London - Following a six-month trial, Coca-Cola in January
implemented a European version of the gamification program it established three
years ago in the United States. Travelers are scored based on their use of
online booking, lowest-logical airfares, preferred hotels and advance
purchasing for regional and international tickets, as well as the inclusion of
lodging with air bookings.
"At every booking, travelers have six parameters they
are judged on," Coca-Cola Company European travel manager Michael Hill
told attendees at the Business Travel Show here last month. "There's no
such thing as 100 percent compliance."
The travel department provides reports to and about business
units, cost centers and travelers. "I can't tell you how excited the
finance and business unit leaders are," said Hill. "The travelers
themselves? So-so. The reports are good news; they're not to get anyone in
trouble. We're identifying where you can improve your bottom line. It details
the top five cost centers performing well, and the bottom five. The top five
travelers, and lowest travelers of that month. We're getting great buy-in from
suppliers because we're putting our money where our mouth is."
Measuring the use of preferred hotels via the game system
could help the beverage giant improve policy compliance, although a concerted
effort on that score during the past few years already has achieved results. By
focusing on policy compliance, reducing the number of preferred properties and
analyzing data, the company's use of preferred hotels increased to an estimated
78 percent in 2012 from 40 percent in 2010, Hill said.
"When I joined in 2010, we had 29 preferred hotels in
London," he said. "I took it down to nine in 2011 and we had 11
hotels in 2012 only because of the Olympics." Hill credited senior-level
support for the company's success in slowing hotel rate increases—held to 1
percent in Europe last year—and securing through negotiations such value-adds
as complimentary breakfast and Internet access.
Policy is "not mandatory, but it is rigorously
enforced," Hill added. "In Europe, anything out of policy comes to me
for approval." He said the company does not "guarantee" volume
to preferred hotels. " 'You're on the list,' " he said. " 'We'll
promote you, and the traveler will decide.' I refuse to guarantee any number of
room nights and I'd encourage others to go down that route."
Coca-Cola spends more than $500 million on travel globally,
Hill noted. Its travel management department of six includes three data
consultants.
Business Travel News last year recognized consultant Tom Ruesink for developing the gamification method employed by Coke, a program now
facilitated by Cornerstone Information Systems.