the end and future of managed travel
DESCRIPTION
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.TRANSCRIPT
![Page 1: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/1.jpg)
![Page 2: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/2.jpg)
The End and Future of Managed Travel Scott Gillespie Gillespie’s Guide to Travel+Procurement
![Page 3: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/3.jpg)
• Managed Travel 1.0
• Winds of Change
• The Optimization Problem
• It’s Time for a New Approach
• New Frontiers
• Discuss and Debate
Where we’re headed
![Page 4: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/4.jpg)
• 1994: Delta caps commissions, triggers TMC transaction fees and cost center mentality
• Late 90’s: Corporate online booking tools put travel policies in spotlight
• 2007: UK’s Corporate Manslaughter Act makes duty of care a high priority
Strategic drivers of MT 1.0
![Page 5: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/5.jpg)
MT 1.0 has diminishing returns
Gillespie’s Guide to Travel+Procurement
Countries
T&E Spend $$$
$
20% of Global T&E Spend
Worth going after?
![Page 6: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/6.jpg)
Gillespie’s Guide to Travel+Procurement
Airlines
Air Spend $$$
$
20% of Air Spend
Worth going after?
MT 1.0 has diminishing returns
![Page 7: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/7.jpg)
Gillespie’s Guide to Travel+Procurement
$$$
$
20% of Spend
Worth going after?
Spend
City pairs, or hotels, or travelers, or trips
MT 1.0 has diminishing returns
![Page 8: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/8.jpg)
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 for MT 1.0 are well known
![Page 9: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/9.jpg)
Trip costs have been mastered
Gillespie’s Guide to Travel+Procurement
The castles have been built
Travel Policy None Harsh
High
Costs
Trip Cost
![Page 10: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/10.jpg)
Solid, safe, enduring – a valuable base
Immobile, inflexible
![Page 11: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/11.jpg)
not
Castles
Ships We need
![Page 12: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/12.jpg)
Where are the new frontiers?
![Page 13: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/13.jpg)
Global networks create greater competition for good talent
iPhone culture impacts more than Gen Y
User experience drives brand loyalty, especially in travel
Travel suppliers have stronger, more insightful pricing and packaging power
Greater emphasis on traveler well-being
Winds of Change
![Page 14: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/14.jpg)
The optimization problem
Travel Policy None Harsh
High
Costs
Trip Cost
• Lost productivity • Reluctance to travel • Recruiting, retention problems
Total Trip Cost
Traveler Friction
![Page 15: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/15.jpg)
The optimization problem
Travel Policy None Harsh
High
Costs
Trip Cost
Total Trip Cost
Traveler Friction
The Great Unknown
![Page 16: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/16.jpg)
To date…
Best practices are well known Mature programs deliver diminishing returns New forces are at work Half of the travel optimization problem is not well understood
![Page 17: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/17.jpg)
it’s time
new approach
for a
![Page 18: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/18.jpg)
Where are the new frontiers?
![Page 19: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/19.jpg)
Brand.com to CDE is a new frontier
Brand.com
Corporate Traveler
Corporate Booking
Data Traveler’s Expense Report
Net of Discounts
“B2CDE”
![Page 20: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/20.jpg)
Edit Rights are a new frontier
Corporate Traveler
Brand.com
Corporate Booking
Data
Corporate TMC
Right to edit or cancel the booking
Everybody is happy!
Trip Changes
Net of Discounts
![Page 21: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/21.jpg)
Managed Travel 2.0 is a new frontier
1. Shop anywhere – period.
2. Book anywhere – so long as data is captured quickly
3. Book anybody – so long as suppliers are safe
4. Book anything – so long as it is in budget
![Page 22: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/22.jpg)
22
Traveler Dashboards are a new frontier
![Page 23: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/23.jpg)
Door to door
Trip Tailoring is a new frontier
![Page 24: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/24.jpg)
Detailed Expense Estimate
Detailed Trip Itinerary Door to door
![Page 25: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/25.jpg)
2 3-4 5-8 9-16 17-32 33-64 65+ 1
22% of trips taken by infrequent travelers
Who needs Trip Tailoring?
Source: Scott Gillespie’s analysis of an anonymous data set
![Page 26: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/26.jpg)
Travel Budget Owners are a new frontier
Trip Cost
Traveler Friction
Good trips results
Within my budget
![Page 27: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/27.jpg)
Traveler Friction is a new frontier
Travel Policy None Harsh
High
Costs
Trip Cost
Traveler Friction
• Frustration, Stress • Safety, security • Lost productivity • Reluctance to travel • Recruiting, retention problems
![Page 28: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/28.jpg)
Traveler Friction None High
Sales
High
Effective Range
Traveler Friction’s Impact on Sales
![Page 29: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/29.jpg)
Traveler Friction None High
High
Employee Attrition
Traveler Friction’s Impact on Attrition
Acceptable Range
![Page 30: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/30.jpg)
Traveler Friction None High
Traveler Friction’s Ideal Range
HR’s Input
Sales Input
![Page 31: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/31.jpg)
Traveler Friction None High
Traveler Friction’s Optimal Range for Sales People
Optimal Range
35 pts 55 pts
![Page 32: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/32.jpg)
Better Management of Salespeople Bowden, Christina 84
Barton, Elsie 82
Goldstein, Gretchen 78
Watts, Tim 77
Merritt, Shirley 77
Dougherty, Kristine 66
Steele, Eric 60
May, Alex 55
Jones, William 50
Bender, Hazel 48
Chung, Donald 43
Underwood, Harvey 41
Teague, Wesley 35
Hamilton, Elsie 29
Walsh, Marcia 25
Vick, Franklin 20
Encourage more travel
Reduce travel friction: - fewer trips? - better trips via policy exceptions?
![Page 33: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/33.jpg)
Trip Cost
The Future
Traveler Friction
The Past
![Page 34: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/34.jpg)
Implications of Change
Gillespie’s Guide to Travel+Procurement
![Page 35: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/35.jpg)
For Travel Managers
Trip costs Business impact
![Page 36: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/36.jpg)
For Travel Suppliers
Travel buyers Travelers and budget owners
![Page 37: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/37.jpg)
As you make the transition
![Page 38: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/38.jpg)
Embrace the journey
Share your discoveries!
![Page 39: The End and Future of Managed Travel](https://reader034.vdocuments.us/reader034/viewer/2022042713/54746e32b4af9fae0a8b56f5/html5/thumbnails/39.jpg)
Thank you! Scott Gil lespie
+ 1 2 1 6 2 7 2 1 6 3 7 S c o tt .G i l l e s p i e 2 0 0 8 @ g m a i l . c o m
G l a d to c o n n e c t o n L i n ke d I n