For more than a decade, companies have sought to implement
automated, end-to-end travel- and expense-management processes. Yet today, only
a small minority has done so, despite the increasing capacity of technology
vendors to integrate the key elements of the process.
Is the holy grail of end-to-end, the long-sought-after "ultimate"
approach in the evolution of travel management, passé?
The Traditional Model
And Its Issues
The traditional vision of an end-to-end, automated
purchase-to-pay process is linear—often with a single-technology-vendor
strategy—and integrates a rigidly prescribed chain of elements, such as a
booking tool, expense management tool, some mobile tools and corporate card,
with the data eventually flowing into the company's enterprise resource
planning system.
Granted, this model may (and does) work well for large,
process-driven organizations willing and able to invest in the relevant
technology, but it presents significant challenges for many companies:
Cost: The funds,
resources and change-management efforts required to get the system to meet
program objectives can be prohibitive.
Anachronistic user
experience: If a company does focus on the clearly defined goals of its
travel program, it now may find that there are better, more flexible solutions
to serve its travelers—and thus those goals—instead of a monolithic series of
expensive, mandatory tools and procedures.
Diminishing returns:
Many companies are already being challenged to determine what else the program
can do to drive down costs beyond policy compliance. With the influx of a new
generation of technologically adept and proudly self-reliant travelers,
companies will need to go beyond traditional approaches to travel program
management to see continued positive results.
From Linear Process
To Pluralistic Web
During the past two years, travel managers leveraged the
economic downturn to implement previously hard-to-sell corporate travel policy
revisions and procurement strategies for their travel programs. Yet they still
find themselves pressed ever harder to optimize the programs to reduce cost and
increase value.
Today's rigorous optimization objectives include spend
transparency (by bringing additional spend under management), enhanced demand
management and influence on traveler purchasing behavior (including the
consideration of travel alternatives) and travel risk management (through the
adoption of more sophisticated travel safety and security solutions).
To meet—or better yet, surpass—these goals, travel managers
should look to a more pluralistic web of technology and processes that unite
two dimensions: the perspective and needs of the traveler (e.g., itinerary
management) and the perspective and needs of the organization at an enterprise
level (e.g., tracking and communication systems, data warehouse).
Thanks to fast-improving interoperability between
technologies, travel managers can build numerous connections between these two
dimensions to meet precise strategic goals, while at the same time giving
travelers more flexibility in constructing their travel experience.
BCD Travel believes that the truly forward-thinking travel
management company will provide the necessary intelligence, counsel and
expertise to navigate this challenging environment and craft an intuitive,
elegant framework for the pluralistic web.
(Measured)
Flexibility Is Paramount
Being flexible means allowing travelers to craft and adapt
solution sets that meet business and travel needs, within parameters that
support organizational objectives.
However, in order to ensure the capture of essential data
and enable traveler tracking, travel managers and fellow stakeholders will need
to identify at least one compulsory element—in addition to the expense
system—within the solutions web. Examples of useful compulsory elements, which
will vary between companies, include a booking system (or systems) and an
itinerary management system.
Beyond compulsory elements, travel managers would be wise to
identify and communicate a range of tools, solutions or processes that the
program recommends. This range could include traditional elements, such as
travel management company, expense system, corporate card, online booking tool
and preferred supplier programs, but also an official itinerary management
system, a mobile tracking facility and a portfolio of useful mobile/Internet
applications that enable travelers to be more productive and secure while on
the road.
Here are the key steps to get on the road toward a more
comprehensive and flexible vision of end-to-end:
Start with the
corporate program goals and prioritize them: Rather than expecting
stakeholders without a travel background (usually a majority in any given
corporation) to learn travel management jargon and idiosyncrasies, it is up to
travel management to translate the value of a managed program into the language
of the corporation and of the consumer (traveler).
Understand the
traveler's solution landscape (don't forget to include the mobile platform):
Travelers are using mobile apps for trip planning, check-in, destination
content, location-specific deals and (in a limited fashion) booking and expense
management. Understand ways one can braid mobility into the travel program,
especially in the areas of pre-trip approval, travel risk management, travel
disruption support and en-route procurement.
Identify the single or
few components that the organization cannot do without: This is the element
that will need to be mandatory for the traveler, to ensure sufficient data
capture to power the rest of the web. But it will vary from organization to
organization (and could include a pre-trip authorization tool, an itinerary
management system, an online booking tool, a payment system and an expense
management system).
Identify additional
solutions to support broader organizational goals: For companies looking to
achieve "beyond policy performance," flexibility is key. A program
can and should incorporate elements with a clear value proposition for the
traveler and the organization. These elements might include the travel
management company of choice, an official itinerary management system and/or a
mobile traveler tracking solution.
Select the solutions
required on a corporate level: These solutions should directly mirror the
corporate program goals identified above. What data and systems (e.g., spend
analysis, ERP, traveler tracking and communications system) are necessary to
build a full and actionable picture of what is going on in the travel program
and provide the information required to manage the travel program in line with
the organization's overriding strategic objectives?
Map the integration of
traveler-level data and enterprise-layer solutions: For each strategic goal
(cost control, security and safety, etc.), the company will be able to choose
its own combinations of tools and processes to link the two levels. Key
questions include: How does the traveler benefit? How do you ensure you meet
strategic goals in this more complex environment? What are the benefits? Are
there any disadvantages?
Communicate,
communicate, communicate: Persuasion and clarity are paramount in the new
environment. Explain to travelers how they (and the enterprise) benefit from
using recommended tools, such as the TMC or official itinerary management
system. Think less about exerting control and more about using expertise to
influence traveler behavior.
Empower travelers and
unleash the potential of "better-than-policy" behavior: More
programs are experimenting with exploiting travelers' competitiveness and
desire to be good corporate citizens. Scorecards and gaming systems can
encourage travelers to "compete" against policy and/or their peers to
earn credits or bonus points. Motivated travelers, properly incentivized, won't
just meet travel management goals and objectives, they will exceed them.
Ultimately, "end-to-end"
will continue to exist. But rather than a linear process, it will become
essentially three-dimensional—and, most important of all, it will continue to
evolve. Though the new process is not managed in the traditional mandated
sense, the travel manager will be in a far better position to influence the
program's direction, and the travelers themselves, to support the organization's
goals.
This approach is not for the faint-hearted. It requires a
vision that seems at first glance in conflict with perceived best practice, and
it requires the willingness to trust travelers to make the right decisions and
to provide the right environment and solutions to enable them.