What reason does an employer have to mandate all travel booking be via the same travel agency?

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At my employer, all travel bookings must be made via the same travel agency. If I don't, I apparently violate the contract between the travel agency and my employer (a university in Sweden).



A booking made directly via a train company is significantly cheaper than the same travel booked via the travel agency. Administrative overhead for the employer should be similar, because in one case they will get a bill to pay, in the other case a reimbursement form from the employee. Of course, there is an advantage for me as an employee to book via the travel agency; it's considerably less work. However, I personally like to figure out travel options and to be in full control, so I prefer to book by myself, even if doing so in my own time.



Why would an employer enforce all travel bookings to occur via the same travel agency, even if it's cheaper if employees book directly via the railway or flight company?







share|improve this question
















  • 4




    It may be cheaper on that one specific trip. Do you know what the agreement is? Do you know how much the university saves on other travel arrangements by using this agency?
    – Oded
    Dec 7 '12 at 20:33






  • 3




    You yourself give the direct answer to the question as stated - Q: "Why would an employer enforce all travel bookings to occur via the same travel agency, ...?" A: "... all travel bookings must be made via the same travel agency. If I don't, I apparently violate the contract between the travel agency and my employer ...." Violating the contract may lead to legal action and then punishment if your employer is found guilty of a violation.
    – GreenMatt
    Dec 7 '12 at 21:33











  • @GreenMatt That should be the answer; not just a comment.
    – Dan Neely
    Dec 7 '12 at 21:56










  • @DanNeely: I made it a comment because I don't think that's really what the OP wants to know. (I think) He wants to know why his employer would make such an agreement.
    – GreenMatt
    Dec 7 '12 at 22:01










  • I've never travelled for work, but I have travelled a fair bit around Europe for fun, and it's never even occurred to me to use a travel agency. Never seen the point of them.
    – TRiG
    Dec 7 '12 at 22:12

















up vote
22
down vote

favorite
2












At my employer, all travel bookings must be made via the same travel agency. If I don't, I apparently violate the contract between the travel agency and my employer (a university in Sweden).



A booking made directly via a train company is significantly cheaper than the same travel booked via the travel agency. Administrative overhead for the employer should be similar, because in one case they will get a bill to pay, in the other case a reimbursement form from the employee. Of course, there is an advantage for me as an employee to book via the travel agency; it's considerably less work. However, I personally like to figure out travel options and to be in full control, so I prefer to book by myself, even if doing so in my own time.



Why would an employer enforce all travel bookings to occur via the same travel agency, even if it's cheaper if employees book directly via the railway or flight company?







share|improve this question
















  • 4




    It may be cheaper on that one specific trip. Do you know what the agreement is? Do you know how much the university saves on other travel arrangements by using this agency?
    – Oded
    Dec 7 '12 at 20:33






  • 3




    You yourself give the direct answer to the question as stated - Q: "Why would an employer enforce all travel bookings to occur via the same travel agency, ...?" A: "... all travel bookings must be made via the same travel agency. If I don't, I apparently violate the contract between the travel agency and my employer ...." Violating the contract may lead to legal action and then punishment if your employer is found guilty of a violation.
    – GreenMatt
    Dec 7 '12 at 21:33











  • @GreenMatt That should be the answer; not just a comment.
    – Dan Neely
    Dec 7 '12 at 21:56










  • @DanNeely: I made it a comment because I don't think that's really what the OP wants to know. (I think) He wants to know why his employer would make such an agreement.
    – GreenMatt
    Dec 7 '12 at 22:01










  • I've never travelled for work, but I have travelled a fair bit around Europe for fun, and it's never even occurred to me to use a travel agency. Never seen the point of them.
    – TRiG
    Dec 7 '12 at 22:12













up vote
22
down vote

favorite
2









up vote
22
down vote

favorite
2






2





At my employer, all travel bookings must be made via the same travel agency. If I don't, I apparently violate the contract between the travel agency and my employer (a university in Sweden).



A booking made directly via a train company is significantly cheaper than the same travel booked via the travel agency. Administrative overhead for the employer should be similar, because in one case they will get a bill to pay, in the other case a reimbursement form from the employee. Of course, there is an advantage for me as an employee to book via the travel agency; it's considerably less work. However, I personally like to figure out travel options and to be in full control, so I prefer to book by myself, even if doing so in my own time.



Why would an employer enforce all travel bookings to occur via the same travel agency, even if it's cheaper if employees book directly via the railway or flight company?







share|improve this question












At my employer, all travel bookings must be made via the same travel agency. If I don't, I apparently violate the contract between the travel agency and my employer (a university in Sweden).



A booking made directly via a train company is significantly cheaper than the same travel booked via the travel agency. Administrative overhead for the employer should be similar, because in one case they will get a bill to pay, in the other case a reimbursement form from the employee. Of course, there is an advantage for me as an employee to book via the travel agency; it's considerably less work. However, I personally like to figure out travel options and to be in full control, so I prefer to book by myself, even if doing so in my own time.



