Evan Konwiser and Scott Gillespie presented their updated views on Managed Travel 2.0 at GBTA's Global Convention in 2013. New content: Definition of Managed Travel 2.0; a schema for a unified, channel agnostic view for managing travel; core elements of the Managed Travel 2.0 framework; flowchart for greenlighting an open booking, and signs of the industry accomodating the MT 2.0 framework

1. The End and Future
of Managed Travel
July, 2013
Sponsored by
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2. For travel and
procurement
managers and
consultants
Powered by Diio technology
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Fast, unbiased
and expert
answers
Procurement
Analytics
Travel Policy
Analysis
Trip Friction
Benchmarking
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3. Early authors of the Managed
Travel 2.0 framework
Who are we?
Scott Gillespie
Evan Konwiser
• Co-Founder, tClara
• Founder, former CEO of Travel
Analytics and co-founder of
Farely
• Author, “Gillespie’s Guide to
Travel + Procurement”
• Expert in travel procurement
and analytics
• Consultant, speaker, trainer
• Formerly of A.T. Kearney
• MBA, University of Chicago
• Consultant, entrepreneur, and
advisor
• Co-founder of Farely
• Co-founder, FlightCaster, sold to
Next Jump in 2010
• Consultant in corporate and
leisure travel
• Expert in travel and technology
• Formerly of Bain & Co. and
Kayak
• MBA, Dartmouth
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4. Little change in
100 years
1/8/2014
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Gillespie’s Guide to Travel+Procurement
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5. Historic drivers of Managed Travel 1.0
• 1994: Delta caps commissions, triggers TMC
transaction fees and cost center approach
• 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 – and data - a high priority
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6. After 20 years, best practices
are well known








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
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7. But MT 1.0 has diminishing returns
T&E Spend
$$$
20% of Spend
Worth going after?
$
City pairs, or hotels, or travelers, or trips
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8. Trip costs have been mastered
The castles
have been built
High
Costs
Trip Cost
None
Harsh
Travel Policy
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9. Solid, safe, enduring –
a valuable base
Immobile,
inflexible

10. Winds of change are here
• Consumerization has arrived
• Traveler demands are shifting
• Business travel industry is adapting
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12. Staggering statistics
50b app downloads in 2012,
going to 100b by 2015
30% more time spent on
mobile than desktop
Only device with faster adoption than iPhone:
iPad
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13. Impact in the workplace
70%
Employees use personally owned devices
to access company data and systems
Source: IDC
Bring Your Own
Device (BYOD)
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14. Bring Your Own Travel Tools (BYOTT)
Hotel Tonight
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15. 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
3.
BUT…GBTA’s study update in 2013 recants
some of their findings….
Source: GBTA’s report “Global Business Traveler 2012”
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16. Online booking started this trend
Pushing hard on
online adoption
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Has forced the
hand in
self-dependence
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17. What has this led to?
Travelers themselves are the
“Chief Decision Makers”
of their own travel experience
Note: As described by Barry Padgett at Concur Fusion 2013
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18. Trip costs have been mastered
High
Costs
Trip Cost
Loose
Source: Scott Gillespie
Tight
Travel Policy
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19. Hidden but real cost of trip friction
Trip Friction
High
Total Trip Cost
Costs
• Lost productivity
• Reluctance to travel
• Negative impacts on
recruiting & retention
•Traveler health issues
Trip Cost
Loose
Source: Scott Gillespie
Tight
Travel Policy
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20. Optimization Strategies
Publish
and
Punish
or
Teach
and
Trust
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21. Teaching and trusting travelers is
essential in MT 2.0
1.
2.
3.
4.
Shop anywhere – period.
Book anyone – so long as the supplier is safe
Book anywhere – so long as employer gets
the data fast
Book anything – so long as the trip is in
budget
Source: Scott Gillespie and Evan Konwiser, 2012
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22. Where does MT 2.0 go from here?
We convened a group to discuss just that.
The Managed Travel 2.0 Advisory Group
~18 Representatives met in Chicago
Large travel buyers
Medium travel buyers
Mega and regional TMCs
Airline, Hotel, Car Rental firms
Technology intermediaries
Travel distribution start-up
Workshop hosted by Glenn Hollister, Principal at ZS Associates
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23. Yesterday’s View
Unmanaged
Managed
TMC Booking (MT1.0)
Brand.com or
Personal TMC
GDS/CBT/TMC
Data/Safety & Policy
Discounts / Amenities
Service
Corporate Card
Personal Card
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24. Today’s View
Unmanaged
Unified, channelagnostic view of all travel
Managed Travel 2.0
Managed
TMC Booking (MT1.0)
Brand.com or
Personal TMC
GDS/CBT/TMC
Managed
non-TMC Booking
Brand.com / OTA
Data/Safety & Policy
Discounts / Amenities
Service
Data/Safety & Policy
Discounts / Amenities
Service
Corporate Card
Corporate Card
Personal Card
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25. Definition of Managed Travel 2.0
“Comprehensive management of
corporate travel and spend while
reducing restrictions on traveler
choice.”
Managed Travel 2.0 Advisory Group
July 2013
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26. Key Principles: Traveler Choice
+ Buyer Visibility
Allow travelers increased flexibility
about where and what to book, thereby
allowing them to optimize their own
travel decisions, without compromising
the ability of corporate travel buyers to
manage spend and provide service
Managed Travel 2.0 Advisory Group
July 2013
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27. The Expanded MT 2.0 Landscape
Brand.com,
OTA
Right to edit or
cancel the booking
Corporate
Booking
Data
Corporate
Traveler
Corporate TMC
Trip
Changes
Everybody is
happy!
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28. When to greenlight an open booking
1/8/2014
COPYRIGHT 2013 Gillespie’s Guide to Travel+Procurement
SCOTT GILLESPIE AND EVAN KONWISER
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29. Core elements of MT 2.0 framework
•
•
•
•
•
•
•
Informed travelers: Educated and trusted to optimize
Data: Delivered to buyer near real-time
Safety: Better, due to expanded visibility
Policy: Still sets expectations and influences behavior
Preferred pricing & amenities: Available in all channels
Service: Open to the TMC, regardless of channel
Optimization: Cost and friction data to budget owners
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30. Our industry is adapting
•
•
•
•
•
Concur makes Open Booking a strategic priority
NEC Europe pilots Open Booking out of frustration
with internet fares
Egencia redesigns hotel booking tool to highlight
traveler’s definition of value
Gray Dawes (UK TMC) removes hotel booking fees
Sabre announces TruTrip to capture and serve open
bookings.
“This is the next step in managed travel.”
- Sabre SVP Chris Kroeger
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31. In a nutshell, MT2.0 is a shift in the
focus of the industry
Away from Transactions and Channel
as the core
And on to Choice and Data
as the new focus
But much remains intact: Policy, discounts,
duty of care, expense management,
business intelligence, etc.
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32. What we are NOT saying…
• That policies will go out the window
 Only certain mandates
• That 100% of programs will do this now
 But the emerging norm
• That our industry will be kaput
 Call it: “Reoptimized”
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33. TMC stands for
Traveler
Management
Company
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34. The
Traveler’s
View
of
Managed Travel
Changes
from
this
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35. to
this
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36. What’s next?
Trip Friction
Benchmarking?
Fill in the tClara card
Join the “Managed
Travel 2.0” discussion
group on LinkedIn
Evan Konwiser
ekonwiser@gmail.com
@evankonwiser
Scott Gillespie
scott@tclara.com
@gillespie411
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