After 20 years of professional management, the corporate travel category has reached the point of diminishing returns. It needs to explore new frontiers, ones that use new technologies and new principles. This deck describes those new frontiers.

2. The End and Future
of Managed Travel
Scott Gillespie
Gillespie’s Guide to Travel+Procurement

3. • Managed Travel 1.0
• Winds of Change
• The Optimization Problem
• It’s Time for a New Approach
• New Frontiers
• Discuss and Debate
Where we’re headed

4. • 1994: Delta caps commissions, triggers TMC
transaction fees and cost center mentality
• Late 90’s: Corporate online booking tools
put travel policies in spotlight
• 2007: UK’s Corporate Manslaughter Act
makes duty of care a high priority
Strategic drivers of MT 1.0

5. MT 1.0 has diminishing returns
Gillespie’s Guide to Travel+Procurement
Countries
T&E Spend
$$$
$
20% of Global T&E Spend
Worth going after?

6. Gillespie’s Guide to Travel+Procurement
Airlines
Air Spend
$$$
$
20% of Air Spend
Worth going after?
MT 1.0 has diminishing returns

7. Gillespie’s Guide to Travel+Procurement
$$$
$
20% of Spend
Worth going after?
Spend
City pairs, or hotels, or travelers, or trips
MT 1.0 has diminishing returns

8.  Consolidate TMCs
 Consolidate T&E card programs
 Consolidate travel data and reporting
 Comply with duty of care
 Use KPIs and benchmarking
 80+ % online adoption
 90+ % travel policy compliance
 Optimize air, hotel and car programs
After 20 years, best practices for MT 1.0
are well known

9. Trip costs have been mastered
Gillespie’s Guide to Travel+Procurement
The castles
have been built
Travel Policy
None Harsh
High
Costs
Trip Cost

10. Solid, safe, enduring –
a valuable base
Immobile,
inflexible

11. not
Castles
Ships
We need

12. Where are the new frontiers?

13.  Global networks create greater competition
for good talent
 iPhone culture impacts more than Gen Y
 User experience drives brand loyalty,
especially in travel
 Travel suppliers have stronger, more
insightful pricing and packaging power
 Greater emphasis on traveler well-being
Winds of Change

14. The optimization problem
Travel Policy
None Harsh
High
Costs
Trip Cost
• Lost productivity
• Reluctance to travel
• Recruiting, retention
problems
Total Trip Cost
Traveler Friction

15. The optimization problem
Travel Policy
None Harsh
High
Costs
Trip Cost
Total Trip Cost
Traveler Friction
The Great Unknown

16. To date…
 Best practices are well known
 Mature programs deliver diminishing
returns
 New forces are at work
 Half of the travel optimization problem
is not well understood

17. it’s time
new
approach
for a

18. Where are the new frontiers?

19. Brand.com to CDE is a new frontier
Brand.com
Corporate
Traveler
Corporate
Booking
Data Traveler’s
Expense
Report
Net of
Discounts
“B2CDE”

20. Edit Rights are a new frontier
Corporate
Traveler
Brand.com
Corporate
Booking
Data
Corporate
TMC
Right to edit or
cancel the
booking
Everybody is
happy!
Trip
Changes
Net of
Discounts

21. Managed Travel 2.0 is a new frontier
1. Shop anywhere – period.
2. Book anywhere –
so long as data is captured quickly
3. Book anybody –
so long as suppliers are safe
4. Book anything –
so long as it is in budget

22. 22
Traveler Dashboards are a new frontier

23. Door to door
Trip Tailoring is a new frontier

24. Detailed Expense Estimate
Detailed Trip Itinerary Door to door

25. 2 3-4 5-8 9-16 17-32 33-64 65+1
22% of trips taken by
infrequent travelers
Who needs Trip Tailoring?
Source: Scott Gillespie’s analysis of an anonymous data set

26. Travel Budget Owners are a new frontier
Trip Cost
Traveler
Friction
Good trips
results
Within my
budget

27. Traveler Friction is a new frontier
Travel Policy
None Harsh
High
Costs
Trip Cost
Traveler Friction
• Frustration, Stress
• Safety, security
• Lost productivity
• Reluctance to travel
• Recruiting, retention
problems

28. Traveler Friction
None High
Sales
High
Effective
Range
Traveler Friction’s Impact on Sales

29. Traveler Friction
None High
High
Employee
Attrition
Traveler Friction’s Impact on Attrition
Acceptable Range

30. Traveler Friction
None High
Traveler Friction’s Ideal Range
HR’s Input
Sales Input

31. Traveler Friction
None High
Traveler Friction’s Optimal Range for
Sales People
Optimal
Range
35pts 55 pts

32. Better Management of Salespeople
Bowden, Christina 84
Barton, Elsie 82
Goldstein, Gretchen 78
Watts, Tim 77
Merritt, Shirley 77
Dougherty, Kristine 66
Steele, Eric 60
May, Alex 55
Jones, William 50
Bender, Hazel 48
Chung, Donald 43
Underwood, Harvey 41
Teague, Wesley 35
Hamilton, Elsie 29
Walsh, Marcia 25
Vick, Franklin 20
Encourage
more travel
Reduce travel friction:
- fewer trips?
- better trips via policy
exceptions?

33. Trip Cost
The Future
Traveler Friction
The Past

34. Implications
of Change
Gillespie’s Guide to Travel+Procurement

35. For Travel Managers
Trip costs Business impact

36. For Travel Suppliers
Travel buyers Travelers and
budget owners

37. As you make the transition

38. Embrace the journey
Share your discoveries!

39. Thank you!
Scott Gillespie
+1 216 272 1637
Scott.Gillespie2008@gmail.com
Glad to connect on LinkedIn