Why would an employer enforce all travel bookings to occur via the same travel agency, even if it's cheaper if employees book directly via the railway or flight company?









share|improve this question











share|improve this question




share|improve this question










asked Dec 7 '12 at 20:30









gerrit

7923926




7923926







  • 4




    It may be cheaper on that one specific trip. Do you know what the agreement is? Do you know how much the university saves on other travel arrangements by using this agency?
    – Oded
    Dec 7 '12 at 20:33






  • 3




    You yourself give the direct answer to the question as stated - Q: "Why would an employer enforce all travel bookings to occur via the same travel agency, ...?" A: "... all travel bookings must be made via the same travel agency. If I don't, I apparently violate the contract between the travel agency and my employer ...." Violating the contract may lead to legal action and then punishment if your employer is found guilty of a violation.
    – GreenMatt
    Dec 7 '12 at 21:33











  • @GreenMatt That should be the answer; not just a comment.
    – Dan Neely
    Dec 7 '12 at 21:56










  • @DanNeely: I made it a comment because I don't think that's really what the OP wants to know. (I think) He wants to know why his employer would make such an agreement.
    – GreenMatt
    Dec 7 '12 at 22:01










  • I've never travelled for work, but I have travelled a fair bit around Europe for fun, and it's never even occurred to me to use a travel agency. Never seen the point of them.
    – TRiG
    Dec 7 '12 at 22:12













  • 4




    It may be cheaper on that one specific trip. Do you know what the agreement is? Do you know how much the university saves on other travel arrangements by using this agency?
    – Oded
    Dec 7 '12 at 20:33






  • 3




    You yourself give the direct answer to the question as stated - Q: "Why would an employer enforce all travel bookings to occur via the same travel agency, ...?" A: "... all travel bookings must be made via the same travel agency. If I don't, I apparently violate the contract between the travel agency and my employer ...." Violating the contract may lead to legal action and then punishment if your employer is found guilty of a violation.
    – GreenMatt
    Dec 7 '12 at 21:33











  • @GreenMatt That should be the answer; not just a comment.
    – Dan Neely
    Dec 7 '12 at 21:56










  • @DanNeely: I made it a comment because I don't think that's really what the OP wants to know. (I think) He wants to know why his employer would make such an agreement.
    – GreenMatt
    Dec 7 '12 at 22:01










  • I've never travelled for work, but I have travelled a fair bit around Europe for fun, and it's never even occurred to me to use a travel agency. Never seen the point of them.
    – TRiG
    Dec 7 '12 at 22:12








4




4




It may be cheaper on that one specific trip. Do you know what the agreement is? Do you know how much the university saves on other travel arrangements by using this agency?
– Oded
Dec 7 '12 at 20:33




It may be cheaper on that one specific trip. Do you know what the agreement is? Do you know how much the university saves on other travel arrangements by using this agency?
– Oded
Dec 7 '12 at 20:33




3




3




You yourself give the direct answer to the question as stated - Q: "Why would an employer enforce all travel bookings to occur via the same travel agency, ...?" A: "... all travel bookings must be made via the same travel agency. If I don't, I apparently violate the contract between the travel agency and my employer ...." Violating the contract may lead to legal action and then punishment if your employer is found guilty of a violation.
– GreenMatt
Dec 7 '12 at 21:33





You yourself give the direct answer to the question as stated - Q: "Why would an employer enforce all travel bookings to occur via the same travel agency, ...?" A: "... all travel bookings must be made via the same travel agency. If I don't, I apparently violate the contract between the travel agency and my employer ...." Violating the contract may lead to legal action and then punishment if your employer is found guilty of a violation.
– GreenMatt
Dec 7 '12 at 21:33













@GreenMatt That should be the answer; not just a comment.
– Dan Neely
Dec 7 '12 at 21:56




@GreenMatt That should be the answer; not just a comment.
– Dan Neely
Dec 7 '12 at 21:56












@DanNeely: I made it a comment because I don't think that's really what the OP wants to know. (I think) He wants to know why his employer would make such an agreement.
– GreenMatt
Dec 7 '12 at 22:01




@DanNeely: I made it a comment because I don't think that's really what the OP wants to know. (I think) He wants to know why his employer would make such an agreement.
– GreenMatt
Dec 7 '12 at 22:01












I've never travelled for work, but I have travelled a fair bit around Europe for fun, and it's never even occurred to me to use a travel agency. Never seen the point of them.
– TRiG
Dec 7 '12 at 22:12





I've never travelled for work, but I have travelled a fair bit around Europe for fun, and it's never even occurred to me to use a travel agency. Never seen the point of them.
– TRiG
Dec 7 '12 at 22:12











6 Answers
6






active

oldest

votes

















up vote
29
down vote



accepted










We have the same situation, and where the travel comes from (research) funding there is always the temptation to save money by organising your own bookings. Our policy applies primarily to airfares, as our train network is impractical for city-to-city travel. The reasons we have (rightly or wrongly) are:



  • we recieve a rebate in total from our travel agents, as well as individual companies such as airlines and hotel chains. Of course, this rebate is not pro-rate transfered back to the teams that spent the money, but that's a different issue.


  • in the past, we have had people who have blown team project/programme budgets through unauthorised spending on travel. Rightly or wrongly, the policy is designed to avoid confrontations over this type of issue.


  • we have an internal hourly charge rate that includes overhead costs. Savings on short-haul travel rarely justify even the investment of 20 minutes of staff time, in terms of opportunity cost. Similarly, if their time is charged back against the research project, it can be more expensive.


  • people can use the freedom for personal advantage (special offers, frequent traveller points, selection of upgrades, supporting friends, buying tickets for others) and associated issues around transparency/auditing of public (or shareholders) money


  • there can be tax implications in some countries, depending on the rules around how employee expenses operate.


