Download Power Point Presentation

Stages of Travel Stages of Travel Management Management ExcellenceExcellence

TRAVELANALYTICSINC

Strategies for Advancing Strategies for Advancing Your Travel ProgrammeYour Travel Programme

Presented byPresented byScott Gillespie, Scott Gillespie, CEOCEO

Today’s Agenda• Credentials

• The Stages of Excellence Framework

• Application and Limitations

• Elements and Criteria

• Discussion

Scott Gillespie’s Background

• Founded Travel Analytics in 1999– Developed TANGO™ and BRAVO™ for airline sourcing

projects– Analyzed in excess of $10 Billion of annual air spend– Recipient of ACTE’s Industry Professionalism and

Distinguished Fellow honors– Named by Business Travel News as one of the travel industry’s

most influential executives

• A.T. Kearney’s expert in strategic sourcing of travel suppliers from 1994 -1999

• MBA, University of Chicago

Past and Current Clients– AXA

– Capital One

– Coca-Cola

– Chevron

– Compaq

– DaimlerChrysler

– Dell Computer

– John Deere

– Ernst & Young

– ExxonMobil

– Ford

– Hewlett-Packard

– Hoffman LaRoche

– Invensys

– International Monetary Fund

– Lockheed Martin

– Microsoft

– Lucent Technologies

– Proctor & Gamble

– Nortel Networks

– PricewaterhouseCoopers

– Saint Gobain

Stages of Excellence For Travel ManagementThe Framework

How Many Good Travel Programmes Are Out There?

Poor Fair Good Great

25%?

50%?

20%?

5%?

How Do Travel Programs Evolve?

No real travelprogram; mostly

fighting fires

Basic travelprogram;

limited support

Advanced travelprogram;

good support

World classprogram;

Great support,Excellent

results

Stage 1

Stage 2

Stage 3

Stage 4

By taking a series of prioritizedand often difficult steps

Right…What arethose steps,

exactly?

The Answers Are Not Clear…But The Method Is

• The travel/procurement team must agree on a basic strategy and key goals– What is realistically achievable?– What does our company expect?

• Requires a rigorous assessment of current program, practices, processes and stakeholders

• Managers must prioritize costs and benefits of each potential improvement

Managers need a useful framework

Stages of Excellence FrameworkStage 1

Full-time

Written, low to moderate enforcement

Occasional bursts of involvement

Keep the noise down

Keep making promises

Stage 2Category specialists

Moderate to strong enforcement

Predictable support

Operational excellence

Focus only on price

Stage 3Functional specialists

Regular business case reviews

Engaged and supportive

Support the Business

Strategic sourcing

Stage 4

Better

Travel manager

Travel policies

Senior management

Major goals

Procurement strategy

Dimensions

Illustrative

None or part-time

None or ad hoc

Vocal but uninvolved

Respond to problems

None or ad hoc

Criteria

14 Major Dimensions• Senior Management

• Travel Strategy

• Goals

• Travel Policy

• Feedback

• Controls

• Procurement

• Suppliers

• Transient Management

• Group Management

• Data

• Travelers

• Demand Management

• Travel Organization

Organized Into Four Quadrants

Senior ManagementTravel StrategyGoals

Travel PolicyFeedbackControls

ProcurementSuppliersTransient ManagementGroups ManagementData

TravelersDemand ManagementTravel Organization

Roadmap Engine

Steering Wheel Drivers

Similar to a Balanced Scorecard

Three Levels of Analysis

Dimensions

Senior ManagementTravel StrategyGoals

Traveler Satisfaction

Agency Operations

Elements

1 2 3 4

1 2 3 4

No goals

Goals are hard to measure

Goals are easy to measure

Goals are meaningful and aggressive

Criteria

Stage 1 Stage 4Better

Each Element and Dimension Is Scored

Average Goal Score: 2.0

Goals

Dimension

Elements


Agency Operations

No goals




1 2 3 4

1 2 3 4

Stage 1 Stage 4Criteria

Can score 2.5 or 3.3

etc.

Stages of Excellence For Travel ManagementApplication and Limitations

Weak Points Can Be Addressed

Goals Elements


Agency Operations

No goals




1 2 3 4

1 2 3 4

Stage 1 Stage 4

What goals should we use?

How are we going to

measure them?

