HP Takes Middle Way in Adapting to Travelers’ Tech Preferences

In dealing with the significant changes in information technology that are driving business travelers’ expectations and work habits, companies are taking approaches that are all over the map.

Some, like Oracle Corp., are adapting to changing tech preferences, but still requiring that travelers toe the line on policy adherence. Others, like Salesforce.com, are shifting to a more open system guided by multiple channels, including traveler input.  (See story, Consumer Tech Habits Drive Changes in Biz Travel, October 11, 2012)

HP in the middle
By contrast, Hewlett-Packard is taking something of a middle course.

One in three HP employees travel, said Maria Chevalier, global director, Travel & Meeting Services, Global Procurement. About 74% of HP travelers are male and the company spends a total of $1.3 billion annually on T&E. That puts HP in the No. 18 spot in terms of global travel spend, she noted.

But HP is moving away from cost control as the primary goal for travel policy.
 
Four key goals
Instead, the company has developed four key goals for travel policy – risk mitigation for travelers, optimizing value, taking care of travelers and operational efficiency.
 
Minimizing risk and taking better care of travelers mean HP has made a concerted effort to identify unsafe suppliers and remove them from the travel program. Air carriers, rental car companies, hotels and other vendors must meet specific safety-related goals in order to get into the HP travel program and remain once admitted.

Optimizing value and increasing operational efficiency means the company has consolidated around one GDS, one agency, one corporate card and one online booking tool worldwide.

Focus on needs, not cost
And while travel is part of procurement, the focus is not on cost.
 
“We have to get the best value on the planet,” Chevalier said, “not the cheapest product. That means we implement programs that support traveler productivity.”
 
HP’s solution to for supporting traveler productivity is to work around traveler needs based on how frequently they travel. About 60% of travelers are on the road three times or fewer each year. Average travelers take four to 12 trips; frequent travelers, 13 to 25 trips, and road warriors more than 26 annual trips. HP executives have their own category.  
 
“We design our programs around our employees,” Chevalier said. “Each category of traveler is different, and each group needs different features. You can’t treat occasional travelers like road warriors and expect a positive result.”
 
Generational preferences
Designing programs around employees also means catering to generational preferences. Baby boomers know newsletters and sometimes even read them. Their younger Gen X and Millennial colleagues more often ignore newsletters. It doesn’t matter if newsletters are delivered via dead trees or electronically, younger travelers pay them little heed.  
 
“We have to use more current technology to reach these groups of employees,” Chevalier said. “They want shorter and they want more frequent. They also expect us to listen to their needs. That’s why we have a traveler advocate in the travel department.
 
“When travelers made a case to get GPS reimbursed, the traveler advocate agreed and made the case with senior management. Having GPS available when you’re on the road is a time and productivity issue. And we now reimburse for GPS in rental cars under certain circumstances.”