The End and Futureof Managed TravelScott GillespieGillespie’s Guide to Travel+Procurement
• Managed Travel 1.0• Winds of Change• The Optimization Problem• It’s Time for a New Approach• New Frontiers• Discuss and ...
• 1994: Delta caps commissions, triggers TMCtransaction fees and cost center mentality• Late 90’s: Corporate online bookin...
MT 1.0 has diminishing returnsGillespie’s Guide to Travel+ProcurementCountriesT&E Spend$$$$20% of Global T&E SpendWorth go...
Gillespie’s Guide to Travel+ProcurementAirlinesAir Spend$$$$20% of Air SpendWorth going after?MT 1.0 has diminishing returns
Gillespie’s Guide to Travel+Procurement$$$$20% of SpendWorth going after?SpendCity pairs, or hotels, or travelers, or trip...
 Consolidate TMCs Consolidate T&E card programs Consolidate travel data and reporting Comply with duty of care Use KP...
Trip costs have been masteredGillespie’s Guide to Travel+ProcurementThe castleshave been builtTravel PolicyNone HarshHighC...
Solid, safe, enduring –a valuable baseImmobile,inflexible
notCastlesShipsWe need
Where are the new frontiers?
 Global networks create greater competitionfor good talent iPhone culture impacts more than Gen Y User experience drive...
The optimization problemTravel PolicyNone HarshHighCostsTrip Cost• Lost productivity• Reluctance to travel• Recruiting, re...
The optimization problemTravel PolicyNone HarshHighCostsTrip CostTotal Trip CostTraveler FrictionThe Great Unknown
To date… Best practices are well known Mature programs deliver diminishingreturns New forces are at work Half of the t...
it’s timenewapproachfor a
Where are the new frontiers?
Brand.com to CDE is a new frontierBrand.comCorporateTravelerCorporateBookingData Traveler’sExpenseReportNet ofDiscounts“B2...
Edit Rights are a new frontierCorporateTravelerBrand.comCorporateBookingDataCorporateTMCRight to edit orcancel thebookingE...
Managed Travel 2.0 is a new frontier1. Shop anywhere – period.2. Book anywhere –so long as data is captured quickly3. Book...
22Traveler Dashboards are a new frontier
Door to doorTrip Tailoring is a new frontier
Detailed Expense EstimateDetailed Trip Itinerary Door to door
2 3-4 5-8 9-16 17-32 33-64 65+122% of trips taken byinfrequent travelersWho needs Trip Tailoring?Source: Scott Gillespie’s...
Travel Budget Owners are a new frontierTrip CostTravelerFrictionGood tripsresultsWithin mybudget
Traveler Friction is a new frontierTravel PolicyNone HarshHighCostsTrip CostTraveler Friction• Frustration, Stress• Safety...
Traveler FrictionNone HighSalesHighEffectiveRangeTraveler Friction’s Impact on Sales
Traveler FrictionNone HighHighEmployeeAttritionTraveler Friction’s Impact on AttritionAcceptable Range
Traveler FrictionNone HighTraveler Friction’s Ideal RangeHR’s InputSales Input
Traveler FrictionNone HighTraveler Friction’s Optimal Range forSales PeopleOptimalRange35pts 55 pts
Better Management of SalespeopleBowden, Christina 84Barton, Elsie 82Goldstein, Gretchen 78Watts, Tim 77Merritt, Shirley 77...
Trip CostThe FutureTraveler FrictionThe Past
Implicationsof ChangeGillespie’s Guide to Travel+Procurement
For Travel ManagersTrip costs Business impact
For Travel SuppliersTravel buyers Travelers andbudget owners
As you make the transition
Embrace the journeyShare your discoveries!
Thank you!Scott Gillespie+1 216 272 1637Scott.Gillespie2008@gmail.comGlad to connect on LinkedIn
The End and Future of Managed Travel
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The End and Future of Managed Travel

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After 20 years of professional management, the corporate travel category has reached the point of diminishing returns. It needs to explore new frontiers, ones that use new technologies and new principles. This deck describes those new frontiers.

