Does The Means Justify The End-to-End Solution?

“Or, assessing the value of integrating everything versus not doing so, looking at the benefits and costs of such integration. “

Our Expert Witness :Mark Avery Global Business Services & Travel Leader PwCPeter Sijbers Senior Sourcing Specialist PhilipsYour moderator :Jean-Michel Kadaner CEO Key Corporate Solutions

BUSINESS TRAVEL TECHNOLOGY DAY

“Constant changes in the travel industry and customer needs have shown the “one size fits all” approach no longer applies to travel management. With the ever-growing technological services and the complexity of choosing the right one, travel knowledge and expertise have become invaluable.” CPO Multinational Company

“Travel Management has grown with leaps and bounds. It has grown from a struggling infant to a fully automated system capable of providing all your travel and travel payment needs.” TM Director Largest Government Agency

“Is the holy grail of end-to-end, the long-sought-after "ultimate" approach in the evolution of travel management, passé?” Executive Large TMC

Quotes :

Corporate booking tools will prosper in a few key segments: Companies with procurement-trumps-traveler-satisfaction cultures, and those with high volumes of premium or complex travel. Adapting means tight integration with expense reporting and budget management tools. Travel Management Guru

"The next two or three years are really going to be focused on integration methodologies," "Everything, from the booking process through the inflight process, is going to be much more synchronized. It's going to be a ballet, rather than a combination of different dances, different venues, different eras—as it is today. Today, we're the clumsy high schooler asking the girl to the dance.“ CEO Large Travel Tech Firm

BUSINESS TRAVEL TECHNOLOGY DAY

Quotes (Bis) :

“I do not think corporate Booking tool will survive ... They will have to morphto corporate duty of care and safety and security tool or will be acquired byTMC or OTA (or die). Their current market is too small to enable them tosurvive. More, they will be completely disrupted by multimodal search engines” Another Travel Tech Guru

“While the travel and expense industry has made strides in easing the management and reporting of expenses while collecting valuable data, many corporations still are not taking full advantage of technological advances.About 29 percent of 216 "decision-makers around the world with responsibility for expense management" surveyed between January and March by Forrester Research use Excel spreadsheets to manage expenses, according to a report commissioned by American Express and released in June. Only the use of an expense module of enterprise resource planning software (32 percent) was a more popular expense management option among the survey's respondents.”Report originally appeared in the August 2013 edition of Travel Procurement

Am I playing the devil’s Advocate ?

BUSINESS TRAVEL TECHNOLOGY DAY

Paradox of the Modern Media..

Rate how important each of the following attributes of your travel programme will be to your company in 2017: Versus Today

More Important = Equally Important Less Important

• End-to-end solutions (booking to expense) 65.0% 35.0% 0.0%

• Data consolidation and reporting 59.7% 39.6% 0.7%

• SoLoMo (Social Local Mobile) accessibility 59.6% 36.5% 3.9%

• Safety and security/risk management 53.4% 45.9% 0.7%

• Cost savings/optimisation of travel spend 53.0% 45.9% 1.1%

• Programme consolidation/globalisation 49.6% 46.5% 3.9%

• Strategic meetings management 49.1% 48.4% 2.5%

• Policy compliance 46.8% 52.1% 1.1%

• Traveller choice of travel options 34.3% 53.7% 12.0%

Source Acte-Radius Study October 24th 2013

BUSINESS TRAVEL TECHNOLOGY DAY

T&E Market Key influencer’s

Source Acte-Radius Study October 24th 2013

Respondents assessed the influence of multiple third parties on their travel programmes today and then predicted whether each supplier’s influence would grow, diminish or remain stable by 2017. The third parties included:

• Expense management companies • global distribution systems (gDSs) • Meetings/MICE technology and solutions providers • Payment providers • Travel management companies (TMCs) • Travel technology companies • Travel suppliers (air, car, hotel) • Third-party data aggregation and reporting

companies

The responses indicate: • The majority of buyers expect all existing third-party solution providers but one to have the same influence in 2017 as today. • The exception is travel technology companies, which the majority (51 per cent) think will be more influential than today.

