Presentation done by Anneli Douglas, Berendien Lubbe and Jarmo Ritalahti, during "Distribution systems" workshop, of the ENTER2015 eTourism conference.

1. ENTER 2015 Research Track Slide Number 1
Using technology to align the needs of corporate
travel managers with the functions of Travel
Management Companies
Anneli Douglasa
Berendien Lubbea
Jarmo Ritalahtib
a
University of Pretoria, South Africa
Anneli.douglas@up.ac.za/berendien.lubbe@up.ac.za
http://www.up.ac.za
b
Haaga Helia University of Applied Sciences, Finland
Jarmo.Ritalahti@haaga-helia.fi
http://www.haaga-helia.fi

2. ENTER 2015 Research Track Slide Number 2
Agenda
• Introduction
• The Corporate Travel Management Programme
• The Travel Management Company (TMC)
• Information technology in corporate travel
management
• Methodology
• Findings
• Conclusion

3. ENTER 2015 Research Track Slide Number 3
Introduction
• Information and Communication Technologies (ICTs) - significant
changes in the way travel management companies (TMC) facilitate
travel arrangements
• A travel management company (TMCs)
• ICTs enabled corporate travel managers to take over functions of
TMC
• Relevance of TMCs - effective use of ICTs + delivery of value-added
services particularly those that ICTs cannot fulfil.
• Continued role of TMCs is dependent on their ability to provide
services that the clients themselves cannot undertake.

4. ENTER 2015 Research Track Slide Number 4
• This study: explore the role of the TMC within the context of the
needs of the corporate client + the changes in the technological
environment.
• A number of studies have articulated the services that organisations
require in corporate travel management (Gustafson, 2012; Douglas &
Lubbe, 2006). However, the constantly changing travel management
environment and the on-going industry (Amadeus, 2012) and
academic (Gustafson, 2012) debates about the future role of TMCs
raises a number of questions.
• This paper aims to answer the following research questions:
– What are the functions and responsibilities of the corporate travel manager?
– What is the role of the TMC in managing the corporate travel process?
– What are the potential effects of ICTs on the corporate travel management
process?

5. ENTER 2015 Research Track Slide Number 5
The Corporate Travel
Management Programme
• Corporate travel is that part of the business travel market that can be
explained as travel undertaken by the employees of a specific
organisation which has a considerable travel volume and where
travel arrangements are usually controlled into a centralised
function.
• Corporate travel department/corporate travel manager
• Six tasks of a travel manager:
– Constructing and executing a travel policy/Formulating contracts with
suppliers/Standardising payment routines/Utilising travel
statistics/Communicating within the organisation/ Collaborating with a TMC.
Consistent administrative routine, access to dependable statistics, executing a travel
policy, travel data should unforeseen circumstances occur.

6. ENTER 2015 Research Track Slide Number 6
The Travel Management
Company (TMC)
• Organisations have contracted TMCs to implement efficient travel
practices and manage its travel.
• Other functions include:
– controlling costs and finding ways to reduce them
– negotiating cheaper rates
– full-time availability
– looking after the comfort and security of travellers
– acting as advisors to corporate clients
– developing and enforcing travel management policies
– aggregating information
– managing data

7. ENTER 2015 Research Track Slide Number 7
Information technology in
corporate travel management
• Intermediation, disintermediation and re-intermediation – ICTs are seen as threat
and opportunity
• Is the same true for TMCs?
• TMCs should use ICTs to add value to their product offering. HOW?
• Self-booking tools
• Own websites
• Mobile phone technology
• To recap: the corporate travel manager has certain responsibilities. Furthermore,
the TMC needs to provide specific value-added services to the corporate client.
ICTs either a threat or an opportunity in this relationship. A number of questions
could be raised namely: what the functions and responsibilities of the corporate
travel manager are; what the role of the TMC in managing the corporate travel
process is and what the potential effects of ICTs on the corporate travel
management process are.

