signing a contract

1. Who will serve my company day to day?
2. How does service work outside business hours and on weekends?
3. Can I see a demo of the booking tool and the reports?
4. How will my travel policy be configured and monitored?
5. How are credits from cancelled tickets handled?
6. What is the fee structure and what does it include?
7. Do you also handle events and group travel?

ArrowTur: corporate travel, straight to the point

ArrowTur has operated in São Paulo since 1989, focusing on corporate travel management and events. Every client company has personalized service and consultants who know its operation, online booking tools with its policy and approval workflow, monthly management reports and service from 7 a.m. to 7 p.m., with emergency support at night, on weekends and on holidays. All with ethics, transparency and agility, so that each trip happens as planned.

Want to see how we work? Talk to our sales team, call +55 11 5189-4120 or learn about our corporate travel management.

Read also: how to create a corporate travel policy and how to reduce corporate travel costs.

Frequently asked questions

What is the difference between a corporate travel agency and a tourism agency?

A corporate agency specializes in business travel: it enforces the company policy, controls costs and offers approval tools, management reports and centralized invoicing. A tourism agency focuses on leisure travel.

Can small companies hire a corporate agency?

Yes. Many agencies serve companies of all sizes. Even with few trips per month, the company gains control, emergency support and reports.

What is a TMC?

TMC stands for Travel Management Company, the term used in the market for corporate travel management companies.