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Startup Ditches Mega for App Solution

By Elizabeth West / April 07, 2017 / Contact Reporter
Business Travel News on X

ThoughtSpot may be a small company, with 200 employees and just 100 actual travelers, but it's got big ambitions and international office locations. The venture-backed business intelligence software startup began operations two-and-a-half years ago. After some ramp-up time spent in the Wild West of business travel, the BI firm chose a mega agency and a well-known expense provider to introduce some structure. "The service was good," said VP of operations Chris Brozek, adding that ThoughtSpot took advantage of agency rates and other benefits because the company didn't have preferred agreements of its own. But as an agile startup, ThoughtSpot was looking for a paradigm shift and a level of technology innovation it wasn't getting from the big agency.

"We had our [travel] policy in place and that was helping us track and save, but the reality is that I didn't have any way to benchmark my expenses," said Brozek. "TripActions changed that game for us." TripActions was founded in May 2015 by CEO Ariel Cohen and CTO Ilan Twig. Like a couple of other new platforms—Rocketrip is probably the best known—TripActions crunches real-time market data to arrive at a "price to beat" based on the parameters entered for a trip. Unlike Rocketrip, it enables bookings, pulling in content from Priceline brands and Sabre, and Cohen said the company is in active talks with several other content providers to expand its range. On the machine learning side, the platform learns about users through their bookings. For new users, the tool makes assumptions based on data from other travelers. If refines offerings for individuals as their history grows.

"To be relevant to the user, we can't give many choices; we had to extremely personalize," said Cohen, adding that the platform has reached the point where users always end up picking the first, second or third hotel on the search list. "That's very powerful to the user," he said.

For the corporation, it also matters that the curated options present savings off the price to beat. That's not always possible, but when it is, the choices are prioritized not only by price but also by properties and itineraries that are attractive to the user. The reward for booking a "savings" itinerary is cash in the form of gift cards based on a percent of the total savings off of the price to beat.

TripActions charges booking fees but also makes commissions and threshold incentives like an agency. While the company claims it can reduce travel spend by as much as 30 percent, Brozek said ThoughtSpot is likely saving 10 percent off market rates. "At the end of the day, any traveler has a preference for carriers or routes; maybe they are optimum or not. TripActions will put together preferences, but the other option has the incentive in place. I don't know how much of a switch rate we get there, or if Option A was the perfect option." Either way, it's a win for ThoughtSpot because the tool ensures policy rate or better.

"There's machine learning and AI living under the covers there. We don't have to see it working, but our travelers like the fact that TripActions works more like consumer tools," said Brozek.

Cohen admits there is still work to do on the agent side but also said the system is getting better at figuring out complex itineraries so fewer travelers are escalated to agents. Brozek said his travelers almost never use the live-agent support. "We don't want to talk to people," he said about organizing business travel logistics. Asked about travel disruptions assistance, he said his travelers prefer to figure it out on their own.

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