With international businesses hustling to meet new expectations, getting the right travel management company can help your program stay nimble in an unpredictable world marketplace.
Certainly travel managers and their organizations are putting greater emphasis than ever on traveler satisfaction, according to Rodolfo Elizondo, vice president, global business consulting for American Express Global Business Travel. “Ensuring your travelers are safe, satisfied and productive on the road drives more meaningful business trips that ultimately boost a company’s bottom line,” he says.
Success in this area also prevents burnout, Elizondo says, pointing to recent research findings from GBT, ARC and tClara that 15 percent of US road warriors say they’re feeling the burn. “When it comes down to it, business traveler satisfaction is also employee satisfaction,” he says. A happy and fulfilled workforce is critical to company success, he maintains, and travel management companies are a key to such efforts.
“TMC partners play a crucial role in promoting traveler satisfaction,” Elizondo says. “They provide travel managers and their travelers with tools that optimize booking and reporting – tailored to traveler preferences – and help them navigate any interruptions.”
In fact, reliance on such technologies may be the most profound development being faced by all concerned, according to Juan Perez, vice president, multinational sales and global business solutions, BCD Travel. “We’ve seen a significant change in the approach travel programs use to achieve savings and compliance,” he says, adding that the use of technology by travel managers to influence traveler behavior is reaching unprecedented levels.
Tied to this is the growing emphasis on duty of care over the past few years, brought on by increasing company demand. “While traveler safety has always been a priority, TMC tools and technologies that promote duty of care are more sophisticated, data-driven and more frequently employed by companies,” Elizondo says.
“Terror incidents in the news have really gotten people’s attention,” Perez says. “The industry has responded with the development of better-quality data and more-timely data.” This includes using booked data for duty of care and compliance, as well as ticketed data used in scorecards and predictive analytics or “what if” scenarios.
Expecting MoreAt the forefront of change, insiders agree, is the increasingly robust nature of mobile travel applications.
“Mobile tools are now a must for leisure and business travelers alike,” Elizondo says. He notes that since business travelers also travel for leisure, they have come to expect certain tools and resources at their fingertips. This in turn has prompted corporate travel to place greater focus on mobile options.
“TMCs have responded by making their tools accessible via mobile channels, even creating some tools dedicated for mobile, in app form,” he says, adding that many of GBT’s traveler care and booking products have a mobile app component so that both travelers and travel managers can readily access them. His company also offers travelers a dedicated itinerary management mobile app.
“Mobile tools give travelers access to trip information on the go, help them adapt to disruptions in real time, and get in touch with people that can help if problems arise,” he says. “For TMCs, technologies like mobile have become a way to amplify and expand the service they provide customers.”
Of course the potential that comes with advancing technology is only part of the equation. Another major factor driving change is the onrush of growing expectations. Travelers are no longer satisfied with resources that were acceptable just a few years ago. With the ubiquity of mobile devices, travelers want instant access to information as well as the ability to do more for themselves.
In fact more than seven in 10 business travelers prefer using self-service technology to manage their travel, according to a report issued at the end of June by GBTA. The study, conducted by the GBTA Foundation in partnership with Sabre Corporation, found that 78 percent of US respondents indicated a preference for self-service technology. Similar rates (from 73 to 77 percent) were seen in Spain, Canada and Italy, with slightly lower rates indicated in the Nordic countries (60 percent) and Germany (56 percent).
Shortcomings in addressing growing expectations pose very real dangers, warns Mark Hollyhead, senior vice president, Americas for Egencia. He points to the accelerated pace at which the relevancy of some TMCs is being challenged by a failure to invest in technology, design and innovation.
“I believe this lack of attention will render many TMCs irrelevant, or at the very least, push them to the bottom of the corporate travel value chain,” he says. “Simply put, consumers want to be inspired, and corporations want their people to see that their employer is making choices with them in mind.”
He says that business travel consumers are becoming increasingly impatient with mediocrity and intolerant of suppliers that do not put their needs first.
“Whether it’s using my profile data, search history or preferences to make my search easier, or being proactive with intelligent data-driven solutions when something goes awry, the TMC for today’s generation must show me progress,” Hollyhead says. He predicts that the high but necessary entry cost to operate in this corporate travel environment will continue to be a significant topic. Putting capital to work in making the consumer experience better every day will be a key theme for many years to come.
Smart TMC SelectionElizondo says that as the definition of value continues to change, companies are looking to drive financial ROI as well as well as traveler satisfaction. While travel was historically a department looked to for hard-cost savings, today softer costs such as traveler burnout are being considered alongside traditional travel expenses. “Partners like TMCs are a great investment because they support both efforts,” he says. “They can identify areas for cost savings, and also provide tools and solutions that enable traveler satisfaction.”
In determining what sort of TMC best fits their company’s international footprint and objectives, travel managers should strive for balance, according to Elizondo. “The right partner should strike the balance between global scale and local expertise,” he says. “A TMC should be able to support multinational programs through strong international operations and cross-country coordination, to efficiently manage thousands of employees traveling at once.”
Perhaps equally important is having the local market knowledge for any global supplier or destination to ensure that each individual trip is seamless and successful.
At the same time, the choice of a TMC should take into account the potential to shape this scale and local expertise into a program that uniquely supports the company’s travel needs. No two travel programs are the same, and they should be treated accordingly.
Perez says that both internal and external research is important in this process. “Internally you need to understand how travel can enable the company to achieve its goals,” he says. “Externally you need a partner that shares your company’s values while bringing the skills and experience needed to help achieve your goals.” Consider such factors as recognition by a TMC’s customers, suppliers and peers. In addition to a global footprint, other points include customer retention rates, success stories and references.
“The best choice for your TMC partner is the one that aligns travel department objectives to underlying company goals,” Perez says. Examples include global expansion, new product launches and saving or productivity gains. “In addition to having a global presence in essential markets, your TMC must be able to commit to global KPIs or SLAs.”
Hollyhead advises thinking of the best consumer experiences you have every day, and how those implement such qualities as ease of use, accessibility, reliability, speed and insight.
“When researching a TMC, the lens should be no different,” he says. “Clearly validating that it can manage the core services for managed business travel is key.” Ask the firm if it provides the ability to search and book, offers off-line phone and support services, configurable systems to manage policy and control, reporting, and duty of care. Deeper diligence may focus on questions like is the service wholly owned on one platform or partnered, and does the TMC pursue continuous improvement.
Budget considerations should also be part of the picture. Perez notes that sourcing travel is not the same as other supply management, with companies facing the need to invest in travel to generate revenues and achieve growth goals.
“As with any other procurement category, companies must achieve the highest possible value from their travel spend,” he says. “But especially for travel, it’s critical to start with your underlying corporate goals, not savings.”
Strategic DirectionPerez says that successful travel programs start and end with the traveler. “You can have the best supplier programs, the best technology, the most comprehensive and easy to understand policy – but you need your travelers to be engaged to achieve your company’s goals,” he says.
Intelligent programs, he adds, begin with a partnership with a TMC that can help make sense of the complexity, navigate the changes, align with your goals, measure success and most importantly, keep your promises.