  • for larger organisations don't under-estimate the workload involved in processing the hundreds of expense claims and thousands of receipts involved, and ensuring these are stored and filed for auditing


  • staff don't always read the small print on "budget" deals, and you can find the costs escallate pretty quickly


and the most important one (IMHO)



  • having a single, simple blanket policy that covers all travel without exception is cheaper and easier to set up, audit, monitor, enforce and change.

If you have ever been involved in setting or enforcing organisational policy, you will know just how much time these discussions (and escalation of them) can cost an organisation, especially in the public sector.






share|improve this answer
















  • 4




    For the record, I don't agree with many of these, but that's not what the OP asked...
    – GuyM
    Dec 7 '12 at 21:20

















up vote
16
down vote













There can be a number of reasons, but the primary three (that I'm aware of) are:



  1. The travel agency has a contract for discounted rates with the organization in terms of rebates or other financial considerations; i.e. the agency offers financial incentives for booking more travel with them. (Part of that contract.)


  2. Accounting considerations - the travel agency aggregates financial data.


  3. In public institutions, there is often also considerable pressure to ensure that all financial transactions occur through contracted and bidding process to ensure accountability for public funds. (Yes, sometimes that means the dollar amount spent is higher, and yes, from a strict dollar amount it often doesn't make sense - but the PR fiasco that often occurs when someone spends public money on an off-contract expenditure through someone's brother's company, etc., etc. is often considered to be a far greater cost that spending through a contracted agreement that may often cost more.)






share|improve this answer


















  • 3




    4. Old boys network ;)
    – Oded
    Dec 7 '12 at 20:39

















up vote
7
down vote













In the travel industry negotiated rates are, for the most part, determined by the amount of travel and bookings. This includes hotel room nights, air segments, car rentals and so on.



In the corporate realm committing to a single agency often gains several benefits:



  1. A centralized and standardized travel purchasing and approval process.

  2. Easy access to the whereabouts of an employee while they are traveling.

  3. Reduced rates for most, if not all, of your travel needs.

  4. ....

Now in your case you may be able to find and make travel arrangements cheaper than your corporate agency. But your company loses the benefits and the ability to negotiate for better rates because they can't easily determine how many air segments, car rentals, hotel nights you've used in the past.



It's a short term loss (more expensive now) but has a long term gain (less expensive later) for the company or organization.






share|improve this answer



























    up vote
    6
    down vote













    While I see the point of your question and have had similar experiences myself, a reason I've not yet seen mentioned for such an arrangement is that the travel agency can support you while you are traveling. I'll illustrate with a couple of my own experiences.



    Twice I've had problems with car rentals when I was traveling, one of these was for work travel, the other was for personal travel:



    • With the work incident, upon arrival in my destination city, I found that the car rental agency with whom I had a reservation was no longer doing business in that location. One fairly quick call to the after hours number of the travel agency and I had the charges reversed from the original agency and a new reservation with another company that was doing business there and I didn't have to worry about a price difference.


    • For the personal incident, I had made my own arrangements. My flight was delayed and I didn't arrive until late at night. The agency with whom I had a reservation had closed for the evening. I then had to call that agency to cancel the reservation and request a refund of my deposit. Then I was at the mercy of a different car rental company in both what vehicles were available and the price I would have to pay.






    share|improve this answer






















    • That's a very good point.
      – gerrit
      Dec 7 '12 at 22:16






    • 1




      Exactly it can cost them a lot more to have you be forced to deal with your own travel mistakes than to have the travel agency to handle it for you. Many times we will choose to be penny wise with our decisions instead of being dollar smart. So we will save $50 in travel expenses and end up with $500 in costs from lost time and aggravation.
      – IDrinkandIKnowThings
      Dec 7 '12 at 22:16


















    up vote
    5
    down vote













    They may not feel other employees will comparison shop for the best deals like you have. For more complex trips they may be able to save employees time by putting together various places to stay and transportation.



    Having a single place can make payments easier and getting consolidated reports on all travel expenses as well.



    Finally, someone may be getting bonus points and free travel.






    share|improve this answer



























      up vote
      2
      down vote













      Because way back when everybody was allowed to book their own, attention began to focus on cutting costs (perhaps due to a downturn or the influence of Lean and 6-sigma). Somebody put together a slick presentation including charts and graphs proving that money and time would be saved by outsourcing travel arrangements. It was fully embraced and nobody is looking back... except for the occasional traveler like you who's done some digging and found the truth.



      While it probably did save some time and money initially, that benefits have eroded woefully over time to where is now functioning about as efficiently as the TSA or the Marine Corps. Nobody has verified whether or not the system still saves money. It is now the status quo and it is probably dangerous to challenge it. Still, if you ask, you'll probably hear this response, "we've got bigger fish to fry."






      share|improve this answer






















      • What's the TSA?
        – gerrit
        Dec 9 '12 at 20:21










      • Transportation Security Administration
        – Captain Claptrap
        Dec 10 '12 at 1:25










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      6 Answers
      6






      active

      oldest

      votes








      6 Answers
      6






      active

      oldest

      votes









      active

      oldest

      votes






      active

      oldest

      votes








      up vote
      29
      down vote



      accepted










      We have the same situation, and where the travel comes from (research) funding there is always the temptation to save money by organising your own bookings. Our policy applies primarily to airfares, as our train network is impractical for city-to-city travel. The reasons we have (rightly or wrongly) are:



      • we recieve a rebate in total from our travel agents, as well as individual companies such as airlines and hotel chains. Of course, this rebate is not pro-rate transfered back to the teams that spent the money, but that's a different issue.


