Chris Thelen, CEO, Chambers Travel

AirPlus talks with Chris Thelen, CEO and owner of Chambers Travel about the impact of the current economic climate on TMCs, new challenges that face the industry and what Chambers Travel looks forward to…

A+: The current economic downturn saw a reduction in business travel. What are the main changes you have experienced as a result of the recession and do you see any positive outcomes?

CT: Companies really want to drive down the cost of travel and are increasingly examining the whole end to end process including what internal cost controls they have in place. Chambers has always tried to offer pro-active advice to clients, but until recently, proposals to change process and practice have sometimes fallen on deaf ears. That’s certainly not the case now. A good TMC must be prepared to be solution orientated and literally start again with a blank sheet of paper, building a new travel programme around the client’s new objectives. For us it’s a great time to offer consulting services to help achieve this.

A+: Facilitating credit may still be widely practiced amongst TMCs as a means of winning over new businesses, however, many agencies risk bad debt as a result. How has Chambers Travel managed to overcome this common practice in today’s competitive environment?

CT: I could never have grown Chambers at the pace we have over the last five years unless we had partnerships with lodged card providers such as AirPlus. All new accounts and most longstanding customers have been moved to this line of credit. Lodged cards have provided the consistent cash flow to expand the business safely and this is even more relevant in today’s market.

I am still not sure all the agency community has got their strategy right on how to sell the card concept into their client base. Last year Chambers introduced a new incentive scheme for the sales team. They are actively incentivised on winning new clients where payment is card based. There is no reward for cash payment clients. Perhaps not surprisingly, since then all new business won has been on a lodge card basis.

Given the recessionary environment, and IATA being watchful of bonding requirements, the more cash clients you have the higher your probable bond is with IATA. Obtaining a bond in this market is a tough thing to do. By switching accounts to a payment system like AirPlus you can effectively minimise or even eliminate the need for a bond.

Taking all of this on board moving to card payments is an absolute no brainer.

Read full Interview:
Combating Recession with Chris Thelen (PDF, 232 KB)