Over the years, I’ve been asked to define omnichannel and identify any benefits it provides. As the concept has matured, my definition of what omnichannel is and what it can do has evolved, as I’ve seen new methodologies introduced and noted what new technology can actually accomplish for the business travel industry. Many other industries already have an omnichannel environment where you can view, order and accept the product over multiple content channels and distribution outlets. For some reason, the business travel industry has been slower to adopt new content channels and distribution points. Let’s dig deeper into why this is and how we break through to move the industry forward.
Throughout almost the entire history of the business travel industry, we have relied on travel management companies (TMCs), global distribution systems (GDSs) and online booking tools (OBTs) to house our preferred programs and discounts, giving travelers a wide choice of content. It’s worked. As time has gone by, suppliers have increasingly looked for the ability to present content to business travelers that is similar in its robustness to their mobile apps and websites – allowing travelers to view the actual seat they are selecting or the room they are reserving during the booking process, then letting them access discounted bundles of products and services that will benefit both the company and their travelers. At the same time, the suppliers would like to reduce the distribution costs associated with the traditional methods, especially when that content isn’t as strong or robust as what is available in other channels.
This is why we ended up with omnichannel as a way for business travelers to go direct to suppliers and get the discounted offerings in a more personalized way. For suppliers, it meant reducing their distribution costs. And for you, the travel manager, a key benefit is the ability to receive near instantaneous data on these direct bookings to feed your duty of care providers, sustainability tracking, expense processing, digital payments, etc. So, why haven’t we seen corporate travel programs take advantage of these types of bookings?
Reroute Your Thinking
The answer is that there are always roadblocks to any new methodologies and processes when they are disrupting the current ecosystem. One of the early roadblocks was that some simple items, such as exchanges and refunds for air bookings, couldn’t be accomplished directly with the suppliers. What would you do if there were weather issues that caused irregular operations? Would the traveler turn to the supplier or the TMC? Some of the other objections involve revenue that has been flowing to TMCs and OBTs from the GDSs. Another was misinformation around companies losing control of the necessary duty of care tracking when travel was booked direct. None of the roadblocks are insurmountable if you take a clean-sheet approach to the opportunity. This statement applies to both travel managers and suppliers, encouraging each to take a fresh look and get out of the limited view and long-held perceptions that come when something new is proposed.
While the true authorized adoption of going direct and embracing omnichannel has been limited as the technology catches up to the promise, other methods have emerged that might be alternate avenues for suppliers to accomplish their goals – provide robust content, recognize the traveler at the time of booking for a personalized experience and
reduce the travel providers’ distribution costs. Those other routes involve New Distribution Capability (NDC) and the building of travel marketplaces that display content from many sources. What still needs to be defined are the business models, fees and revenue flows from these new models. And beyond that, the larger question is: Will they be groundbreaking or will they perpetuate the status quo?
All of this has caused my definition of omnichannel to widen. I’m no longer at a place where I think omnichannel is only about adding direct booking capabilities to the corporate travel system. Now I view omnichannel as a process of adding new robust content within existing channels, reviewing travel marketplaces, talking to all suppliers about the cost of distribution, giving your travelers a better experience through all channels, and, yes, still going direct if that works for your corporate travel program.
What is still to be hashed out at conferences, during webinars and private meetings with your suppliers, are the cost implications of an evolved omnichannel and when the technology will be available in the existing channels to bring this to life. In the business travel industry, we know there is not one solution that works for every single travel program. A company’s culture, how it focuses on costs and the traveler experience drive the design of each program. That is why we will not see all companies embrace a new form of omnichannel overnight. Instead, we will see companies adopt new methods differently, just as we have seen in the past.
In order to keep your sanity during this evolution and innovation stage, I offer the following recommendations as you break away from the status quo:
• Ask questions about omnichannel, NDC, new supplier programs, of your travelers, suppliers, TMC, OBT, consultants, new entrants and peers.
• Take that information and create an updated corporate travel program structure from the new methodologies that will work for your company and travelers.
• Try a test or run a pilot program of the new structure with your travelers.
• Review the test results to see what really works for your company that can then be more widely implemented.
Let’s all work together to sort out the new omnichannel definition so we can deliver benefits to the complete business travel ecosystem – the companies, their travelers, the distributors and the suppliers.