      • in the past, we have had people who have blown team project/programme budgets through unauthorised spending on travel. Rightly or wrongly, the policy is designed to avoid confrontations over this type of issue.


      • we have an internal hourly charge rate that includes overhead costs. Savings on short-haul travel rarely justify even the investment of 20 minutes of staff time, in terms of opportunity cost. Similarly, if their time is charged back against the research project, it can be more expensive.


      • people can use the freedom for personal advantage (special offers, frequent traveller points, selection of upgrades, supporting friends, buying tickets for others) and associated issues around transparency/auditing of public (or shareholders) money


      • there can be tax implications in some countries, depending on the rules around how employee expenses operate.


      • for larger organisations don't under-estimate the workload involved in processing the hundreds of expense claims and thousands of receipts involved, and ensuring these are stored and filed for auditing


      • staff don't always read the small print on "budget" deals, and you can find the costs escallate pretty quickly


      and the most important one (IMHO)



      • having a single, simple blanket policy that covers all travel without exception is cheaper and easier to set up, audit, monitor, enforce and change.

      If you have ever been involved in setting or enforcing organisational policy, you will know just how much time these discussions (and escalation of them) can cost an organisation, especially in the public sector.






      share|improve this answer
















      • 4




        For the record, I don't agree with many of these, but that's not what the OP asked...
        – GuyM
        Dec 7 '12 at 21:20














      up vote
      29
      down vote



      accepted










      We have the same situation, and where the travel comes from (research) funding there is always the temptation to save money by organising your own bookings. Our policy applies primarily to airfares, as our train network is impractical for city-to-city travel. The reasons we have (rightly or wrongly) are:



      • we recieve a rebate in total from our travel agents, as well as individual companies such as airlines and hotel chains. Of course, this rebate is not pro-rate transfered back to the teams that spent the money, but that's a different issue.


      • in the past, we have had people who have blown team project/programme budgets through unauthorised spending on travel. Rightly or wrongly, the policy is designed to avoid confrontations over this type of issue.


      • we have an internal hourly charge rate that includes overhead costs. Savings on short-haul travel rarely justify even the investment of 20 minutes of staff time, in terms of opportunity cost. Similarly, if their time is charged back against the research project, it can be more expensive.


      • people can use the freedom for personal advantage (special offers, frequent traveller points, selection of upgrades, supporting friends, buying tickets for others) and associated issues around transparency/auditing of public (or shareholders) money


      • there can be tax implications in some countries, depending on the rules around how employee expenses operate.


      • for larger organisations don't under-estimate the workload involved in processing the hundreds of expense claims and thousands of receipts involved, and ensuring these are stored and filed for auditing


      • staff don't always read the small print on "budget" deals, and you can find the costs escallate pretty quickly


      and the most important one (IMHO)



      • having a single, simple blanket policy that covers all travel without exception is cheaper and easier to set up, audit, monitor, enforce and change.

      If you have ever been involved in setting or enforcing organisational policy, you will know just how much time these discussions (and escalation of them) can cost an organisation, especially in the public sector.






      share|improve this answer
















      • 4




        For the record, I don't agree with many of these, but that's not what the OP asked...
        – GuyM
        Dec 7 '12 at 21:20












      up vote
      29
      down vote



      accepted







      up vote
      29
      down vote



      accepted






      We have the same situation, and where the travel comes from (research) funding there is always the temptation to save money by organising your own bookings. Our policy applies primarily to airfares, as our train network is impractical for city-to-city travel. The reasons we have (rightly or wrongly) are:



      • we recieve a rebate in total from our travel agents, as well as individual companies such as airlines and hotel chains. Of course, this rebate is not pro-rate transfered back to the teams that spent the money, but that's a different issue.


      • in the past, we have had people who have blown team project/programme budgets through unauthorised spending on travel. Rightly or wrongly, the policy is designed to avoid confrontations over this type of issue.


      • we have an internal hourly charge rate that includes overhead costs. Savings on short-haul travel rarely justify even the investment of 20 minutes of staff time, in terms of opportunity cost. Similarly, if their time is charged back against the research project, it can be more expensive.


      • people can use the freedom for personal advantage (special offers, frequent traveller points, selection of upgrades, supporting friends, buying tickets for others) and associated issues around transparency/auditing of public (or shareholders) money


      • there can be tax implications in some countries, depending on the rules around how employee expenses operate.


      • for larger organisations don't under-estimate the workload involved in processing the hundreds of expense claims and thousands of receipts involved, and ensuring these are stored and filed for auditing


      • staff don't always read the small print on "budget" deals, and you can find the costs escallate pretty quickly


      and the most important one (IMHO)



      • having a single, simple blanket policy that covers all travel without exception is cheaper and easier to set up, audit, monitor, enforce and change.

      If you have ever been involved in setting or enforcing organisational policy, you will know just how much time these discussions (and escalation of them) can cost an organisation, especially in the public sector.






      share|improve this answer












      We have the same situation, and where the travel comes from (research) funding there is always the temptation to save money by organising your own bookings. Our policy applies primarily to airfares, as our train network is impractical for city-to-city travel. The reasons we have (rightly or wrongly) are:



      • we recieve a rebate in total from our travel agents, as well as individual companies such as airlines and hotel chains. Of course, this rebate is not pro-rate transfered back to the teams that spent the money, but that's a different issue.