8. ENTER 2015 Research Track Slide Number 8
Methodology
• Target population: corporate travel managers – purposive
sampling
• Qualitative – In depth interviews to gather detailed
perspectives from participants to describe how technology
could be used to align the needs of the corporate client
with the functions the TMC provides.
• Content analysis was used as data analysis technique.

9. ENTER 2015 Research Track Slide Number 9
Profile of respondents
Industry Nat/International
company
Approx. Number of
employees
Years’ experience Position in company
Education National 5000 Senior buyer
Pharmaceutical International
Financial services International 2,275 9 Procurement Manager
Engineering International 5001-10000 2 Regional Travel Manager
Education National 4300 4 Travel category manager
Manufacturing International 51-200 2 ½ General manager
Retail 10,001+ Occupational risk manager
Mining International 10 ½ Personal Assistant
Technology International 10001+ Travel Manager: Sub Saharan Africa
Financial services International 57 000
Cosmetics International 51-200 9 Executive assistant to the managing director
Financial services International 10 001+ 17 Sourcing Specialist (Travel & Accommodation)
Health care International 30 000 6 Executive Assistant to the Managing Director
Financial services International 27525 18 Chief Procurement Officer

10. ENTER 2015 Research Track Slide Number 10
Analysis of data
• STEP 1: Listing of respondent statements
• STEP 2: Coding of concepts within respondent statements
• STEP 3: Coding of core concepts into further
categorisation
• STEP 4: Adding descriptors within each concept
• STEP 5: Discussion of categories

11. ENTER 2015 Research Track Slide Number 11
FindingsTHEME NUMBER OF
TIMES
MENTIONED
DURING
INTERVIEWS
THEME NUMBER OF
TIMES
MENTIONED
DURING
INTERVIEWS
Current responsibilities of the
corporate travel manager
The future role of the TMC
1=RELATIONSHIPS
1a=With supplier
1b=With TMC
1c=With travellers
1d=In general
2=TRAVEL POLICY
3=BOOKINGS
4=MANAGE TRAVEL
EXPENDITURE
5=OTHER
16
6
4
4
10
7
4
4
1= YES, UNDER CERTAIN
CIRCUMSTANCES
1a=Complicated bookings
1b=Certain percentage of
bookings
1c=On the odd occasion
2=YES, BECAUSE OF
THEIR SKILLS
2a=Specialised skills
2b=Quality control
2c=We don’t have the
necessary skills
2d=Most effective
2e=Value added services
2f=Knowledge
2g=Centralised system
1
1
1
3
1
3
1
2
2
1
Future responsibilities of the corporate
travel manager
Whether and how the TMCs’ role should
change in the future
1=TECHNOLOGY
1a=To manage the travel
management process
1b=To facilitate the booking
process
2= RESPONSIBILITIES
WILL BE MORE
STRATEGIC
2a=Change management
2b=In general
2c=With regards to travel
process
3=CHANGE IN THE
NATURE OF
RESPONSIBILITIES
5
9
2
3
7
4
1=MORE IN-LINE WITH
CLIENTS’ NEEDS
2=TRENDS
2a=Offering something
different/information provider
not just bookings/keep up
with trends
3= TECHNOLOGY
3a=Up to date/adapt to
technology
3b=New systems for new
travellers
3c=Online tools
3d=Cell phone technology
4=ACCURATE MI
3
3
4
1
3
1
1

12. ENTER 2015 Research Track Slide Number 12
Current responsibilities of the
corporate travel manager
• Wide range of responsibilities
• Maintain relationships
– With suppliers
– With the TMC (Managing the relationship vs. partnership)
• “… I work together with my TMC….”
• “….I have the responsibility of engaging with the travel
management company…”
– With travellers
• Travel policy: development and compliance
• Making bookings/overseeing bookings
• Manage travel expenditure

13. ENTER 2015 Research Track Slide Number 13
Future responsibilities of the
corporate travel manager
• Corporate travel managers seemed less sure
• Responsibilities will change in the future as a result of technology
– Change the way in which travel process will be managed - stay up
to date with technological advancements.
– More important in facilitating the booking process
• Responsibilities will become much more strategic
– “You will be more strategic saying where do we want to be? Who
do we want to contract with? And where will we get the best
deals?”

