Chewing (And Trimming) The Fat: Buyers Leverage Multifaceted Traveler Communications Programs - Business Travel News

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Chewing (And Trimming) The Fat: Buyers Leverage Multifaceted Traveler Communications Programs

May 20, 2011 - 02:30 PM ET

By Jay Campbell

Consultants and other observers five years ago began calling on the business travel community to adopt social media, and the phenomenon today is equipping travel managers to reinvent themselves and redraft the rules of behavior modification.

Once generally described as 'user-generated content,' social networking or social media for corporate travel programs today encompasses blogs, online communities, instant messaging networks, trip sharing, ratings and surveys. The travel management profession's New Communicators are travel buyers who are toppling the ivory tower with a get-with-the-people approach to dialogue that eventually could be the only one that works. You're very 1990s if you think up-and-coming generations of travelers, well equipped to ignore you, will read travel policies because they are on the intranet rather than printed on paper.

Instead, better ratings and surveys are providing travel managers the information they need to improve vendor performance. Internal community and blog pages allow buyers to, gently or otherwise, guide travelers to corporate-preferred options, and trip sharing is letting road warriors make their daily travel battles more cost-effective and possibly more productive. Taking on social media has helped buyers with duty of care, compliance to policy, negotiations, traveler service, business efficiency and personal company visibility.

'For us it became a collaboration tool for the entire company, built on a small idea from travel,' said Sapient global travel manager Michelle DeCosta this month during the Business Travel Media Group Tech Talk 2011 conference in Chicago. 'It became so big that we have just completed a social and business collaboration tool RFP, and we have gone from a free enterprise-wide solution with Yammer to Jive Software, which gives us more robust collaboration. I'm excited that in an IT and business consulting company, travel had this idea that went gangbusters through the organization, and we have been credited with that.'

Harman International Industries director of global corporate travel Sally Abella said, 'It's really important for you to find these apps and put them out there for your travelers because you're the subject-matter expert about corporate travel. Keep fresh and stay young; you have a lot of young employees coming into the company. We post apps that we think are of benefit to the corporate traveler; things that will help them get through business travel processes easier.'

Business Travel Efficiency & Service

Improving the experience for end users, as well as for travel program managers, is a key benefit of updated communications programs. Pharmaceutical firm Genentech in late 2010 informed United Airlines of problems its employees were experiencing at San Francisco International Airport that surfaced in results of a new ratings system and survey of top travelers.

'The results were pretty negative,' said Genentech corporate travel and small meetings manager Steve Sitto in an interview last month. 'A lot of our travelers are top flyers with United. We had an inconsistency in customer service in the check-in and premium lobbies. We met with the station manager and his direct reports and shared the feedback. There were even tears in the room. They're such good agents and take it to heart when they find out a big customer is really not happy. The airport and United have taken several positive steps forward to try to fix what was happening, and they've done a really good job. We all make mistakes, but it's how you recover from them, and with the amount of data they're seeing from us, they've been able to recover quickly.

'People care about what seat they're sitting in, what hotel room they're laying their head in and what steering wheel they're sitting behind,' Sitto said. 'I want to make sure we have as many options as possible to get the right kind of feedback and data. I don't ever sugarcoat anything. We tell [suppliers] the good and the bad. If it's not for customers like us who support them heavily and give them feedback—good and bad—then they're not going to be able to improve. The thing that kills me the most is when I submit a complaint on behalf of a traveler, and the minute you complain [suppliers] throw 5,000 or 10,000 miles in your account or send you a voucher. It makes me believe that they're actually not listening, and that's why I developed these surveys. Instead of giving them individual feedback, I give them group feedback so they have nothing to do with it except take it back and improve upon it, without feeling like they have to compensate anybody.'

Traveler feedback supports more tactical customer service situations as well, with tips on the best restaurants near a given client office, the preferred property in a given city, or even 'I'm working on ABC Project. What budget are we supposed to be in?' noted Deltek director of global travel procurement Karoline Mayr.

Sapient's Yammer installation has produced more critical information: 'Someone sent a message one time that the kiosks were down for a certain airline at a certain airport,' said DeCosta. 'Lots of responses flooded in. People were thrilled that they knew to print the boarding card before they went there, so they didn't have to wait in a humongous line with this carrier. Having it on the smartphone is the next iteration.'

Deltek's Mayr said that complaints are rare, but when they do happen, social media shines. She takes to her Microsoft Sharepoint blog to respond to concerns and inform travelers of the outcome. 'We had someone complain about a car rental incident in an airport with one vendor,' said Mayr. 'We always immediately answer, and then another had a similar complaint, then another. [The vendor] ended up firing the person [responsible]. We pasted that message and let everyone know when our preferred supplier took care of things.'

'My travelers are my greatest champions of the program,' said DeCosta. 'If they mention a hotel they love and someone else reads it, it puts more visibility into our preferred suppliers and our programs, and what's working, and also into who I am. I'm not in India. I'm not in Russia. Now they realize someone's running the travel program and who that person is, and they can reach out to us directly.'

Enhanced communication is not just helping travelers. Rockwell Automation travel strategic sourcing manager Stephen Mitleider said his firm installed the social and community functions of IBM's Lotus software to 'open constructive and interactive lines of communication between strategic sourcing, security, the folks in our company who manage the [expense management] operation, and with our travelers and travel arrangers. I wanted it to be interactive in way that a posting on a corporate intranet site could not be.'