      • in the past, we have had people who have blown team project/programme budgets through unauthorised spending on travel. Rightly or wrongly, the policy is designed to avoid confrontations over this type of issue.


      • we have an internal hourly charge rate that includes overhead costs. Savings on short-haul travel rarely justify even the investment of 20 minutes of staff time, in terms of opportunity cost. Similarly, if their time is charged back against the research project, it can be more expensive.


      • people can use the freedom for personal advantage (special offers, frequent traveller points, selection of upgrades, supporting friends, buying tickets for others) and associated issues around transparency/auditing of public (or shareholders) money


      • there can be tax implications in some countries, depending on the rules around how employee expenses operate.


      • for larger organisations don't under-estimate the workload involved in processing the hundreds of expense claims and thousands of receipts involved, and ensuring these are stored and filed for auditing


      • staff don't always read the small print on "budget" deals, and you can find the costs escallate pretty quickly


      and the most important one (IMHO)



      • having a single, simple blanket policy that covers all travel without exception is cheaper and easier to set up, audit, monitor, enforce and change.

      If you have ever been involved in setting or enforcing organisational policy, you will know just how much time these discussions (and escalation of them) can cost an organisation, especially in the public sector.







      share|improve this answer












      share|improve this answer



      share|improve this answer










      answered Dec 7 '12 at 21:19









      GuyM

      8,4332743




      8,4332743







      • 4




        For the record, I don't agree with many of these, but that's not what the OP asked...
        – GuyM
        Dec 7 '12 at 21:20












      • 4




        For the record, I don't agree with many of these, but that's not what the OP asked...
        – GuyM
        Dec 7 '12 at 21:20







      4




      4




      For the record, I don't agree with many of these, but that's not what the OP asked...
      – GuyM
      Dec 7 '12 at 21:20




      For the record, I don't agree with many of these, but that's not what the OP asked...
      – GuyM
      Dec 7 '12 at 21:20












      up vote
      16
      down vote













      There can be a number of reasons, but the primary three (that I'm aware of) are:



      1. The travel agency has a contract for discounted rates with the organization in terms of rebates or other financial considerations; i.e. the agency offers financial incentives for booking more travel with them. (Part of that contract.)


      2. Accounting considerations - the travel agency aggregates financial data.


      3. In public institutions, there is often also considerable pressure to ensure that all financial transactions occur through contracted and bidding process to ensure accountability for public funds. (Yes, sometimes that means the dollar amount spent is higher, and yes, from a strict dollar amount it often doesn't make sense - but the PR fiasco that often occurs when someone spends public money on an off-contract expenditure through someone's brother's company, etc., etc. is often considered to be a far greater cost that spending through a contracted agreement that may often cost more.)






      share|improve this answer


















      • 3




        4. Old boys network ;)
        – Oded
        Dec 7 '12 at 20:39














      up vote
      16
      down vote













      There can be a number of reasons, but the primary three (that I'm aware of) are:



      1. The travel agency has a contract for discounted rates with the organization in terms of rebates or other financial considerations; i.e. the agency offers financial incentives for booking more travel with them. (Part of that contract.)


      2. Accounting considerations - the travel agency aggregates financial data.


      3. In public institutions, there is often also considerable pressure to ensure that all financial transactions occur through contracted and bidding process to ensure accountability for public funds. (Yes, sometimes that means the dollar amount spent is higher, and yes, from a strict dollar amount it often doesn't make sense - but the PR fiasco that often occurs when someone spends public money on an off-contract expenditure through someone's brother's company, etc., etc. is often considered to be a far greater cost that spending through a contracted agreement that may often cost more.)






      share|improve this answer


















      • 3




        4. Old boys network ;)
        – Oded
        Dec 7 '12 at 20:39












      up vote
      16
      down vote










      up vote
      16
      down vote









      There can be a number of reasons, but the primary three (that I'm aware of) are:



      1. The travel agency has a contract for discounted rates with the organization in terms of rebates or other financial considerations; i.e. the agency offers financial incentives for booking more travel with them. (Part of that contract.)


      2. Accounting considerations - the travel agency aggregates financial data.


      3. In public institutions, there is often also considerable pressure to ensure that all financial transactions occur through contracted and bidding process to ensure accountability for public funds. (Yes, sometimes that means the dollar amount spent is higher, and yes, from a strict dollar amount it often doesn't make sense - but the PR fiasco that often occurs when someone spends public money on an off-contract expenditure through someone's brother's company, etc., etc. is often considered to be a far greater cost that spending through a contracted agreement that may often cost more.)






      share|improve this answer














      There can be a number of reasons, but the primary three (that I'm aware of) are:



      1. The travel agency has a contract for discounted rates with the organization in terms of rebates or other financial considerations; i.e. the agency offers financial incentives for booking more travel with them. (Part of that contract.)


