Trip Friction Briefing to GBTA 2014

675 views

Published on

Trip Friction is tClara's way of measuring traveler wear and tear. This unique measure gives travel manaers and HR executives new ways to identify and reduce travel-related turnover among road warriors.

Published in: Travel
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
675
On SlideShare
0
From Embeds
0
Number of Embeds
18
Actions
Shares
0
Downloads
20
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Trip Friction Briefing to GBTA 2014

  1. 1. Trip Friction™ A Traveler-Centric KPI Scott Gillespie Managing Partner tClara Travel Data Made Brighter
  2. 2. About tClara and Scott Gillespie  Scott Gillespie is a leading expert in corporate travel analytics, travel procurement and Managed Travel 2.0  Former Founder and CEO of Travel Analytics (now Concur), ex-AT Kearney principal  MBA, Univ. of Chicago  tClara makes travel data brighter  Pioneer in travel- related turnover analyses  Inventor of synthetic airfare benchmarking  Joint venture between Diio and Scott Gillespie
  3. 3. Where we’re headed The Leadership Opportunity The Benchmarking Opportunity Linking Trip Friction and Turnover Trip Friction KPIs Trip Friction™ - Concept and Findings The Need for New Value
  4. 4.  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 programs After 20 years, best practices for Managed Travel 1.0 are well known
  5. 5. We’ve reached diminishing returns 5 Gillespie’s Guide to Travel+Procurement 1995 2015 High Value > Incremental Value, Year over Year Low The castles have been built
  6. 6. Solid, safe, enduring – a valuable base Immobile, inflexible
  7. 7. value 7Gillespie’s Guide to Travel+Procurement it’s time new sources to find of
  8. 8. 8 not Castles Ships We need
  9. 9. Some of you are ready for this now Rogers Innovation Adoption Curve 16% will adopt early
  10. 10. 10 Trip Friction™ Concept and Findings 10 Tough Travel
  11. 11. Travel Policy 5 Star 1 Star High Costs Supplier Cost Travel Supplier Costs Are Controlled by Travel Policy and Procurement Source: Scott Gillespie
  12. 12. High Costs Supplier Cost Traveler Friction Is The Hidden Cost of Travel. It’s an HR Issue Source: Scott Gillespie Human Cost, or Traveler Friction • Lost productivity • Reluctance to travel • Negative impacts on recruiting & retention •Traveler health issues Travel Policy 5 Star 1 Star
  13. 13. High Costs Supplier Cost The Total Trip Cost Is What Matters Source: Scott Gillespie Total Trip Cost Supplier Cost + Human Cost = Total Trip Cost Travel Policy 5 Star 1 Star Human Cost, or Traveler Friction • Lost productivity • Reluctance to travel • Negative impacts on recruiting & retention •Traveler health issues
  14. 14. tClara measures traveler wear and tear with Trip Friction™ points 6-hour non-stop in Business Class, arriving home on Friday afternoon, after 2 nights away Trip A 6-hour red-eye flight, with a 4-hour layover, connecting on a regional jet, both legs in Coach, arriving home on Saturday afternoon, after 5 nights away Trip B 300 Trip Friction Points 1,000 Points
  15. 15. “My Worst Trip Ever” Contest Winner 15 3 FEB EUG-SFO-LAX, 4 FEB LAX-SFO-EUG, 5 FEB PDX-DFW, 6 FEB DFW-EWR-BOS, 7 FEB BOS- SFO-PDX, 8 FEB EUG-PDX, 9 FEB PDX-ORD-FRA, 15 FEB FRA-LHR, 18 FEB LHR-SFO-EUG, 19 FEB EUG-SFO-ORD, 23 FEB ORD-CLT, 25 FEB CLT- ORD, 26 FEB ORD-MSP, 29 FEB MSP-SFO-EUG. Highlights include 7 FEB 1:00 AM - 7:00 AM drive from PDX to EUG in 1 foot of snow, jackknifed semis, 8 FEB 10:30 scheduled departure to FRA cancelled because EUG had no de-icing fluid. Arrived in FRA at 6:00 AM with only 4 hours of sleep over three nights -- going right into client/airline meetings. 25 FEB was my birthday. “25 Day, 26,000 Miles”
  16. 16. Trip Friction Benchmark Categories 16 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Group 2, Low Friction Group 1, Very Low Friction Group 3, Fairly Low Friction Group 4, Medium Friction Group 5, Fairly High Friction Group 6, High Friction Group 7, Very High Friction Group 8, Extremely High Friction Trips are scored, then travelers are sorted by their Trip Friction Scores Middle 20% Top 15%
