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Online Strategies for Travel Programs. Presented to:. PAMPI and PHL BTA Joint Education Institute. Tom Wilkinson President, TRW Travel Consulting, LLC www.managedtravel.net. Presentation Goal.

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Tom wilkinson president trw travel consulting llc managedtravel

Online Strategies for

Travel Programs

Presented to:

PAMPI and PHL BTA Joint Education Institute

Tom Wilkinson

President, TRW Travel Consulting, LLC

www.managedtravel.net


Presentation goal

Presentation Goal

Premise: The ‘online strategy’ of most corporate travel programs follows the trend in the travel industry itself -

  • Implement an OLBT gradually with limited usage

  • Discover the value and ride the wave towards adoption rates over 50%

  • Look to extend the success in online booking to other areas of corporate purchasing


Humble beginnings

Humble beginnings …

  • Significant skepticism about online booking

    • Technical difficulties

    • Travelers and arrangers didn’t want to become agents

    • Travel Managers concerned about loss of control

      • introducing new applications always challenging

    • Agencies (TMCs) felt they had to re-build every PNR

      • and of course feared loss of market share


Humble beginnings1

Humble beginnings…

  • Initial online rates were very small

    • 5% - 10% considered successful

    • 30% adoption was ‘best in class’

    • no standard definition of adoption or success (fish stories)

  • Most agencies ‘surcharged’ online booking

    • $40 + $5

    • online booking tools were an optional choice for techies

  • Online tools created ITMCs to overturn agency pricing paradigm

    • reflect the lower labor component of online booking and fulfillment


Humble beginnings2

Humble beginnings…

Integrate with Travel Agencies

Integrate with Travel Programs

Controlled by Travel Managers

Initial focus for OLBT’s ….

Success despite questions from traditionalists…


Drivers of success

Drivers of Success

  • Agency transaction fees fell

    • Lower agency fees for ‘touchless’ and ‘light touch’ trx

    • average about 1/3 – ½ of ‘agent initiated’ fees

    • TMCs realized their margins could be higher with online trx

  • Visual Guilt

    • travelers make better decisions when they have more information

    • online booking analogous to ‘parallel’ vs. ‘serial’ interface


Drivers of success1

Drivers of Success

  • Travel policy

  • Adoption programs

    • started by online tools

    • now offered by agencies

  • Online culture; youth culture

  • Industry success

    • “if they can do it why can’t we?”

  • Training (?)

Third time’s the charm… !


Drivers of success2

Drivers of Success

  • Document aggregated savings in agency transaction fees

  • Document lower ATP’s online vs. offline

    • same city pairs

  • Best Practice: Send reports with total documented savings to executives

    • and cost center managers


Success for online booking

Success for Online Booking

  • All transactions now seen as ‘eligible’

    • Mid office processing systems can manage almost any booking

    • Typical ‘efficiency’ rates over 90%

  • Online adoption has skyrocketed

    • Higher ‘all inclusive’ adoption is key metric for many travel programs

  • Leading online tools report average online adoption over 70%

    • TMC’s report 80%+ adoption rates

      • starting at 30% - 50% common

    • ITMC have guaranteed minimum adoption of 75%

    • Smaller companies can book 100% online

End of story …………. ?


Mid office differentiation vs leisure booking tools

Mid-Office Differentiation vs. Leisure Booking Tools

Online Booking Tool

Ticket

Leisure - Unmanaged


Mid office differentiation vs leisure booking tools1

Mid-Office Differentiation vs. Leisure Booking Tools

Online Booking Tool

Passenger

TMC

Name Record

Mid - Office

Corporate/Managed

  • Profile Integration

  • Priority Preferred Vendors

  • Rules Based Policy

Back-Office

Pre-trip Disapproval

Ticket


Mid office differentiation vs leisure booking tools2

Mid-Office Differentiation vs. Leisure Booking Tools

Online Booking Tool

TMC

Passenger

Name Record

Corporate/Managed

  • Profile Integration

  • Priority Preferred Vendors

  • Rules Based Policy

Mid-Office


Mid office differentiation vs leisure booking tools3

Mid-Office Differentiation vs. Leisure Booking Tools

Online Booking Tool

TMC

Passenger

Name Record

Corporate/Managed

Mid-Office

  • Profile Integration

  • Priority Preferred Vendors

  • Rules Based Policy

  • Pass/Fail tests (fare threshold)

  • Complex International

  • QC (supplemental policy review


Integration of online and offline bookings

Integration of online and ‘offline’ bookings

Online Booking Tool

‘Offline’

PNR

TMC

Corporate/Managed

Mid - Office

Corporate

Travel Counselor

Back-Office

Reporting

Where to call for help?

Ticket


Olbt s the leading edge

OLBT’s: The Leading Edge

  • Managed online ‘workflow’ methodology

  • Online booking methodology extended

    • meetings management

    • online marketplaces for travel and ‘travel-ish’ services: video conferencing, limos, dining, events, shipping

  • Integration of reservations, meetings management, expense reimbursement, and vendor payments

    • closing the loop

Building on the success…


Expanding the model

Expanding the Model

Expense Management

Logical temporal progression but what is the value in fusing the data?

Is it worth all the integration necessary?

What is the ‘mid-office’ process necessary?


Tom wilkinson president trw travel consulting llc managedtravel

Expanding the Model

l

Proprietary to Rearden Commerce


Building on success

Building on Success

Remember the lessons

  • It takes time

  • Convince the vendors they will profit

  • Need a policy push

  • Document savings.


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