session 1: data/sources of data/measuring data/getting the most value out of the data presenters:...
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Session 1: Data/Sources of Data/Measuring Data/Getting the most value out of the data
Presenters:Shari Quackenbush - DTM, Global Agency & Online Lead, IBMMark Walton – VP, Strategy and Account Management,Orbitz for BusinessWill Tate – SVP, Management Alternatives
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Mark WaltonOrbitz for BusinessVice PresidentMark.Walton@orbitz.com
RMBTA 2014 Education Day
“Soaring to new Heights”
April 10, 2014
Shari QuackenbushIBMDTM, Global Agency & Online Leadshari@us.ibm.com
RMBTA 2014 Education Day
“Soaring to new Heights”
April 10, 2014
Will TateManagement AlternativesSenior Vice Presidentwilltate@manage-alt.com
RMBTA 2014 Education Day
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Session Agenda
Sources/MeasurementComplianceBenchmarking Innovation
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Data Sources
• Travel Management Company• Payment/T&E card• Supplier direct• GL/expense data• Consolidated sources• Other third party
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April 10, 2014
Why we need travel data
• Program Management – Compliance/behavior modification– Achievement of program goals
• Understanding dept/div program metrics
• Supplier Management/Negotiations • Health/Safety/Security
– Duty of Care / Employee Tracking
RMBTA 2014 Education Day
“Soaring to new Heights”
April 10, 2014
New uses for travel data
• CO2 Emissions • Company social networking purposes• Gamification
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Balancing two primary requirements
Empower Travelers
Program management
$Ensure productive options for travelers
Optimize Value
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Data Benefit Summary
Improve Results
Actionable
Relevant • Sort/drill down capabilities • Benchmark based on several criteria to include
similar size, region, policy, and/or industry
• Identify and proactively react to trends in spend• Manage vendor compliance in near real-time• Intuitive dashboards deliver actionable data in an
interactive and graphical format
• Change behavior• Peer/Internal benchmarking• Possible use of gamification
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“Soaring to new Heights”
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Compliance
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Compliance - Goals
Image provided by Prime Analytics
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Compliance - IBM• Collect itinerary data
– Immediate message to travelers when Out of Policy
• Provide “Dashboards” for Lines of Business• Share Savings Opportunities with Lines of
Business (e.g. booking 1 day earlier would produce $x in savings)
RMBTA 2014 Education Day
“Soaring to new Heights”
April 10, 2014
RMBTA 2014 Education Day
“Soaring to new Heights”
April 10, 2014
COMPLIANCE
Motivation is the art of getting people to do what you want them to do because they want to do it.
Dwight D. Eisenhower
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ROI of Air Travel Compliance
• This example captures Cost Avoidance by ticket.
• Others use Cost Per Mile, after establishing a baseline then restating all future costs to baseline.
DEN-LGACompliant
TripNon-Compliant
TripCost
Avoidance
Example One $300 $425 $125Example Two $400 $575 $175Example Three $500 $450 -$50
Totals $1,200 $1,450 $250
% Reduction When Compliant 17.2%
Per Ticket Examples
RMBTA 2014 Education Day
“Soaring to new Heights”
April 10, 2014
ROI of Air Travel Compliance
• This example captures Cost Avoidance by ticket.
• Others use Cost Per Mile, after establishing a baseline then restating all future costs to baseline.
DEN-LGACompliant
TripNon-Compliant
TripCost
Avoidance
Example One $300 $425 $125Example Two $400 $575 $175Example Three $500 $450 -$50
Totals $1,200 $1,450 $250
% Reduction When Compliant 17.2%
Per Ticket Examples
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Q1 Q2 Q3 Q470%
75%
80%
85%
90%
95%
100%
Compliance to Air Policy
Goal Achieved
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Q1 Q2 Q3 Q470%
75%
80%
85%
90%
95%
100%
Compliance to Hotel Policy
Goal Achieved
Benchmarking
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Benchmarking
Image provided by Prime Analytics
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Benchmarking - IBM• Benchmark everything!!