  17. 17. Trip Friction Driver: Nights Away from Home Trip Friction Benchmark Findings 17 Source: tClara LLC
  18. 18. Trip Friction Driver: Hours on a Plane Trip Friction Benchmark Findings 18 Source: tClara LLC
  19. 19. Trip Friction Driver: Hours in Economy Seats (by booking class) Trip Friction Benchmark Findings 19 Source: tClara LLC
  20. 20. Trip Friction Driver: Traveling on Personal Time From 6pm to 8am, M-F Anytime on a weekend Trip Friction Benchmark Findings 20 Source: tClara LLC
  21. 21. Road Warrior* Benchmarks (*Top 15% of all travelers by Trip Friction points) 21 Selected Trip Friction Metric U.S. Travelers European Travelers Nights Away per Month 9.4 6.1 Flight Hours per Month 32.0 15.9 Share of Flight Hours Booked in Economy Class 82% 66% Share of Flight Hours on Personal Time 65% 65% Source: tClara LLC
  22. 22. 22 Trip Friction™ KPIs 22 Tough Travel
  23. 23. Find How Many Travelers Are in Each Category Source: AirPlus Trip Friction Benchmark Study, June 2014
  24. 24. 24 Compare your distribution to the Benchmark Source: AirPlus Trip Friction Benchmark Study, June 2014
  25. 25. Trip Friction Key Performance Indicators 25 Firm-wide Trip Friction Score, where 100% = Industry Average “Ours is 93%, seven percent lower than our peers.” Road Warrior Score, based on Top 15% of Travelers “Ours is 104% - four percent higher than our peers.” Individual Traveler Trip Friction Scores For tracking, trending and turnover prevention
  26. 26. 26 Linking Trip Friction™ and Turnover 26 Tough Travel
  27. 27. Companies spend about the same on travel as they do on turnover: 1-2% of revenues1 1) “Retention of Key Talent and the Role of Rewards”, Scott, Hay Group, June 2012. tClara analysis 2) WorldatWork's "Survey of Bonus Programs and Practices 2014" The use of sign-on bonuses is at an all-time high2 Turnover is a Worthy Problem
  28. 28. 28 U.S. business travelers avoided taking 2.7 trips on average last year due to the hassle of air travel¹ International travelers submit 80% more health claims than non-travelers2 1) U.S. Travel Association survey, June 2014 2) Occupational and Environmental Medicine, May 2002 Traveler Burnout Problems
  29. 29. 29 Is too much travel hurting your business?
  30. 30. Travel Policy 5 Star 1 Star High Costs Supplier Cost Source: Scott Gillespie • Lost productivity • Reluctance to travel • Negative impacts on recruiting & retention •Traveler health issues Lowest Total Cost Total Trip Cost Human Cost, or Trip Friction The Total Trip Cost Is What Matters
  31. 31. Step 1 – Identify two cohorts of travelers within your firm P. 31 Use Trip Friction analysis to categorize travelers objectively Top 15%Source: AirPlus Trip Friction Benchmark Study, June 2014
  32. 32. Travel Impact Metrics Turnover Engagement Scores Health Costs Sales Productivity HR Business Step 2 - Choose metrics that matter, and build a fact base from each cohort
  33. 33. P. 33 Travel Impact Metrics Turnover Engagement Scores Health Costs Sales Productivity Customer Satisfaction High Friction Travelers’ Differences +9% -11% +7% -12% -8% +15% Step 3 - Then test for differences between the two cohorts HR Business
  34. 34. P. 34 Step 4 - Develop mitigation strategies for this key group of travelers Less Travel Easier, Safer, Healthier Travel Trip Bonuses Recognition, Gamification Support, Counseling High Friction Tiered Policies Traveler-specific
  35. 35. The Very Real Cost of Turnover 35 Sally generates $600K per year in revenue. She earns $150K all in; Her travel costs $70K, none is client-billable. So Sally contributes $380K per year to her firm. HR knows it takes 4 months to find and train a replacement for Sally
