Is Big Data the Way to Ensure Compliance?

Big data – according to Wikipedia – is a collection of data sets so large and complex that it becomes difficult to process using on-hand database management tools. Yawning yet? The truth is big data is exciting. And the excitement lies in the additional information that can be pulled from these data sets and what you do with them.

In the past it’s been prohibitively expensive thanks to the cost of servers needed to store and drill down the data to make it useful. But as technology gets cheaper, the opportunities available from big data are becoming more accessible to everyone.  And when it comes to buying business travel, big data holds a lot of potential for corporates.

Big data allows travel managers to understand the traveller better, track him or her and push information out to him. It’s this last element that is particularly useful for travel managers because it allows them to push information to travellers that enables and encourage them to stick to policy and budget while away from the office.  

For example, managers can use big data to tell junior staff, who may well feel apprehensive about taking public transport abroad, not to get a cab when they arrive at the airport, but to go to bus transfer stop A or train station B. They can give them directions, explain where to go to buy a ticket, ask them to use the NFC company credit card, pick up the ticket, get on the train at time x to destination y, remind him when to get off, that he can walk to the hotel in five minutes rather than take an overpriced unnecessary cab, where to go for dinner that’s close to the hotel, within policy and within budget… the possibilities are pretty endless.  

And, as we know in this day and age of the rogue, anything that helps travel managers to know more about their travellers and use that information in a way that increases compliance has got to be a good thing.

David Chapple is event director of the Business Travel Show. Talk to him about Big Data on Twitter @btshowlondon or directly at david@businesstravelshow.com.

The hidden cost of relaxing policy and embracing rogue

Much has been written about the rise of the rogue traveller this year. The fine balancing between policy enforcement and happy and productive business travellers has been the centre of many a debate since it was first raised (to me, anyway) at the ITM Intelligence Conference back in May (you can read my blog on that here) and, most recently, at the GBTA Europe Conference in Budapest (my blog on that session is here). 

Corporate travel buyers are being warned that managing policy too closely leads to traveller friction, which in turn impacts on the wellbeing, productivity, motivation and loyalty of the traveller. Introducing flexibility, on the other hand, can lead to happier travellers; travellers less likely to ‘go rogue’.

On paper, the traveller turned self booker appears to be a no brainer, saving money for the company thanks to religiously booking within policy price parameters or even under budget because of internal incentives and reward programmes.

But it can’t be all win win for the organisation, surely? There must be some pay back? And perhaps the answer is, yes, of course there is, and that pay back lies in the time it takes for these employers to self book. And therein lies the problem: because this cost isn’t visible it can go largely ignored.

Whether the traveller turned self booker uses a self booking tool, an internally-designed travel portal (a la Google), or simply surfs their favourite leisure portals, they are wasting hours and hours of time online booking their trips; time that could be spent working; time that costs the company money. In fact, a company that has 20 senior execs each taking 20 trips a year and each taking a morning to book each trip is throwing away the equivalent of more than £51,000 worth of billable hours.

So what’s the answer? Well, frustratingly, that seems to be far from decided and still very much up for debate. The Business Travel Show will attempt to throw some light on the issue with a panel session called ‘Policy – how vogue is rogue?’ at the event next February, but I’m sure a lot more will be said about it – for or against – between now and then and I’d be interested to know what you think, so why not join the debate on Twitter @abtn_online or @btshowlondon?

David Chapple is event director for the Business Travel Show, which takes place at Earls Court on 5-6 February 2013. Registration is open at www.businesstravelshow.com.

IT'S TIME FOR TRAVEL MANAGERS TO SWOT UP ON MOBILE

Earlier in the week, AirPlus International and ACTE published a white paper focusing on how mobile payments will change corporate travel and expense management. I read it. And I’m glad I did – it’s a really interesting insight into the future of business travel management.

There are a number of key things that come across. Firstly, forget all the scare-tactics about mobile encouraging rogue travellers. According to this white paper, mobile actually has the potential to drive compliance. Why? Because it helps to link a lot of currently disparate processes together. 

