gillespie’s views on travel kpis...$6 $34 $- $- $-savings travel spend attrition cost ineffective...
TRANSCRIPT
Scott GillespieVP, Innovation & Analytics at ARC
Travel industry’s leading expert on traveler friction
Founder of Travel Analytics and co-founder of tClara
AT Kearney’s former travel procurement expert
Speaker and trainer at travel industry events worldwide
Author, Gillespie’s Guide to Travel + Procurement
Author, US patent covering airline bid analysis
MBA, University of Chicago
Always glad to connect on LinkedIn
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If you were designing a travel program…
…what would be your main goal?
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o Successful Trips
o Retention of Road Warriors
o Productive Travelers
o Safe and Healthy Travelers
o Travel Cost Savings
We Asked Travel Buyers
Choose the single most important outcome.
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What does senior management want most?
Travel buyers said:
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42%
28%
16%
11%
3%
Travel Cost Savings
Productive Travelers
Safe, Healthy Travelers
Successful Trips
Road Warrior Retention
Percent of travel buyers who chose each goal as the most important. N=78 in May 2017
What does senior management want most?
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42%
28%
16%
11%
3%
Travel Cost Savings
Productive Travelers
Safe, Healthy Travelers
Successful Trips
Road Warrior Retention
Percent of travel buyers who chose each goal as the most important. N=78 in May 2017
Senior Management said:Compared to what Travel Buyers said
What does senior management want most?
What does senior management want most?
Senior Management said:
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42%
28%
16%
11%
3%
6%
9%
53%
32%
Travel Cost Savings
Productive Travelers
Safe, Healthy Travelers
Successful Trips
Road Warrior Retention
Percent of travel buyers who chose each goal as the most important. N=78 in May 2017Percent of senior executives (SVP, EVP or CEO) who own travel budgets. N=186. “Productive Travelers” was not an option.
Compared to what Travel Buyers said
If this is true, then…???
Senior Management said:
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42%
28%
16%
11%
3%
6%
9%
53%
32%
Travel Cost Savings
Productive Travelers
Safe, Healthy Travelers
Successful Trips
Road Warrior Retention
Percent of travel buyers who chose each goal as the most important. N=78 in May 2017Percent of senior executives (SVP, EVP or CEO) who own travel budgets. N=186 “productive travelers” was not an option.
Compared to what Travel Buyers said
Road warriors are those who travel at least 35 nights a year.
Focus on road warriors
~10%
of all
Business
Travelers
~50%
of all
Travel
Spend
~80%
of all
Travel
Value-Add
Source: ARC Data, tClara analysis; value-add is Scott Gillespie’s estimate© Airlines Reporting Corporation (ARC)
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100% domestic travel
In thousands of dollars per yearJoe Road Warrior
A Road Warrior’s Costs and BenefitsPay: $150K /Year
Tenure: 3 Years
Estimated values are illustrative for a domestic road warrior. Source: tClara© Airlines Reporting Corporation (ARC)
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$6
$34
$- $- $-
Savings Travel Spend Attrition Cost Ineffective Trips Traveler's Value Add
100% domestic travel
In thousands of dollars per yearJoe Road Warrior
A Road Warrior’s Costs and BenefitsPay: $150K /Year
Tenure: 3 Years
Estimated values are illustrative for a domestic road warrior. Source: tClara© Airlines Reporting Corporation (ARC)
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$40K gross spend on air, hotel
with 15% average discounts
$6
$34
$100
$- $-
Savings Travel Spend Attrition Cost Ineffective Trips Traveler's Value Add
Estimated values are illustrative for a domestic road warrior. Source: tClara
100% domestic travel
In thousands of dollars per yearJoe Road Warrior
A Road Warrior’s Costs and BenefitsPay: $150K /Year
Tenure: 3 Years
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2X annual salary, divided by
3 years expected tenure
$6 $34
$100
$300
Savings Travel Spend Attrition Cost Ineffective Trips Traveler's Value Add
Estimated values are illustrative for a domestic road warrior. Source: tClara
100% domestic travel
In thousands of dollars per yearJoe Road Warrior
A Road Warrior’s Costs and BenefitsPay: $150K /Year
Tenure: 3 Years
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2X annual salary
$6 $34 $100
$300
$600
Savings Travel Spend Attrition Cost Ineffective Trips Traveler's Value Add
Estimated values are illustrative for a domestic road warrior. Source: tClara
100% domestic travel
In thousands of dollars per yearJoe Road Warrior
A Road Warrior’s Costs and BenefitsPay: $150K /Year
Tenure: 3 Years
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4X annual salary
$6 $34 $100
$300
$600
Savings Travel Spend Attrition Cost Ineffective Trips Traveler's Value Add
Estimated values are illustrative for a domestic road warrior. Source: tClara
Traveler friction affects these
traveler outcomes.
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$6 $34 $100
$300
$600
Savings Travel Spend Attrition Cost Ineffective Trips Traveler's Value Add
Estimated values are illustrative for a domestic road warrior. Source: tClara
Traveler outcomes…
…dwarf
savings.
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Traveler outcomesare business travel’s
new frontier
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Linking Travel Programs to Outcomes
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Source: “Achieving Better Business Results – Insights from U.S. Road Warriors” October 2018
Desired Outcome Travel Program Dials
More successful trips Better sleep; Business Class (pg. 6)
Better retention Business Class; less personal time (pg. 8)
Healthier travelers Traveler wellness programs (pg. 17)
Trip Success
Rate63%
Share of trips taken in the last 12 months rated mostly or very worthwhile
Source: “Achieving Better Business Travel Results” 2018 by ARC, Delta, FlightGlobal, tClara© Airlines Reporting Corporation (ARC)
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Estimated Road WarriorAttrition Rate*
14%
Share of 2016 road warriors who did not travel under the same ARC ID in 2017
N = 1.2 million travelers who took at least eight trips in 2016
* Includes travelers who are still employed but have stopped traveling. Source: ARC© Airlines Reporting Corporation (ARC)
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Q1 Q2 Q3 Q4
Average Trip Price Up 16%
Trip Success Rate Up 22%
Trip Friction Index Better by 20%
Use new KPIs to show strategic value.
Attrition Rate Down 15%
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Thank You
Scott GillespieARC
Always glad to connect on LinkedIn
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