14. ENTER 2015 Research Track Slide Number 14
Current roles and responsibilities
of the TMC• Making bookings
– International and complex / all bookings
– Provide quotes first, book at best possible prices within guidelines of policy
• Providing knowledge
– expertise and service delivery, as well as local knowledge, benchmarking
exercises and global coverage
• Data and reporting services
• Centralisation
• Do not have the skills to operate own agency, in terms of money, time, technology,
and ensuring the safety of travellers.
• Are you happy with your TMC? YES

15. ENTER 2015 Research Track Slide Number 15
Future roles of the TMC
• Would you still make use of a TMC in the future?
– Yes, under specific circumstances
– Yes, because of the skills they possess
• Should the TMCs role change in future?
– Uncertain on role change
– Increase their use of technology
• “I think in terms of technology they still have a long way to go…”
– Provide online tools, be up-to-date with the technology available and even
provide mobile phone technology.
• TMC should become more aligned with their clients’ needs by
understanding the client and aligning themselves with the client’s
goals.

16. ENTER 2015 Research Track Slide Number 16
Current and future roles of ICTs
• Current
– Self-booking tools: 50% yes – easier, more efficient and convenient to use than a
traditional TMC, 50% no – only 1 considering it.
– Mobile technology: not used in the booking process, but to enhance the corporate
travel experience - sending of itineraries to phones, download e-tickets on phones.
• Future
– Self booking tools: only 1 respondent did not see a need for it. The remainder all
agreed it will become even more important in the future - enforcing travel policy
compliance becomes easier and it helps an organisation to function effectively and
efficiently.
– Mobile technology: Only 1 respondent did not see a need for it. All other agreed
that mobile technology should become part of the future of TMCs, with most
respondents explaining that everything is moving towards mobiles
– “Everyone is going online with their smartphones so mobile friendly websites
should definitely be considered if not already” and “that is the way everything is
going…”

17. ENTER 2015 Research Track Slide Number 17
Conclusion
• Purpose of the paper: to determine how technology could be used to align the
needs of the corporate client with the functions of the TMC, by providing answers
to research questions such as what the current and future responsibilities of the
corporate travel manager are; what the current and future role of the TMC is in
managing the corporate travel process and ultimately, what the current and future
role of ICTs in the corporate travel management process is, and how this will
influence the future of TMCs.
• Currently, travel managers have a wide range of responsibilities, ranging from
maintaining relationships to being responsible for the travel policy and even
enforcing change management. Interestingly, technology was hardly mentioned by
respondents, as being part of their current responsibilities.
• Future responsibilities, technology featured much more pertinently - change the
way in which they will manage the travel process in the future and pointed out
that they need to stay up to date with technological advancements in the industry.
• In order to remain relevant, TMCs should consider how they could assist the
corporate travel manager in becoming more strategic, and how technology could
be used to make this transition more effective.

18. ENTER 2015 Research Track Slide Number 18
• Surprisingly, technology did not feature as being part of the current
responsibilities of the TMC.
• However, travel managers were convinced that the TMCs role should
change in the future, by increasing their use of technology and
becoming more aligned with the needs of their clients.
• Even though technology did not feature as being part of their current
responsibilities, TMCs should consider how they could use technology
in the future to align the needs of their corporate clients, with the
functions that they provide, while at the same time, focusing on those
skills and services which cannot be replaced by technology.

19. ENTER 2015 Research Track Slide Number 19
• Regarding the current and future role of ICTs: By managing the use
of self-booking tools and mobile technology, TMCs could align the
functions that they provide with the needs of the corporate client,
allowing the corporate travel manager to become more strategic in
his/her approach, while at the same time providing cost savings to
the corporate client.
• In conclusion, it would appear that the future of TMCs is not under
threat, if they continue to reinvent themselves by using technology to
their advantage, and delivering value-added services that cannot be
replaced by technology.