january 8, 2014 trends in managed travel · consolidate travel data and reporting comply with duty...

TRENDS IN MANAGED TRAVEL What’s changing & how to respond

January 8, 2014


Who am I?

• Intersection of corporate & leisure travel • Founder of FlightCaster and Farely • Ran travel at Next Jump • Consultant to airlines, agencies, tech • Advisor to dozen+ start-ups • Write for tnooz, PhoCusWright Innovation Critic • TheBeat contributor and speaker • Formerly on ACTE board

PRIVATE AND CONFIDENTAL – COPYRIGHT 2014 EVAN KONWISER 5

Where we’re headed

Three major trends

Optimization dilemma

Mobile as battlefield

Consumerization

Winds of Change

The Past


Little change in 100 years

6 Source: Scott Gillespie


• 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

Historic drivers of Managed Travel

Source: Gillespie & Konwiser


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

After 20 years, best practices are well known

Source: Gillespie & Konwiser


The castles have been built

Travel Policy

None Harsh

High

Costs

Trip Cost

Trip costs have been mastered

Source: Scott Gillespie

Solid, safe, enduring – a valuable base

Immobile, inflexible


The winds of change are here…

Supplier relationships evolving

Consumer marketing advancing

Traveler expectations shifting


Current state of IT: The changing workforce

Source: “Get Ready: The Millennials Are Coming!”, Forrester Research, Inc, September 2005

Veterans (1922-1945)

Company loyalty

Boomers (1946-1964)

Financial success

GenY-Millennials (1980-2000)

Personalized work

Gen X (1965-1979)

Strongly independent


Ten key Gen Y characteristics

6. Enjoy absurdity and odd humor

7. Embrace a variety of subcultures

8. Skim text and information quickly

9. Easily bored

10. Expressive and digitally creative

1. Continually connected

2. Speak their own language

3. Skeptical of authority

4. Influenced by peers

5. Seek recognition and fame


In travel, age impact is big

47 41

0

5

10

15

20

25

30

35

40

45

50

2004 2011

Source: BTN, NBTA

Average age of a business traveler


In travel, mobile impact is big

95% 64%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Smartphone Tablets

Source: PremierComm, 2013

Percent of business travelers that have device


Mobile is disrupting many industries

Photography

Games

Books

Travel

News


In 2007, we thought of mobile as extension to web-based businesses

-By 2010, we knew mobile was mandatory

In 1995, we thought of the web as extension to brick-and-mortar stores

-By 2000, we knew web-only was the future for many

In 2012, we recognized mobile-only as viable, if not preferred

-Now in 2014, we also see that mobile-led design and development is preferred. We’ll adapt desktop to fit mobile design imperatives, not vice versa.

Progression of mobile


Staggering statistics

100b 2015

50b 2012

App downloads 30% more time spent on

mobile than desktop

Only device with faster adoption than iPhone:

iPad


70% Employees use personally owned devices

to access company data and systems Source: IDC

Impact in the workplace also

Bring Your Own Device (BYOD)


Bring Your Own Travel Tools (BYOTT)


Pent up demand for tools

Many of these tools already available via

popular consumer and supplier tools


Corporate travel tools have competition


Ship has sailed, regardless of age

Source: BTN, October 2012

Travelers of all ages already doing many things on mobile


And if we don’t get what we want…

Source: Marketing Exchange, Sep 2013

PRIVATE AND CONFIDENTAL – COPYRIGHT 2014 EVAN KONWISER Source: Travelport / ACTE study, Sep 2013

Little guidance from travel programs

37% don’t encourage use of unauthorized travel apps

7% Don’t allow travelers to use apps

32% Don’t have any

policy pertaining to apps

24% Encourage use of travel apps

PRIVATE AND CONFIDENTAL – COPYRIGHT 2014 EVAN KONWISER Source: BTN Mobile Report, April 2013

Little guidance means unhappy travelers

Majority of travelers are dissatisfied

Only 6% are “Very Satisfied”


Online booking started this trend

Pushing hard on online adoption

Has forced our hand in self-dependence


Mobile is the new battlefield

Little company oversight More impulsive action

Full company oversight More planned decisions

Travelers themselves are the

“Chief Decision Makers”

of their own travel experience

What has this led to?

