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How are consortia and TMC different?

What is a Consortia?

Consortia are a conglomerate of travel agency members or “mega-agencies” that have joined an organization and by doing this can now increase marketing to their customers by offering competitive rates at hotels worldwide. A consortia rate is a preferred rate negotiated between a hotel property and a travel management company “TMC”. Viewership of these rates in the GDS by a travel agent or other GDS user is restricted and the rate may be booked only after entry of either the Agents or Client authorization code. Originally started for small independent agencies, these consortium have become a major player in the travel industry. They are usually found using one global name (i.e., ABC Corporate Services), or continuing to keep their name, but using the relationship and tools of the program that they are members of. Each program has a list of requirements and fees to participate, but the standard requirements include:

  • A minimum of 10% off the lowest single published rate (Rack or Corporate)
  • Rate Parity
  • Last room availability guarantee
  • 10% commission to the Agent
  • All rates quoted are to be guaranteed for the entire year starting from Jan 1 – Dec 31, unless otherwise noted.

 

Benefits of Participation

Increased visibility – By partnering with these programs hotels will be listed in each program directory, website, and will have a special rate access code through the GDS. This exposure includes agencies that book specified negotiated rates within the consortia umbrella.

Increased Revenue – Hotels will see an increase in revenue generated through these partnerships.

Relationships with Travel Agents – By being accepted into these programs you will have opportunities to form your own relationship with these agencies. Relationships that can help to generated exposure, and eventually leading to revenue.

Marketing opportunities – Each program has a number of opportunities a property can participate in.