Knowing When (and How) to Move On: Lessons from TMC Transitions

At the BTN Business Travel Trends & Forecasts event in Toronto, Areka Senior Consultant Brenda M. joined industry peers to explore one of the most difficult moments in a travel program’s lifecycle: recognizing when it’s time to change Travel Management Companies (TMCs) — and how to protect your business through the transition.

When a Partnership Turns Painful

In some transitions, a client’s TMC relationship doesn’t just end — it unravels. One of the most common pitfalls occurs when the incumbent increases transaction fees at the end of the contract or applies charges to exchanges and refunds that the new TMC cannot process due to a GDS switch.

It’s an unfair tactic — and one that highlights the importance of strong contractual protection.

The takeaway: protect yourself before that moment arrives. Build clauses that safeguard your program from unnecessary risk:
1️⃣ Fee transparency – Require full visibility into all transaction and transition-related costs.
2️⃣ Cooperation clauses – Ensure the incumbent is contractually obligated to support a structured, collaborative handover.
3️⃣ Data handover – Define how and when your data will transfer to maintain continuity and reporting integrity.

These details matter most when your organization is at its most vulnerable — during the handover between partners.

Recognizing the Signs It’s Time to Move On

Performance issues aren’t the only red flag. Often, the warning signs appear long before service levels drop.

• Erosion of trust – When your TMC feels more like a vendor than a partner, or when transparency fades and more time is spent policing the relationship than collaborating.
• Misalignment with traveler expectations – Clunky tools, poor responsiveness, or rigid processes that push travelers to book outside the program.
• Impact of M&A – Following consolidation, service models often shift: new teams, new tech, new rules. Mid-market clients, in particular, may feel squeezed on cost or attention.
• Strategic drift – When the TMC no longer supports priorities such as sustainability, data visibility, or payment innovation.
• Culture and communication – High turnover or defensive communication often signal that trust and alignment have eroded.

Managing Change After Consolidation

With continued consolidation across the TMC landscape (including combinations like Egencia/GBT and CWT/GBT), mid-market buyers are often among the first to feel the ripple effects. In the short term, these changes can bring operational disruption — new teams, new tools, and new processes that may shift service from customized to standardized.

However, consolidation isn’t always negative. When managed effectively, it can open access to more robust global platforms, enhanced reporting, and advanced OBT or payment solutions that strengthen program capabilities in the long run.

The key is to anticipate change — maintaining continuity, clarity, and communication throughout the process.

A Flexible Framework Beats a Fixed Playbook

No two travel programs are identical, which is why flexibility matters. At Areka, we combine proven methodologies and best-practice frameworks to deliver rigor, consistency, and measurable outcomes — while tailoring each approach to the client’s unique context.

Every organization operates within its own environment, defined by:

• Industry and culture
• Travel spend and policy maturity
• Supplier landscape
• Risk tolerance and governance

This approach allows clients to balance structure with adaptability — using tested frameworks as a foundation while aligning strategy to their specific goals and realities.

Protecting Your Business Through Contract Clauses

When transitioning between TMCs, strong contractual protections are critical to maintaining control and continuity. Key areas to address include:

• Data ownership – Retain full rights to all booking, traveler, and financial data. Define formats and require complete, usable extracts (including historicals) from the outgoing TMC.
• Transition timelines and cooperation – Include clear exit timelines and structured handover obligations, ensuring service continues through the final cutover date.
• Fee transparency – Eliminate ambiguity by prohibiting hidden or punitive “exit fees.” Link any extraordinary charges to prior client approval.
• Continuity safeguards – Require named transition resources, a brief dual-running period for overlap, and non-disruption clauses to protect traveler experience and access to unused tickets or credits.

These provisions ensure both operational stability and a smoother, more transparent transition.

Data, Reporting, and Duty of Care — Three Separate Workstreams

A seamless cutover depends on disciplined governance across three distinct workstreams:

• Data migration – Define ownership and formats upfront, test extraction and import processes, and validate data completeness before migration.
• Reporting – Run parallel reports between the old and new TMCs to confirm data accuracy, KPI alignment, and reporting continuity.
• Duty of care – Verify that traveler tracking, emergency response, and risk management systems are live and tested before go-live, maintaining a dual-running safety net until the new provider is fully stable.

Together, these workstreams protect both operational continuity and traveler safety — two elements that cannot be compromised during transition.

When to Bring in Outside Help

While not every organization requires external support, complex or high-risk transitions often benefit from specialized expertise.

• Consultants provide structure, benchmarks, and governance frameworks — particularly valuable for global or multi-region transitions.
• Auditors offer independent validation of costs, unused tickets, and data reconciliation to ensure financial accuracy and transparency.
• Legal advisors enforce contract terms around data ownership, cooperation, and non-disruption, protecting client interests during contentious or high-stakes exits.

Final Thought

Changing TMCs is never easy — but it doesn’t have to be disruptive. With clear governance, contractual safeguards, and a flexible strategy, travel managers can protect continuity and position their programs for success.

The most effective transitions balance structure with adaptability — ensuring rigor and compliance while recognizing each organization’s unique context.

At Areka, we help clients navigate this balance — guiding transitions that strengthen relationships, improve visibility, and enable travel programs to evolve with confidence. Connect with us to start a conversation. 

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