Carlson Wagonlit Travel - Tap into service

Tap into mobile services: managing travel in the digital economy

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Research by the CWT Travel Management Institute The CWT Travel Management Institute conducts in-depth research and publishes timely reports on managed travel best practices to help companies get the most from their travel programs.

Tap into mobile service: managed travel in the digital economy is the latest in-depth research report in a series that also includes: Where now for managed travel? “Rogue� spend, new booking technologies and the future of travel programs (2013) Mastering the maze: a practical guide to air and ground savings (2012) Business traveler services: finding the right fit (2011) Meetings and events: where savings meet success (2010) Room for savings: optimizing hotel spend (2009) Playing by the rules: optimizing travel policy and compliance (2008) Global horizons: consolidating a travel program (2007) Toward excellence in online booking (2006) To download these reports and other content, please visit www.carlsonwagonlit.com/en/global/tmi.

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Contents Introduction.................................................................................................................................................... 04 About this CWT research .............................................................................................................................05 A global study on mobile travel solutions and the managed travel program................................... 05 Demand is growing .................................................................................................................................... 11 Who’s equipped for mobile managed travel services?.............................................................................. 11 What impact do travel managers expect?....................................................................................................... 22 Which benefits and features are in demand?............................................................................................... 25 How critical is mobile booking?.......................................................................................................................... 39 The market offering is developing fast ................................................................................................. 51 Which services are currently available?............................................................................................................ 51 How popular are travel apps today?................................................................................................................. 64 How satisfied are travelers so far?..................................................................................................................... 72 Companies need to act now to get the most benefit ..................................................................... 78 What are the main barriers to mobile managed travel?............................................................................ 78 How to overcome the barriers and successfully implement mobile................................................... 83 managed travel solutions?

Conclusion...................................................................................................................................................... 92 Sources............................................................................................................................................................ 94

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Introduction By nature, travelers are mobile and often early adopters of new technology. But how fast are they adopting mobile travel apps, and how well are their expectations being met? What impact are the latest solutions having on managed travel programs, and how can travel managers best manage the risks and opportunities?

These are some of the questions answered in this in-depth research.

As this report shows, the market is ready and waiting for specific mobile technology to enhance the travel experience, by providing travelers with continuous access to service, as well as adding to the services available at every stage of the travel process.

While the sky may be the limit in terms of potential new features, some of the services travelers and travel managers consider most useful are already on the market, especially flight status updates and itinerary information apps. Other services will follow soon, including much-awaited corporate mobile booking.

As suppliers further develop their offerings, travel managers need to act fast to guide travelers toward the right devices and tools, and to be part of the decision-making process regarding the mobile policy in their companies. Most of surveyed travel managers say they plan to introduce guidelines in the next two years to help their travelers make the most of mobile technology in a managed travel environment.

Above all, this research highlights a striking consensus between travelers and travel managers about the positive impact mobile can have. With the right approach, mobile services can clearly complement the solutions already in place and boost the objectives of any managed travel program.

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About this research A global study on mobile travel solutions and the managed travel program Objectives Provide a clear overview of the mobile travel solutions market today and anticipate developments Understand the value offered to managed travel programs while identifying the risks Share best practices and advice to help companies successfully integrate mobile solutions into their managed travel programs

Focus groups on traveler perceptions and preferences in three countries (Germany, United Kingdom and United States) In-depth interviews Input from more than 50 experts, including travel managers, representatives of business travel associations, business travel journalists, travel management companies, travel suppliers, mobile operators and solutions providers, travel supply chain consultants and GDS companies

Date: December 2013 to May 2014 Quantitative analyses Scope: a wide range of companies worldwide in terms of size and industry (Figures 1-2)

Methodology CWT combined several research techniques for this report: Surveys

A mobile market forecast An analysis of the average time travelers book hotels in advance of their trips via mobile compared to other corporate channels Industry white papers and media articles (See list on Pages 94-95)

An online survey of 1,804 travelers from seven global companies on mobile policy, their expectations, use of mobile services for travel, and satisfaction A detailed questionnaire of 173 travel managers worldwide on their company’s use of mobile devices and apps, policy and expectations

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Figure 1: Breakdown of surveyed travel managers Industry Travel managers (%) 12.8

Banking and financial services

Telecommunication equipment and services

8.4

Energy and utilities

7.8

Computer hardware, software and services

6.0

Chemicals

6.0

Engineering and technology

5.4

Industrial manufacturing

5.4

Consumer products and services

4.8

Automotive and transport

4.2

Consulting

3.6

Food and beverage

3.6

Construction

3.0

Retail

3.0

Other*

26.0

* Includes public sector, energy and utilities, business services, metal and mining, agriculture, electronics, hospitality, media and communication, aerospace and defense, healthcare, life sciences and pharmaceutical companies

Source: CWT Travel Management Institute Based on a global survey of corporate travel managers (166 respondents), 2014

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Company headquarters Latin America Unspecified

1%

Asia Pacific

4%

3%

40% North America

52%

Europe, Middle East and Africa

Source: CWT Travel Management Institute Based on a global survey of corporate travel managers (168 respondents), 2014

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Company size (annual travel spend) 43% Respondents (%)

