The way to start is with an objective assessment of what’s working and what’s not: Are travelers actually using the travel tools? Are travelers getting access to the content they need? Can every traveler be reached in an emergency (no matter how they booked their travel)? Are the company’s travel discounts being utilized across all channels? How much spend isn’t really visible until the expense report is filed?
Performing a gap or SWOT analysis lets the manager prioritize travel management weaknesses while protecting the program strengths, to evaluate current and prospective technology solutions.
One of the overriding things for corporate travel programs to consider is whether to choose a single vendor for everything or use a best-of-breed approach, selecting the solution provider that best fits their individual needs for travel, expense, duty of care and so on.
“While it may seem easier at the outset to choose a single vendor for everything, you could end up getting a solution that is ‘OK’ for everything, but doesn’t provide the optimal solution for any piece of the equation,” Ted Stavropoulos, director, partner channel development, Chrome River, says. “Choosing a best-of-breed solution provides much more flexibility and enables organizations to custom-build a solution that works just the way they need. As long as your TMC is willing and able to provide the travel data to the other vendors that make up your program, the integration and ongoing management should be just as straightforward whichever approach you take.”
Dave Lukas, vice president and CSO of Grasp Technologies, says one of the most important things is making sure the travel manager and the TMC are agreed on how to use technology to reach the travel program’s goals.
“The technology is the tool to make a travel manager’s goals happen, but the TMC is the critical partner that must be aligned,” he says. “For example, travel managers should take the time to get clear on what they want to accomplish with their TMC and the technology they have at their disposal, and then work with their TMC partner to align the technology properly for those needs. Every travel program is different and thus the approach and ways to maximize will be specific to that program.”
Making a Choice
As travel managers make decisions about which travel management company to choose for their corporate programs, one key differentiator between TMCs is the suite of technology they offer to their clients.
Gabe Rizzi, president of Travel Leaders Corporate, notes that while there’s a wide array of technology offered in the business travel industry, whatever one chooses, the technology needs to fit the company’s needs. One of the best ways to do that is to talk to some of the TMC’s current clients, especially those who are in the same industry or are approximately the same size.
“Ask for referrals of customers using what the TMC is recommending and what the use case is they are solving for,” he says. “They should clearly identify the pain points in their travel program and then consult with an experienced TMC that can show quantifiable proof that the recommended technology path will benefit them directly.”
When evaluating the technology offerings of a TMC, whether proprietary or resale, travel managers should consider two criteria – adoption and ecosystem – says Mike Koetting, executive vice president of TMC and supplier services for Concur. “Even the most cutting edge, innovative solution is of little value if it isn’t widely adopted by the 20 percent of travelers who drive 80 percent of their company’s travel spend.”
Travel managers, he adds, should ask a few questions. Which solution is the most compelling in a way that appeals to savvy business travelers? Does the solution offer value and functionality through the entire travel and expense reimbursement lifecycle? Are you confident that the solution provider is investing to be world class in all the markets that matter for your company?
“A robust travel platform extends beyond transient travel management to offer seamless integration with VAT recovery, safety and security providers, expense management, ERP integration, groups and meeting spend, compliance and reporting, fraud prevention and more,” Koetting says. “By leveraging a comprehensive platform, the TMC can unlock value for the entire company, not just travelers and the travel manager.”
The choice of travel management technology can be influenced by the size of the company, the availability of dedicated travel management personnel, the amount and destinations of international travel and even the demographics of frequent travelers.
Tech on the Move
Mobile technology is cited by many as being the most important consideration – as nearly every business traveler depends on their smartphone. Therefore, traveler-facing technology should ideally have a mobile solution.
To make sure companies are getting the most out of their technology Lukas says three critical elements are needed: Spending the time up front to clearly define what needs to be accomplished and where the biggest impact to the program will be (he suggests an 80/20 rule); aligning all partners (TMC, expense, technology, etc.) with one vision; and setting clear milestones and objectives to identify success for each of the ‘20 percent items’ and how each partner can achieve those objectives within the strategic timeline.
“Make sure your TMC has a good strategy and the right technology partners for data consolidation and virtual payments,” he says. “If you are not consolidating your data (TMC, expense, credit card, HR, etc.), you eventually will. And you will also at some point be using virtual payment solutions.”
Stavropoulos says it’s also important for an organization to choose a vendor whose approach to technology and innovation is similar to its own.
