Session 1: Data/Sources of Data/Measuring Data/Getting the most value out of the data Presenters:...

Session 1: Data/Sources of Data/Measuring Data/Getting the most value out of the data

Presenters:Shari Quackenbush - DTM, Global Agency & Online Lead, IBMMark Walton – VP, Strategy and Account Management,Orbitz for BusinessWill Tate – SVP, Management Alternatives

RMBTA 2014 Education Day

Soaring To New Heights

April 10, 2014

Mark WaltonOrbitz for BusinessVice [email protected]


“Soaring to new Heights”

April 10, 2014

Shari QuackenbushIBMDTM, Global Agency & Online [email protected]



April 10, 2014

Will TateManagement AlternativesSenior Vice [email protected]



April 10, 2014

Session Agenda

Sources/MeasurementComplianceBenchmarking Innovation



April 10, 2014

Data Sources

• Travel Management Company• Payment/T&E card• Supplier direct• GL/expense data• Consolidated sources• Other third party



April 10, 2014

Why we need travel data

• Program Management – Compliance/behavior modification– Achievement of program goals

• Understanding dept/div program metrics

• Supplier Management/Negotiations • Health/Safety/Security

– Duty of Care / Employee Tracking



April 10, 2014

New uses for travel data

• CO2 Emissions • Company social networking purposes• Gamification



April 10, 2014

Balancing two primary requirements

Empower Travelers

Program management

$Ensure productive options for travelers

Optimize Value



April 10, 2014

Data Benefit Summary

Improve Results

Actionable

Relevant • Sort/drill down capabilities • Benchmark based on several criteria to include

similar size, region, policy, and/or industry

• Identify and proactively react to trends in spend• Manage vendor compliance in near real-time• Intuitive dashboards deliver actionable data in an

interactive and graphical format

• Change behavior• Peer/Internal benchmarking• Possible use of gamification



April 10, 2014

Compliance



April 10, 2014

Compliance - Goals

Image provided by Prime Analytics



April 10, 2014

Compliance - IBM• Collect itinerary data

– Immediate message to travelers when Out of Policy

• Provide “Dashboards” for Lines of Business• Share Savings Opportunities with Lines of

Business (e.g. booking 1 day earlier would produce $x in savings)



April 10, 2014



April 10, 2014

COMPLIANCE

Motivation is the art of getting people to do what you want them to do because they want to do it.

Dwight D. Eisenhower



April 10, 2014

ROI of Air Travel Compliance

• This example captures Cost Avoidance by ticket.

• Others use Cost Per Mile, after establishing a baseline then restating all future costs to baseline.

DEN-LGACompliant

TripNon-Compliant

TripCost

Avoidance

Example One $300 $425 $125Example Two $400 $575 $175Example Three $500 $450 -$50

Totals $1,200 $1,450 $250

% Reduction When Compliant 17.2%

Per Ticket Examples



April 10, 2014

ROI of Air Travel Compliance

• This example captures Cost Avoidance by ticket.

• Others use Cost Per Mile, after establishing a baseline then restating all future costs to baseline.

DEN-LGACompliant

TripNon-Compliant

TripCost

Avoidance

Example One $300 $425 $125Example Two $400 $575 $175Example Three $500 $450 -$50

Totals $1,200 $1,450 $250

% Reduction When Compliant 17.2%

Per Ticket Examples



April 10, 2014

Q1 Q2 Q3 Q470%

75%

80%

85%

90%

95%

100%

Compliance to Air Policy

Goal Achieved



April 10, 2014

Q1 Q2 Q3 Q470%

75%

80%

85%

90%

95%

100%

Compliance to Hotel Policy

Goal Achieved

Benchmarking



April 10, 2014

Benchmarking




April 10, 2014

Benchmarking - IBM• Benchmark everything!!

– Costs– Suppliers– Compliance

• Lines of Business against each other

– Savings– Processes– Policy



April 10, 2014

“Comparison is the death of joy.”

Mark Twain



April 10, 2014

BENCHMARKING



April 10, 2014

Mkting Sales Admin Manuf60%

70%

80%

90%

100%

Air Compliance:Internal Department Benchmarking

Before Benchmarking One Year Later



April 10, 2014

$110KSaved

$205KSaved

$50KSaved $75K

Saved



April 10, 2014

Traveler Sat Air Compl Hotel Comp OLB Adopt Ticket Reuse50%

60%

70%

80%

90%

100%

Q1 Q2 Q3 Q4

Global Program Progress: By Component



April 10, 2014

US CA UK FR SG50%

60%

70%

80%

90%

100%

Q1 Q2 Q3 Q4

Global Program Progress: By Country

Innovation



April 10, 2014

Innovation - Goal Summary




April 10, 2014

Innovation - IBM• STOP! Communicating to travelers via email• Message - to travelers while traveling – policy

and savings opportunities• Share – traveler “compliance statistics” at

point of sale• Predictive - Recognize new travel pattern and

negotiate related agreements



April 10, 2014

Any intelligent fool can make things bigger and more complex...It takes a touch of genius - and a lot of courage to move in the opposite direction.

Albert Einstein



April 10, 2014

INNOVATION

What? What Measures Matter?

Align with Culture

Hot Button Issues

Quick Wins

Problematic Areas



April 10, 2014

So What? Why do those Measures

Matter?

What problems do they solve?

What happens if they change?

What happens if they don’t

change?

INNOVATION• Value of the Traveler Experience• Cost of Unhappy Customers• Cost of Non Compliance• Demand Management Effectiveness



April 10, 2014



April 10, 2014

Q1 Q2 Q3 Q470%

75%

80%

85%

90%

95%

100%

Traveler / Arranger Satisfaction

Goal Achieved

The Problem– Recent Airline Sourcing Criticized

by Management– “Too focused on savings” not

traveler experience

The Solution– Gain the Voice of Customer on

for New Airline Partnerships



April 10, 2014

Case Study

Case Study

You are aware of the recent change in airline partnerships for our company. Please comment on this change:

1. How has it impacted your travel experience?

A. Made travel more difficult

B. Made travel less difficult

C. No change

2. What is your experience with the new airline partners?

A. Worse than the prior partners

B. Better than the prior partners

C. No change

92%!!

89%!!

Yay!!



April 10, 2014

Case Study

The Problem– Recent Airline Sourcing Criticized by Management– “Too focused on savings” not traveler experience

The Solution– Gain the Voice of Customer on for New Airline

Partnerships

The BenefitsNew Airline Partnerships Working Well!

• Anecdotal Opinions Lost Relevance• Validation TO Travelers• Validation OF Sourcing Effort



April 10, 2014



April 10, 2014



April 10, 2014

Excludes:

• Increased Costs from Booking Out of Policy Away from Designated TMC

• Supplier Interaction Costs

• Safety/Security Risks from Alternate Booking Channel

• Employee Morale (Badwill)

• Diminishes Program Credibility

ROI of I mproved Satisfaction

$8,48625%

Current Sat Level 60%

Dissat Level 40%

Related # Trx 1,600Cost of Dissat/Trx 21.21$ Total Cost 33,942$

Current Sat Level 70%Dissat Level 30%Related # Trx 1,200Cost of Dissat/Trx 21.21$ Total Cost 25,457$

Cost of Dissatisfaction

Cost of Dissatisfaction

A Happy Traveler Story:



April 10, 2014

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