Management fees in corporate travel refer to the charges from a Travel Management Company for their services in managing and overseeing a company’s travel arrangements. These fees can vary significantly based on the service model at the TMC.

Types of Management Fees

Transaction-Based Fees

Traditionally, TMCs charged fees on a per-transaction basis, meaning that each booking incurred a separate fee. This model has been criticised for potentially leading to higher overall costs as businesses increase their travel needs.

Service-Based Fees

Many TMCs are shifting towards a service-based fee structure. This approach involves a flat fee or subscription model that covers all services provided over a specified period, regardless of the number of transactions made. This model offers greater predictability in budgeting and can simplify cost management for companies.