      2. Accounting considerations - the travel agency aggregates financial data.


      3. In public institutions, there is often also considerable pressure to ensure that all financial transactions occur through contracted and bidding process to ensure accountability for public funds. (Yes, sometimes that means the dollar amount spent is higher, and yes, from a strict dollar amount it often doesn't make sense - but the PR fiasco that often occurs when someone spends public money on an off-contract expenditure through someone's brother's company, etc., etc. is often considered to be a far greater cost that spending through a contracted agreement that may often cost more.)







      share|improve this answer














      share|improve this answer



      share|improve this answer








      edited Dec 7 '12 at 20:39









      Oded

      21.1k57597




      21.1k57597










      answered Dec 7 '12 at 20:38









      Chad Thompson

      39626




      39626







      • 3




        4. Old boys network ;)
        – Oded
        Dec 7 '12 at 20:39












      • 3




        4. Old boys network ;)
        – Oded
        Dec 7 '12 at 20:39







      3




      3




      4. Old boys network ;)
      – Oded
      Dec 7 '12 at 20:39




      4. Old boys network ;)
      – Oded
      Dec 7 '12 at 20:39










      up vote
      7
      down vote













      In the travel industry negotiated rates are, for the most part, determined by the amount of travel and bookings. This includes hotel room nights, air segments, car rentals and so on.



      In the corporate realm committing to a single agency often gains several benefits:



      1. A centralized and standardized travel purchasing and approval process.

      2. Easy access to the whereabouts of an employee while they are traveling.

      3. Reduced rates for most, if not all, of your travel needs.

      4. ....

      Now in your case you may be able to find and make travel arrangements cheaper than your corporate agency. But your company loses the benefits and the ability to negotiate for better rates because they can't easily determine how many air segments, car rentals, hotel nights you've used in the past.



      It's a short term loss (more expensive now) but has a long term gain (less expensive later) for the company or organization.






      share|improve this answer
























        up vote
        7
        down vote













        In the travel industry negotiated rates are, for the most part, determined by the amount of travel and bookings. This includes hotel room nights, air segments, car rentals and so on.



        In the corporate realm committing to a single agency often gains several benefits:



        1. A centralized and standardized travel purchasing and approval process.

        2. Easy access to the whereabouts of an employee while they are traveling.

        3. Reduced rates for most, if not all, of your travel needs.

        4. ....

        Now in your case you may be able to find and make travel arrangements cheaper than your corporate agency. But your company loses the benefits and the ability to negotiate for better rates because they can't easily determine how many air segments, car rentals, hotel nights you've used in the past.



        It's a short term loss (more expensive now) but has a long term gain (less expensive later) for the company or organization.






        share|improve this answer






















          up vote
          7
          down vote










          up vote
          7
          down vote









          In the travel industry negotiated rates are, for the most part, determined by the amount of travel and bookings. This includes hotel room nights, air segments, car rentals and so on.



          In the corporate realm committing to a single agency often gains several benefits:



          1. A centralized and standardized travel purchasing and approval process.

          2. Easy access to the whereabouts of an employee while they are traveling.

          3. Reduced rates for most, if not all, of your travel needs.

          4. ....

          Now in your case you may be able to find and make travel arrangements cheaper than your corporate agency. But your company loses the benefits and the ability to negotiate for better rates because they can't easily determine how many air segments, car rentals, hotel nights you've used in the past.



          It's a short term loss (more expensive now) but has a long term gain (less expensive later) for the company or organization.






          share|improve this answer












          In the travel industry negotiated rates are, for the most part, determined by the amount of travel and bookings. This includes hotel room nights, air segments, car rentals and so on.



          In the corporate realm committing to a single agency often gains several benefits:



          1. A centralized and standardized travel purchasing and approval process.

          2. Easy access to the whereabouts of an employee while they are traveling.

          3. Reduced rates for most, if not all, of your travel needs.

          4. ....

          Now in your case you may be able to find and make travel arrangements cheaper than your corporate agency. But your company loses the benefits and the ability to negotiate for better rates because they can't easily determine how many air segments, car rentals, hotel nights you've used in the past.



          It's a short term loss (more expensive now) but has a long term gain (less expensive later) for the company or organization.







          share|improve this answer












          share|improve this answer



          share|improve this answer










          answered Dec 7 '12 at 20:39









          Steve

          3,70611127




          3,70611127




















              up vote
              6
              down vote













              While I see the point of your question and have had similar experiences myself, a reason I've not yet seen mentioned for such an arrangement is that the travel agency can support you while you are traveling. I'll illustrate with a couple of my own experiences.



              Twice I've had problems with car rentals when I was traveling, one of these was for work travel, the other was for personal travel:



              • With the work incident, upon arrival in my destination city, I found that the car rental agency with whom I had a reservation was no longer doing business in that location. One fairly quick call to the after hours number of the travel agency and I had the charges reversed from the original agency and a new reservation with another company that was doing business there and I didn't have to worry about a price difference.


              • For the personal incident, I had made my own arrangements. My flight was delayed and I didn't arrive until late at night. The agency with whom I had a reservation had closed for the evening. I then had to call that agency to cancel the reservation and request a refund of my deposit. Then I was at the mercy of a different car rental company in both what vehicles were available and the price I would have to pay.






              share|improve this answer






















              • That's a very good point.
                – gerrit
                Dec 7 '12 at 22:16






              • 1




                Exactly it can cost them a lot more to have you be forced to deal with your own travel mistakes than to have the travel agency to handle it for you. Many times we will choose to be penny wise with our decisions instead of being dollar smart. So we will save $50 in travel expenses and end up with $500 in costs from lost time and aggravation.
                – IDrinkandIKnowThings
                Dec 7 '12 at 22:16















              up vote
              6
              down vote













              While I see the point of your question and have had similar experiences myself, a reason I've not yet seen mentioned for such an arrangement is that the travel agency can support you while you are traveling. I'll illustrate with a couple of my own experiences.