At Harman, internal trip sharing via TripIt Groups allows department heads to see on a map where their employees are and corporate travelers to identify potentially useful meet-ups. 'I was in London and found out the sales group was having a meeting there,' said Abella. 'I called and got a few minutes with them to talk about the travel program.'

Compliance & Spending

Many social media tools are free, so the return on investment tends not to be quantified. In addition to the aforementioned service advantages, though, corporations have benefitted financially from improved communications tools.

Thanks partly to Sitto's prodding on Genentech's's enterprise social network, key performance indicators in January and February were 'tremendous' even at a time of increased industry prices, he said. Sitto has implemented a 'heavy communications campaign' about online booking tool use, buying airline tickets in advance, reusing nonrefundable credits and other best practices.

'We've seen a significant shift in advance-purchase behavior and supplier-preference behavior, and it's all equaled out to a lower average ticket price, more efficient transactions and our call volumes are stabilizing,' he said. 'When you see the numbers in front of you, you know the program is working and your work from the past 18 months is paying off and behavior is beginning to change.' Year over year in the January-February timeframe, cost per mile fell 7 percent, the number of domestic tickets issued outside of 14 days grew by 18 percent and the number of international tickets issued outside of 14 days rose 40 percent, Sitto said. 'Our international savings because of advance-purchase behavior has increased 24 percent,' he added. 'People are no longer buying the highest fares, and that's where we're seeing the savings. It could be a few thousand dollars more if you're buying last-minute.'

For Deltek, funneling travelers to the right hotel near a new client site has always been a challenge. 'Our hotel program is constantly changing,' said Mayr. 'When new projects come ... we contract with the hotel and put it [on the blog], so they know. They didn't know what they didn't know. I don't do mass emails at all.'

Buyers empowered this way not only try to move travelers to preferred suppliers, but also bring preferred suppliers to travelers. Referencing a discussion at the Travel Tech 2011 conference, DeCosta illustrated how she became a marketer for a key vendor: 'This morning, Avis was talking about an app linking to roadside assistance. I immediately got on [Yammer] and pushed it out there—and I've had four responses already of people who downloaded it and loved it. For them, it's useful. For me, I'm just reminding them that when you're booking cars, you're booking Avis.'

'Recently we announced a preferred relationship with United Airlines and the Star Alliance,' said Rockwell's Mitleider. 'I posted a notice on how travelers can apply for status match and membership for Mileage Plus.'

Taken to another level, social media helps give travelers 'a voice in future supplier selection, in the program and in policy development,' said Mitleider. 'We were about to bring our global hotel program to the market. Surely, all companies in preparing to do that go through the formal spend analysis. They will take agency data, card data, spend data and expense report data, and they will objectively quantify in what cities [and] at what properties, and project out how many room nights and how much their spend is. That sort of objective analysis is very typical of how a sourcing process starts around a hotel program. From that list, and from that analysis, we actually posted the solicitation list in the [forum] and asked people to go look at it and validate the list. 'Are these the hotels that you wish to stay at? If they aren't and you want us to eliminate some, tell us which ones and give us a little mini-business case for why we should do that. And [tell us] if there are hotels that we should add.' So we've gone to the people who clearly have the best local market knowledge.

'We may eliminate some incumbents or we may add some new properties,' Mitleider continued. 'An incumbent might ask, 'Why did you eliminate us this year?' and we can say because we got feedback from our colleagues who advised us that the hotel is under construction, or they are under new management, or they are reporting some unhappy customer experiences. The best way to drive compliance is by including your customers in the purchase decision from the outset.'

A similar experience also led Rockwell to change its key airlines after a recent sourcing project.

Duty Of Care

Health and safety for travelers is, of course, in both employees' and corporations' interests.

'It's a wiki, a blog, a discussion board ... a lot of things,' said Sitto. 'I used to send out mass emails to people, communicating, for example, an air traffic control strike in Europe or a quake in Asia, and I would get several hundred out-of-office emails back, which was frustrating. Most blast emails don't work very well. Most people don't read them. With this, they can forward the message, set preferences and subscribe to notifications.' As events unfolded following the recent earthquakes in Japan, Sitto posted government warnings and a Q&A on radiation, including air-quality updates and advice on where the Japanese government stocks iodine.

Sapient's social network provides DeCosta an opportunity to nip noncompliance before it occurs. 'A lot of times they may be booking a client rate or something outside [the program and that] goes against our duty of care and risk management' policies, she said. 'I'm able to find out about that a lot of times because I'll see a new project come up, I'll figure out who's heading that project, and behind the scenes I can reach out to them to determine if there is a hotel that I can convert and have it loaded as a Sapient rate.'

Mass emails are out.

At Rockwell, stakeholders receive targeted email alerts 'indicating that there is a piece of headline news or actions that have been posted: 'Go into the team room.' Whether my motivation is to inform, educate, motivate or influence a purchase decision, or provide to them critical information about what to do in the event of an emergency, before this I realized that I had no way to reach out in anything approaching real time.'

—With reporting by Michael B. Baker and Lauren Darson

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