Bouncing back
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For many travel management companies, 2022 proved to be a return to business as usual and, in some cases, much needed profitability returned to the sector. After many corporates decided to stay with their incumbent TMC for the duration of the crisis, many are now thinking that it might be time for a change.

Clive Wratten, CEO of the Business Travel Association, says, “2022 was a year of recovery and new beginnings for the UK’s travel management companies. TMCs across the UK worked collaboratively to find a new normal post-pandemic, seeking ways to support employees as well as each other to build business back stronger. Since the industry saw many leave during the pandemic, the focus for 2022 primarily featured recruitment to encourage new and old starters to join the industry.”

He continues: “2022 still saw public anxieties around travelling and so TMCs dealt with a complex and unpredictable path to bouncing back. In-person meetings are vital to the business travel industry as they build and maintain relations and allow the sharing of knowledge. It was therefore a priority that the industry worked together to emphasise the importance of business travel both within the industry and beyond.

“The TMC sector is well versed in crisis situations and they manage their businesses accordingly, despite the terrible commercial impact of the pandemic. The industry remains financially resilient and is on the road back to profitability.”

Julia Lo Bue-Said, chief executive officer of the UK’s Advantage Travel Partnership, says, “As the world continues to recover from the pandemic, global pressures remain. High inflation, rising interest rates, cost of living pressures and the ongoing conflict in Ukraine have all resulted in business leaders having to further focus on rebuilding their balance sheets, as well as ensuring their liquidity positions remain strong.

“For TMCs, their agile approach, managing changing traveller demands and behaviour has put them in the best possible position to manage travel programmes in an ever-complex world. Despite these macro impacts, TMCs have once again come through the other side, stronger, profitable and, with 68 per cent of Advantage TMCs reporting approaches from companies previously with unmanaged travel programmes, TMCs have an even greater opportunity to demonstrate their value now more than ever.”

A few more names have disappeared from the rankings this year. Ventur Travel, the former Traveleads, joined fast-growing Gray Dawes Travel in August 2022. The TripActions name is no longer on the list, not because it has been acquired but because it underwent a rebranding to Navan in February 2023 and thus now appears here as Navan Group incorporating Reed & Mackay.

So what of the future? GDP has long been linked to the growth of business travel and UK TMCs will be concerned that the economic outlook for the UK does not look promising for the coming year.

In April, the IMF published new forecasts for GDP and it predicts that the UK economy will shrink by 0.3 per cent. This is the worst forecast for any advanced economy – the average prediction is growth of 1.3 per cent – but also for any of the highlighted emerging market and developing economies which are predicted to grow by an average of 3.9 per cent.

Read on to see UK-based TMCs' views on what the next 12 months holds in store.