  36. 36. The Very Real Cost of Turnover $50K 36 Losing Sally costs $128K How much should you pay to keep Sally from leaving?
  37. 37. Sally’s Annual Travel Costs Sally spends 100 nights on the road And 300 hours on planes. Current Travel Policy At $150/RN =$15,000 Better Travel Policy $250/RN =$25,000 At $120/hr =$36,000 At $300/hr =$90,000 $51,000/Yr $115,000/Yr A Better Policy Costs $64,000 per year
  38. 38. Some Good Questions: 38  Should the firm pay $64K to save $128K?  What is Sally’s likelihood of leaving due to her travel workload? – What does Sally really want?  If Sally traveled 10-20% less, what would her revenue do? – Could you fund some part of the better travel policy by decreasing the travel workload?  Would a better travel policy shrink the time needed to find Sally’s replacement?  Would a better travel policy help recruit better hires?
  39. 39. 39 The Benchmarking Opportunity 39 Tough Travel
  40. 40. Four Benefits of Trip Friction Benchmarking 40 1. Puts your travel program into a new and better context • How much your firm travels • How hard your firm travels 2. Measures traveler wear and tear consistently within and between firms • Identifies Road Warriors using objective metrics 3. Brings new light to travel policy decisions 4. Frames the travel-related turnover problem • Essential to true travel program optimization
  41. 41. Trip Friction Customized Industry Benchmark Package  Trip Friction Industry Benchmark Score  Road Warrior Index Score  Detailed report on all major drivers of friction  Controllable vs. not  Trip Friction scores and percentiles for each traveler  One year of ticket data from your TMC  No HR data  Five firms or more per benchmark group 41 We Need: You Get:
  42. 42. 42 The Leadership Opportunity 42 Tough Travel
  43. 43. Travel Policy 5 Star 1 Star High Costs Supplier Cost Source: Scott Gillespie Lowest Total Cost Total Trip Cost Human Cost, or Trip Friction The Total Trip Cost Is What Matters Must quantify the red curve
  44. 44. 44 None >> Accumulated Trip Friction >> Extreme Travel-driven Turnover High None Your Traveler Friction Curves Can Be Measured
  45. 45. 45 Travel-driven Turnover High None None >> Accumulated Trip Friction >> Extreme Your Traveler Friction Curves Can Be Measured
  46. 46. 46 Travel-driven Turnover High Begin Retention Risk Management None None >> Accumulated Trip Friction >> Extreme Your Traveler Friction Curves Can Be Measured
  47. 47. Solving the Travel-Related Turnover Problem 47  Score all travelers’ Trip Friction for the last 2-3 years  HR: calculate turnover rates  HR and Finance: estimate cost of turnover  Business leaders: decide the priority  Travel, HR and Finance: develop options, make recommendations  Business leaders decide; affects Travel, HR and Procurement
  48. 48. Expected Benefits Go Well Beyond Travel 48  More attractive travel culture  Better road warrior retention  Stronger road warrior engagement  Lower health care costs among road warriors  Truly optimized travel program  Better recruiting results, shorter replacement times  Reduction in turnover costs
  49. 49. You’re a Good Candidate If: 49  Your firm has a lot of valuable road warriors, and retention is a problem  You need to find new sources of value in the travel category  You have access to at least two years of TMC (travel agency) ticketing data  Your travel policy is influenced by HR  Bonus: The travel category reports to HR  You have a Business Exec sponsor in mind  You want to become a more valuable partner to senior management
  50. 50. How big is the problem? 50 Finance HR Business Travel What are the best solutions? You! Travel-related Turnover at Your Firm
  51. 51. What we’ve covered The Leadership Opportunity The Benchmarking Opportunity Linking Trip Friction and Turnover Trip Friction KPIs Trip Friction™ - Concept and Findings The Need for New Value
  52. 52. 52 Thank you! 52 Questions and comments? Scott Gillespie scott@tclara.com Glad to connect on LinkedIn

×