As the corporate travel world re-emerges, Phat Data will provide the roadmap to what’s ahead
By Jennifer Steinke
If someone had told us at the start of 2020 that as we embark on 2022, our industry would still be facing the ongoing struggles of a global pandemic two years on, no one would have believed it. Most of us certainly thought the storm would have blown over by now. But here we are in what everyone had hoped would be “After the Storm,” still trying to figure out the how’s and when’s of returning to some semblance of an unencumbered “normal.”
While many suppliers have seen growth in the leisure market, businesses are still hesitant to open up corporate travel again. There are multiple reasons for this, safety of employees being paramount. But there’s also been an incredible amount of cost savings that companies have identified. It’s all impacting the “why” of companies not fully allowing travel to resume. How long this is sustainable is still to be determined.
One thing that both buyers and suppliers have learned over the past couple of years is that partnerships are more important than ever. The interesting thing is that these partnerships are opening doors for different conversations pertaining to data. Both buyers and suppliers need to rethink what we are measuring and why.
The first thing a buyer must realize is that internal Phat Data strategies must change. What we measure and how is significantly different now that it was pre-pandemic. No longer is it just spend, performance and policy. Buyers must now be thinking about ROI of travel, measuring sustainability, understanding diversity, equity and inclusion in the travel program. Still all the while we need to use data to better negotiate in a world where we must look into our very murky crystal ball and predict how much we will be traveling. It is more complex than ever, and this should excite buyers. What an amazing opportunity to look at the managed travel program through a completely different lens.
Make the Investment Pay If you have followed the Phat Data series, then you are keenly aware of how important it is to have a Phat Data strategy. One of the key components of building that strategy is talking to stakeholders/budget owners. Never has this been more important than right now. From the C-Suite to the line manager, buyers should be engaging with their stakeholders to begin determining what the travel landscape looks like now, and who will or will not be traveling how much or how little in the future. Companies have all realized that there is a lot of travel that may never come back as we have been forced to embrace all the virtual technologies that enabled us to survive during the pandemic. Having the conversation about what travel may not return is as critical as figuring out how much travel will.
In the same vein, a buyer can tee up the conversation with stakeholders about better ways to track the ROI of a trip, asking the why of someone’s travel. What is the trip intended to gain or measure? What is essential versus non-essential? What is the strategy around a whole new segment of traveler – those who have never had to travel before because they met with their teams in an office and now that team lives in eight different locations across the globe. How often should they be traveling to meet and collaborate as a team?
Starting these conversations as early as possible is critical. The information derived from having a better understanding of what your company’s leaders are planning for travel will help you to better understand what you now need to be tracking or measuring. This will in turn trigger the remaining parts of your Phat Data strategy.
Pre-pandemic, every traveler who embarked on a business trip more than likely felt it had an ROI associated with it. Very few ever really measured that, but they felt it existed nevertheless. Now as most companies have learned to operate without as much travel, there is a new opportunity for buyers to contribute to the ROI raison d'être of a trip. Buyers can begin tracking new data elements in reservations that can assist sales teams in connecting travel costs to specific opportunities or customers. Integrations with CRM systems and travel systems can also track the travel investment made into specific projects or clients. Using demand management to better understand, track and report on the why of someone’s travels is another way to contribute to clearly identifying the ROI of a trip. This is not a new concept; the industry has talked about it for years. But now that we have learned how to operate without travel, it’s going to become much more important for our companies to understand the ROI of travel and for buyers to be seen as a strategic part of the conversation.
Factor In ESG There are two other things buyers should be adding to their Phat Data strategies: The first one is sustainability and the second is diversity, equity and inclusion. Sustainability is a focus for almost all companies. Our ability to get work done without traveling as much has enlightened companies to how much positive impact the reduction of travel has had on our environment. Buyers need to understand their company’s sustainability initiatives and specifically, how the goals pertain to travel. For example, how much CO2 reduction or neutralization is the focus and what are the targets for reduction? Then determine how much impact does travel have on meeting those goals? Buyers must then equip themselves with the tools to influence travelers, track their behaviors and report on their carbon footprint.
Being proactive with suppliers and sharing with them your organization’s goals enables you to work together to achieving your targets. If your company hasn’t asked you about sustainability, now is the time to get ready for that all important question. Simple things like reporting on your current CO2 emissions or what those levels were pre-pandemic, talking with suppliers about their initiatives, researching methodologies for calculating CO2 (because not all methods are the same), educating yourself and engaging with peers. These are some steps that will prepare you for the questions that you haven’t been asked yet – but you will be!
In addition to sustainability, another important metric that buyers should add to their data strategies is diversity, equity, and inclusion (DE&I). Companies are not only beginning to track their own DE&I initiatives, but many are also looking at their supplier base to ensure that they too are focused on these areas. This means getting data from suppliers on their own statistics along with their tier two and tier three suppliers (meaning the suppliers of the suppliers). Example, an airline may have its DE&I initiatives, but tier two highlights the suppliers that they buy from, etc. Again, even if you haven’t been asked, prepare now, be proactive and add these metrics into your strategy.
Even though as an industry we are still far from full recovery, we are moving in a positive direction. Buyers and suppliers both have to think about what the future landscape for business travel looks like. For buyers, the strategy you adopted for your program in 2019 and early 2020, most definitely has changed for 2022. The conversations between buyers and suppliers are changing and now is an excellent time to start discussions around new strategies for your managed travel program.
One that counts the most is your Phat Data strategy: It is what drives your program. Whether it’s ROI, sustainability or DE&I, there are many new opportunities for buyers to refresh and renew their travel program. This is critical because after the storm, the managed travel program will be forever changed. Take advantage of that to make it PHAT!
Jennifer Steinke is Global Head of Travel for PPD, Inc., and an industry thought leader with over 30 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.