Phat Data is a powerful tool used by one leading corporation’s travel program to discover wisdom and take action
Phat Data is celebrating its one-year anniversary in the pages of Business Travel Executive. Over the past twelve months we have delved into the origins and concepts that have produced Phat Data.
Along the way, we’ve learned the importance of discerning the quality of the data that we’re seeing – that it actually has value and can be used to enhance our travel and meetings programs. Making those important distinctions starts with asking the “So What?” of the data we currently receive and beginning to explore what other actionable data can we get our hands on.
We have looked at the impact that the right data, correctly interpreted, can have on our meetings and events, greatly improving the ROI for our meeting attendees. We have explored how insightful expense data be. And probably most important how we can use data to develop a more traveler-centric program while gaining compliance and improving supplier relations.
Microsoft is one of the largest travel programs in the marketplace, and Eric Bailey is senior travel manager. While the culture of a company like Microsoft certainly is one where information has long been accepted as the coin of the realm, Microsoft’s travel program utilizes Phat Data in unique ways as a powerful tool to find wisdom and leverage value for other parts of the business.
“We are a culture of compliance and half of the value in the data we present to managers is that they realize they don’t need to worry about travel spend,” Bailey says. “They can focus on more important components of their business.”
Through Microsoft’s Trip Tracker system, Bailey and his team present data to management that identifies trends in spend and allows managers to drill down all the way to a traveler level to see exactly what is driving those trends. Managers can monitor an individual’s spend, identify spikes in travel costs, and then take action based on what the individual has done. At the same time, the transparency in the data helps control spend; travelers are aware that this data is being monitored and assessed, so they naturally strive to do the right thing.
Trip Tracker also provides key benchmarks on the company’s overall travel spend that Microsoft has determined to be important for them to track. More important, this data is not just reporting to be reporting; the items are actionable.
What percent of spend is internal travel? How much International Business Class spend? What percentage is booked under 14 days? And what is the overall travel spend for the organization, department and traveler? Bailey believes that armed with these metrics, managers can influence and educate travelers in all these areas to promote compliance, improve the traveler experience and drive down costs.
However, Phat Data never rests. Bailey sees opportunity in the future that will create data-driven methods for cost savings and a more effective travel program. The key lies with moving “action-ability” earlier in the process.
“We’d like more data that could help make recommendations at the point of sale,” he says. For example, if a traveler is flying to City A, would it be possible to send a message before the booking is completed that tells the traveler, “Hey the average airfare in this market is usually X dollars, but the flights you are choosing are really expensive compared to the norm.” Bailey is looking for action steps that will not only help travelers make better decisions on this trip, but will also educate them for the future.
In the current environment, the Microsoft travel program uses booked data. That means that sometimes the costs are already incurred before the red flags go up. Thus they are educating for future behaviors.
On the other hand, if the booking red flags could be based on historical data, a company could deploy real time messaging that influences the current decision. That would empower travelers to make better decisions. “As an organization we need data that helps us make smarter decisions,” Bailey says.
In the near term – say, the next two to five years – Bailey is hoping to see data in the travel industry be more integrated, which would enable the systems to predict what the travelers behaviors will be. Armed with such future vision, travel programs could better connect all the stakeholders in the travel game, using that wisdom to provide superior service.
Bailey also says he believes that personalization will be driven through Phat Data and that suppliers will be able to anticipate and provide offerings that are both compliant and keyed to the personal preferences of travelers.
In a previous issue, we covered the topic of commoditizing data; we also explored how data could be shared in the future. The challenge for us as an industry is, we should not overlook data privacy issues, but instead take steps to determine how we would manage those concerns in a commoditized environment.
Bailey says he finds both subjects intriguing. He maintains that he can probably obtain most of the data he needs through his supplier base and most likely won’t have to pay for it.
On the other hand, suppliers would love to tap into pre-trip data on individuals that would enable them to proactively offer services to travelers. “This data is like gold to suppliers,” says Bailey. “Imagine a black car company knowing that 20 travelers are all arriving in New York City within 20 minutes of each other, and having a luxury van ready to all take them to the same hotel. It could save the company money, provide high quality service to our travelers and the supplier has a captive audience.”
Of course for all travel buyers, compliance is a key factor to the overall success of any program. Microsoft has been able to reap the rewards of compliance by working to provide complete transparency in the data.
Your company doesn’t have to be the size and shape of a Microsoft to deliver this type of data. Buyers can easily determine the actionable metrics they want to benchmark, begin collecting the data and – start sharing!
Most reporting tools allow travel managers the ability to drill down into the data. The deeper the data, the more transparency, and the greater ability managers have to influence their travelers; the bonus points come when travelers know that someone has the ability to monitor spend, and that encourages compliance.
As unique as your organization is, so should your metrics be. Microsoft is just one example of how buyers can improve their travel program ROI by leveraging data into wisdom – and action.
Phat Data is always evolving, and if travel buyers and suppliers come together to determine what the unique applications for data for a specific company are, buyers can provide greater transparency into spend and buying behaviors which in turn will organically deliver new results.
So whether it is cost savings, compliance, improved supplier relations or personalization, the data is there. How you make it Phat for your program is what makes it UNIQUE…
Jennifer Steinke is manager, corporate travel for ACT, Inc., and an industry thought leader with over 27 years experience managing corporate travel. She holds an MBA plus Certified Corporate Travel Executive (CCTE) and Global Travel Professional (GTP) certifications from GBTA. Jennifer strives to deliver innovative and thought provoking ideas to the corporate travel industry.