Greeley Koch on Winning Corporate Customers
by Cheryl Rosen /Travel Market Report spoke with the executive director of the Association of Corporate Travel Executives about the trends and what they mean for travel agencies.
Big data is out; smart data is in.
Corporate customers don’t want a “fire hose of data” from their travel agencies, says Greeley Koch, executive director of the Association of Corporate Travel Executives. Rather, they want just the numbers they need to make the right decisions.
No matter its size, an agency that delivers insight into what the data mean and how to put that data to work can win – and keep – the steady and predictable income that corporate accounts bring.
Competing data providers
But the agency community needs to step up its game or find its role supplanted by a new set of data providers.
Back when Koch was a travel manager, corporate customers looked to their travel agencies for all the data they needed to negotiate with suppliers. But other players – the GDSs, credit card companies, third parties and even ARC – have stepped into that role, bringing new competition and nudging many agencies out of their way.
For travel agencies in 2014, the key is to not to be just another source of numbers or to deliver every possible piece of data to corporate customers. Focus instead on the numbers and services that will keep their business travelers most productive while on the road.
Four trends for 2014
ACTE sees four major trends impacting the corporate travel industry in 2014:
• smart data,
• a focus on travelers and their productivity,
• innovations in technology and travel management process design,
• more professional development by corporate travel managers.
Be strategic
In response to the first trend – smart data – Koch suggested that travel agencies take a more strategic approach.
It’s no longer enough to just report on the past; corporate customers need their agencies to forecast what the numbers mean for the future, making suggestions about how to use travel dollars most effectively.
The key is to look at travel spending more strategically – for example, by separating out revenue-producing travel, where the sales team is on the road seeing customers and winning new business, from administrative travel, where employees are just visiting one another. Many companies have no idea how much they spend on trips that do nothing to help the bottom line.
“A company can have an edict that just says, ‘We will cut our travel by 20%.’ But it’s much more efficient to focus on cutting administrative travel and keeping your salespeople on the road, earning revenue,” Koch said.
Technology meets service
This year’s second and third trends – a focus on travelers and productivity and innovations in technology – are equally important to the success of travel agencies.
Rather than fighting the trends, smart travel agencies are embracing the technologies that travelers prefer to use – by rolling out smart phone apps, for example – and in turn being perceived as providing better service.
“No one wants to travel these days. Make it about service again,” Koch advised.
“If you can make life easier for travelers you will gain their trust, they won’t try to bypass you, you will solidify your relationship with them, and you will get the data you need.”
To win corporate accounts, in other words, act like a consultant. Identify trends and make recommendations that save your clients money, but do not forget the end goal: helping key travelers get their jobs done.