By automating the purchase of smaller trip transactions through NFC (Near Field Communication) technology (which is when you simply touch your phone against a ‘contact’ point on, for example, a rail ticket machine, hotel room door, airport check in desk), managers will win back control over expenditure. By linking it to an app for your travellers, you can also control which suppliers they use and eliminate the temptation to fiddle expenses. And linking everything to your management system makes invoicing easier, quicker and cheaper.

Secondly, mobile also has big benefits for the traveller. It means they no longer have to carry cash and credit cards makes it easier and quicker for them to account for their expenses when they return home, too.  

Yet, despite all the arguments for using mobile payment technology, we’ve been slow on the uptake, with just five per cent of companies actually using mobile payment technology in our industry. Why? Well, mainly because the technology isn’t widely rolled out yet. It is here and it will happen. It’s just a matter of when. 

And it’s also partly due to ignorance – travel managers just don’t know that much about it. If they did, they would want to embrace it and, perhaps by embracing, they could help to speed up its adoption? In the meantime, I recommend reading the white paper and getting a head start.

Posted by David Chapple, david@businesstravelshow.com - tell me what you think @btshowlondon

BUYERS ARE RELAXING THE RULES ON ROGUE TRAVELLERS

I’m at the ITM Intelligence Conference in Manchester this week and, so far, it’s been a really interesting event with some fascinating insight into the future of business travel.

Yesterday’s recurring theme was traveller empowerment. I even wrote a blog post along these lines last week. With the rise and rise of social media and mobile technology, travellers are exposed to so much choice while on the move and are frequently making bookings independently. 

You would think this would have travel managers running for the hills. How on earth are they supposed to mandate travellers to stay within policy when travellers have essentially flipped them the bird and are all doing their own thing?

But you’d be wrong. Leading travel buyers are actually relaxing policy and, instead of stamping down on rogue travellers as they would have done previously, they are giving them price parameters and more freedom than ever.

Why? It’s all thanks to new technology, that’s why. Rogue travellers can now book through public apps and websites and managers have still have visibility of all of these bookings, thanks to a number of new products (Amadeus/KDS’ Maverick) that feed all of the information back to their corporate data banks. So rogue travellers can still feel rebellious and managers can still keep them within policy.

Posted by David Chapple, event director of the Business Travel Show. Challenge him on Twitter @btshowlondon

TRAVELLERS PREFER TO TRAVEL OUT OF POLICY. NO SURPRISE THERE, THEN.

I’ve just finished reading a news story in the LA Times based on a survey by Concur Technologies. The survey found that business travellers believe the success of their trips is inversely proportional to the number of travel restrictions laid down by their employers.

Business travellers on trips with strict travel policies score them as 73 per cent successful in achieving all of their goals; when travellers are given only guidelines and recommendations, the score rises to 76 per cent; and when an employee travels with no policy at all, that score jumps another three per cent.

Surveys like this are undoubtedly useful and interesting, particularly for HR and senior management, even though I’m not 100 per cent sure you could call the results surprising. I mean, wouldn’t we all prefer to choose our own flights and hotels when travelling on business? I know I would.

But they must also be downright frustrating for travel departments, managers and bookers who put so much effort into creating travel policy, securing management buy in and support, and enforcing that policy to ensure they are getting the best for their business. 

Posted by David Chapple - david@businesstravelshow.com 

What corporate buyers want from agents in 2012

I have written a guest comment for today's Travel Mole about what corporate buyers want from agents in 2012. You can read it below and also on the Travel Mole website  http://www.travelmole.com/news_feature.php?news_id=2000094

"In a survey of business travel buyers commissioned by the Business Travel Show for the New Year, cost, the London 2012 Olympics, the economy and travel alternatives were all among their top concerns for 2012; and as we head into another year of economic uncertainty - last week it was reported the UK’s GDP fell by 0.2% and hotel, fuel and ancillary fees are continuing to rise - buyers tell me that now, more than ever, they need their TMCs to keep them informed and continue to suggest new ways they can save money and add value.

