Optimize All Sources of Spend Through TCO-TMPE®
Deploy TCG’s approach to identify and manage your company’s true end-to-end travel-related costs
What is TCO-TMPE®?
TCG’s patented TCO-TMPE® approach – Total Cost of Ownership for Travel, Meetings, Payment & Expense – for program strategy and management ensures scalable alignment to broader company strategic imperatives. Operationally, it enables increased spending under management; capturing all sources of program cost and yielding scalable savings and revenue opportunities.
Progression of TCO-TMPE®
Starting Point
The start of TCO (Total Cost of Ownership) began predominantly in the IT sector during the mid-1980s.
Procurement Engagement
Increased adoption of TCO for the procurement sector extends with direct spend followed by some indirect spend categories to measure year-over-year total costs.
Realization for T&E
With increasing travel program maturity and stagnation, TCG brings to market TCO-TMPE® in 2017, expanding on the TCO concept for Travel, Meetings, Payment & Expense (TMPE) programs. TCG’s TCO-TMPE® methodology now consists of 18 cost components.
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Focused on TCO
We challenge and lead travel, meeting, payment and expense programs in all business verticals.
Optimizing TMPE Programs
TCG research confirms an average of 1.62%* of the total revenue compensation range (0.33-14.4%) is spent on T&E expenses. T&E is the second largest indirect procurement expense.
Many organizations have implemented and benefitted from TCG’s patented TCO-TMPE® (Total Cost of Ownership for Travel, Meetings, Paymet, and Expense) methodology revealing TCO-related costs by an average of 18%. Through this approach, organizations can accurately capture all T&E-related spending under management, harness new revenue sources (card/payment/supplier revenue sharing), and reduce hidden company costs via the identification of more efficient workflows, processes, and addressing areas of stagnation. This also drives a higher NPS program score.
The hidden expenditures often fall within budgets not traditionally controlled by T&E owners. On average, 14% of a travel program’s TCO is hidden and can range from 8% to 23% of TCO. In some cases, this number is even higher. It is important to note that not all costs are “bad” costs – although the TCG methodology can uncover hidden costs for additional savings, companies are applying our methodology to identify all sources of cost to increase spending under management to re-distribute those savings into areas where the company needs it most.
*TCG Client Survey from 2015-2020
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Indicators to Adopt TCO-TMPE® for Your Organization
- Your travel program has reached maturity (or stagnation) based on traditional levers
- Program initiatives require increased ROI and performance-based outcome metrics
- Travel, Meetings, Payment and Expense (TMPE) programs remain siloed
- You need more visibility in all sources of company and Employee Initiated Spend (E.I.S)
- You’re looking to further eliminate manual processes and automate (where feasible)
- You are looking to align your TMPE program with company imperative
- Program bypass greater than 6%