Managed Travel 2.0:Explanation and ImplicationsScott GillespieIndustry ObserverGillespie’s Guide to Travel + Procurement
|MT 2.0 Perspectives fromCo-Founder,FlightCaster, sold toNext JumpIndependent consultantin corporate and leisuretravelExpe...
ManagedTravel 2.0Trendy topic, orstrategic shift?What is it?What are theimplications?
ManagedTravel 2.0What is it?
Travel PolicyExpense Report
|The Cost of Traveler FrictionTravel PolicyLoose TightHighCostsTrip CostTraveler FrictionTotal Trip Cost• Lost productivit...
|Economic Rationale for MT 2.0Travel PolicyLoose TightHighCostsFlatter Program SavingsStronger Traveler FrictionTotal Trip...
|The Optimization ProblemTrip’s Expected Benefitvs.Trip’s Cost, net ofPolicy Savings andTraveler Friction
|Optimization CandidatesCan OptimizeTravelerTraveler’s ManagerTravel Budget OwnerCannot OptimizeTravel ManagerProcurement ...
|The Optimization ProblemTrip’s Expected Benefitvs.Trip’s Cost, net ofPolicy Savings andTraveler Friction
Logic of TravelManagementMT 2.0 springs from this conflictArt ofTravelingVs.
|Key Principles of MT 2.01. Shop anywhere – period.2. Book anyone – so long as thesupplier is safe3. Book anywhere – so lo...
ManagedTravel 2.0Trendy topic, orstrategic shift?
|Change Is HappeningStrong personal preferencesBut - significant security issuesand resistance from domain expertsMany opt...
|Bring Your Own Travel ToolsHotel Tonight
|Freedom works in other industriesFree RangeChickensChickens Travelers
Culture of ControlLow and LightHigh and TightSavings&PoliciesBudgets &SatisfactionPriorityWhich Companies Are Ready for MT...
Culture of ControlLow and LightHigh and TightSavings&PoliciesBudgets &SatisfactionPriorityYES!NO!MaybeToday’s Market for M...
|3 Requirements forGrowth ofManaged Travel 2.0
Robust Data AcquisitionShort’s BookItProcureAppKDS’s MaverickConcur’s Open BookingGDSX’s TripLinkConTgo
ThawCulturesInCorporate
EvidenceValueof
|Hard Evidence from GBTA1) Unmanaged travelers feel moresuccessful at getting convenientand comfortable trips- and at gett...
UnmanagedtripsManagedtripsHow??
|Conclusion:Free RangeTravelersareHappier, Healthierand Cheaper
ManagedTravel 2.0What are theimplications?
Traveler WelfareReshapes TravelPolicies•Safety•Productivity•Satisfaction
Budgets are more importantthanSavings
New Metrics for____Trip Value
The data channel trumps the booking channelDataChannelstrumpBookingChannels
Corporate Booking Toolsneedbetterjuice-to-squeeze__ratios
GDSs loseto Brand.com sitestransaction volumes
Travel ManagersCollaborateChampionCoach
SuppliersBrand ValuePackagesdisplace corporatediscounts
Payment Providersbecomeessentialdatasuppliers
TMCsreplaced byBrandbenchmarkingPricebenchmarking
TMCshave a windowTravel Datato become thehub
TMCsmorph intoTravelerfeesBooking feesSecurity andService
TMC stands forTravelerManagementCompany
ofThe Traveler’sViewChangesManaged Travel
tothis
Now for some discussion,debate, and dissentThank you!Evan Konwiserekonwiser@gmail.com@evankonwiserScott GillespieScott.gil...
1 = Very Unsuccessful, 5 = Very SuccessfulMandates Guidelines UnmanagedHaving Right Technology 3 4 5 YesFeeling Safe 5 5 5...
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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. 1. Managed Travel 2.0:Explanation and ImplicationsScott GillespieIndustry ObserverGillespie’s Guide to Travel + Procurement
  2. 2. |MT 2.0 Perspectives fromCo-Founder,FlightCaster, sold toNext JumpIndependent consultantin corporate and leisuretravelExpert in travel andtechnologyFormerly of Bain & Coand KayakMBA, DartmouthFounder, former CEO ofTravel AnalyticsAuthor, “Gillespie’s Guideto Travel + Procurement”Expert in travelprocurement, analyticsConsultant, speaker,trainerFormerly of A.T. KearneyMBA, Univ. of ChicagoEvan KonwiserScott Gillespie
  3. 3. ManagedTravel 2.0Trendy topic, orstrategic shift?What is it?What are theimplications?
  4. 4. ManagedTravel 2.0What is it?