Is this a priority? Will it clearly

help us?

Scores Can Be SummarizedRoadmap

Engine


Senior Management

Travel Strategy

Goals

1.6

2.0

1.2

Procurement

Suppliers

Transient Management

Groups Management

Data

1.8

2.5

3.4

1.0

2.7

Travel Policy

Feedback

Controls

2.8

2.4

3.1

Travelers

Demand Management

Travel Organization3.6

2.6

1.4

Average: 1.6

Average: 2.8

Average: 2.3

Average: 2.5

Priorities Can Be Set

TodayPeer

sGoal

43

2

1

TodayPeer

sGoal

Roadmap Engine


43

2

1

TodayPeer

sGoal

43

2

1

TodayPeer

sGoal

43

2

1

Priority 1

Priority 2

Entire Programs Can Be Compared

A B C D E F G

Company Codes

Stage 4

Stage 3

Stage 2

Stage 1

And More Importantly – Improved!

A B C D E F G

Company Codes

Stage 4

Stage 3

Stage 2

Stage 1

Today

Goal

How Is This Different From Benchmarking?

• Most benchmarking statistics are descriptive– “Our average ticket price is $375 vs. peer group’s

$344”– “Our travel agency configuration is a single

reservation center; 63% of our peers use on-site agencies”

• Descriptive statistics are not often prescriptive– Should your average ticket price be lower?– Should you use on-site agencies?

Stages of Excellence are designed to be prescriptive

Limitations to Stages Of Excellence• The Dimensions, Elements and Criteria were

developed by Travel Analytics– There are many other possible views

• Requires honest self-assessment

• Scoring depends on assigned weights

• The path to improvement is not always obvious– Must often ask “What do we need to do to improve

this score?” Stages of Excellence is a rigorous and objective – but not perfect – diagnostic tool

Stages of Excellence for Travel Management

Elements and Criteria

Senior Management (4)Travel Strategy (6)Goals (8)

Travel PolicyFeedbackControls



Roadmap Engine


( ) = Number of Elements

Senior Management

Significant use; very effective

Moderate use; fairly effective

Limited use; not very effective

No Travel CouncilSM4. Utilization of a Travel Council

Stage 1 Stage 2 Stage 3 Stage 4

Ownership is very clear

Ownership is fairly clear

Ownership is not very clear

Nobody owns Travel

SM2. Ownership of Travel Management

Strong and consistent support and enforcement

Consistent but moderate support and enforcement

Support and enforcement is fairly weak and inconsistent

Little or no support or enforcement

SM3. Support and Enforcement

Solid understanding of most key issues; views Travel strategically

Basic understanding; makes good decisions

Basic understanding, but struggles with making decisions

Little or no understanding of the basic issues

SM1. Understanding of Travel Management

Travel Strategy, part 1Stage 1 Stage 2 Stage 3 Stage 4

SignificantlyModeratelySlightlyNot at allTS1. Travel viewed as a factor for business success

SignificantlyModeratelySlightlyNot at allTS2. Travel viewed as a factor in employee retention and productivity

SignificantlyModeratelySlightlyNot at allTS3. Travel viewed as a controllable cost

Travel Strategy, part 2Stage 1 Stage 2 Stage 3 Stage 4

ExcellentGenerally goodSomewhat limitedLittle or noneTS4. Success at budgeting travel costs

ExcellentGenerally goodSomewhat limitedLittle or noneTS5. Success at tracking and reporting travel cost savings

ExcellentGenerally goodSomewhat limitedLittle or noneTS6. Success at getting major travel management initiatives approved

Goals, part 1Stage 1 Stage 2 Stage 3 Stage 4

Meaningful; aggressive but achievable

Fairly easy to measure

Exist, but hard to measure

No goalsG1. Traveler satisfaction




No goalsG2. Senior management satisfaction




No goalsG4. Agency performance




No goalsG3. Policy compliance

Goals, part 2Stage 1 Stage 2 Stage 3 Stage 4




No goalsG5. Self-booking adoption




No goalsG6. Contract compliance




No goalsG7. Supplier performance




No goalsG8. Financial performance

Travel Policy (3)Feedback (8)Controls (4)



