Insights into the Job of the Travel Manager

I am often asked by executives what Travel Managers do as they have never seen one. The study, “A Day in The Life: The Role of Travel Managers,” sponsored by Sabre Travel Network, surveyed more than 700 North American and European Travel Managers and looked at the role of the Travel Manager, the value these managers bring to their organizations and a potential evolution in their role in the near future. I felt this data was useful in explain what someone in charge of this sizeable line items does and how some of these objectives could be built into the job description of someone who does this full or part time. This data can also be useful in setting goals for someone in this role.

When asked about their current responsibilities, the study showed Travel Managers are pulled in many different directions.  The vast majority of Travel Managers cited procurement-related activities (e.g., evaluating and negotiating with preferred travel service providers and obtaining and managing contracts with their providers) among their daily tasks. Travel Managers also are frequently responsible for activities related to managing internal and external stakeholder relationships, developing and monitoring programs and policies, as well as other areas such as evaluating technology solutions and applying business analytics. 

 

“As it’s done in so many industries already, technology will transform the role of the Travel Manager over the next few years,” said GBTA Vice President of Research Joseph Bates. “Thanks to the automation of so many processes, Travel Managers will be able to expand their role and further demonstrate their value.” 

 

“New software and services are rapidly changing the way companies manage all procurement categories, and travel is no exception,” said Greg Webb, President of Sabre Travel Network. “Strategically-minded travel managers are achieving superior results by using more sophisticated technology and hiring more tech-savvy team members. We see this shift in the research and among our clients.”   

 

Additional key highlights of the report’s findings:

 

Travel policy compliance represents the biggest challenge for Travel Managers, both in ensuring that the travelers follow company policy as well as obtaining senior leadership buy-in for new policies. Additional common problems include keeping costs down, managing globalization, using data to direct decision-making, and keeping up with technology advancements available for travel.

 

In addition to technology, Travel Managers also expect to see an increased reliance on data and analytics to make decisions, further globalization of travel programs and an increased focus on safety and security in the next three to five years.

 

While the majority of Travel Managers are currently being asked to calculate company savings from having a managed travel program, quantifying it has proven difficult. Quantifying company savings, both financial and non-financial, stands to further showcase the value Travel Managers bring to their organizations.

What Does “Open Booking” Mean and How Will It Evolve in 2015?

In 2009 corporate booking tools were just starting to gain traction. Get There, Reardon, Cliqbook were the major players. Since then, these tools and concepts have matured and now some 40 plus percent of corporate travel bookings flow through online booking tools.  Concur has matured the technology to integrate expense management with travel management and is now a power player (they were recently purchased by SAP), who not long ago introduced the concept of “open booking”  the ability to manage travel while letting employees book where they prefer, but still capture all travel related expenses on a single platform. From what I see, the early hype around open booking hasn’t been matched by rapid adoption. So where will it go in 2015? Market research firm PhoCusWright predicts that open booking will gain momentum particularly in the Moderately Managed and Lightly Managed segments. I believe that PhoCusWright is spot-on with its prediction but that raises the all-important question: to what extent?

 

As someone who believes down to my very soul that Travel and Expense (T& ) needs to be managed and supervised even more than most top line items, the tools coming into the market can, will, and should help achieve this concept - not replace it. At its most basic level, I believe that organizations will embrace open booking if it can help them effectively manage travel, with greater flexibility and at a lower cost. The value of these tools all starts with good data. For managed travel to work, we must first solve the challenge of full data capture. If employees are occasionally allowed to book through any channel they prefer, there must be a way to bring all of that data together in a consistent, real-time format.

Current popular solutions rely on travelers to forward their confirmation emails via alternate sources to a data aggregator, like True Trip or Trip Link (solutions associated with TripCase and Concur). These emails are then parsed and converted into useful data for reporting and other purposes. I believe that 10% of the lightly to moderately managed market will pay to subscribe to these tools. When they do, and they get everyone to forward emails to it, the evaluation can then begin. The travel manager can determine if they have in fact found a better value (as they often claim), where all travelers are, if they have gone outside of their TMC for a legitimate reason you can approve in your travel policy moving forward, if and when preferred supplier agreement should have been used, etc. Together with their TMC, some of these customers will consider this enhancement and work through these types of evaluations if they choose to manage travel at a higher level.

By nature, organizations considering open booking will tend to have more relaxed cultures. However, that doesn’t mean that they want a T&E free-for-all. Open booking solutions can provide support in this area if these tools are used and under the intent of even more tightly managed travel.

