Consultation on how travel management companies structure historic pricing models with corporate customers is being accelerated due to the “devastating” impact of Covid-19 on business travel.

A white paper has been developed by the Business Travel Association with the help of specialist consultants and explores approaches to three industry pricing options – transaction fees, subscription fees and management fees.

The BTA will be consulting with TMCs and corporate travel buyers on each of the pricing models over the next two months.

The aim is to develop new industry standards that will help ensure any new approach to pricing is rolled out effectively and with best practice.

The BTA says the need to develop a new approach to TMC pricing has been evident for some time, given that procedures developed more than a quarter of a century ago still remain in use today.

The consultation, originally planned for 2021, is now being brought forward due to the accelerated due to the effects of the pandemic on the sector.

The 22-page paper has been developed with industry consultancy firm Nina & Pinta with insights and feedback from representatives from leading UK-based corporations and TMCs.

BTA chief executive Clive Wratten said: “In recent years, there have been growing calls for evolution in the way TMCs price their services.

“The impact of Covid-19 on our industry has made that need more vital than ever, and the BTA is committed to leading the industry with this catalyst for positive change.

“For our industry to evolve, especially in these challenging times, there needs to be an open, honest and constructive dialogue between all of the key stakeholders, and that is what the BTA will be seeking to achieve in the weeks ahead.”