GENERAL SESSION:Change is Coming to ManagedTravelPRESENTER:Scott Gillespie, IndustryConsultant
2• Managed Travel 1.0 and itsDiminishing Returns• New Frontiers in Managed Travel• Impact on Government Travel• Discussion...
Managed Travel 1.0 hasdiminishing returns4/25/2013 3Gillespie’s Guide to Travel+ProcurementCountriesT&E Spend$$$$20% of Gl...
4/25/2013 4Gillespie’s Guide to Travel+ProcurementAirlinesAir Spend$$$$20% of Air SpendWorth going after?Managed Travel 1....
4/25/2013 5Gillespie’s Guide to Travel+Procurement$$$$20% of SpendWorth going after?SpendCity pairs, or hotels, or travele...
 Consolidate Bookings with Travel Mgmt. Co’s. Consolidate T&E card programs Consolidate travel data and reporting Comp...
Trip costs have been mastered4/25/2013 7Gillespie’s Guide to Travel+ProcurementThe castleshave been builtTravel PolicyNone...
Solid, safe, enduring –a valuable baseImmobile,inflexible
4/25/2013 9Gillespie’s Guide to Travel+ProcurementnotCastlesShipsWe need
Where are the new frontiers?4/25/2013 10Gillespie’s Guide to Travel+Procurement
4/25/2013 11Gillespie’s Guide to Travel+ProcurementTravel PolicyNone HarshHighCostsTrip CostTraveler FrictionTraveler Fric...
4/25/2013 12Gillespie’s Guide to Travel+ProcurementTravel PolicyNone HarshHighCostsTrip CostTraveler FrictionTraveler Fric...
Managed Travel 2.0 is a new frontier4/25/2013 13Gillespie’s Guide to Travel+Procurement1. Shop anywhere –period.2. Book an...
Managed Travel 2.04/25/2013 14Gillespie’s Guide to Travel+Procurement1. Shop anywhere –period.2. Book anywhere –so long as...
Traveler Dashboards are a new frontier15
Traveler Dashboards16Implications for GovernmentPotential for significantimpact
4/25/2013 17Gillespie’s Guide to Travel+ProcurementTrue O&Ds – notairport to airportPre-selected door-to-door itinerariesB...
4/25/2013 18Gillespie’s Guide to Travel+ProcurementTrue O&Ds – notairport to airportPre-selected door-to-door itinerariesB...
Edit Rightsare a new frontier4/25/2013 19Gillespie’s Guide to Travel+ProcurementCorporateTravelerBrand.comCorporateBooking...
4/25/2013 20Gillespie’s Guide to Travel+ProcurementCorporateTravelerBrand.comCorporateBookingDataCorporateTMCRight to edit...
• Higher airfares = more cost pressure on entiretravel budget• Need better travel procurement– City Pair Program has super...
22CPP Fareswon’t beaffected untilFY15Public andcorporatefares will risesoon aftermergerPreliminaryanalysisSource: Scott Gi...
23AirlinesHotelsRental CarsCorporateProcurementGovernmentProcurementDiscounts Firm Fixed PriceMulti-market bids Single cit...
Better Data and KPIs24Spend visibility, with granularitygood enough for• Negotiations• Policy compliance tests• Savings lo...
Spend VisibilityMetrics25* FY13 Object Class 21 Total Budget(less Fleet and Relocation budget)= Managed Travel BudgetSmart...
26Cost Over Best Available Rate - COBARExample: Rental Car BookingRate Allowed = $75Traveler Books at $70Best Available Ra...
Secondary SourcingOpportunities27Groups and MeetingsBlack Cars, LimosMealsTaxis, ParkingMobile Phone Service ?
Summary and Q&A28Travel Management is at a point of diminishing returnsNew frontiers include:•Trip Friction•Trip Tailoring...
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Changes Are Coming to Government Travel

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Practices in managing corporate travel are changing. These changes, along with structural weaknesses in some of the U.S. Government's approach to procuring hotels and rental cars, will lead to new travel management practices.

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Changes Are Coming to Government Travel

