Comparing Travel Management Software vs. Open Bookings vs. TMCs

Confused by when to use open bookings, a TMC, or travel management software? This post explains the pros and cons of each.

What Are Open Bookings?

Online bookings are very familiar to travelers – they’re the medley of sites we all use for personal travel, including Kayak, Google Flights, Airbnb, and Booking.com. Whether it’s a site, app, or search engine, the process is the same: employees hunt for their own hotels, flights, and car rentals.

That freedom is both a blessing and a curse: 

Travel Management SoftwareOpen Travel Bookings
Proactively control spend and enforce complianceHope employees will do the right thing.
Get real-time visibility into spend, and save time analyzing with custom reports & dashboards.See what you spent a month later, after it’s too late.
Huge and exclusive inventory unlocks savings that only large enterprises can typically negotiate.No access to unique inventory or negotiated rates for preferred properties.
Travel agents are available 24/7 via phone, chat, Slack, or email when travel issues arise.Employees are on their own troubleshooting delays and changes.

What Is a Travel Management Company?

A travel management company (TMC) is essentially a travel agency for corporate travel.

If a travel agent sounds old-fashioned or lavish, it really isn’t. Compared to open bookings, a TMC:

GBTA estimates that “partnering with a TMC saves companies between 5% and 50% of their annual travel spend, and as travel is often a company’s second largest expense, even companies that spend as little as $250,000 a year can see significant savings.” (source)

>> Related: Making the Leap to Managed Travel <<

What Is Travel Management Software?

Travel management software blends the benefits of a TMC with online bookings. 

Thanks to API integrations and elegant UX, employees can quickly check availability and prices, book flights and hotels, save receipts, submit expense reports, track approvals, and analyze spending. All with more oversight and reporting than random consumer sites.

Screenshot of a dashboard from TravelBank app displaying cards, transactions, expenses, reports, and travel bookings. A "Best Booking, Travel, and Expense Tool 2024" badge is visible.