Search Travel Market Report

ALGV
mainlogo
  • News
  • Tours & Packages
  • Cruise
  • Hotels & Resorts
  • Destinations
  • Retail Strategies
  • Niche & Luxury
  • Well-Being Travel
  • Training
  • Who We Are
    • Anne Marie Moebes
    • Barbara Peterson
    • Brian Israel
    • Daine Taylor
    • Dan McCarthy
    • Denise Caiazzo
    • Jessica Montevago
    • Marilee Crocker
    • Mary Gostelow
    • Paul M. Ruden
    • Steve Gillick
Sponsored By NCL
Sponsored By NCL
ALGV

For TMCs, Open Booking Demands Shift in Thinking

by Fred Gebhart / August 15, 2013

Managed travel isn’t dead, or even dying. It is changing. The tactics that helped travel managers and TMCs manage travelers, travel spend and travel data a decade ago are faltering as travelers find it easier to book outside approved channels.

Today’s travel managers have a choice. They can keep trying to corral travelers within approved channels – and expect to lose track of the quarter of all travelers who go outside policy.

Or they can use new tools and techniques to manage across all channels, gaining visibility and data on that same 25% of business travelers who book and buy outside approved channels and currently escape data tracking and management systems.
 
Accepting open booking
“The battle for managed travel is already over,” said Scott Gillespie, co-founder of travel analytics firm tClara, at the recent GBTA convention in San Diego. “There is not a lot left to do to create value in traditional travel management. We have to change the way we manage.”

A year after Gillespie and consultant Evan Konwiser laid out a framework for what they called Travel 2.0, open booking has become an acceptable model for managing travel, if not the standard.

American Express, Carlson Wagonlit, BCD Travel, Egencia and other TMCs may not embrace open booking, but they have introduced tools that support it, since travelers who go out of channels still need to be tracked, managed and serviced.

A win-win-win?
“This new style of travel management embraces a need,” said David Kong, president and CEO of Best Western International, speaking at the recent GBTA Convention 2013.

Kong called the move to open booking a plus for all parties involved.

“This is a win for travelers because more open booking is easier. It is good for vendors because more travelers can use brand.com websites. And it is a win for travel managers because they have more data on more travelers than ever before.”
 
The effect on TMCs is less clear.

Something old
The updated version of travel management is not a free for all where travelers can book anything at any price. Travel policy doesn’t disappear. But instead of policy mandates, policy sets expectations and guidelines for booking, buying and conducting travel.

The goal of travel management doesn’t change, either. The idea is still to collect data as close to real time as possible, know where travelers are and be able to contact them at all times and to manage the total travel spend.

“Travelers should be able to book anywhere but bring that data back into the corporate system,” Concur CEO and chairman Steve Singh said at GBTA.

“Every day travel is booked outside the corporate system. We want to bring all that data back into the managed system. We have to embrace this shift and be sure that we are adding value for our corporate customers and travelers.”

Something new
What does change is the role of the travel manager and TMC. Instead of enforcing travel policy, they educate around policy.

Unmanaged travelers aren’t giving away the farm, Gillespie said, pointing to a 2012 GBTA study that found unmanaged travelers spend about 3% less than managed travelers.

“This is about making your own responsible travel decisions rather than following the company decision in every case,” he said.

Gillespie suggested that a move to open booking is a natural consequence of the move to self-booking. “We forced travelers to make their own bookings. We encouraged them to make decisions and we lost control. We let travelers become the chief decision makers.”

Today, TMCs and other vendors are introducing tools that let travelers make their own decisions and bring the data back into the managed system.

Pricing models
What vendors have not yet introduced are new payment models to replace transaction fees. But there have been tentative moves.

BCD Travel senior vice president Jorge Cruz said the company is developing a subscription model with client SalesForce.com. The goal is to replace transaction fees with per-traveler fees.

“Charging directly for service and data management isn’t a new pricing model, it’s just new to travel,” Konwiser said. “TMCs have tremendous value to add servicing the traveler and managing data. And they clearly should get paid for the value they provide.”

Next time: New tools to manage travel.

Related story:
Open Booking Is Good News for Managed Travel, Expert Says

  0
  0
ALGV
Related Articles
GBTA Honors Dave Hilfman With Prestigious ICON Award
Airlines Reporting Corporation Sees Big Boost In Agency Sales Of One-Way Air Tickets
Travel Prices To Rise Nearly 4% By 2018
U.S. Business Travelers Spend $424 Billion in 2016
Many Business Travelers Staying At Home-Sharing Properties Unsupported By Travel Policy
GBTA Offers Training On Planning Corporate Meetings
Astronaut Scott Kelly to Speak at the Global Business Travel Association Convention
GBTA Appoints Three VPs
GBTA Forecasts Moderate Growth In Business Travel
Airlines Are The Stingiest Suppliers, Says GBTA Survey

MOST VIEWED

Brought To You By
  1. U.S. Will Require Negative COVID-19 Tests for All International Visitors
  2. U.S. Congress Reaches Agreement on Stimulus, ASTA Says More Support 'Will Absolutely' Be Needed
  3. Op-ed: Five Travel Predictions for 2021
  4. Reflecting on 2020: ‘Primed’ for Self-Reflection Heading into the New Year
  5. Kauai Reopens to Tourists with New Travel Rules in Place
  6. 8 Travel Trends for 2021, According to MMGY Global

MOST EMAILED

Brought To You By
  1. U.S. Will Require Negative COVID-19 Tests for All International Visitors
  2. Caribbean Destinations, Hotels Work to Meet to New CDC Requirements
  3. Kauai Reopens to Tourists with New Travel Rules in Place
  4. U.S. Congress Reaches Agreement on Stimulus, ASTA Says More Support 'Will Absolutely' Be Needed
  5. ASTA: CDC Testing Requirement ‘Threatens to Create a Logistical Crisis’
  6. What Advisors Need to Know About the Latest COVID-19 Relief Package
Tip of the Day

I think being in contact with [my clients] gave them more confidence in me and the suggestions I offer.

Linda Kinsey, Custom Travel & Cruise

 Share...
Daily Top List
Brought To You By

5 Things Every Travel Agency Should Do To Boost Business

1. Specialize
2. Give a personal touch
3. Find your niche and sell an experience
4. Maintain a high standard of quality
5. Become a salesman…but inspire trust

Source: Azavista.com

 Share...
Previous Daily Top List
ALGV
Top Stories
Selecting The Right Venue For Meetings And Events
Selecting The Right Venue For Meetings And Events

Look to these six trends in the MICE industry.

Read...
News Briefs
  • Corporate Travel Tool Concur To Offer Airbnb Listings
TMR Outlooks
Expedition 2020
Wellness Outlook
Distribution Outlook
View All
Advertiser's Voice
https://img.youtube.com/vi/9LEYlsgImf4/0.jpg
Video: What Was It Like to Be the Travel Expert for the CBS Morning News?
About Travel Market Report Mission Editorial Staff Advisory Board Advertise
TMR Resources Webinars Calendar of Events
Subscribe to TMR
Select Language
Do You Have an Idea Email
editor@travelmarketreport.com
Give Us a Call
1-(516) 730-3097
Drop Us a Note
Travel Market Report
243 South Street, OysterBay, NY, 11771
News|Leisure Travel|Land Vacations|Cruise|Canada Retail Strategies|Well-Being|Luxury|Training
© 2005 - 2021 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | 243 South Street, Oyster Bay, NY, 11771 USA | Telephone (516) 730-3097| Terms and Conditions
Cookie Policy Privacy Policy