managed travel 2.0 - explanation and implications
DESCRIPTION
Understand the core concepts of managed travel 2.0 and its implications for travel managers, travel suppliers, TMCs and GDSs.TRANSCRIPT
Managed Travel 2.0:Explanation and Implications
Scott GillespieIndustry ObserverGillespie’s Guide to Travel + Procurement
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MT 2.0 Perspectives from
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
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 KonwiserScott Gillespie
Managed Travel 2.0
Trendy topic, or strategic shift?
What is it?
What are the implications?
Managed Travel 2.0
What is it?
Who is a
Travel PolicyExpense Report
Business Traveler?
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The Cost of Traveler Friction
Travel PolicyLoose Tight
High
Costs
Trip Cost
Traveler FrictionTotal Trip Cost
• Lost productivity• Reluctance to travel• Recruiting, retention
Source: Scott Gillespie
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Economic Rationale for MT 2.0
Travel PolicyLoose Tight
High
Costs
Flatter Program Savings
Stronger Traveler FrictionTotal Trip Cost
Source: Scott Gillespie
|
The Optimization Problem
Trip’s Expected Benefit
vs.Trip’s Cost, net of
Policy Savings and Traveler Friction
|
Optimization Candidates
Can Optimize
Traveler
Traveler’s Manager
Travel Budget Owner
Cannot Optimize
Travel Manager
Procurement Mgr.
TMCa Convenient
Fiction
|
The Optimization Problem
Trip’s Expected Benefit
vs.Trip’s Cost, net of
Policy Savings and Traveler Friction
Logic of Travel Management
MT 2.0 springs from this conflict
Art of TravelingVs.
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Key Principles of MT 2.0
1. 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
5. Pay with the corporate cardSource: Scott Gillespie and Evan Konwiser, 2012
Managed Travel 2.0
Trendy topic, or strategic shift?
|
Change Is Happening
Strong personal preferences
But - significant security issues
and resistance from domain experts
Many options in the market
Bring Your Own
Device (BYOD)
|
Bring Your Own Travel Tools
Hotel Tonight
|
Freedom works in other industries
Free Range
ChickensChickens Travelers
Culture of Control
Low and LightHigh and Tight
Savings&
Policies
Budgets &Satisfaction
Priority
Which Companies Are Ready for MT 2.0?
YES!
NO!
Maybe
Culture of Control
Low and LightHigh and Tight
Savings&
Policies
Budgets &Satisfaction
Priority
YES!
NO!
Maybe
Today’s Market for MT 2.0?
NO!
Maybe
YES!
|
3 Requirements for
Growth of
Managed Travel 2.0
Robust Data Acquisition
Short’s BookIt
ProcureApp
KDS’s Maverick
Concur’s Open Booking
GDSX’s TripLink
ConTgo
Thaw
Cultures
In
Corporate
Evidence
Valueof
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Hard Evidence from GBTA
1) 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.
Source: GBTA’s report “Global Business Traveler 2012”
Unmanaged trips
Managed trips
How??
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Conclusion:
Free RangeTravelers
are
Happier, Healthierand Cheaper
Managed Travel 2.0
What are the implications?
Traveler Welfare
Reshapes Travel
Policies
• Safety
• Productivity
• Satisfaction
Budgets are more important
than
Savings
New Metrics for
____Trip Value
The data channel trumps the booking channel
Data Channels
trump Booking Channels
Corporate Booking Toolsneed
better
juice-to-squeeze __ratios
GDSs lose
to Brand.com sites
transaction volumes
Travel Managers
Collaborate
Champion
Coach
Suppliers
Brand Value Packages
displace corporate
discounts
Payment Providers
become
essential
datasuppliers
TMCs
replaced by
Brandbenchmarking
Price benchmarking
TMCshave a window
Travel Datato become the
hub
TMCs
morph into
Traveler
fees
Booking fees
Security and Service
TMC stands for
Traveler Management
Company
of
The Traveler’sView
Changes
Managed Travel
tothis
Now for some discussion, debate, and dissent
Thank you!
Evan Konwiser
@evankonwiser
Scott Gillespie
@gillespie4111
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 Trips
2 2 4 Yes
Earning Points and Using My Preferred Suppliers
2 3 5 Yes
Minimizing My Carbon Footprint
1 1 1
Is Unmanaged Better?
Source: Scott Gillespie’s analysis of GBTA’s report “Global Business Traveler 2012”
How Successful Are You at Achieving Your Goals?