For years, relocation management companies (RMCs) have occupied a dominant position in the global mobility world. Now – thanks to changing attitudes of corporate clients, who wish to see more transparency, and the greater influence of technology platforms – is their operating model changing? Andrew Bennett spoke to leaders at three international moving companies, who gave their thoughts on what the future might hold for RMCs and how this could affect FIDI Affiliates.
Marcel Jörg, Gosselin Moving
Headquartered in Antwerp, Belgium, Gosselin Moving is a large international moving company with a European network of removal firms – and Marcel Jörg is its Chief Executive Officer and FIDI’s Treasurer and Board member.
While he has seen ‘little change’ in the way large RMCs work, Jörg believes a new era is coming, driven to a large degree by technology.
In terms of recent dynamics in the RMC market, he says:
‘The good news is that some have finally implemented APIs [application programming interfaces] with their main providers.’
These APIs allow different software programs to communicate with each other, meaning better data accuracy, faster transfer of data, and time saving for all parties involved, including the moving companies.
‘We have also seen changes in RFPs [requests for proposals],’ Jörg says. ‘While the focus was previously on sustainability, and diversity, equity and inclusion, it has shifted to cyber security in recent years.
‘As a household goods moving provider, this requires us to adapt quickly and ensure we not only give the right answers during an RFP, but also elevate our performance in the application of those topics.’
As a result of reduced returns on home sales in the US, Jörg believes pressure has increased to focus on profits on the international side of mobility programmes.
‘The referral fees on our services are retained, if not increased, even if the corporate customers are seeking more transparency in pricing.’
Driven by technology
Along with moving companies, RMCs are having to adapt to the onrush of new technology, but Gosselin Moving’s CEO still sees a role for humans at crucial points of the moving process.
‘There will always be companies that are between the first- and final-mile service delivery companies and the corporate customer,’ says Jörg.
‘The corporate clients will continue to work with one global partner that manages their mobility programme. Yet, the RMCs that will thrive to fulfil that mission at a lower cost base will be driven by technology and move away from an army of people who manage relocations with emails.’
He adds:
‘I doubt that all of today’s market leaders will succeed in the massive shift that is required. I foresee that some of them will be replaced by tech companies that enter this industry. We are entering a world in which the relocation process can be managed by IT solutions, bots and AI agents.
‘RMCs, as well as their suppliers, have to work on having the right technology in place. Humans will be involved in first- and final-mile services, as well as moments when the technology that manages the relocation process will fail, when unforeseen events occur.’
Technology has caused huge disruption across many industries and Jörg believes RMCs will need to adopt the model that the technology platform companies use:
‘There is no other way. The human touch is required at the first and final mile, but not in the coordination of dates and information any more.’
Regional relationships
While corporate clients who have outsourced their mobility services to RMCs are unlikely to go back to ‘managing direct relationships with multiple providers’, Jörg sees opportunities ahead for regional moving companies and destination service providers (DSPs), although RMCs will continue to wield an influence.
‘However, we are seeing an increased number of corporates who are choosing their regional local suppliers while they ask the RMC to manage the financial flow and reporting on these client-directed suppliers,’ he says.
This business operating model sees contracts drawn up between the mover and the corporate client, while the RMC will initiate actual moves and be involved in the invoicing process, including checking invoices from suppliers.
René Stegmann, Relocate Africa
Founded in 1993, Relocation Africa is billed as the largest female-owned, African-owned and independently run DSP company on the continent. Founder René Stegmann values the relationship her company has built with RMCs over the years, but believes ways of working with key members of the supply chain need to evolve.
Stegmann has been an advocate for change regarding payment terms, launching the #Payin30 campaign during COVID-19 when SME suppliers were struggling under slow pay cycles.
‘Grounded in people, planet and profit, the campaign highlights payment practices as a lever for economic sustainability…
‘We’re not seeking preferential treatment – just fair, future-fit commercial terms… A sustainable ecosystem requires transparency and balance, not just cost compression.’
She stresses partnership — but with new expectations:
‘To remain relevant, [RMCs] need to trust and embed regional experts as strategic partners, not just downstream suppliers.’
When RMCs do not, she warns, corporates will begin to unbundle and work directly with suppliers to achieve more agile and cost-effective outcomes.
‘We see ourselves as an extension of the RMC team – their eyes, ears, and feet on the ground.’
Matt Brownlee, Graebel
One of the best-known names in global mobility, Graebel’s operations centre on providing relocation services and international moving operations to clients. Matt Brownlee is COO at Graebel.
Graebel was founded in the US and now has regional headquarters on three continents. Brownlee notes significant changes in the market, including declines in the volumes being moved.
‘Move-mix changes have heavily impacted the RMC market in the past five years,’ Brownlee says.
He explains that different assignment models – long-term, short-term, permanent relocations – all alter the scale and type of services needed.
‘More lump-sum and cash-out options, along with overall declining volumes, have forced RMCs to diversify service offerings.’
Aging platforms and heavy digital investment needs have pushed RMCs toward technology.
‘In some cases, it makes sense for RMCs to partner with supplier partners and, potentially, with competitors to leverage technology solutions,’ says Brownlee.
‘It is imperative that RMCs not only stay ahead of the competition, but also work with the supply chain to leverage best-in-class solutions to serve our collective clients.’
He believes RMCs can still deliver value by continuing to provide fantastic service, finding cost-effective solutions and improving transferee experience. ‘There will be a massive move towards more AI and agentic solutions.’
For the future, he expects diversification:
‘RMCs will need to diversify their offerings… not only focusing on mobility work, but also looking to expand into other HR service verticals.
‘We are likely to continue seeing consolidation at all levels of the mobility industry as well.’