Note: Challenges exist and in a future article we will address how these and new technologies and methodologies are beginning to address these issues. It’s no surprise that this method has gaps that include: road warriors not forwarding their emails to these data aggregators, preferred supplier agreements cannot be used or credited when travelers book outside a managed system, how to support these reservations not made by the TMC - even if the TMC can see them, they don’t own them so making changes, cancelling, and receiving updates to flight changes and other services provided by your TMC have to be a more manual process - and how to measure the impact of time when travelers go outside the system to report on and reimburse these expenses.

What You Can and Should Want for Travel in the New Year

Name some travel metrics that you would like to see improved for this year. Ideas typically fall into categories like this:

• A specific way to measure savings for domestic, international, or overall travel.
• Online or overall travel program adoption.
• A better handle on hotel and car costs and averages.
• Meeting travel cost assessments.
• The results of supplier deals.
• A drill down on many other expenses like ground transportation (taxi, Uber, sedan, meals, etc.).
• Satisfaction with your travel program or its parts.
• The quality of data, for example, how often the right project or department code is provided.
• Compliance in a few key areas.  

Travel Management Companies have a wide range of travel data to share on these topics and can and do share it often. This is travel-rear-view-mirror data that can be used to set up a dashboard. While it may be important to you as the person in charge of travel, how is travel impacting other departments and how will travel be impacted by other departments?  You should think bigger and there is more that you may want to consider for this new year.

How can we bring better results to our organizations by adding a few of these considerations to our dashboards? Examples may include:

• How is your policy on cabin class effecting employee retention? Does HR know?
• How is travel anarchy effecting staffing time and costs in finance to manage expense reports and process credit card statements? How is this impacting them?
• Does the travel program and its policies and procedures fall into alignment with the culture of our organization for managing large line items like Travel & Expense?
• Where is travel going to reduce or increase based on our business plan for 2015?
• Will the sales team travel more or less?
• Are we completing one project and adding some that will effect demand? Are certain projects increasing or decreasing in demand?
• Will our team be traveling to riskier parts of the world, do we think that travel is riskier overall, or will travel to risky parts of the world decrease and what should we do to comply with our duty of care commitments to employees? Does legal think all of our processes and procedures comply with our risk tolerance for doing business?

So what will be important to travel and the company’s business plan for 2015? Which of all of these items belong in your dashboard? Let’s face it, we are all stretched and want to leverage our time by making the minimal investment to get the maximum return. So really assessing what can and should be in your dashboard can help leverage your time and deliver results that you can focus on for the maximum impact. Data is not better by the pound. Its quality over quantity. “Measuring what matters” can bring improved results for the new year!

What will be the most important data for you to measure this year?

If You’re Budgeting For Travel Costs In 2015, Go For Neutral To Single Digit Increases Across All Regions

American Express Global Business Travel released its 2015 pricing outlook last week. In the outlook, Amex forecasts worldwide air, hotel and rental car pricing "to be neutral to slightly higher across all regions," with variance across geographic markets and supplier categories. On tap for the United States are low-to-mid-single-digit percentage increases in each of the three major travel supplier categories. Europe, meanwhile, will see a mix of increases and decreases. Asia pricing should be up, but at a slower growth rate compared with recent years, while Latin America projections range from modest declines to modest gains. Amex cited an "improving economy" and "capacity discipline" by airlines in North America as it projected airfares in the region would rise across the board next year: Short-haul business-class fares are projected to grow year over year between 2 percent and 6 percent, long-haul business class will be up between 1 percent and 4 percent, short-haul economy is projected to increase between 2 percent and 5 percent and long-haul economy should be up no more than 3 percent.

North American hotel rates, meanwhile, are projected to be "buoyed by favorable economic growth, increasing demand, and a lack of new inventory," according to Amex. "After an extended period of relative weakness, hotels are looking to capitalize on favorable market dynamics to increase profitability." In North America, average mid-range hotel rates are expected to increase up to 6 percent year over year, with upper-tier rates up between 3.5 percent and 7 percent from 2014 levels. Car rental base rate growth in North America should be more modest, rising no more than 1 percent, according to Amex, which added that it is "likely that rental companies will work with their customers to keep their corporate rates generally flat next year."

For more information, guidance, or a deeper dive into data for planning, let us know how we can help.

Are You Managing Travel or Managing Trips or Both?