– Costs– Suppliers– Compliance
• Lines of Business against each other
– Savings– Processes– Policy
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“Comparison is the death of joy.”
Mark Twain
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BENCHMARKING
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Mkting Sales Admin Manuf60%
70%
80%
90%
100%
Air Compliance:Internal Department Benchmarking
Before Benchmarking One Year Later
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$110KSaved
$205KSaved
$50KSaved $75K
Saved
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Traveler Sat Air Compl Hotel Comp OLB Adopt Ticket Reuse50%
60%
70%
80%
90%
100%
Q1 Q2 Q3 Q4
Global Program Progress: By Component
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US CA UK FR SG50%
60%
70%
80%
90%
100%
Q1 Q2 Q3 Q4
Global Program Progress: By Country
Innovation
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Innovation - Goal Summary
Image provided by Prime Analytics
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Innovation - IBM• STOP! Communicating to travelers via email• Message - to travelers while traveling – policy
and savings opportunities• Share – traveler “compliance statistics” at
point of sale• Predictive - Recognize new travel pattern and
negotiate related agreements
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Any intelligent fool can make things bigger and more complex...It takes a touch of genius - and a lot of courage to move in the opposite direction.
Albert Einstein
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INNOVATION
What? What Measures Matter?
Align with Culture
Hot Button Issues
Quick Wins
Problematic Areas
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So What? Why do those Measures
Matter?
What problems do they solve?
What happens if they change?
What happens if they don’t
change?
INNOVATION• Value of the Traveler Experience• Cost of Unhappy Customers• Cost of Non Compliance• Demand Management Effectiveness
RMBTA 2014 Education Day
“Soaring to new Heights”
April 10, 2014
RMBTA 2014 Education Day
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April 10, 2014
Q1 Q2 Q3 Q470%
75%
80%
85%
90%
95%
100%
Traveler / Arranger Satisfaction
Goal Achieved
The Problem– Recent Airline Sourcing Criticized
by Management– “Too focused on savings” not
traveler experience
The Solution– Gain the Voice of Customer on
for New Airline Partnerships
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Case Study
Case Study
You are aware of the recent change in airline partnerships for our company. Please comment on this change:
1. How has it impacted your travel experience?
A. Made travel more difficult
B. Made travel less difficult
C. No change
2. What is your experience with the new airline partners?
A. Worse than the prior partners
B. Better than the prior partners
C. No change
92%!!
89%!!
Yay!!
RMBTA 2014 Education Day
“Soaring to new Heights”
April 10, 2014
Case Study
The Problem– Recent Airline Sourcing Criticized by Management– “Too focused on savings” not traveler experience
The Solution– Gain the Voice of Customer on for New Airline
Partnerships
The BenefitsNew Airline Partnerships Working Well!
• Anecdotal Opinions Lost Relevance• Validation TO Travelers• Validation OF Sourcing Effort
RMBTA 2014 Education Day
“Soaring to new Heights”
April 10, 2014
RMBTA 2014 Education Day
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Excludes:
• Increased Costs from Booking Out of Policy Away from Designated TMC
• Supplier Interaction Costs
• Safety/Security Risks from Alternate Booking Channel
• Employee Morale (Badwill)
• Diminishes Program Credibility
ROI of I mproved Satisfaction
$8,48625%
Current Sat Level 60%
Dissat Level 40%
Related # Trx 1,600Cost of Dissat/Trx 21.21$ Total Cost 33,942$
Current Sat Level 70%Dissat Level 30%Related # Trx 1,200Cost of Dissat/Trx 21.21$ Total Cost 25,457$
Cost of Dissatisfaction
Cost of Dissatisfaction
A Happy Traveler Story:
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“Soaring to new Heights”
April 10, 2014
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