  5. 5. Travel PolicyExpense Report
  6. 6. |The Cost of Traveler FrictionTravel PolicyLoose TightHighCostsTrip CostTraveler FrictionTotal Trip Cost• Lost productivity• Reluctance to travel• Recruiting, retentionSource: Scott Gillespie
  7. 7. |Economic Rationale for MT 2.0Travel PolicyLoose TightHighCostsFlatter Program SavingsStronger Traveler FrictionTotal Trip CostSource: Scott Gillespie
  8. 8. |The Optimization ProblemTrip’s Expected Benefitvs.Trip’s Cost, net ofPolicy Savings andTraveler Friction
  9. 9. |Optimization CandidatesCan OptimizeTravelerTraveler’s ManagerTravel Budget OwnerCannot OptimizeTravel ManagerProcurement Mgr.TMCa ConvenientFiction
  10. 10. |The Optimization ProblemTrip’s Expected Benefitvs.Trip’s Cost, net ofPolicy Savings andTraveler Friction
  11. 11. Logic of TravelManagementMT 2.0 springs from this conflictArt ofTravelingVs.
  12. 12. |Key Principles of MT 2.01. Shop anywhere – period.2. Book anyone – so long as thesupplier is safe3. Book anywhere – so long asemployer gets the data fast4. Book anything – so long as thetrip is in budget5. Pay with the corporate cardSource: Scott Gillespie and Evan Konwiser, 2012
  13. 13. ManagedTravel 2.0Trendy topic, orstrategic shift?
  14. 14. |Change Is HappeningStrong personal preferencesBut - significant security issuesand resistance from domain expertsMany options in the marketBring YourOwnDevice(BYOD)
  15. 15. |Bring Your Own Travel ToolsHotel Tonight
  16. 16. |Freedom works in other industriesFree RangeChickensChickens Travelers
  17. 17. Culture of ControlLow and LightHigh and TightSavings&PoliciesBudgets &SatisfactionPriorityWhich Companies Are Ready for MT 2.0?YES!NO!Maybe
  18. 18. Culture of ControlLow and LightHigh and TightSavings&PoliciesBudgets &SatisfactionPriorityYES!NO!MaybeToday’s Market for MT 2.0?NO!MaybeYES!
  19. 19. |3 Requirements forGrowth ofManaged Travel 2.0
  20. 20. Robust Data AcquisitionShort’s BookItProcureAppKDS’s MaverickConcur’s Open BookingGDSX’s TripLinkConTgo
  21. 21. ThawCulturesInCorporate
  22. 22. EvidenceValueof
  23. 23. |Hard Evidence from GBTA1) Unmanaged travelers feel moresuccessful at getting convenientand comfortable trips- and at getting the best prices2) Unmanaged trips cost 3% lessthan those under “Guideline” travelpolicies. Wow.Source: GBTA’s report “Global Business Traveler 2012”
  24. 24. UnmanagedtripsManagedtripsHow??
  25. 25. |Conclusion:Free RangeTravelersareHappier, Healthierand Cheaper
  26. 26. ManagedTravel 2.0What are theimplications?
  27. 27. Traveler WelfareReshapes TravelPolicies•Safety•Productivity•Satisfaction
  28. 28. Budgets are more importantthanSavings
  29. 29. New Metrics for____Trip Value
  30. 30. The data channel trumps the booking channelDataChannelstrumpBookingChannels
  31. 31. Corporate Booking Toolsneedbetterjuice-to-squeeze__ratios
  32. 32. GDSs loseto Brand.com sitestransaction volumes
  33. 33. Travel ManagersCollaborateChampionCoach
  34. 34. SuppliersBrand ValuePackagesdisplace corporatediscounts
  35. 35. Payment Providersbecomeessentialdatasuppliers
  36. 36. TMCsreplaced byBrandbenchmarkingPricebenchmarking
  37. 37. TMCshave a windowTravel Datato become thehub
  38. 38. TMCsmorph intoTravelerfeesBooking feesSecurity andService
  39. 39. TMC stands forTravelerManagementCompany
  40. 40. ofThe Traveler’sViewChangesManaged Travel
  41. 41. tothis
  42. 42. Now for some discussion,debate, and dissentThank you!Evan Konwiserekonwiser@gmail.com@evankonwiserScott GillespieScott.gillespie2008@gmail.com@gillespie4111
  43. 43. 1 = Very Unsuccessful, 5 = Very SuccessfulMandates Guidelines UnmanagedHaving Right Technology 3 4 5 YesFeeling Safe 5 5 5Policy Compliance 4 4 4Budget Compliance 4 4 4Comfort and Convenience 2 2 3 YesGetting Best Prices 2 3 4 YesInteresting and EnjoyableTrips2 2 4 YesEarning Points and Using MyPreferred Suppliers2 3 5 YesMinimizing My CarbonFootprint1 1 1Is UnmanagedBetter?Source: Scott Gillespie’s analysis of GBTA’s report “Global Business Traveler 2012”How Successful Are You at Achieving YourGoals?

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