“Begin with the end in mind” is one of the Seven Habits of Highly Effective People. This should be the mantra for any major initiative. In travel procurement we often run into organizations who focus on managing travel (the line item) because the buyer of travel is driving the decisions. That person is often the Travel Manager, CFO, or similar. In other instances the decision of what to do (or more often what not to do) is based on the end user, or the travelers. In my experience exponential value is created when we are working with an organization trying to find the ying and yang (balance) between benefits that the organization should want and expect in managing T&E, and benefits that travelers should want and expect. Make sure you know what both sides can expect and add that to what you should expect to determine your goals and objectives with balance and consideration for both sides. It’s a good time for an assessment for the coming year. Then in understanding the potential and this desire for balance, filter requests and comments through these objectives before making any decisions. Here are some examples:

 

• Supplier display and speed - Many public travel sites recognize what the traveler has bought before and limit the display to what the traveler is likely to buy again. That’s a happier and quicker experience for the traveler, but does your organization want the buying decision to be strictly the preference of the traveler or the best available unbiased options every time?
• Traveler Tracking- I have heard travelers say that they don’t really want people to know where they are all the time. I have seen lawyers for companies explain that knowing where their travelers are all the time is a corporate responsibility.
• User interface- Many times advertisements for cruises, tours, packages, offers, and other products make sites look more exciting and user friendly, but are these advertisements simply distractions to your corporate travel policies? Yeah sure business travel buying technologies do need some updating but so does your CRM and ERP. These are all tools focusing on the job at hand versus an experience. What is important?
• Supplier preference- Is it the travelers preference that is the driver or the organization’s preference for the greater good of all that should be driver of the buying decision?

As in anything balance is required.

Why Your Superhero Road Warriors Need a Sidekick

Many travelers feel that they can make travel arrangements on their own outside of the company system just as well as the travel provider. Sure, making travel arrangements isn't difficult but by making these arrangements through a Travel Management Company they receive sidekicks (Batman has Robin and the Butler) that will help them defeat evil villains like Money-Waster, Time Cruncher, Plan Changer, Control Resister. Here are a few things they can do when they have such a sidekick that are good reminders of the benefits to them of working within your travel procurement system (Batman always did what was good for Gotham and him):

• Leap tall supplier cancellations and changes with a single phone call. 
• Leave you to do your job fighting villains versus the menial tasks of shopping for the right reservations, changing reservations, expensing reservations, and more. 
• Jump into battle with someone covering your back and providing you with useful data to accomplish your task. 
• Confirm your decisions making sure its good for you, Gotham, and the Butler.
• Maintain your secret identity by making sure only the right people know who you are with data security control you can understand.
• Ensure the data you need to fight your battle comes from every source in an unbiased fashion.
• Get you upgraded when appropriate with the right cool tools and equipment like a bat car versus a compact.
• Provide the right seats so that you are rested and ready to jump into battle.  

Even Batman needed Robin and the Butler - and they were always by his side when things went awry. Don’t be a Joker.

5 Advantages Gained by Establishing a Centralized Billing Program with a Credit Card Company

Saving time and money is the key to travel procurement and while other more expensive solutions exist to automate all T&E expenses, this is a very good first step in capturing more travel data with actual spend versus simply booked spend.

1. Gain Efficiencies with a Card-less Solution. Save your travelers from having to pay out of pocket and simplify your company’s payment and reimbursement processes by allowing these expenses to be on a company card. With less credit cards in use, less changes to numbers and expiration dates saves time.
2. Gain control and visibility over more travel spend. Have more complete data on spend including air, hotel, car rental and rail costs. Effectively monitor and manage traveler’s expenses by consolidating virtually all your travel expenditures into one account, one bill, and one payment. Ensure preferred supplier and travel policy compliance, access spend data that is meaningful to your company and improve spend visibility to assist with supplier negotiations.
3. Reduce traveler responsibility for payment without issuing cards. Travelers do not have to use their cards for a large portion of travel and this service can be provided without issuing cards for travelers. This can be especially useful when you have contractor and other non-employee types requiring payment for travel. This system can be combined with a program that includes the issuance of cards for certain employee types.
4. Provide Travelers With Access to Benefits. Many of these programs offer enhanced business travel accident insurance, baggage insurance, and some 24-hour emergency service. Points can also be a benefit.
5. Streamline Reconciliation. Account Reconciliation systems enable you to streamline and reduce the reconciliation cycle by days or weeks. It can be configured to the requirements of your financial systems to lessen IT programming time and costs. You can even have the capability to reconcile transactions and edit multiple transactions in a single step. You can enhance individual BTA transactions with your organization’s HR data. Allocate transactions to the appropriate cost center through account code validation. Save time by not having to request and receive missing data.

There are many ways to process travel payments and many times of cards and brands of issuers. Seek a consultation on the options and time and money can be saved while helping travelers facilitate the payment of this significant line item.