Managing travel in a changing workplace
- 2. Today’s Speakers… Susan Steinbrink Gregg Brockway Anne Marie Razza Sr. Corporate Travel Analyst President & Co-Founder Vice President of Product PhoCusWright Inc. TripIt Inc. Orbitz for Business
- 3. Tipping Point of Travel Summing It Up Rebound vs. Re-invention Technology Still Evolving Maintaining Relevance for Balancing Company and Managed Travel Program Traveler Needs Consumer Is Window to Biz Traveler Loyalties Q&A The Traveler-Centric Enter Your Questions! Future The Mobile World Social Phenomenon Interoperability of Service The Corporate Traveler
- 4. July 21, 2010 Susan Steinbrink, Sr. Corporate Travel Analyst, PhoCusWright Inc.
- 5. Corporate Pullback More Severe than Travel Overall U.S. Total and Corporate Travel Market Gross Bookings (US$B), 2007-2011 Total Travel Market Corporate Travel Market 300 2% 270 276 5% 250 2% -16% 247 232 236 200 150 -1% 100 -24% 1% 4% 102 101 77 78 81 50 0 2007 2008 2009 2010 2011 Source: PhoCusWright’s U.S. Online Travel Overview Eighth Edition Update: 2009-2010; PhoCusWright’s U.S. Corporate Travel Distribution Fourth Edition
- 6. No Channel Immune But Corporate Online Adoption Continues to Gain Average Online Adoption Rate, 2007-2011 55% 53% 50% 51% 49% 2007 2008 2009 2010 2011 Source: PhoCusWright’s U.S. Corporate Travel Distribution Fourth Edition
- 7. Innovation Continued Despite Recession U.S. Leisure/Unmanaged Business vs. Corporate Travel (US$B) 102 101 Patent 78 81 applications 77 rose @7% in 2009 168 176 166 155 157 66%+ companies planned to maintain or increase R&D in 2009 2007 2008 2009 2010 2011 Leisure/Unmanaged Business Corporate Travel Source: PhoCusWright’s Online Travel Overview Ninth Edition, November 2009; 2009-2011 projected; Book & Co.’s Profits Down, Spending Steady: The Global Innovation 1000, Winter 2009; U.S. Patent and Trademark Office
- 8. Workspace Becomes Portable & Virtual
- 9. Web 2.0: Evolution of Participative Internet #3 #1 #2 User Publishing & Commerce Engagement Information (Transactions) (Web 2.0)
- 10. Business Adapts to and Adopts Technology Globalization of business and global integration Changing Workforce Demographics (Gen Y, Boomers, Ethnicity Rules) Word-of-mouth harnessed to drive enterprise information and communications Worker value & innovation defined by collaboration (content developed through shared participation) Technology goes kinetic (e.g., iPad) Enterprise embracing “emerging” technology By 2011, business use of IM will increase to 400M accounts with 150M of these designed specifically for business use By 2014, social networking will replace email as primary form of communication for 20% of business users (source: Gartner Inc.) Increase use of SaaS (software as a service) Open Markets drive innovation and improved customer experience Apple iPhone App Store – open up software to 3rd party developers Google, Netflix, Amazon, Yahoo and Facebook creating open platforms
- 12. …But Not as Strong a Predictor of Future Demand Snap Back vs. Permanent Change
- 14. Changing Dynamics in Travel Corporation + Enterprise Revenue Generation Cost Control Brand Management
- 15. Changing Dynamics in Travel Supply Chain Corporation + Enterprise Revenue Generation Cost Control Brand Management Variable Fixed Costs Costs Fixed Variable Revenue Revenue
- 16. Changing Dynamics in Travel Supply Chain Corporation + Enterprise Revenue Generation Cost Control Brand Management Variable Fixed Costs Costs Fixed Variable Revenue Revenue Contextual & Real- Expert Business Traveler time Networking Advice Cost Control + Personalized Experience & Influence
- 17. Changing Dynamics in Travel Fares/Rates Ancillary Services + Content Travel Non-Travel Alternatives Alternatives
- 18. Changing Dynamics in Travel Fares/Rates Ancillary Services + Content Travel Non-Travel Alternatives Alternatives P.O.S Desktop/ Wherever Traveler Laptop has Mobile Access
- 19. Changing Dynamics in Travel Fares/Rates Ancillary Services + Content Travel Non-Travel Alternatives Alternatives P.O.S Desktop/ Wherever Traveler Laptop has Mobile Access Technology “IT Adoption Enterprise Consumerization” Driven
- 20. Changing Dynamics in Travel Fares/Rates Ancillary Services + Content Travel Non-Travel Alternatives Alternatives P.O.S Desktop/ Wherever Traveler Laptop has Mobile Access Technology “IT Access Adoption Enterprise Consumerization” Driven One-way + Two-Way Info Push Push/Pull Communications Communications
- 21. Maintaining Relevance for Managed Travel Programs
- 22. Converging Forces Redefining Corporate Travel Management Consumer Dynamics Corporate Issues Technology Innovation Customer Care Travel policy Preferred Suppliers Managed Travel Program