BUSINESS TRAVEL TECHNOLOGY DAY

The pro’s*PAIN / CONCERN BUSINESS BENEFITS TRAVEL MANAGER BENEFITS USER BENEFITSComplicated booking processes Streamlined processes Simplicity and autonomy Simplicity and autonomy

Lack of information 24/7 access to reporting information through online tools

24/7 access to booking information through online tools

24/7 booking through online tools

Expensive booking fees Reduced agency fees Reduced agency fees Reduced agency feesHigh supplier fees Improved supplier negotiations Improved supplier negotiations

Lack of time Reduced processing time Reduced processing time Reduced processing time

Cash-flow Improved cash-flow management

Internal stakeholder satisfaction Faster repayment

Lack of compliance/compliance measurement

Increased compliance with company policies

Increased compliance with company policies

Not so sure…..

Lack of visibility into spend Intelligent reporting Intelligent reporting Intelligent reporting/tracing

Keeping business costs down Cost-savings Cost-savings Company benefits

* Partly courtesy of Concur

BUSINESS TRAVEL TECHNOLOGY DAY

The con’sPAIN / CONCERN BUSINESS EXPECTATION TRAVEL MANAGER EXPECTATION USER EXPECTATIONOne tool good in all area’s Simplify choices and target

modelStreamline costs and support requirements

Simplicity and autonomy

Proven ROI Less than 18 Months Less than 18 months 24/7 Availability

Adaptability to changing market conditions and legal constraints

Maximum standardization Rapidity of integration Mobility and nomadism in the largest sense

Product evolutions and price changes

Minimalistic on the pricing/functionalities ratio

Time to market of key market changes Simplicity and extended offering

Data Security/data protection Maximum protection Maximum protection Maximum protection

System Support & Management KPI, Strong SLA,Penalties, resources efficiency

LPC & HPS (Lowest Possible Cost & Highest Possible Service)

24/7 Availability

DRP & BC (Disaster Recovery Plan & Business continuity)

Robust, backed-up and tested

Increased compliance with company policies

Reliability

Training Efficiency As low as possible for new entrants and occasional users

On line & E-learning & as simple as a computer game

Intuitive

Keeping business costs down Indirect costs (End to End Cost of managing T&E) below 8 % of spend

Simplifying controls, reporting and improving analytics capabilities

Productivity gains

And Scalabillity, Portability, Reversability….

BUSINESS TRAVEL TECHNOLOGY DAY

Expert N° 1 Peter SijbersFacts & Figures :• Eur. 264 Mio annual Travel Spend, plus mice expected to be around 350 Mio on an annual basis..• Two main SBT/OBT/CBT in place Gethere & Traveldoo• One main Expense Tool Concur• One card system in place American Express• A centrally managed program covering 45 markets globally with one TMC American Express• A mature program that is managed at low unit cost; 1 global lead – 2 commodity specialists and 1 shared

service support• Holds responsibility for setting global policies & procedures with a high level of standardization• Has implemented E-catalogues/ordering for travel related purchases with “best in class” adoption levelsManaged Travel (current)Goals:• Deliver significant savings• Achieve high travel policy compliance• Standardize travel processesManaged Travel (future) Goals:• Ensure travel done safely within budget• Get relevant data• Maximize traveler freedom and productivity

BUSINESS TRAVEL TECHNOLOGY DAY

Expert N° 2 Mark Avery Facts & Figures :• $800M annual travel Spend, plus MICE spend of around $250M per annum• Largest professional services firm in the world• Partnership culture, a «Network » of firms• Currently a mixture of suppliers dependent on market (SBT/OBT include Reardon, KDS, AETM,

SERCO, Concur etc)• Various finance and expense systems • One global corporate card system, Amex 83,000 cards• Mixture of regional and territory managed programmes across the world. UK/Middle East

combined• Variable maturity of travel programmes, some territories achieving >90% compliance to booking

channels for Air and Hotel booking Managed Travel (current)Goals:• Focus on traveller experience and end to end approach using multiple tools and services.• Making it so easy to do business with us rather than just being policy centricManaged Travel (future) Goals:• Creating a culture of why would you want to do anything else?• Becoming a different type of buyer in order to drive the greatest value for the PwC traveller• Making the end to end process available on all preferred devices to maximise traveller time and

productivity• Big data capture across the globe

BUSINESS TRAVEL TECHNOLOGY DAYTag Cloud of our questions to you both..

BUSINESS TRAVEL TECHNOLOGY DAY

Participants Q&A

BUSINESS TRAVEL TECHNOLOGY DAY

Thank You for your participation

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