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The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
The End and Future of Managed Travel
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The End and Future of Managed Travel

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After 20 years of professional management, the corporate travel category has reached the point of diminishing returns. It needs to explore new frontiers, ones that use new technologies and new …

After 20 years of professional management, the corporate travel category has reached the point of diminishing returns. It needs to explore new frontiers, ones that use new technologies and new principles. This deck describes those new frontiers.

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  • 1. The End and Futureof Managed TravelScott GillespieGillespie’s Guide to Travel+Procurement
  • 2. • Managed Travel 1.0• Winds of Change• The Optimization Problem• It’s Time for a New Approach• New Frontiers• Discuss and DebateWhere we’re headed
  • 3. • 1994: Delta caps commissions, triggers TMCtransaction fees and cost center mentality• Late 90’s: Corporate online booking toolsput travel policies in spotlight• 2007: UK’s Corporate Manslaughter Actmakes duty of care a high priorityStrategic drivers of MT 1.0
  • 4. MT 1.0 has diminishing returnsGillespie’s Guide to Travel+ProcurementCountriesT&E Spend$$$$20% of Global T&E SpendWorth going after?
  • 5. Gillespie’s Guide to Travel+ProcurementAirlinesAir Spend$$$$20% of Air SpendWorth going after?MT 1.0 has diminishing returns
  • 6. Gillespie’s Guide to Travel+Procurement$$$$20% of SpendWorth going after?SpendCity pairs, or hotels, or travelers, or tripsMT 1.0 has diminishing returns
  • 7.  Consolidate TMCs 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 programsAfter 20 years, best practices for MT 1.0are well known
  • 8. Trip costs have been masteredGillespie’s Guide to Travel+ProcurementThe castleshave been builtTravel PolicyNone HarshHighCostsTrip Cost
  • 9. Solid, safe, enduring –a valuable baseImmobile,inflexible
  • 10. notCastlesShipsWe need
  • 11. Where are the new frontiers?
  • 12.  Global networks create greater competitionfor good talent iPhone culture impacts more than Gen Y User experience drives brand loyalty,especially in travel Travel suppliers have stronger, moreinsightful pricing and packaging power Greater emphasis on traveler well-beingWinds of Change
  • 13. The optimization problemTravel PolicyNone HarshHighCostsTrip Cost• Lost productivity• Reluctance to travel• Recruiting, retentionproblemsTotal Trip CostTraveler Friction
  • 14. The optimization problemTravel PolicyNone HarshHighCostsTrip CostTotal Trip CostTraveler FrictionThe Great Unknown
  • 15. To date… Best practices are well known Mature programs deliver diminishingreturns New forces are at work Half of the travel optimization problemis not well understood
  • 16. it’s timenewapproachfor a
  • 17. Where are the new frontiers?
  • 18. Brand.com to CDE is a new frontierBrand.comCorporateTravelerCorporateBookingData Traveler’sExpenseReportNet ofDiscounts“B2CDE”
  • 19. Edit Rights are a new frontierCorporateTravelerBrand.comCorporateBookingDataCorporateTMCRight to edit orcancel thebookingEverybody ishappy!TripChangesNet ofDiscounts
  • 20. Managed Travel 2.0 is a new frontier1. 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
  • 21. 22Traveler Dashboards are a new frontier
  • 22. Door to doorTrip Tailoring is a new frontier
  • 23. Detailed Expense EstimateDetailed Trip Itinerary Door to door
  • 24. 2 3-4 5-8 9-16 17-32 33-64 65+122% of trips taken byinfrequent travelersWho needs Trip Tailoring?Source: Scott Gillespie’s analysis of an anonymous data set
  • 25. Travel Budget Owners are a new frontierTrip CostTravelerFrictionGood tripsresultsWithin mybudget
  • 26. Traveler Friction is a new frontierTravel PolicyNone HarshHighCostsTrip CostTraveler Friction• Frustration, Stress• Safety, security• Lost productivity• Reluctance to travel• Recruiting, retentionproblems
  • 27. Traveler FrictionNone HighSalesHighEffectiveRangeTraveler Friction’s Impact on Sales
  • 28. Traveler FrictionNone HighHighEmployeeAttritionTraveler Friction’s Impact on AttritionAcceptable Range
  • 29. Traveler FrictionNone HighTraveler Friction’s Ideal RangeHR’s InputSales Input
  • 30. Traveler FrictionNone HighTraveler Friction’s Optimal Range forSales PeopleOptimalRange35pts 55 pts
  • 31. Better Management of SalespeopleBowden, Christina 84Barton, Elsie 82Goldstein, Gretchen 78Watts, Tim 77Merritt, Shirley 77Dougherty, Kristine 66Steele, Eric 60May, Alex 55Jones, William 50Bender, Hazel 48Chung, Donald 43Underwood, Harvey 41Teague, Wesley 35Hamilton, Elsie 29Walsh, Marcia 25Vick, Franklin 20Encouragemore travelReduce travel friction:- fewer trips?- better trips via policyexceptions?
  • 32. Trip CostThe FutureTraveler FrictionThe Past
  • 33. Implicationsof ChangeGillespie’s Guide to Travel+Procurement
  • 34. For Travel ManagersTrip costs Business impact
  • 35. For Travel SuppliersTravel buyers Travelers andbudget owners
  • 36. As you make the transition
  • 37. Embrace the journeyShare your discoveries!
  • 38. Thank you!Scott Gillespie+1 216 272 1637Scott.Gillespie2008@gmail.comGlad to connect on LinkedIn

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