Roadmap Engine




Travel PolicyStage 1 Stage 2 Stage 3 Stage 4

Very specificFairly specificGeneral guidelinesLittle or no guidelines

TP1. Quality of travel to be purchased

Very specificFairly specificGeneral guidelinesLittle or no guidelines

TP2. Processes to be used for purchasing travel

Strong consequences

Moderate consequences

Minor consequences

Little or no consequences

TP3. Typical consequences of not complying with a key travel policy

Feedback, part 1Stage 1 Stage 2 Stage 3 Stage 4

Clearly drives future actions

Obtained regularly

Obtained irregularly

Little or none sought

F1. Traveler satisfaction


Obtained regularly



F2. Senior management satisfaction


Obtained regularly



F3. Policy compliance


Obtained regularly



F4. Agency performance

Feedback, part 2Stage 1 Stage 2 Stage 3 Stage 4


Obtained regularly



F5. Self-booking adoption


Obtained regularly



F6. Contract compliance


Obtained regularly



F7. Supplier performance


Obtained regularly



F8. Financial performance

ControlsStage 1 Stage 2 Stage 3 Stage 4

Preferred suppliers automatically prioritized based on contract needs

Preferred suppliers identified automatically at Point of Sale

Agents are expected to sell preferred suppliers

Little or noneC2. Supplier preferencing at point of sale

Significant abilityModerate abilityFairly limited ability

Little or no abilityC3. Ability to move business away from key suppliers

Very hard to obtain; reported to senior management

Fairly hard to obtain; tracked and reported

Fairly easy to obtain; tracked and reported

Easy to obtain; not tracked or reported

C1. Exceptions to travel policies

Significant abilityModerate abilityFairly limited ability

Little or no abilityC4. Ability to pass travel costs onto business units

Procurement (7)Suppliers (4)Transient Management (5)Groups Management (4)Data (5)


Roadmap Engine





Procurement, part 1Stage 1 Stage 2 Stage 3 Stage 4

Strategic sourcing process; directed by senior management

Formal sourcing process

Require proposals; but have rolling contracts

Very informalP1. Tender or RFP process

Use sophisticated cost/pricing models

Detailed comparisons of bids and current contracts

Benchmarking of key rates, city pairs, etc.

Informal; back of the envelope

P2. Analysis of pricing

Use of quality scoring models and traveler feedback

Fairly detailed analysis of RFP/tender responses

Limited analysis; mostly rely upon supplier’s reputation

No analysisP3. Analysis of quality

Significant analysis; tied clearly to procurement decisions

Fairly detailed analysis combined with judgment

Limited analysis; primarily based on judgment

No real analysisP4. Analysis of risk (implementation, contract cancellation, traveler dissatisfaction