- 23. Point-of-Sale Transcends Tools & Journey Booking Methods Multiple Purchase Opportunities Plan Point Prior In At of to Flight Destina- Booking Departure tion
- 24. Control is a Matter of Influence, Not Policing Compliance Strategies Green Mgmt. + Traveler Demand Management + Spend Management
- 25. Layering Employee Preferences Is Key to Program Success Trip Centric Traveler Centric
- 26. Collaboration is Name of the Game Insular Interdependence (Enterprise Driven) (Enterprise + User Experience) Travel Function
- 27. Consumer is Window into Business Traveler Loyalties
- 28. Consumer Dynamics: Immediate Gratification Search Great Twitter Content Loyal Following The ―perfect storm‖ for real-time information
- 29. Consumer Dynamics: Transparency and ―In the Know‖ Insider or Exclusive Information Nike Adidas Urban Beck’s Gig True City Art Guide Finder
- 30. Consumer Dynamics: Tracking and Alerting is the New Search Push vs. Pull Relevant Information Services MasterCard Vodafone UK Automobile ATMHunter & Turkcell Association
- 31. Consumer Dynamics: Needing to Connect… Social Networking by Country, Feb. 2010 Country Time Per Person (hh:mm:ss) Average 5:27:33 Italy 6:27:53 Australia 6:25:21 United States 6:02:34 United Kingdom 5:50:56 Spain 4:50:49 Brazil 4:27:54 France 4:12:01 Germany 3:47:24 Switzerland* 3:26:00 Japan 2:37:07 * Home only (all other home and work); ** Global SN traffic includes US, Brazil, Australia, Japan, France, Germany, Italy, Spain, Switzerland and United Kingdom) Source: The Nielsen Company
- 32. …But Connect on Traveler’s Terms Build It And They Will Come
- 33. …But Connect on Traveler’s Terms Build It Build It And Where They Will Come They Are Direct Booking Page on Facebook (April 6, 2010)* *Source: Twitter
- 34. Focusing on the traveler will empower individuals and extend management opportunities for the corporation July 21, 2010 Gregg Brockway, President TripIt, Inc. gbrockway@tripit.com
- 35. Hi. My name is Gregg Brockway. This is my tag cloud.
- 36. The Traveler-Centric Future = Mobile Internet + Interoperability + Social-ness
- 37. TREND 1_ Mobile • 4 billion smartphones by 2012 • Smartphone market growing 20 times faster than PC • 80% of business travelers carry smartphones
- 38. Mobile adoption is changing how people behave. Source: Joi Ito
- 40. TREND 2_ Interoperability of services
- 41. The Evolution of Online Travel TRAVEL 1.0 TRAVEL 2.0 What’s Next? ―one-way web‖ ―two-way web‖ ―the bot web‖ 1995-2002 2002-2007 2007-TODAY
- 42. ―I have a dream for the Web …when the day-to-day mechanisms of trade, bureaucracy and our daily lives will be handled by machines talking to machines. The intelligent agents people have touted for ages will finally materialize.‖ — Tim Berners-Lee (1999)
- 43. TREND 3_ The Social Phenomenon General View Managed Travel View Almost 500 million Facebook members 75 million LinkedIn users Worldwide participation growing from 118 million in 2008 to 800 million by 2012 (Gartner) Source: AirPlus, Spring 2010, survey of buyers and suppliers
- 44. ―Social‖ for people = ―Collaboration‖ for enterprises Company Groups is a private, company-only network hosted by TripIt
- 45. The social phenomena is more than social networks. Our social graph is becoming portable.
- 46. The Traveler-Centric Future is the convergence of all our work, leisure, and social behaviors. leisure business social
- 47. What will be better in the traveler-centric future?
- 48. COMPANY Benefits Location & visibility Hi, Comprehensive reporting Itinerator at Traveler productivity your service!
- 49. TRAVELER Benefits Access to relevant information Personalized service Booking & re-accommodation Supplier merchandising
- 50. QUICK SUMMARY 1. Mobile + social + interoperable = traveler-centric 2. The traveler-centric future is an opportunity for everyone. 3. It’s coming. The question is how we respond?
- 51. Technology is continually evolving. Travel managers need great partners to innovate without losing sight of the fundamentals July 21, 2010 Anne Marie Razza, VP Product Orbitz for Business.
- 52. Word Cloud - ―Little Book of BIG Innovation Ideas’ by Steve Shapiro
- 53. Integration In Action: Traveler Update Connections with expert sources in one convenient place FAA Weather.com Yahoo Orbitz Team
- 54. Mobile: Search – Book – Travel
- 55. Balancing the Fundamentals Company Traveler Program Connectedness Management Partner
- 56. Live Q&A Send your questions now! Susan Steinbrink PhoCusWright Inc. Gregg Brockway TripIt, Inc. Anne Marie Razza Orbitz for Business
- 57. Thank You! Orbitz for Business www.orbitzforbusiness.com Produced by