  1. 1. GENERAL SESSION:Change is Coming to ManagedTravelPRESENTER:Scott Gillespie, IndustryConsultant
  2. 2. 2• Managed Travel 1.0 and itsDiminishing Returns• New Frontiers in Managed Travel• Impact on Government Travel• DiscussionWhere we’re headed
  3. 3. Managed Travel 1.0 hasdiminishing returns4/25/2013 3Gillespie’s Guide to Travel+ProcurementCountriesT&E Spend$$$$20% of Global T&E SpendWorth going after?
  4. 4. 4/25/2013 4Gillespie’s Guide to Travel+ProcurementAirlinesAir Spend$$$$20% of Air SpendWorth going after?Managed Travel 1.0 hasdiminishing returns
  5. 5. 4/25/2013 5Gillespie’s Guide to Travel+Procurement$$$$20% of SpendWorth going after?SpendCity pairs, or hotels, or travelers, or tripsManaged Travel 1.0 hasdiminishing returns
  6. 6.  Consolidate Bookings with Travel Mgmt. Co’s. Consolidate T&E card programs Consolidate travel data and reporting Comply with duty of care Use KPIs and benchmarking 80+ % online adoption 90+ % travel policy compliance Optimize air, hotel and car programs6After 20 years, best practices forManaged Travel 1.0 are well known
  7. 7. Trip costs have been mastered4/25/2013 7Gillespie’s Guide to Travel+ProcurementThe castleshave been builtTravel PolicyNone HarshHighCostsTrip Cost
  8. 8. Solid, safe, enduring –a valuable baseImmobile,inflexible
  9. 9. 4/25/2013 9Gillespie’s Guide to Travel+ProcurementnotCastlesShipsWe need
  10. 10. Where are the new frontiers?4/25/2013 10Gillespie’s Guide to Travel+Procurement
  11. 11. 4/25/2013 11Gillespie’s Guide to Travel+ProcurementTravel PolicyNone HarshHighCostsTrip CostTraveler FrictionTraveler Friction is anew frontier• Frustration• Stress• Safety, security• Lost productivity• Reluctance to travel• Recruiting, retentionproblems
  12. 12. 4/25/2013 12Gillespie’s Guide to Travel+ProcurementTravel PolicyNone HarshHighCostsTrip CostTraveler FrictionTraveler FrictionNew metrics couldreduce traveler burnoutImplications for Government
  13. 13. Managed Travel 2.0 is a new frontier4/25/2013 13Gillespie’s Guide to Travel+Procurement1. Shop anywhere –period.2. Book anywhere –so long as data is captured quickly3. Book anybody –so long as suppliers are safe4. Book anything –so long as it is in budget
  14. 14. Managed Travel 2.04/25/2013 14Gillespie’s Guide to Travel+Procurement1. Shop anywhere –period.2. Book anywhere –so long as data is captured quickly3. Book anybody –so long as suppliers are safe4. Book anything –so long as it is in budgetConcur’s OpenBooking initiativeshould help captureHotel dataImplications for Government
  15. 15. Traveler Dashboards are a new frontier15
  16. 16. Traveler Dashboards16Implications for GovernmentPotential for significantimpact
  17. 17. 4/25/2013 17Gillespie’s Guide to Travel+ProcurementTrue O&Ds – notairport to airportPre-selected door-to-door itinerariesBest trip by mainfeature:• Lowest cost• Least travel time• Most compliant• GreenestTrip Tailoringis a new frontierSee Rome2Rio, KDSNeo, Rearden’s Deem
  18. 18. 4/25/2013 18Gillespie’s Guide to Travel+ProcurementTrue O&Ds – notairport to airportPre-selected door-to-door itinerariesBest trip by mainfeature:• Lowest cost• Least travel time• Most compliant• GreenestTrip Tailoring Implications for GovernmentCould help reducecost, complexity forinfrequent travelers
  19. 19. Edit Rightsare a new frontier4/25/2013 19Gillespie’s Guide to Travel+ProcurementCorporateTravelerBrand.comCorporateBookingDataCorporateTMCRight to edit orcancel thebookingEverybody ishappy!TripChanges
  20. 20. 4/25/2013 20Gillespie’s Guide to Travel+ProcurementCorporateTravelerBrand.comCorporateBookingDataCorporateTMCRight to edit orcancel thebookingEverybody ishappy!TripChangesEdit Rightsare a new frontierImplications for GovernmentWill allow AuthorizedTravel Agencies to betterserve travelers
  21. 21. • Higher airfares = more cost pressure on entiretravel budget• Need better travel procurement– City Pair Program has superior sourcing strategy– FedRooms and Rental Car Program have structuralweaknesses• Need better data and KPIs21Impact of US Air andAmerican Airlines Merger
  22. 22. 22CPP Fareswon’t beaffected untilFY15Public andcorporatefares will risesoon aftermergerPreliminaryanalysisSource: Scott GillespieDomestic US airfares willrise after AA-US merger
  23. 23. 23AirlinesHotelsRental CarsCorporateProcurementGovernmentProcurementDiscounts Firm Fixed PriceMulti-market bids Single city pair bidsFirm Fixed PriceFirm Fixed PriceIndividual propertiesMulti-market bidsPer Diem RatesCeiling Rates +GARSPolicy directs purchasevolumes to specified suppliersBetter TravelProcurement?
  24. 24. Better Data and KPIs24Spend visibility, with granularitygood enough for• Negotiations• Policy compliance tests• Savings lost or achieved
  25. 25. Spend VisibilityMetrics25* FY13 Object Class 21 Total Budget(less Fleet and Relocation budget)= Managed Travel BudgetSmartPay $Managed Travel Budget*TMC MIS Bookings $Air, Hotel Voucher $CorporateBest in ClassCard Visibility > 90%Air > 90%Hotel > 60%Booked Visibility
  26. 26. 26Cost Over Best Available Rate - COBARExample: Rental Car BookingRate Allowed = $75Traveler Books at $70Best Available Rate = $50-> Saved Gov’t $5-> Could have saved Gov’t $25COBAR= $20 ($70 booked minus $50 Best Available Rate)Key PerformanceIndicator ExampleSet a goal: COBAR as % of Managed Travel Budget
  27. 27. Secondary SourcingOpportunities27Groups and MeetingsBlack Cars, LimosMealsTaxis, ParkingMobile Phone Service ?
  28. 28. Summary and Q&A28Travel Management is at a point of diminishing returnsNew frontiers include:•Trip Friction•Trip Tailoring•Managed Travel 2.0•Edit Rights•Traveler DashboardsUS-AA merger will putcost pressure on entireGov travel budgetHotel and Rental CarProcurement Strategy?Better Data and KPIs!Scott GillespieGillespie’s Guide to Travel+ProcurementScott.Gillespie2008@gmail.com

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