AMS for TMC’s of the Future
Advantage Managed Services is a vehicle for the future
Not all agencies are going to be able to deal effectively with the considerable changes coming down the road, whether IATA imposed regulations such as More Frequent Payment, the European Package Travel Directive (which could easily affect business travel), VAT issues which affect bill backs, ATOL changes, capital funding, MBO’s and so on.
We have been running the Leisure version of AMS for five years now, and have a total of 27 locations round the UK. This is a highly successful operation which has allowed agencies to rid themselves of onerous back office work, effectively releasing them to do what they do best – sell to their customers.
With the changes in legislation, difficulties in licencing, bonding and insurance we launched a similar product in the corporate side of the business last year.
Challenges facing TMC’s
We are aware of the challenges coming around the corner for both TMC’s and retail agents therefore for some agencies, moving into AMS is a good solution. We also need to be aware that consolidation in the market is going to continue, and probably at a faster pace than we have experienced up till now. The option of management buy-outs become infinitely more attractive with an AMS solution, therefore smoothing the way for transactions that would not happen otherwise.
AMS is not for all, but in the same way that suppliers view their need to use all avenues of distribution, we have to look at offering flexible and wide ranging solutions for TMC’s and agents in general.