Trip Friction is tClara's method for measuring traveler wear and tear. Too much travel can cause significant HR-related costs. Learn more about Trip Friction and how to use it to deliver more value to travelers, travel programs and their businesses.

1. Travel Data Made Brighter
A Gillespie+DiioVenture
WhyTrip Friction™ Matters
And HowTo Use It
March, 2014
tClara andTrip Friction are trademarks of tClara LLC © tClara 2014

2. Scott Gillespie
• Co-founder of tClara, a travel data
analytics firm focusing onTrip
FrictionTM
• Speaker and writer on innovation and
best practices in managed travel
• Founder and former CEO ofTravel
Analytics, a pioneer in airline
sourcing
• Author of a U.S. patent on airline
contract analysis
• MBA, University of Chicago
30.3.2014 2
Managing Partner, tClara
Author, Gillespie’s Guide toTravel+Procurement
Pushing the corporate travel industry to think
new thoughts and create more value

3. Little change in
100 years
3/30/2014 3Gillespie’s Guide to Travel+Procurement

4. Where we’re headed
Discuss and Debate
Engaging the Business
Traveler Friction
We Need New Frontiers
Managed Travel 1.0 Has Peaked

5. • 1994: Delta Air Lines caps commissions, triggers
TMC transaction fees and cost center mentality
• Late 90’s: Strategic sourcing, corporate online
booking tools and Prism put travel management
in spotlight
• 2007: UK’s Corporate Manslaughter Act makes
duty of care a high priority
Key Drivers of ManagedTravel 1.0

6.  ConsolidateTMCs
 ConsolidateT&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
ManagedTravel 1.0 are well known

7. ManagedTravel 1.0 has
reached diminishing returns
3/30/2014 7Gillespie’s Guide toTravel+Procurement
1995 2015
High
>
Incremental
Value
Low
The castles
have been
built

8. Solid, safe, enduring –
a valuable base
Immobile,
inflexible

9. value
3/30/2014 9Gillespie’s Guide toTravel+Procurement
it’s time
new sources
to find
of

10. 3/30/2014 1
not
Castles
Ships
We need

11. Where are the new frontiers?
3/30/2014 1Gillespie’s Guide toTravel+Procurement
Traveler Friction

12. How do we optimize
a travel program?

13. Travel Program KPIs
Spend
Savings
Prices
Variances
Finance,
Procurement
Policy
Compliance
Traveler
Satisfaction.
TravelersOperations
Agent
Productivity
Call Service
Quality

14. Travel Policy
None Harsh
High
Costs
Supplier Cost
Travel Supplier Costs Are
Controlled by Travel Policy and
Procurement
Source: Scott Gillespie

15. Travel Policy
None Harsh
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

16. Travel Policy
None Harsh
High
Costs
Supplier Cost
The Total Trip Cost Is What Matters
Source: Scott Gillespie
• Lost productivity
• Reluctance to travel
• Negative impacts on
recruiting & retention
•Traveler health issues
TotalTrip Cost
SupplierCost + Human Cost =TotalTrip Cost
Human Cost, or
Traveler Friction

17. Travel Policy
None Harsh
High
Costs
Supplier Cost
So We Must Measure Human Costs To Find
The Lowest Total Cost and Optimal Policy
Source: Scott Gillespie
• Essential
• Not well understood
TotalTrip Cost
Human Cost, or
Traveler Friction

18. Travel Policy
None Harsh
High
Costs
Supplier Cost
If Human Costs are high, then the
optimal travel policy is lighter
Source: Scott Gillespie
Total
Trip
Cost
Human Cost, or
Traveler Friction

19. Travel Policy
None Harsh
High
Costs
Supplier Cost
If Human Costs are low, then the
optimal policy is harsher
Source: Scott Gillespie
TotalTrip Cost
Human Cost, or
Traveler Friction

20. Listening
for
Traveler Friction
Is this the best we can do?
Traveler Complaints
Business
Leaders’ Complaints

21. Companies
spend about
the same on
travel as they
do on
turnover:
1-3%
of revenues
Source: “Retention of KeyTalent and the Role of Rewards”, Scott, Hay Group, June 2012. tClara analysis

22. HR has lots of good metrics
Turnover Rate
Cost per Hire
Sick Days
Healthcare Costs
Productivity Metrics
Engagement Scores
Performance Ratings
Employee Potential Ratings

23. Measuring
HR costs
travel-related
is a
New
Frontier

24. Traditional travel metrics don’t work
6 trips between
San Francisco and
Seattle
Higher Trip Friction
$24,000 buys 12 round
trips between L.A. and
San Francisco in coach
6 trips between
Phoenix and
Frankfurt
$24,000 buys one
first class ticket, NYC
to Sydney
6,000 miles flown
between D.C. and
NYC in a quarter
(15 trips)
6,000 miles flown
between D.C. and
Seattle, one trip
Trips?
Spend?
Miles?
or
or
or

25. Trip Friction™ measures
what matters
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
900
Points

26. 10 Firms in tClara’s 2013Trip Friction
Benchmark Study
By Industry
HighTech 5 firms
Consulting3 firms
Financial 1 firm
Manufacture 1 firm
By Annual Air Spend (USD)
$1<10MM 2 firms
$10<25MM 5 firms
$25<50MM 1 firms
$50+MM 2 firms
Avg. Annual Air Spend,
USA POS $36MM

27. 27
44%
27%
10%
19%
WorkTime 8a-
6p, M-F
HomeTime 6p-
10p, 6a-8a M-F
SleepTime 10p-
6a, M-F
WeekendTime
Sa-Su
When DoTravelers Fly?
Share ofTotal Flight Hours
56% on PersonalTime
Source: tClara’s 2013Trip Friction Benchmark study

