It’s not business as usual in the travel category in 2026. We continue to see major events and developments in the supply chain that may impact your business.
Clients of CTM
The clock of consequences is ticking ever louder. CTM may still emerge intact and continue to operate successfully, but the threats are several; notably, investor litigation, client defection, regulatory action, loss of lender support and loss of IATA accreditation.
Critical dates and deadlines are looming. It’s been nearly nine months since its ASX suspension began. The recent market update worsened the situation.
CTM clients should have a service continuity contingency plan ready in the top drawer.
Clients of Amex GBT
The company has just announced its purchase for US$6.3 billion by a group of major investors with a track record of successfully re-engineering large service-based companies with technology, and more recently with the broad and deep application of AI.
This is not your average private equity buyout. It means Amex GBT will probably be transformed in 2027 and beyond, with some disruptions likely along the way. Nothing will change in the short term, but expect fewer staff and leading AI systems in the future.
Clients of other travel management companies
You’re not completely immune to the CTM situation. If CTM does succumb, there will be a multi-billion-dollar travel spend rush for the services of other TMCs, including yours. Your service levels may suffer from the needs of the new business.
It would be a good idea to shore up your TMC arrangement in preparation, with tight measurable contract terms. Whatever you do, keep a watch on their services in the second half of 2026.
NDC
“New” Distribution Capability is well down the roll-out track. It’s happening gradually, airline by airline, and TMC by TMC.
Your TMC’s NDC deals and booking capabilities are now key travel management factors.
What arrangements do they have with your most used airlines? What is their access to the cheaper NDC fares? How do they access NDC fares? Do they avoid surcharges? What are their booking process capabilities with NCD fares per airline?
Air expenditure
There’s no escaping fuel costs and rising fares, so the need to lower costs increases.
The same old measures should be pursued if you’re not already using them. Avoid the high cost of buying unnecessary fare flexibility. For domestic travel, choose restricted fares. You’ll always come out ahead overall. And consider not being tied to a contract that requires a very high market share for domestic and international travel. Unless you are a large account buying lots of fare flexibility, the savings from doing otherwise can be prodigious. And best of all, consider a managed reduction in your travel.
Hotel transparency
With the ongoing decline in airline commission revenues for TMCs, hotel commissions are becoming increasingly important to TMC survivability. And so, hotel chains are being drawn closer into TMC influence orbits with confidential deals reflecting the situation.
It’s more important than ever that you run your hotel tenders and negotiations yourself, or at least have 100 percent visibility and control of the process. The UK Government saga underlines the need to check for rate mark-ups. Be careful who you outsource your accommodation program to.
About the author
Tony O’Connor has operated the independent corporate travel procurement consultancy Butler Caroye since 1998. He specialises in the supply category and provides services in travel tendering, auditing, benchmarking, analysis and advice.