              Twice I've had problems with car rentals when I was traveling, one of these was for work travel, the other was for personal travel:



              • With the work incident, upon arrival in my destination city, I found that the car rental agency with whom I had a reservation was no longer doing business in that location. One fairly quick call to the after hours number of the travel agency and I had the charges reversed from the original agency and a new reservation with another company that was doing business there and I didn't have to worry about a price difference.


              • For the personal incident, I had made my own arrangements. My flight was delayed and I didn't arrive until late at night. The agency with whom I had a reservation had closed for the evening. I then had to call that agency to cancel the reservation and request a refund of my deposit. Then I was at the mercy of a different car rental company in both what vehicles were available and the price I would have to pay.






              share|improve this answer






















              • That's a very good point.
                – gerrit
                Dec 7 '12 at 22:16






              • 1




                Exactly it can cost them a lot more to have you be forced to deal with your own travel mistakes than to have the travel agency to handle it for you. Many times we will choose to be penny wise with our decisions instead of being dollar smart. So we will save $50 in travel expenses and end up with $500 in costs from lost time and aggravation.
                – IDrinkandIKnowThings
                Dec 7 '12 at 22:16













              up vote
              6
              down vote










              up vote
              6
              down vote









              While I see the point of your question and have had similar experiences myself, a reason I've not yet seen mentioned for such an arrangement is that the travel agency can support you while you are traveling. I'll illustrate with a couple of my own experiences.



              Twice I've had problems with car rentals when I was traveling, one of these was for work travel, the other was for personal travel:



              • With the work incident, upon arrival in my destination city, I found that the car rental agency with whom I had a reservation was no longer doing business in that location. One fairly quick call to the after hours number of the travel agency and I had the charges reversed from the original agency and a new reservation with another company that was doing business there and I didn't have to worry about a price difference.


              • For the personal incident, I had made my own arrangements. My flight was delayed and I didn't arrive until late at night. The agency with whom I had a reservation had closed for the evening. I then had to call that agency to cancel the reservation and request a refund of my deposit. Then I was at the mercy of a different car rental company in both what vehicles were available and the price I would have to pay.






              share|improve this answer














              While I see the point of your question and have had similar experiences myself, a reason I've not yet seen mentioned for such an arrangement is that the travel agency can support you while you are traveling. I'll illustrate with a couple of my own experiences.



              Twice I've had problems with car rentals when I was traveling, one of these was for work travel, the other was for personal travel:



              • With the work incident, upon arrival in my destination city, I found that the car rental agency with whom I had a reservation was no longer doing business in that location. One fairly quick call to the after hours number of the travel agency and I had the charges reversed from the original agency and a new reservation with another company that was doing business there and I didn't have to worry about a price difference.


              • For the personal incident, I had made my own arrangements. My flight was delayed and I didn't arrive until late at night. The agency with whom I had a reservation had closed for the evening. I then had to call that agency to cancel the reservation and request a refund of my deposit. Then I was at the mercy of a different car rental company in both what vehicles were available and the price I would have to pay.







              share|improve this answer














              share|improve this answer



              share|improve this answer








              edited Dec 7 '12 at 22:22

























              answered Dec 7 '12 at 21:56









              GreenMatt

              15.6k1465109




              15.6k1465109











              • That's a very good point.
                – gerrit
                Dec 7 '12 at 22:16






              • 1




                Exactly it can cost them a lot more to have you be forced to deal with your own travel mistakes than to have the travel agency to handle it for you. Many times we will choose to be penny wise with our decisions instead of being dollar smart. So we will save $50 in travel expenses and end up with $500 in costs from lost time and aggravation.
                – IDrinkandIKnowThings
                Dec 7 '12 at 22:16

















              • That's a very good point.
                – gerrit
                Dec 7 '12 at 22:16






              • 1




                Exactly it can cost them a lot more to have you be forced to deal with your own travel mistakes than to have the travel agency to handle it for you. Many times we will choose to be penny wise with our decisions instead of being dollar smart. So we will save $50 in travel expenses and end up with $500 in costs from lost time and aggravation.
                – IDrinkandIKnowThings
                Dec 7 '12 at 22:16
















              That's a very good point.
              – gerrit
              Dec 7 '12 at 22:16




              That's a very good point.
              – gerrit
              Dec 7 '12 at 22:16




              1




              1




              Exactly it can cost them a lot more to have you be forced to deal with your own travel mistakes than to have the travel agency to handle it for you. Many times we will choose to be penny wise with our decisions instead of being dollar smart. So we will save $50 in travel expenses and end up with $500 in costs from lost time and aggravation.
              – IDrinkandIKnowThings
              Dec 7 '12 at 22:16





              Exactly it can cost them a lot more to have you be forced to deal with your own travel mistakes than to have the travel agency to handle it for you. Many times we will choose to be penny wise with our decisions instead of being dollar smart. So we will save $50 in travel expenses and end up with $500 in costs from lost time and aggravation.
              – IDrinkandIKnowThings
              Dec 7 '12 at 22:16











              up vote
              5
              down vote













              They may not feel other employees will comparison shop for the best deals like you have. For more complex trips they may be able to save employees time by putting together various places to stay and transportation.



              Having a single place can make payments easier and getting consolidated reports on all travel expenses as well.