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The End and Future of Managed Travel

  1. 1. The End and Futureof Managed TravelScott GillespieGillespie’s Guide to Travel+Procurement
  2. 2. • Managed Travel 1.0• Winds of Change• The Optimization Problem• It’s Time for a New Approach• New Frontiers• Discuss and DebateWhere we’re headed
  3. 3. • 1994: Delta caps commissions, triggers TMCtransaction fees and cost center mentality• Late 90’s: Corporate online booking toolsput travel policies in spotlight• 2007: UK’s Corporate Manslaughter Actmakes duty of care a high priorityStrategic drivers of MT 1.0
  4. 4. MT 1.0 has diminishing returnsGillespie’s Guide to Travel+ProcurementCountriesT&E Spend$$$$20% of Global T&E SpendWorth going after?
  5. 5. Gillespie’s Guide to Travel+ProcurementAirlinesAir Spend$$$$20% of Air SpendWorth going after?MT 1.0 has diminishing returns
  6. 6. Gillespie’s Guide to Travel+Procurement$$$$20% of SpendWorth going after?SpendCity pairs, or hotels, or travelers, or tripsMT 1.0 has diminishing returns
  7. 7.  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 programsAfter 20 years, best practices for MT 1.0are well known
  8. 8. Trip costs have been masteredGillespie’s Guide to Travel+ProcurementThe castleshave been builtTravel PolicyNone HarshHighCostsTrip Cost
  9. 9. Solid, safe, enduring –a valuable baseImmobile,inflexible
  10. 10. notCastlesShipsWe need
  11. 11. Where are the new frontiers?
  12. 12.  Global networks create greater competitionfor good talent iPhone culture impacts more than Gen Y User experience drives brand loyalty,especially in travel Travel suppliers have stronger, moreinsightful pricing and packaging power Greater emphasis on traveler well-beingWinds of Change
  13. 13. The optimization problemTravel PolicyNone HarshHighCostsTrip Cost• Lost productivity• Reluctance to travel• Recruiting, retentionproblemsTotal Trip CostTraveler Friction
  14. 14. The optimization problemTravel PolicyNone HarshHighCostsTrip CostTotal Trip CostTraveler FrictionThe Great Unknown
  15. 15. To date… Best practices are well known Mature programs deliver diminishingreturns New forces are at work Half of the travel optimization problemis not well understood
  16. 16. it’s timenewapproachfor a
  17. 17. Where are the new frontiers?
  18. 18. Brand.com to CDE is a new frontierBrand.comCorporateTravelerCorporateBookingData Traveler’sExpenseReportNet ofDiscounts“B2CDE”
  19. 19. Edit Rights are a new frontierCorporateTravelerBrand.comCorporateBookingDataCorporateTMCRight to edit orcancel thebookingEverybody ishappy!TripChangesNet ofDiscounts
  20. 20. Managed Travel 2.0 is a new frontier1. Shop anywhere – period.2. Book anywhere –so long as data is captured quickly3. Book anybody –so long as suppliers are safe4. Book anything –so long as it is in budget
  21. 21. 22Traveler Dashboards are a new frontier
  22. 22. Door to doorTrip Tailoring is a new frontier
  23. 23. Detailed Expense EstimateDetailed Trip Itinerary Door to door
  24. 24. 2 3-4 5-8 9-16 17-32 33-64 65+122% of trips taken byinfrequent travelersWho needs Trip Tailoring?Source: Scott Gillespie’s analysis of an anonymous data set
  25. 25. Travel Budget Owners are a new frontierTrip CostTravelerFrictionGood tripsresultsWithin mybudget
  26. 26. Traveler Friction is a new frontierTravel PolicyNone HarshHighCostsTrip CostTraveler Friction• Frustration, Stress• Safety, security• Lost productivity• Reluctance to travel• Recruiting, retentionproblems
  27. 27. Traveler FrictionNone HighSalesHighEffectiveRangeTraveler Friction’s Impact on Sales
  28. 28. Traveler FrictionNone HighHighEmployeeAttritionTraveler Friction’s Impact on AttritionAcceptable Range
  29. 29. Traveler FrictionNone HighTraveler Friction’s Ideal RangeHR’s InputSales Input
  30. 30. Traveler FrictionNone HighTraveler Friction’s Optimal Range forSales PeopleOptimalRange35pts 55 pts
  31. 31. Better Management of SalespeopleBowden, Christina 84Barton, Elsie 82Goldstein, Gretchen 78Watts, Tim 77Merritt, Shirley 77Dougherty, Kristine 66Steele, Eric 60May, Alex 55Jones, William 50Bender, Hazel 48Chung, Donald 43Underwood, Harvey 41Teague, Wesley 35Hamilton, Elsie 29Walsh, Marcia 25Vick, Franklin 20Encouragemore travelReduce travel friction:- fewer trips?- better trips via policyexceptions?
  32. 32. Trip CostThe FutureTraveler FrictionThe Past
  33. 33. Implicationsof ChangeGillespie’s Guide to Travel+Procurement
  34. 34. For Travel ManagersTrip costs Business impact
  35. 35. For Travel SuppliersTravel buyers Travelers andbudget owners
  36. 36. As you make the transition
  37. 37. Embrace the journeyShare your discoveries!
  38. 38. Thank you!Scott Gillespie+1 216 272 1637Scott.Gillespie2008@gmail.comGlad to connect on LinkedIn

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