“Many companies these days tend to pride themselves as having a strong culture of innovation, so the tools that they provide their travelers should match this ethos,” he says. “As areas such as machine learning and AI become more prevalent across the enterprise software industries, what are the vendors’ plans to incorporate this? Also, in an increasingly mobile world, what’s their mobile strategy?”
In those respects, he says, travel managers need to look for features that both reduce friction for the travelers themselves, while at the same time making life easier for the back-office team. For the end-users, deep mobility capabilities are critical, and this doesn’t just mean offering an iPhone or Android app that performs the basic functions.
“In order to provide the rich end-user experience, more organizations are looking to deploy HMTL5-based web apps (which allow the full web solution to work just as well on any device through its browser), as they give greater functionality and are easier to deploy and manage than a native iOS or Android mobile app,” he says.
Means to an End
When it comes to travel management, technology should be an enabler rather than an end in itself. So the best strategy begins with a clear understanding of the quantitative and qualitative goals of the travel management program.
“The products and services which best align with those goals have the most potential to bring value to the relationship,” Koetting says. “This sounds obvious of course, but the way each company defines and prioritizes their travel management goals is unique, and so too should be their assessment of travel management technology.”
Travel spend is surely the poster child for the adage, ‘What gets measured, gets managed.’ Travel managers should start by selecting a technology solution that gives them the greatest visibility into all of their spend, in a timely manner – no matter how or where it’s purchased.
“Gaining timely visibility to all spend allows travel managers to tackle their most important responsibility – ensuring the safety and security of all of their travelers,” Koetting says. “Selecting technology with the ability to locate and communicate with all travelers, regardless of how they may have purchased their travel should surely be the primary objective of any conscientious travel manager.”
Travel management companies are not technology companies, but are experts in travel service and delivery. That’s why companies should seek out a TMC that embraces that identity and helps their customers integrate technology from true technology partners into their workflows where they can have the biggest impact.
For example, the TMCs mid-office is usually dismissed as simply the system that provides quality control, file finishing and auto-ticketing. “When integrated with the OBT, however, the mid-office can drive much more efficient and user-friendly handling of ticketing failures due to profile issues and form of payment problems,” Koetting says.
Analytics is another area which is being increasingly included in TMC RFPs. More effective policy enforcement has meant that there is no longer a huge amount of savings that can be made to travel programs without degrading the traveler experience, so the focus now needs to be on using historical and real-time booking data to make smarter travel purchasing decisions.
For larger organizations that may have many thousands or even millions of travel data points, a sophisticated analytics solution is essential to parse out actionable and timely insight.
“An organization should also ensure that their travel partner’s solution has the flexibility to work around its own business rules,” Stavropoulos says. “In practical terms, this means that whatever processes your organization has created for travel booking and management – policies, approvals and so on – can be implemented without needing to adapt to your vendor’s technology. If their platform is inflexible and you have to change the way you work, you should probably remove them from contention, as this could lead to headaches further down the line.”
DeAnne Dale, SVP global strategy and consulting for Reed & Mackay, says while technology weighs heavy in the overall decision process, if it is not supported by a strong focus on service delivery it will not be as impressive.
“The tools must be user-friendly and those with a more consumer ‘look and feel’ are most attractive, particularly for the online booking tool and mobile apps,” Dale says. “Wholly-owned technology that is fully integrated is a significant differentiator. Reliance on third-party tools results in extra fees and limited customization. Companies who maintain their own IT development teams provide buyers with more flexibility in customization and a much faster turnaround for new and/or custom enhancements throughout their partnership at a lower cost.”
For example, content and continuous low airfare and hotel rate searches are becoming increasingly popular. While there are many third-party tools that offer the continuous fare searches, if a TMC has their own proprietary system that offers robust content, including web only fares, non-GDS hotels and airlines, etc., they will score higher in the overall decision making process.
“Optimization of available technology should always be included in a strategic business plan with jointly defined SLAs ensuring that the company is getting the most value of the technology offered,” Dale says. “For example, increasing online adoption should be included with a pre-defined baseline measurement, a goal and an agreed upon methodology for measuring progress to goal. The same would apply for a myriad of other savings strategies supported by technology.”
Rizzi says that matching company travel objectives, travelers’ service demands and program needs with technology can be a very high bar for corporate travel managers to clear. But it is possible with the right TMC partner.
When it comes to compliance, “the first thing that any travel manager will want to have their TMC provide them is an easy way to see where the travel budget is going and who is spending it,” he says. “With this information, we can change behavior, bring travelers into compliance and improve a company’s overall travel spend.”
