The U.K. government has commenced an "urgent investigation" into the impact of accounting discrepancies at Corporate Travel Management following the travel management company's recent disclosure that its U.K. division had overcharged clients.
The Home Office is currently reviewing its contract with the Australia-headquartered travel management company, which last week reported accounting errors to the tune of £77.6 million, with repayments owed to a "small number" of U.K.-based customers.
"An urgent investigation is underway into this appalling overspend, which happened under the previous government," a Home Office spokesperson told BTN Europe. "All taxpayer money owed will be recovered."
The Home Office was informed of the over-billing on Nov. 26, and it stated that it cannot take remedial action while an audit is underway.
The spokesperson added that since 2024, the current government has improved contract management, increased staff, and enhanced oversight to hold suppliers accountable and maintain standards.
"Having inherited contracts that were not delivering good value for money, we have strengthened contract management and saved £700 million in hotel costs alone, " the spokesperson said.
CTM provides travel services through the Crown Commercial Services frameworks and is responsible for arranging contingency accommodation for asylum seekers, work which has included the controversial Bibby Stockholm barge project.
The Home Office spokesperson said CTM was awarded an additional contract in April 2025 to provide contingency accommodation for asylum seekers across 14 hotels "because they offered better value for money at the time."
Meanwhile, Australia's federal government, for which CTM currently holds a lucrative multi-year contract as the sole provider of travel management services, has also called for a review of the TMC's accounts, according to local media reports.
The Australian government's department of finance has reportedly commanded CTM to undertake an independent audit to ensure "there is no overcharging or behaviour not in line with CTM's obligations in the deed."
CTM's contract with the Australian government—which includes air, hotel and ground transportation booking services, traveler support and VIP programs—was signed in 2023 and is due to end in 2027.
The scale of the overcharging has led to speculation that CTM's accreditation with the International Air Transport Association—which permits the company to sell air tickets—may also be at risk.
Tony O'Connor, managing director at travel procurement consultancy Butler Caroye, said IATA monitors TMC cash flows in order to avoid bad debt and protect the interests of its airline members, and could "pull the plates" on CTM's ticketing authority.
"There are several circumstances that could prompt IATA to remove a TMC's ticketing authority. A number of them apply to drastic situations and are obvious, such as if a TMC goes bankrupt or is liquidated. … But there are [also] 'soft triggers' that could cause IATA to act before then," he said.
Citing IATA's Travel Agent Handbook, O'Connor said such triggers include a change in the TMC's "creditworthiness or financial standing," if a TMC has "materially misrepresented its financial standing", or due to "conduct detrimental to the good standing of IATA." This covers fraud, reputational damage, or systemic customer harm.
"In the case of CTM, I would say that all three triggers might have already been tripped," O'Connor said.
In a statement to BTN Europe, IATA confirmed that "Corporate Travel Management (CTM) remains an IATA-accredited agent and is subject to the requirements of the accreditation programme."