Note: As described by Barry Padgett at Concur Fusion 2013


Trip’s Expected Benefit

vs.

Trip’s Cost, net of

Policy Savings and Trip Friction Costs

The real Optimization Problem


Introducing Trip Friction

• Lost productivity • Reluctance to travel • Negative impacts on recruiting & retention

Red-eyes Layovers Delays Coach class Regional Jets Lost personal time Time zones crossed Nights away


34

Trip costs have been mastered

Travel Policy Loose Tight

High

Costs

Trip Cost



Travel Policy Loose Tight

High

Costs

Trip Cost

Total Trip Cost Trip Friction

Hidden but real cost of trip friction



Leading to optimization dilemma

Traveler Central Travel Manager

vs. Traveler’s Manager

Travel budget owner

Procurement / CFO

TMC

Who should make decisions about travel?


“Comprehensive management of corporate travel and spend while reducing restrictions on traveler choice.”

Definition of Managed Travel 2.0

Managed Travel 2.0 Advisory Group July 2013


Unmanaged

Brand.com or Personal TMC Personal Card

Yesterday’s View

Data/Safety & Policy Discounts / Amenities Service Corporate Card

Managed TMC Booking (MT1.0)

GDS/CBT/TMC


Unmanaged

Brand.com or Personal TMC Personal Card

Today’s View


Managed TMC Booking (MT1.0)

GDS/CBT/TMC

Managed Travel 2.0


Brand.com / OTA

Managed non-TMC Booking

Unified, channel-agnostic view of all travel


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

Key Principles: Traveler Choice + Buyer Visibility

Managed Travel 2.0 Advisory Group July 2013


1. Consumerization by traveler

2. Platform by provider

3. Empowerment by manager

Three biggest trends shaping our world


Travelers are using their own tools

to manage travel, empowered to

make more decisions on their own.

1. Consumerization


Mobile gains steam: OTA share

• Mobile growing from 3% of bookings just 2 years ago, to 21% expected in 2014

• 80% of mobile booking revenue is for hotels


Mobile gains steam: Hotelier share

• For hotel suppliers, the numbers are also bullish on mobile

• 60% of mobile bookings are for hotels within 72 hours (last minute)


Itinerary Managers Flight Trackers / Flight Aid

Examples: WorldMate, TripIt, TripCase

Key Functions: Parsing itineraries, Storing all aspects of itineraries for quick reference, itinerary alerts

Integrations: Itineraries updates (from e-mail parsing, inbox scraping, or API)

Examples: FlightTrack Pro, Seat Guru, Seat Alerts, Gate Guru

Key Functions: Information about flights, including seats, delays, gates; Information about airport experience

Integrations: Itinerary feed, if any

Tools travelers are using


Flight / Hotel Searches Ground Transportation

Examples: Kayak, Hipmunk, Hotel Tonight, Orbitz

Key Functions: Searching (and booking) air and / or hotels, including last minute booking, alternative flight schedules, etc.

Examples: Groundlink, Taxi Magic, Uber, ZipCar

Key Functions: Ground transport options, real-time or advanced, from a variety of options ranging from one limo network, to driver-initiated to rental cars

Integrations: Itinerary and expense feed, if any, enterprise contracts in some cases

Integrations: None. Expense feed if booking enabled



Language

Examples: TripLingo, Verbalize It

Key Functions: Translation services to help travelers abroad navigate language issues via the app or connection to a live translator

Integrations: Enterprise contracts and expense integration, if any


Connectivity

Examples: GoGo, iPass, Boingo

Key Functions: Giving wifi connectivity in spots not known for coverage, like airports, restaurants, and on airplanes

Integrations: Buying enterprise licenses and expense integration.



