Side-By-Side At Sybase: Orbitz For Biz, Amex CTO

At a time when hype about online-originating travel agencies versus travel management companies is at an all-time high, Dublin, Calif.-based software provider Sybase Inc. has decided to put the matter in its travelers' hands. Sybase offers employees both Orbitz For Business and American Express' GetThere-powered Corporate Travel Online products as the interactive components of a program that also currently has an Amex onsite.

While Sybase has found that most of its online users say they prefer Orbitz For Business, a count of bookings tells a different story, according to manager of global card and travel programs Patricia Carlin.

Of nearly 300 people using the two online options since both were made available in February, Carlin said, "60 percent to 70 percent are saying they like the online travel agency, but when you look at the bookings, they are anomalous. They're coming up roughly 50/50." The company books more than $5 million in air travel annually in the United States.

In the five-month analysis, Orbitz For Business offered a roughly 10 percent lower average ticket price than CTO, although CTO was lower in some months and on some city pairs, Carlin said. "They have swapped positions," she said. "It goes month to month."

In general, Carlin said, both online options have offered Sybase "great" en route support and implementation assistance, including loading contract rates.

Both have helped increase online penetration and save labor costs. Orbitz charges lower fees, but Carlin expects the difference to narrow when she migrates fulfillment for CTO to Amex's Miami Lakes center from the onsite, which is scheduled for this month.

In terms of vendor relationships, Carlin said Sybase's travel vendors are "for the most part, neutral and supportive." Unlike some corporate online agency users, Carlin intends to continue to participate in the hotel request for proposals process, saying her experience tells her she'll still get better rates working directly with hotels.

On air, whether Sybase travelers book through Orbitz, CTO or the Amex onsite, they still make a lot of bookings on a particular nonpreferred carrier.

"For example, in Orbitz, there's a higher percentage on that carrier, but also a higher percentage of bookings on our preferred carriers. What does it mean? I don't know," Carlin said.

There are some challenges to maintaining multiple preferred booking channels. While it considers third-party data aggregators, Sybase for now is taking a data file from its providers and consolidating the data internally.

"That's good enough for now—it's really no worse than consolidating data from multiple agencies around the world," she said. "But I do want to see what's out there."

In addition, Carlin said frequent and clear communication is paramount. The company operates a "robust" travel intranet page. Carlin is proactive in enrolling travelers for both options and sends a message with every e-mail that indicates whom travelers should contact if they have a travel or corporate card question.

These and other small issues, however, are a breeze compared with dealing with travelers who "kept making noise" about consumer online sites and perceived the company-approved tool as cumbersome in its application of policy. "I don't think that's still the case," said Carlin of the CTO product, "but you're dealing with perception, real or not."

Also frustrating was the airlines' earlier lack of flexibility in making Web-only fares available to the corporate marketplace.

"The airlines wanted us to direct business to them, and yet they put this inventory on other distribution channels. How can we succeed in a program when distribution to nontraditional channels undermines our ability to direct purchases?" she asked.

Some of that has changed. Carlin said recent fare studies have determined the onsite agency can get the same rates and fares as other channels, notwithstanding the timing hiccups of yield management and fare loading. Still, she said, "I'm offering an integrated program that gives both management and travelers what they want."

Carlin, a 25-year veteran of travel management, has held her position for 11 years and now reports to purchasing.