              Finally, someone may be getting bonus points and free travel.






              share|improve this answer
























                up vote
                5
                down vote













                They may not feel other employees will comparison shop for the best deals like you have. For more complex trips they may be able to save employees time by putting together various places to stay and transportation.



                Having a single place can make payments easier and getting consolidated reports on all travel expenses as well.



                Finally, someone may be getting bonus points and free travel.






                share|improve this answer






















                  up vote
                  5
                  down vote










                  up vote
                  5
                  down vote









                  They may not feel other employees will comparison shop for the best deals like you have. For more complex trips they may be able to save employees time by putting together various places to stay and transportation.



                  Having a single place can make payments easier and getting consolidated reports on all travel expenses as well.



                  Finally, someone may be getting bonus points and free travel.






                  share|improve this answer












                  They may not feel other employees will comparison shop for the best deals like you have. For more complex trips they may be able to save employees time by putting together various places to stay and transportation.



                  Having a single place can make payments easier and getting consolidated reports on all travel expenses as well.



                  Finally, someone may be getting bonus points and free travel.







                  share|improve this answer












                  share|improve this answer



                  share|improve this answer










                  answered Dec 7 '12 at 20:52







                  user8365



























                      up vote
                      2
                      down vote













                      Because way back when everybody was allowed to book their own, attention began to focus on cutting costs (perhaps due to a downturn or the influence of Lean and 6-sigma). Somebody put together a slick presentation including charts and graphs proving that money and time would be saved by outsourcing travel arrangements. It was fully embraced and nobody is looking back... except for the occasional traveler like you who's done some digging and found the truth.



                      While it probably did save some time and money initially, that benefits have eroded woefully over time to where is now functioning about as efficiently as the TSA or the Marine Corps. Nobody has verified whether or not the system still saves money. It is now the status quo and it is probably dangerous to challenge it. Still, if you ask, you'll probably hear this response, "we've got bigger fish to fry."






                      share|improve this answer






















                      • What's the TSA?
                        – gerrit
                        Dec 9 '12 at 20:21










                      • Transportation Security Administration
                        – Captain Claptrap
                        Dec 10 '12 at 1:25














                      up vote
                      2
                      down vote













                      Because way back when everybody was allowed to book their own, attention began to focus on cutting costs (perhaps due to a downturn or the influence of Lean and 6-sigma). Somebody put together a slick presentation including charts and graphs proving that money and time would be saved by outsourcing travel arrangements. It was fully embraced and nobody is looking back... except for the occasional traveler like you who's done some digging and found the truth.



                      While it probably did save some time and money initially, that benefits have eroded woefully over time to where is now functioning about as efficiently as the TSA or the Marine Corps. Nobody has verified whether or not the system still saves money. It is now the status quo and it is probably dangerous to challenge it. Still, if you ask, you'll probably hear this response, "we've got bigger fish to fry."






                      share|improve this answer






















                      • What's the TSA?
                        – gerrit
                        Dec 9 '12 at 20:21










                      • Transportation Security Administration
                        – Captain Claptrap
                        Dec 10 '12 at 1:25












                      up vote
                      2
                      down vote










                      up vote
                      2
                      down vote









                      Because way back when everybody was allowed to book their own, attention began to focus on cutting costs (perhaps due to a downturn or the influence of Lean and 6-sigma). Somebody put together a slick presentation including charts and graphs proving that money and time would be saved by outsourcing travel arrangements. It was fully embraced and nobody is looking back... except for the occasional traveler like you who's done some digging and found the truth.



                      While it probably did save some time and money initially, that benefits have eroded woefully over time to where is now functioning about as efficiently as the TSA or the Marine Corps. Nobody has verified whether or not the system still saves money. It is now the status quo and it is probably dangerous to challenge it. Still, if you ask, you'll probably hear this response, "we've got bigger fish to fry."






                      share|improve this answer














                      Because way back when everybody was allowed to book their own, attention began to focus on cutting costs (perhaps due to a downturn or the influence of Lean and 6-sigma). Somebody put together a slick presentation including charts and graphs proving that money and time would be saved by outsourcing travel arrangements. It was fully embraced and nobody is looking back... except for the occasional traveler like you who's done some digging and found the truth.



                      While it probably did save some time and money initially, that benefits have eroded woefully over time to where is now functioning about as efficiently as the TSA or the Marine Corps. Nobody has verified whether or not the system still saves money. It is now the status quo and it is probably dangerous to challenge it. Still, if you ask, you'll probably hear this response, "we've got bigger fish to fry."







                      share|improve this answer














                      share|improve this answer



                      share|improve this answer








                      edited Dec 9 '12 at 20:41

























                      answered Dec 9 '12 at 20:20









                      Captain Claptrap

                      2721311




                      2721311











                      • What's the TSA?
                        – gerrit
                        Dec 9 '12 at 20:21










                      • Transportation Security Administration
                        – Captain Claptrap
                        Dec 10 '12 at 1:25
















                      • What's the TSA?
                        – gerrit
                        Dec 9 '12 at 20:21










                      • Transportation Security Administration
                        – Captain Claptrap
                        Dec 10 '12 at 1:25















                      What's the TSA?
                      – gerrit
                      Dec 9 '12 at 20:21




                      What's the TSA?
                      – gerrit
                      Dec 9 '12 at 20:21












                      Transportation Security Administration
                      – Captain Claptrap
                      Dec 10 '12 at 1:25




                      Transportation Security Administration
                      – Captain Claptrap
                      Dec 10 '12 at 1:25












                       

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