Telephony

Examples: Skype, iMobb, TruPhone, Google Voice

Key Functions: Allowing telephone connectivity via internet when abroad, which means free over wifi


Expense & Finance

Examples: OneReceipt, Mint, and Lemon

Key Functions: Tabulating expenses, keeping track of receipts, synching to expense systems, holding onto loyalty cards, etc.



Food & Entertainment

Examples: Yelp, Groupon, OpenTable, Urban Daddy “The Next Move”, Seamless

Key Functions: Locating, reviewing, ordering, and reserving food & entertainment options while traveling, including deals

Integrations: Expense and itinerary feeds if possible.



New Fangled

Examples: AirBnB, Lyft, SideCar,

Key Functions: Newer tools focus on the “sharing” economy, such as AirBnB and Lyft, which allow you to rent someone's home or get a ride from someone with a car

Integrations: None. Expense and itinerary feeds if possible. Check risk and liability before promoting to travelers



2. Platform

Technology providers are building

platforms to provide services,

unbundling as they go.


Away from Transactions and Channel as the core

And on to Choice and Data as the new focus

A shift in the focus of the industry

But much remains intact: Policy, discounts, duty of care, expense management,

business intelligence, etc.


OTAs / Brand.com

Corporate Booking

Data

TMC

Managed travel as platform around data

OBT

Travel Suppliers

Analytics Tech

suppliers

Service


TMC stands for

Traveler Management

Company


• Concur pushing the “T&E Cloud” of services, integrates with many 3rd parties; Concur buys GDSX and adopts TripLink platform for open booking

• Sabre announces TruTrip to capture open bookings.

• Amex partners with Sabre, opens up mobile world

• BCD partners with routeRank for point to point experience

• Shorts Travel Management develops “BookIt” to allow shopping anywhere

• Carlson Wagonlit buys WorldMate, makes it a branded offering but keeps it separate

• Suppliers start talking about offering corporate fares direct.

Our industry is adapting


New mobile platforms

+

+


What are the TMCs doing?

TMC Current Mobile Solution / Plan

Proprietary play, just launching

TripCase white label, others?

WorldMate acquisition

Mobile web, redesign in testing

Mobile web

Brand new mobile experience


3. Empowerment

Travel managers empowered to

use a wider set of tools to manage

spend and keep travelers happy


Travel Manager Chief Travel Enabler

Empowered to manage consumerization


• Look to consumer tech

• Outsource

• Open-Up!

• Traveler Above All

How to manage consumerization?


http://www.tnooz.com/newsletter/

Look to consumer tech


Outsource


Open Up!


Traveler Above All


of

The Traveler’s View

Changes

Managed Travel


to

this


Evan Konwiser

[email protected] @evankonwiser

Thank You!


Appendix


Mobile Program

really

LOOK LIKE ?

What does a

What now?

Looking for the value in mobile

70

• Custom messaging

• Custom content

• Compliant booking

• Lower cost & superior

service

• Tracking & Duty of Care

• Itinerary synch

• Flight alerts and

disruption servicing

• Flash deals & promos

• Simple booking

• Service via phone / IM

Traveler value

Corporate value

• No upkeep • No worries

• Travel manager tools

Spectrum of options

Managed Un-Managed

• No integration • No hassle

• Better traveler experience

Spectrum of options

Managed Un-Managed

Free for all BYOTT

Curated list of tools

Preload tools on company devices

One-off integrations

TMC-led integrations

Closed platform

Spectrum of options

Managed Un-Managed

Step 1: Simple Itineraries

Step 2: Two Way Exchange

Step 3: Full Transactions

• Forwarding confirmation e-mails

• Auto inbox scrape • Data feed via API

• Tracking • Messaging • Servicing

• Policy compliant • Expense integrated

• CTD, IT help if necessary

• CTD & TMC collaboratively

• CTD, TMC, Expense tool, booking tool

What does integration look like?


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”

Hard evidence from GBTA


• 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”

What we are NOT saying…


• 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

Platform is core element of MT 2.0

january 8, 2014 trends in managed travel · consolidate travel data and reporting comply with duty...

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