28. 28
44%
27%
10%
19%
WorkTime 8a-
6p, M-F
HomeTime 6p-
10p, 6a-8a M-F
SleepTime 10p-
6a, M-F
WeekendTime
Sa-Su
When DoTravelers Fly?
Share ofTotal Flight Hours
56% on PersonalTime
Source: tClara’s 2013Trip Friction Benchmark study

29. Distribution ofTrip Scores
42% are HarderTrips
27%
31%
20%
11%
4% 3% 2% 3%
Easy Moderate Fairly Hard Hard Very Hard Fairly
Extreme
Extreme Very
Extreme
Source: tClara’s 2013Trip Friction Benchmark study

30. Companies should understand their travel
requirements from the traveler’s perspective

31. Does your program have too much traveler
friction? Some is controllable, much is not
Our Firm’s
Trip Friction
score is in
the 87th
percentile.
That’s not
great.

32. Travel Policy
None Harsh
High
Costs
Supplier Cost
Goal: Reduce High-cost, Controllable
Traveler Friction
Source: Scott Gillespie
Traveler Friction

33. Trip Friction™ shows which
travelers truly travel the hardest
Illustrative

34. Trip Friction can be a basis
for tiered travel policies
Rank by Trip
Friction
Points
Traveler
Traveler's
Trip
Friction
Points for
2013
Traveler's
Percentile
Among All
Firms in
2013
1 Veera 22,560 96%
2 Riku 21,730 95%
3 Johanna 21,690 95%
4 Juho 20,370 95%
5 Lida 18,650 92%
6 Sami 18,120 92%
7 Jenni 17,600 88%
8 Teemu 17,360 88%
9 Sonja 16,920 84%
10 Oskar 16,840 84%
“18,000 points,
or the 85th
percentile”
Use industry-wide
percentiles

35. Scott@tclara.com
Glad to connect on LinkedIn
30.3.2014FBTA | Esityksen / esittäjän nimi 3

36. Identify those travelers who are
clearly “high friction”
Illustrative

37. A: Build a
Trip Friction
Fact Base
Metrics
Turnover
Engagement Scores
Health Costs
Sales
Productivity
Customer Satisfaction
High Friction
Travelers
+9%
-11%
+7%
-12%
-8%
+15%
Q: Does HighTrip Friction Matter toYour Business?
HR
Business

38. A: Build a
Trip Friction
Fact Base
Metrics
Turnover
Engagement Scores
Health Costs
Sales
Productivity
Customer Satisfaction
High Friction
Travelers
+9%
-11%
+7%
-12%
-8%
+15%
Q: Does HighTrip Friction Matter toYour Business?
HR
Business
Then test for differences

39. 30.3.2014 3
Metrics
Turnover
Engagement Scores
Health Costs
Sales
Productivity
Customer Satisfaction
High Friction
Travelers
+9%
-11%
+7%
-12%
-8%
+15%
Q: Does HighTrip Friction
Matter toYour Business?
Develop
Mitigation
Strategies
Quarterly
Monitoring

40. Example:Trip Friction Demand
Management Strategy
Top Travelers
By
Spend
Top Travelers
By
Friction

41. High
Spend
High
Friction
Trip Friction Demand
Management Strategy
Set a goal of
reducing Spend
and Friction
among this
group
• These high-value employees are likely at some risk
of burnout or attrition
• Easy to identify and engage
– Some will not want or need help
– Some will not be able to reduce their travel
– Some will be grateful for the support
• Use benchmarks to help set goals
• Easy to measure results
• Helps build valuable relationships with HR and
Business Leaders

42. High
Spend
High
Friction
Tailor interventions for this key group of travelers
Less
Travel
Easier
Travel
$$Recognition
Support,
Counseling
Trip Friction Demand
Management Strategy

43. Traveler's
Rank
Traveler
Name or ID
Trip Friction
Points, 12
Month Total
Percentile
Rank, Our
Firm
Percentile
Rank, All
Firms Q1 Q2 Q3 Q4
Trend,
Last 6
Months
1 Jori 22,560 96% 89%
2 Jana 21,730 95% 88%
3 Jamie 21,690 95% 88%
4 Jon 20,370 95% 88%
5 Jerry 18,650 92% 85%
6 Jayesh 18,120 92% 85%
7 Jules 17,600 88% 81%
8 Jhana 17,360 88% 81%
9 Jim 16,920 84% 77%
10 Jesper 16,840 84% 77%
Traveler's Trip Friction Points
AnnualTraveler Ranking and Quarterly Friction
Track traveler progress internally and
against benchmarks

44. 8.1
10.9
6
7
8
9
10
11
12
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
TripFrictionIntensityScore
Trip Friction IntensityTrends
Benchmark Our Firm
Monitor your entire program’s friction
footprint against the benchmark

45. Metrics
Turnover
Engagement Scores
Health Costs
Sales
Productivity
Customer Satisfaction
High Friction
Travelers
+9%
-11%
+7%
-12%
-8%
+15%
Add these metrics to your
travel program’s KPIs

46. UseTrip Friction to deliver new
value to your business
2.6%
LowerTurnover
High Scores Low Scores
Stronger
Engagement
LowerTotal
Cost of
Travel

47. In Summary
• ManagedTravel 1.0 has peaked
• We need ships, not castles
• Traveler friction is a new frontier
• Find out if traveler friction matters in your firm
• Add new business metrics to travel program KPIs
• UseTrip Friction™ to deliver new value to your firm
Thank you!
Scott Gillespie
scott@tclara.com
Follow “Gillespie’s Guide to
Travel+Procurement”
Glad to connect on LinkedIn