Upload
dreama
View
46
Download
7
Tags:
Embed Size (px)
DESCRIPTION
Online Strategies for Travel Programs. Presented to:. PAMPI and PHL BTA Joint Education Institute. Tom Wilkinson President, TRW Travel Consulting, LLC www.managedtravel.net. Presentation Goal. - PowerPoint PPT Presentation
Citation preview
Tom Wilkinson
President, TRW Travel Consulting, LLC
www.managedtravel.net
Online Strategies for
Travel Programs
Presented to:
PAMPI and PHL BTA Joint Education Institute
2
Presentation Goal
Premise: The ‘online strategy’ of most corporate travel programs follows the trend in the travel industry itself -
Implement an OLBT gradually with limited usage Discover the value and ride the wave towards
adoption rates over 50% Look to extend the success in online booking to
other areas of corporate purchasing
3
Humble beginnings …
Significant skepticism about online booking
– Technical difficulties
– Travelers and arrangers didn’t want to become agents
– Travel Managers concerned about loss of control introducing new applications always challenging
– Agencies (TMCs) felt they had to re-build every PNR and of course feared loss of market share
4
Humble beginnings…
Initial online rates were very small– 5% - 10% considered successful– 30% adoption was ‘best in class’– no standard definition of adoption or success
(fish stories)
Most agencies ‘surcharged’ online booking– $40 + $5– online booking tools were an optional choice for techies
Online tools created ITMCs to overturn agency pricing paradigm
– reflect the lower labor component of online booking and fulfillment
5
Humble beginnings…
Integrate with Travel Agencies
Integrate with Travel Programs
Controlled by Travel Managers
Initial focus for OLBT’s ….
Success despite questions from traditionalists…
6
Drivers of Success
Agency transaction fees fell– Lower agency fees for ‘touchless’ and ‘light touch’ trx– average about 1/3 – ½ of ‘agent initiated’ fees– TMCs realized their margins could be higher with online trx
Visual Guilt– travelers make better decisions when they have more
information– online booking analogous to ‘parallel’ vs. ‘serial’ interface
Drivers of Success
Travel policy Adoption programs
– started by online tools– now offered by agencies
Online culture; youth culture Industry success
– “if they can do it why can’t we?”
Training (?)Third time’s the charm… !
Drivers of Success
Document aggregated savings in agency transaction fees
Document lower ATP’s online vs. offline– same city pairs
Best Practice: Send reports with total documented savings to executives
– and cost center managers
9
Success for Online Booking
All transactions now seen as ‘eligible’ – Mid office processing systems can manage almost any booking – Typical ‘efficiency’ rates over 90%
Online adoption has skyrocketed– Higher ‘all inclusive’ adoption is key metric for many travel programs
Leading online tools report average online adoption over 70% – TMC’s report 80%+ adoption rates
starting at 30% - 50% common– ITMC have guaranteed minimum adoption of 75%– Smaller companies can book 100% online
End of story …………. ?
Mid-Office Differentiation vs. Leisure Booking Tools
10
Online Booking Tool
Leisure - Unmanaged
Ticket
Mid-Office Differentiation vs. Leisure Booking Tools
11
Online Booking Tool
Corporate/Managed
Passenger
Name Record
TMC
Mid - Office
Back-Office
Ticket• Profile Integration• Priority Preferred Vendors• Rules Based Policy Pre-trip Disapproval
Mid-Office Differentiation vs. Leisure Booking Tools
12
Online Booking Tool
Corporate/Managed
Passenger
Name Record
TMC
Mid-Office• Profile Integration• Priority Preferred Vendors• Rules Based Policy
Mid-Office Differentiation vs. Leisure Booking Tools
13
Online Booking Tool
Corporate/Managed
Passenger
Name Record
TMC
Mid-Office
• Pass/Fail tests (fare threshold)• Complex International• QC (supplemental policy review
• Profile Integration• Priority Preferred Vendors• Rules Based Policy
Integration of online and ‘offline’ bookings
14
Online Booking Tool
Corporate/Managed
PNR
TMC
Mid - Office
Back-Office
Ticket
‘Offline’
CorporateTravel Counselor
Reporting Where to call for help?
15
OLBT’s: The Leading Edge
Managed online ‘workflow’ methodology
Online booking methodology extended – meetings management– online marketplaces for travel and ‘travel-ish’ services: video
conferencing, limos, dining, events, shipping
Integration of reservations, meetings management, expense reimbursement, and vendor payments
– closing the loop
Building on the success…
Expanding the Model
16
Logical temporal progression but what is the value in fusing the data?
What is the ‘mid-office’ process necessary?
Expense Management
Is it worth all the integration necessary?
Proprietary to Rearden Commerce
l
Expanding the ModelExpanding the Model
Building on Success
Remember the lessons
1. It takes time
2. Convince the vendors they will profit
3. Need a policy push
4. Document savings.