Managed Travel 2.0 - Explanation and Implications
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Managed Travel 2.0 - Explanation and Implications

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Understand the core concepts of managed travel 2.0 and its implications for travel managers, travel suppliers, TMCs and GDSs.

Understand the core concepts of managed travel 2.0 and its implications for travel managers, travel suppliers, TMCs and GDSs.

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  • 1. Managed Travel 2.0:Explanation and ImplicationsScott GillespieIndustry ObserverGillespie’s Guide to Travel + Procurement
  • 2. |MT 2.0 Perspectives fromCo-Founder,FlightCaster, sold toNext JumpIndependent consultantin corporate and leisuretravelExpert in travel andtechnologyFormerly of Bain & Coand KayakMBA, DartmouthFounder, former CEO ofTravel AnalyticsAuthor, “Gillespie’s Guideto Travel + Procurement”Expert in travelprocurement, analyticsConsultant, speaker,trainerFormerly of A.T. KearneyMBA, Univ. of ChicagoEvan KonwiserScott Gillespie
  • 3. ManagedTravel 2.0Trendy topic, orstrategic shift?What is it?What are theimplications?
  • 4. ManagedTravel 2.0What is it?
  • 5. Travel PolicyExpense Report
  • 6. |The Cost of Traveler FrictionTravel PolicyLoose TightHighCostsTrip CostTraveler FrictionTotal Trip Cost• Lost productivity• Reluctance to travel• Recruiting, retentionSource: Scott Gillespie
  • 7. |Economic Rationale for MT 2.0Travel PolicyLoose TightHighCostsFlatter Program SavingsStronger Traveler FrictionTotal Trip CostSource: Scott Gillespie
  • 8. |The Optimization ProblemTrip’s Expected Benefitvs.Trip’s Cost, net ofPolicy Savings andTraveler Friction
  • 9. |Optimization CandidatesCan OptimizeTravelerTraveler’s ManagerTravel Budget OwnerCannot OptimizeTravel ManagerProcurement Mgr.TMCa ConvenientFiction
  • 10. |The Optimization ProblemTrip’s Expected Benefitvs.Trip’s Cost, net ofPolicy Savings andTraveler Friction
  • 11. Logic of TravelManagementMT 2.0 springs from this conflictArt ofTravelingVs.
  • 12. |Key Principles of MT 2.01. Shop anywhere – period.2. Book anyone – so long as thesupplier is safe3. Book anywhere – so long asemployer gets the data fast4. Book anything – so long as thetrip is in budget5. Pay with the corporate cardSource: Scott Gillespie and Evan Konwiser, 2012
  • 13. ManagedTravel 2.0Trendy topic, orstrategic shift?
  • 14. |Change Is HappeningStrong personal preferencesBut - significant security issuesand resistance from domain expertsMany options in the marketBring YourOwnDevice(BYOD)
  • 15. |Bring Your Own Travel ToolsHotel Tonight
  • 16. |Freedom works in other industriesFree RangeChickensChickens Travelers
  • 17. Culture of ControlLow and LightHigh and TightSavings&PoliciesBudgets &SatisfactionPriorityWhich Companies Are Ready for MT 2.0?YES!NO!Maybe
  • 18. Culture of ControlLow and LightHigh and TightSavings&PoliciesBudgets &SatisfactionPriorityYES!NO!MaybeToday’s Market for MT 2.0?NO!MaybeYES!
  • 19. |3 Requirements forGrowth ofManaged Travel 2.0
  • 20. Robust Data AcquisitionShort’s BookItProcureAppKDS’s MaverickConcur’s Open BookingGDSX’s TripLinkConTgo
  • 21. ThawCulturesInCorporate
  • 22. EvidenceValueof
  • 23. |Hard Evidence from GBTA1) Unmanaged travelers feel moresuccessful at getting convenientand comfortable trips- and at getting the best prices2) Unmanaged trips cost 3% lessthan those under “Guideline” travelpolicies. Wow.Source: GBTA’s report “Global Business Traveler 2012”
  • 24. UnmanagedtripsManagedtripsHow??
  • 25. |Conclusion:Free RangeTravelersareHappier, Healthierand Cheaper
  • 26. ManagedTravel 2.0What are theimplications?
  • 27. Traveler WelfareReshapes TravelPolicies•Safety•Productivity•Satisfaction
  • 28. Budgets are more importantthanSavings
  • 29. New Metrics for____Trip Value
  • 30. The data channel trumps the booking channelDataChannelstrumpBookingChannels
  • 31. Corporate Booking Toolsneedbetterjuice-to-squeeze__ratios
  • 32. GDSs loseto Brand.com sitestransaction volumes
  • 33. Travel ManagersCollaborateChampionCoach
  • 34. SuppliersBrand ValuePackagesdisplace corporatediscounts
  • 35. Payment Providersbecomeessentialdatasuppliers
  • 36. TMCsreplaced byBrandbenchmarkingPricebenchmarking
  • 37. TMCshave a windowTravel Datato become thehub
  • 38. TMCsmorph intoTravelerfeesBooking feesSecurity andService
  • 39. TMC stands forTravelerManagementCompany
  • 40. ofThe Traveler’sViewChangesManaged Travel
  • 41. tothis
  • 42. Now for some discussion,debate, and dissentThank you!Evan Konwiserekonwiser@gmail.com@evankonwiserScott GillespieScott.gillespie2008@gmail.com@gillespie4111
  • 43. 1 = Very Unsuccessful, 5 = Very SuccessfulMandates Guidelines UnmanagedHaving Right Technology 3 4 5 YesFeeling Safe 5 5 5Policy Compliance 4 4 4Budget Compliance 4 4 4Comfort and Convenience 2 2 3 YesGetting Best Prices 2 3 4 YesInteresting and EnjoyableTrips2 2 4 YesEarning Points and Using MyPreferred Suppliers2 3 5 YesMinimizing My CarbonFootprint1 1 1Is UnmanagedBetter?Source: Scott Gillespie’s analysis of GBTA’s report “Global Business Traveler 2012”How Successful Are You at Achieving YourGoals?