Procurement, part 2Stage 1 Stage 2 Stage 3 Stage 4

Significant integration

Moderate integration

Minimal integration

No integrationP5. Travel’s integration with Procurement

Decision rules established prior to receiving bids

Suppliers evaluated on total cost, quality and risk

Primarily based on price

Primarily based on relationships

P6. Basis for awarding contracts

Moderate to significant input; issues resolved quickly

Moderate to significant input, but time-consuming

Minimal review of contracts and bids

NoneP7. Legal department’s input

SuppliersStage 1 Stage 2 Stage 3 Stage 4

DelightedVery satisfiedFairly satisfiedVery or mostly dissatisfied

S1. Delivery of expected level of service


S2. Resolution of traveler complaints and other operational issues


S3. Quality of people assigned to your account


S4. Current pricing

Transient ManagementStage 1 Stage 2 Stage 3 Stage 4

Mostly consolidated at regional level

Mostly consolidated at country level

Some consolidation; mostly in major countries

Very little consolidation

TM1. Agency consolidation

Able to easily control preferred supplier market share

Counselors actively sell preferred suppliers

Counselors trained to sell preferred suppliers, but are fairly passive

Little or noneTM2. Ability to control the point of sale

DelightedVery satisfiedFairly satisfiedPoor or very inconsistent

TM3. Agency service quality

Trusted as an objective and proactive source of excellent advice

Provides practical advice on a range of issues

Use is limited mostly to agency operational issues

Not used in this capacity

TM5. Agency as a trusted advisor or consultant

Significant and sustained improvements

Some recent improvements

Fairly stableNot measured or getting worse

TM4. Agency productivity

Group Management (GM)Stage 1 Stage 2 Stage 3 Stage 4

Fairly easy for most large and medium events

Fairly easy for most large events

Very basic ability for most large events

Unable; difficult for even major events

GM1. Ability to measure GM spend

GM planners have very strong communication network

Well organized network; effective communications

Fairly fragmented; not well organized

Little or noneGM2. Communication between internal GM planners

Very good for most events of all sizes

Fairly good for most large and medium events

Limited to major events

Little or noneGM3. Centralized visibility of GM events

Standardized processes for most all events; very effective

Standardized processes for most large and medium events

Standardized processes only for large events

No or few standardized processes

GM4. Processes for planning, sourcing and managing GM events

Data / InformationStage 1 Stage 2 Stage 3 Stage 4

Very easy and fast; good data quality

Fairly easy; good data quality

Fairly difficult; data quality questionable

Very difficult; poor data quality

D1. Ability to consolidate enterprise-wide travel spending

Excellent reports and analyses

Good reports; fairly timely; useful

Basic reports; moderate delays

Very limited; long delays

D2. Airline data

Visibility of 90+% room nights by property

Visibility of 80+% room nights by property

Mostly limited to agency bookings;20-40% missing

Mostly limited to agency bookings; 40+% missing

D3. Hotel data

Daily dashboard reports on all key metrics

Informative reports available weekly

Basic monthly or quarterly reports

None or limitedD4. Agency data

DelightedVery satisfiedFairly satisfiedVery or fairly dissatisfied

D5. Other information needed for managing travel

Travelers (4)Demand Management (4)Travel Organization (4)

Roadmap Engine





Procurement (7)Suppliers (4)Transient Management (5)Groups Management (4)Data (5)

TravelersStage 1 Stage 2 Stage 3 Stage 4

Strong awarenessGood awarenessModerate awareness

Little or no awareness

T1. Awareness of travel policies and preferred suppliers

Strong; over 95%Good; between 80 and 95%

Moderate; between 65 and 80%

Low; less than 65%T2. Compliance with key travel policies

Moderate or significant input sought; clearly effective

Moderate input sought

Limited input sought

Generally not solicited

T3. Input on travel policies and suppliers

Fairly high opinion; clearly respected

Generally favorable

No opinion, or somewhat mixed

Low opinionT4. Opinion of Travel department

Demand ManagementStage 1 Stage 2 Stage 3 Stage 4

Very easyFairly easySomewhat difficultVery difficultDM1. Ability to eliminate unnecessary trips before they are taken

Specific criteria suited to job

Fairly useful guidelines

Basic, such as use good judgment

NoneDM2. Guidelines for evaluating the need for a trip

Pre-trip authorization and post-trip evaluation

Pre-trip authorization

Post-trip evaluation or report

NoneDM3. System for evaluating a trip’s value

Significant efforts or cooperation with other departments

Moderate effortsLimited effortsNone; not in scopeDM4. Promotion of non-travel alternatives

Travel OrganizationStage 1 Stage 2 Stage 3 Stage 4

Very easyFairly easySomewhat difficultVery difficultTO1. Ability to execute major new policies, projects and initiatives

Staffed mostly by very effective people

Staffed mostly by effective people

Staffed mostly by fairly effective people

Staffed mostly by fairly ineffective people

TO2. Staffing

Very easy to recruit highly effective people

Very easy to recruit effective people

Fairly easy to recruit effective people

Fairly difficult to recruit effective people

TO3. Recruiting

Travel department viewed as a desirable career stepping stone

Regular advancement opportunities

Limited advancement opportunities

Travel department viewed as unattractive

TO4. Career Advancement

Where Do We Go From Here?

• Score your program– Should generate deep discussions and frank

assessments– Many companies will not like their scores

• Organize confidential comparisons– Travel management companies or consultants can

lead these efforts

• Develop specific goals and priorities for your program

• Measure results year to year

We Can Go From Here…

Poor Fair Good Great

25%?

50%?

20%?

5%?

…To Here!

Stage1 Stage 2 Stage 3 Stage 4

5%

20%

50%

25%

Thank You!

For a copy of this presentation and the accompanying scoring tool, please visit our Free Tools page at www.travelanalytics.com

Or send an e-mail to:[email protected]

Documents

Download Power Point Presentation