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.
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Managed Travel 2.0 - Explanation and Implications
- 1. Managed Travel 2.0: Explanation and Implications Scott Gillespie Industry Observer Gillespie’s Guide to Travel + Procurement
- 2. | MT 2.0 Perspectives from Co-Founder, FlightCaster, sold to Next Jump Independent consultant in corporate and leisure travel Expert in travel and technology Formerly of Bain & Co and Kayak MBA, Dartmouth Founder, former CEO of Travel Analytics Author, “Gillespie’s Guide to Travel + Procurement” Expert in travel procurement, analytics Consultant, speaker, trainer Formerly of A.T. Kearney MBA, Univ. of Chicago Evan KonwiserScott Gillespie
- 3. Managed Travel 2.0 Trendy topic, or strategic shift? What is it? What are the implications?
- 4. Managed Travel 2.0 What is it?
- 6. | The Cost of Traveler Friction Travel Policy Loose Tight High Costs Trip Cost Traveler FrictionTotal Trip Cost • Lost productivity • Reluctance to travel • Recruiting, retention Source: Scott Gillespie
- 7. | Economic Rationale for MT 2.0 Travel Policy Loose Tight High Costs Flatter Program Savings Stronger Traveler Friction Total Trip Cost Source: Scott Gillespie
- 8. | The Optimization Problem Trip’s Expected Benefit vs. Trip’s Cost, net of Policy Savings and Traveler Friction
- 9. | Optimization Candidates Can Optimize Traveler Traveler’s Manager Travel Budget Owner Cannot Optimize Travel Manager Procurement Mgr. TMC a Convenient Fiction
- 10. | The Optimization Problem Trip’s Expected Benefit vs. Trip’s Cost, net of Policy Savings and Traveler Friction
- 11. Logic of Travel Management MT 2.0 springs from this conflict Art of TravelingVs.
- 12. | Key Principles of MT 2.0 1. Shop anywhere – period. 2. Book anyone – so long as the supplier is safe 3. Book anywhere – so long as employer gets the data fast 4. Book anything – so long as the trip is in budget 5. Pay with the corporate card Source: Scott Gillespie and Evan Konwiser, 2012
- 13. Managed Travel 2.0 Trendy topic, or strategic shift?
- 14. | Change Is Happening Strong personal preferences But - significant security issues and resistance from domain experts Many options in the market Bring Your Own Device (BYOD)
- 15. | Bring Your Own Travel Tools Hotel Tonight
- 16. | Freedom works in other industries Free Range ChickensChickens Travelers
- 17. Culture of Control Low and LightHigh and Tight Savings & Policies Budgets & Satisfaction Priority Which Companies Are Ready for MT 2.0? YES! NO! Maybe
- 18. Culture of Control Low and LightHigh and Tight Savings & Policies Budgets & Satisfaction Priority YES! NO! Maybe Today’s Market for MT 2.0? NO! Maybe YES!
- 19. | 3 Requirements for Growth of Managed Travel 2.0
- 20. Robust Data Acquisition Short’s BookIt ProcureApp KDS’s Maverick Concur’s Open Booking GDSX’s TripLink ConTgo
- 23. | Hard Evidence from GBTA 1) Unmanaged travelers feel more successful at getting convenient and comfortable trips - and at getting the best prices 2) Unmanaged trips cost 3% less than those under “Guideline” travel policies. Wow. Source: GBTA’s report “Global Business Traveler 2012”
- 26. Managed Travel 2.0 What are the implications?
- 28. Budgets are more important than Savings
- 29. New Metrics for ____Trip Value
- 30. The data channel trumps the booking channel Data Channels trump Booking Channels
- 32. GDSs lose to Brand.com sites transaction volumes
- 37. TMCs have a window Travel Data to become the hub
- 38. TMCs morph into Traveler fees Booking fees Security and Service
- 41. to this
- 42. Now for some discussion, debate, and dissent Thank you! Evan Konwiser ekonwiser@gmail.com @evankonwiser Scott Gillespie Scott.gillespie2008@gmail.com @gillespie4111
- 43. 1 = Very Unsuccessful, 5 = Very Successful Mandates Guidelines Unmanaged Having Right Technology 3 4 5 Yes Feeling Safe 5 5 5 Policy Compliance 4 4 4 Budget Compliance 4 4 4 Comfort and Convenience 2 2 3 Yes Getting Best Prices 2 3 4 Yes Interesting and Enjoyable Trips 2 2 4 Yes Earning Points and Using My Preferred Suppliers 2 3 5 Yes Minimizing My Carbon Footprint 1 1 1 Is Unmanaged Better? Source: Scott Gillespie’s analysis of GBTA’s report “Global Business Traveler 2012” How Successful Are You at Achieving Your Goals?