What are the ingredients that make up a successful business partnership?
WRISNEY TAN asks Millennium & Copthorne (M&C) Hotels and Resorts and Radius. M&C was Radius's supplier of the year last year.

M&C former senior vice-president, sales & marketing, Mr Roy Tan-Hardy

Is there such a thing as a winning formula for partnership development?
We work with only a handful of partners to deliver mutual values. Unlike international hotel chains that sometimes have up to 40 airline partners, we work closely with only six globally. If you are one of 40, you have to question the value of the partnership.

Likewise we would prefer to partner TMCs which work with not more than three to four hotels in any given city.

There is no fixed formula, but there must be mutual understanding and obviously the partnership must be able to meet the objectives of the parties involved.

Would you prefer to work with a TMC that is part of a global network?
A global network means more reach, and an international distribution that can satisfy our needs on a longer-term basis.

What value does M&C bring to the partnership?
One of our key values is fulfiling the quality of our product. Our overall brand strategy has always been to invest a considerable amount into building the product rather than the brand.

This is very important for a new chain, because people are less forgiving.

Why is a good partnership so important to both parties in clinching good clients?
TMCs have been asked by clients to help to lower their costs. As a hotel partner, we need to see how we can play a part too. One way is to look beyond the cost of a superficial room night and examine other expense components, such as laundry and mini-bar spending.

We also help our TMCs to deepen their relationships with their clients by making our proposals through them rather than going direct. This one point of contact also makes it easier for the clients to manage the relationship.

I foresee that as the pressure to reduce costs builds up, more and more clients will want their TMCs to provide a breakdown on the amount spent on lodging. This amount includes many other items, not just rooms, which will allow for cost saving opportunities.

Expense reports provided by us will be a value add for the TMC who can in turn bring added value to the client. The report can highlight expenses that do not need to be incurred. For example, spending on laundry on a short two-night stay is not necessary, if corporate travellers are more disciplined.

We are currently looking at piloting a data extraction model. It will incur some investment but we want to be a TMC friendly hotel.

How do you see the relationship with them evolving?
TMCs still focus very much on air, but that will change because at the end of the day accommodation still takes up a sizeable chuck of T&E.

Radius senior vice-president, Asia-Pacific, Mr Stuart Wines

What makes an ideal hotel partner?
It must be able to provide its clients, both the agencies and the end-users, with value adds, and work together with them to achieve their goals. This can be as simple as filling the rooms with corporate clients who are likely to be repeat customers.

M&C has done that very well. We have a very close relationship with them and they are even involved in some of our meetings. They are also one of the pioneers in our bonus programme that provides incentives to both agencies and clients.

We like to work with hotels that understand what a TMC can do for them.

How does Radius regard itself and how do you want hotels to regard you?
As a fundamental distribution system, ideally positioned for hotels reaching out to a corporate client base. We want to offer hotels a distribution channel that meets all of their needs, including helping them to push distressed inventory.
(The radius website at www.radiustravel.com has provision for both negotiated rates and distressed inventory.)

Why is it important for clients to select a TMC with good hotel partners? How do you see the relationship evolving?
From the tenders we are getting these days, more and more clients are asking for a particular hotel programme, and if we have a closer working relationship with the hotel, we would be able to respond together with the hotel in order to best meet the clients' needs.

This is especially important as more corporate clients in the Asia-Pacific are becoming aware of the benefits of travel management and are starting to have preferred hotel programmes.

What are some of the things that you as a TMC partner wish hotels in general can do better?
Faster commission payments; effective trouble-shooting procedures in place so that if the client has a problem, they can deal with it quickly; ensuring that the rates they offer to the corporate client cannot be beaten by Internet rates!