Managed Travel 2.0: Explanation and Implications. Scott Gillespie Industry Observer Gillespie s Guide to Travel + Procurement

Transcription

1 Managed Travel 2.0: Explanation and Implications Scott Gillespie Industry Observer Gillespie s Guide to Travel + Procurement

2 MT 2.0 Perspectives from Scott Gillespie Founder, former CEO of Travel Analytics Author, Gillespie s Guide to Travel + Procurement Expert in travel procurement, analytics Consultant, speaker, trainer Formerly of A.T. Kearney MBA, Univ. of Chicago Evan Konwiser Co-Founder, FlightCaster, sold to Next Jump Independent consultant in corporate and leisure travel Expert in travel and technology Formerly of Bain & Co and Kayak MBA, Dartmouth

3 What is it? Trendy topic, or strategic shift? What are the implications? Managed Travel 2.0

4 Managed Travel 2.0 What is it?

5 Travel Policy Expense Report

6 The Cost of Traveler Friction High Costs Total Trip Cost Traveler Friction Lost productivity Reluctance to travel Recruiting, retention Trip Cost Loose Travel Policy Tight Source: Scott Gillespie

7 Economic Rationale for MT 2.0 High Total Trip Cost Stronger Traveler Friction Costs Flatter Program Savings Loose Travel Policy Tight Source: Scott Gillespie

8 The Optimization Problem Trip s Expected Benefit vs. Trip s Cost, net of Policy Savings and Traveler Friction

9 Optimization Candidates Can Optimize Traveler Traveler s Manager Travel Budget Owner Cannot Optimize Travel Manager Procurement Mgr. TMC a Convenient Fiction

10 The Optimization Problem Trip s Expected Benefit vs. Trip s Cost, net of Policy Savings and Traveler Friction

11 MT 2.0 springs from this conflict Logic of Travel Management Vs. Art of Traveling

12 Key Principles of MT Shop anywhere period. 2. Book anyone so long as the supplier is safe 3. Book anywhere so long as employer gets the data fast 4. Book anything so long as the trip is in budget Source: Scott Gillespie and Evan Konwiser, 2012

13 Managed Travel 2.0 Trendy topic, or strategic shift?

14 Change Is Happening Many options in the market Strong personal preferences But - significant security issues and resistance from domain experts Bring Your Own Device (BYOD)

15 Bring Your Own Travel Tools Hotel Tonight

16 Freedom works in other industries Free Range Chickens Travelers

17 Which Companies Are Ready for MT 2.0? Budgets & Satisfaction YES! Priority Maybe Savings & Policies NO! High and Tight Culture of Control Low and Light

18 Today s Market for MT 2.0? Budgets & Satisfaction YES! Priority Maybe Maybe Savings & Policies NO! NO! High and Tight Low and Light Culture of Control

19 3 Requirements for Growth of Managed Travel 2.0

20 Robust Data Acquisition Short s BookIt ProcureApp KDS s Maverick Concur s Open Booking GDSX s TripLink ConTgo

21 Thaw In Corporate Cultures

22 Evidence of Value

23 Hard Evidence from GBTA Source: GBTA s report Global Business Traveler ) Unmanaged travelers feel more successful at getting convenient and comfortable trips - and at getting the best prices 2) Unmanaged trips cost 3% less than those under Guideline travel policies. Wow.

24 How?? Unmanaged trips Managed trips

25 Conclusion: Free Range Travelers are Happier, Healthier and Cheaper

26 What are the implications? Managed Travel 2.0

27 Traveler Welfare Safety Productivity Satisfaction Reshapes Travel Policies

28 Budgets are more important than Savings

29 New Metrics for Trip Value

30 trump The data channel trumps the booking channel Booking Channels Data Channels

31 Corporate Booking Tools need better juice-tosqueeze ratios

32 GDSs lose transaction volumes to Brand.com sites

33 Travel Managers Coach Champion Collaborate

34 Suppliers Brand Value Packages displace corporate discounts

35 Payment Providers become essential data suppliers

36 TMCs Price benchmarking replaced by Brand benchmarking

37 TMCs have a window to become the Travel Data hub

38 TMCs Booking fees morph into Traveler Security and Service fees

39 TMC stands for Traveler Management Company

40 The Traveler s View of Managed Travel Changes

41 to this

42 Thank you! Now for some discussion, debate, and dissent Scott Evan

43 How Successful Are You at Achieving Your Goals? 1 = Very Unsuccessful, 5 = Very Successful Mandates Guidelines Unmanaged Is Unmanaged Better? Having Right Technology Yes Feeling Safe Policy Compliance Budget Compliance Comfort and Convenience Yes Getting Best Prices Yes Interesting and Enjoyable Trips Earning Points and Using My Preferred Suppliers Minimizing My Carbon Footprint Yes Yes Source: Scott Gillespie s analysis of GBTA s report Global Business Traveler 2012