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Managed Travel 2.0

Evan Konwiser Scott Gillespie

Managed Travel 2.0

a Provocative View

Evan Konwiser Scott Gillespie

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Your Industry Observers

• Co-Founder, FlightCaster, sold to Next Jump in 2010

• Independent consultant in corporate and leisure travel

• Expert in travel and technology

• Formerly of Bain & Co and Kayak

• MBA, Dartmouth

• Founder, former CEO of Travel Analytics

• Author, “Gillespie’s Guide to Travel + Procurement”

• Expert in travel procurement and analytics

• Consultant, speaker, trainer

• Formerly of A.T. Kearney

• MBA, University of Chicago

Evan Konwiser Scott Gillespie

Where We’re Going

• Today’s Travel Management

• Forces at Work

• New Evidence

• Emerging Themes

• Managed Travel 2.0

• Discussion, Debate, and Dissent

Savings

Self Booking

Service

Skepticism

Today’s Travel

Management

Forces at Work

Forces at Work

Current managed travel

New technology

Forces at Work – Really?

New

Evidence

“Global Business Traveler Study 2012”

By GBTA Foundation

Surveyed 840 U.S. travelers

3 types of programs:

• Mandated

• Guidelines

• Unmanaged

Mandates Guidelines Unmanaged Key

Having Right Technology Very Important

Feeling Safe Important

Policy Compliance Somewhat Important

Budget Compliance Not Important

Comfort and Convenience

Getting Best Prices

Interesting and Enjoyable

Trips

Earning Points and Using My

Preferred Suppliers

Minimizing My Carbon

Footprint

What is Important? U.S. Travelers

Source: Scott Gillespie’s analysis of GBTA’s report “Global Business Traveler 2012”

How Successful Are You at Achieving Your Goals? 1 = Very Unsuccessful, 5 = Very Successful

Mandates Guidelines Unmanaged

Having Right Technology 3 4 5

Feeling Safe 5 5 5

Policy Compliance 4 4 4

Budget Compliance 4 4 4

Comfort and Convenience 2 2 3

Getting Best Prices 2 3 4

Interesting and Enjoyable

Trips2 2 4

Earning Points and Using My

Preferred Suppliers2 3 5

Minimizing My Carbon

Footprint1 1 1

Source: Scott Gillespie’s analysis of GBTA’s report “Global Business Traveler 2012”

Which Works Better? 1 = Very Unsuccessful, 5 = Very Successful

Mandates Guidelines Unmanaged

Having Right Technology 3 4 5 Yes

Feeling Safe 5 5 5

Policy Compliance 4 4 4

Budget Compliance 4 4 4

Comfort and Convenience 2 2 3 Yes

Getting Best Prices 2 3 4 Yes

Interesting and Enjoyable

Trips2 2 4 Yes

Earning Points and Using My

Preferred Suppliers2 3 5 Yes

Minimizing My Carbon

Footprint1 1 1

Is Unmanaged

Better?

Source: Scott Gillespie’s analysis of GBTA’s report “Global Business Traveler 2012”

Which Trip Cost Less?

Mandated Guidelines Unmanaged

Avg. Trip

Cost

Domestic

Share

Nights

U.S. Travelers

Source: GBTA’s report “Global Business Traveler 2012”

$3,663 $2,536

3.9 3.4 3.4

77% 85% 84%

GBTA will present full findings tomorrow at 10:30am, Room 258 B/C

$2,457

Emerging Themes:

New Goals

Better Methods

Traveler Welfare

Not Travel Policies

Safety

Productivity

Satisfaction

Budgets

not

Savings

not

Contracts

Open Programs, Not Walled Gardens

Open Programs, Not Walled Gardens

Travel Manager Chief Travel

Enabler

Managed Travel

2.0

Goals:

1. Ensure travel done safely within budget

2. Get relevant data

3. Maximize traveler freedom and productivity

Managed Travel

1.0

Goals:

1. Deliver significant savings

2. Achieve high travel policy compliance

3. Standardize travel processes

Key Stakeholders:

1. Procurement

2. Travelers

Key Stakeholders:

1. Travelers

2. Travel Budget Owners

MT 2.0 Principles for Travelers

1. Shop anywhere – period.

2. Book anywhere – so long as data is captured quickly

3. Book anybody – so long as suppliers are safe

4. Book anything – so long as it is in budget

MT 2.0 Principles for Supplier Relations

Focus on Value – for traveler AND buyer

Incentivize organic loyalty

MT 2.0 Principles for Chief Travel Enablers

Collaborate Champion

Coach

Managed Travel 2.0 Technology Enablers:

ProcureApp, KDS Maverick

Short’s BookIt

Concur’s Open Booking

GDSX’s TripLink

Runzheimer’s SmartTrip

Rearden’s Deem, KDS’ Neo

Others??

Culture of Control

Low and Light High and Tight

Savings

& Policies

Budgets &

Satisfaction

Priority

Is Your Company Ready for MT 2.0?

YES!

NO!

Maybe

ProcureApp?, or

Runzheimer’s

SmartTrip?

Short’s BookIt?,

or ProcureApp?

Interest

Big Changes Status Quo

Control

Influence

Style

Are You Ready for MT 2.0?

YES!

NO!

Maybe

Variations on MT 2.0

2.1 Latte

2.2 Americano

2.3 Espresso

Shop Anywhere

Book TMC/SBT TMC for

Int’l/Complex Opt In

Support TMC TMC for

In’tl/Complex Opt In

Data TMC et al TripIt, Concur,

GDSX, etc. TripIt, Concur,

GDSX, etc.

Suppliers RFPs RFPs, no Goals Value Packages

A Path to Managed Travel 2.0

1. Quantify

2. Float

3. Pilot

4. Measure

Managed Travel 2.0

Open Up, not

Close Down

Focus on Traveler

Welfare & Budgets –

not Savings

Collaboration,

not Contracts

Now for that Discussion, Debate and Dissent

Thank you!

Evan Konwiser Scott Gillespie

ekonwiser@gmail.com scott.gillespie2008@gmail.com

@evankonwiser @Gillespie411