1 Cost savings
Buyers are looking to TMCs to help them introduce initiatives to improve compliance this year and, therefore, manage costs. For example, adherence to preferred supplier agreements, not booking outside of policy or introducing, improving or increasing the use of technology (ie with self booking tools (SBTs)). They also want advice on managing the demand for travel and potential travel alternatives such as video and teleconferencing where relevant.

2 The London 2012 Olympics
Buyers are expecting to feel a ripple effect from London staging the Olympics in the form of hotel availability, commuting disruption and reduced demand. Buyers who normally do a lot in London from May to September need TMC help to plan around this. They want TMCs to not only advise them about the impact the Olympics will have on business travel but also on commuter travel, homeworking and general movement of employees.

3 The Economy
As mentioned earlier, the latest figures show the UK economy fell by 0.2 per cent last quarter and analysts and politicians are worried we about to enter a double dip recession. In times of uncertainty like this, the demand for travel is often driven down. Non-savvy organisations adopt the ‘ostrich’ approach and fail to deal with the effects of the economy strategically or with a long-term approach opting instead for short term cost-cutting.

What buyers need from their TMCs in this instance is help and advice on how they can continue travelling - and continue to do business - but more effectively. They need smarter account management.

4 Emissions Trading Scheme
The European Union Emissions Trading Scheme (EU ETS) was the first large emissions trading scheme in the world under which large emitters of carbon dioxide within the EU must monitor their CO2 emissions and annually report them. The scheme was recently extended to the airline industry, with the changes coming into effect this year. This is likely to mean an additional hike in the cost of flights. Buyers will need TMCs to keep them informed and prepared so the increased costs don’t come as a nasty shock.

5 Adding value
Many organisations are integrating business travel and meetings budgets, but business travel buyers don’t necessarily have the resources or the expertise to fulfill the meetings management activity. While they focus on their core competences, they are looking to TMCs to alleviate this additional workload with specialist meetings expertise."

All of the issues above - and more - will be addressed, dissected and debated at the Business Travel Show, which takes place at Earls Court on 7-8 February 2012.

For the full line up of 26 sessions and to register for a free visitor pass to the show, go to www.businesstravelshow.com.

THE SMART MONEY IS ON SMART PHONES: BUYERS NEED TO GET A GRIP ON APPS

Last week’s eighth Ofcom Communications Market Report revealed that 27 per cent of all adults now own a smart phone. 59 per cent of these were bought in the last year. Oh, and we’re addicted to them. In fact, 37 per cent of adult smart phone owners have admitted as much.

In the business travel market, smart phones are beyond useful. TMCs use them to deliver information to travellers (itineraries, for example) as well as pulling data back (travellers can use phones to scan in expense receipts).

However, the smart phone epidemic has also seen an increasing number of business travellers use apps as though they were leisure travellers (which they’re not). And it’s this use of apps ‘out of policy’ that’s now a major cause for concern among corporate travel managers who are being warned that, unless they take back control, their policies are under threat of being compromised. 

My belief is that travel managers shouldn’t ‘ban’ travellers from using smart phones. Instead, they should find technology solutions with similar (or better) mobile applications attached that will keep travellers happy AND compliant. It’s essential that, when choosing these applications, managers opt for a platform-inclusive solution that’s also content rich, stable and fit for purpose.

Travel managers also need to embrace mobile communications as a tool to manage policy compliance in the same way they have harnessed self booking tools, pre-trip authorisation. Reports have indicated that use of mobile strategies can reduce the number of calls made to TMCs, in some cases by as much as 40 per cent, so making a considerable saving for organisations.

Technology has always been a key issue within the business travel industry and a focus for the travel shows at Centaur Travel Group. For 2012, we’re going one step further and launching a Technology Zone at our London and Dusseldorf shows. The zone is being introduced as a platform for technology providers who appeal to both travel and technology buyers, and will be a fantastic place for buyers to discover suppliers with smart phone applications, receive hands on demos, attend education sessions and network with new contacts. The smart money, in my opinion, is on the smart phone. 

Posted by David Chapple, event director, Centaur Travel Group.