Average: $75M

25

23

20

19 26%

15

23% 13

13

11

12

10

9

5

0

<$5M

$5-10M

$10-20M $20-50M $50-100M >$100M Not specified

Source: CWT Travel Management Institute Based on a global survey of corporate travel managers (173 respondents), 2014

Figure 2: Breakdown of surveyed travelers Age Respondents (%)

Average: 45 years

35 30 25 20 15 10

29%

32%

20%

19%

5 0 Under 35

35-45

Source: CWT Travel Management Institute Based on a global survey of business travelers (1,632 respondents), 2014

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45-55

Over 55

Gender

27%

Female

73% Male

Source: CWT Travel Management Institute Based on a global survey of business travelers (1,628 respondents), 2014

Frequency of travel (number of round trips per year)

20 times or more

1-2 times

20%

19%

10-20 times

15% 20% 3-5 times

26%

5-10 times

Source: CWT Travel Management Institute Based on a global survey of business travelers (1,665 respondents), 2014

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Home region Unspecified 1%

Latin America

5% Asia Pacific 20% 37%

Europe, Middle East and Africa

North America

37%

Source: CWT Travel Management Institute Based on a global survey of business travelers (1,665 respondents), 2014

Function 20%

Sales and account management 16 %

Engineering Production

7%

Technical support

7%

General management

7%

Research and development Accounting and finance

5%

Distribution and logistics

4%

IT

4%

Marketing/communications

4%

Other Source: CWT Travel Management Institute Based on a global survey of business travelers (1,612 respondents), 2014

10

6%

20%

Who’s equipped for mobile services?

Most business travelers now carry smartphones, according to this survey, and a growing trend for corporate “bring your own device” policies is driving adoption of the most appfriendly brands. Tablet use has also increased dramatically. While penetration figures vary considerably between countries, the general picture is of a global market that is largely ready for the latest mobile services.

Key takeaways On average, 62 percent of business travelers carry company smartphones.

Massive growth in available apps underlines a strong appetite for mobile services.

T ablet penetration has reached more than 40 percent in the United States and around 30 percent in Europe.

Smartphones are the norm for travelers in more than half of all surveyed companies Business travelers are largely equipped for the latest services the mobile market has to offer. According to the CWT survey of travel

managers, 62 percent of travelers carry company smartphones, rising to at least 80 percent in 41 percent of organizations.

traveler ile solutions address all Age is irrelevant: mob to new yees under 50 are used plo em ce sin ps ou gr e ag technologies now. l consulting company

Associate partner, globa

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Figure 3: An estimated 62 percent of travelers carry company smartphones What percentage of your travelers have company smartphones?

Average: 62%

14%

13%

0-20

20-40

16%

16%

40-60

60-80

41%

>80

% of the traveler population Source: CWT Travel Management Institute Based on a global survey of corporate travel managers (173 respondents), 2014

Smartphone usage by business travelers may be higher still, given that many also carry a personal phone. Looking at the general population, smartphone penetration exceeded 70 percent

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in four countries (United Arab Emirates, Korea, Saudi Arabia and Singapore) already at the beginning of 2013. (See Figure 4.)

Figure 4: Smartphone penetration in the general population

73.8% U. Arab Emirates

62.8%

73.0%

72.8%

Korea

Saudi Arabia

62.2%

59.0%

71.7% Norway

56.6%

Denmark

Ireland

Israel

U.K.

55.4 %

54.0 %

53.6 %

52.0 %

Spain

Switzerland

New Zealand

Netherlands

45.9 %

45.5 %

42.3 %

41.6 %

France

Czech Republic

38.7% Philippines

32.5% Greece

24.7% Japan

Finland

36.8%

36.2%

35.0%

Mexico

Russia

Poland

32.1%

31.0%

Portugal

19.7% Vietnam

Singapore

57.0%

Hong Kong

Slovakia

67.5%

Thailand

30.7% Argentina

50.8 % Taiwan

41.3 % Italy

34.5% Malaysia

29.6% Romania

14.4%

14.0%

12.8%

Ukraine

Indonesia

India

64.6% Australia

56.4% U.S.

48.0 % Austria

39.8% South Africa

34.4% Hungary

27.9% Turkey

63.0% Sweden

56.4% Canada

46.9 % China

39.8% Germany

33.5% Belgium

26.3% Brazil

Source: Google, Our Mobile Planet, Q1 2013

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According to eMarketer,1 the number of smartphone users worldwide surpassed 1 billion in 2012 and should reach 1.75 billion in 2014.

This fast growth, around 15 percent a year, should continue to 2017, when penetration is expected to reach about 50 percent of all global mobile users (compared to about 33 percent in 2013).

The remaining 50 percent will be using feature phones, in part because of the cost of devices

and gaps in high-speed (3G and 4G) coverage in some regions. For the moment, an estimated 4.6 billion people worldwide are expected to use mobile phones in 2014, according to eMarketer. Although global growth in mobile adoption is slowing, new users in developing countries will drive further increases, and mobile phone penetration worldwide should rise from 61 percent in 2013 to 69 percent by 2017.

Figure 5: Around half of all mobile phone users will carry smartphones by 2017 Users (billion)

All mobile users (%)

6

100

5 4

4.6

4.3

4.1

1.8

1.4

1.1

4.7

5.0

2.0

2.3

3 2

28%

2.5

60 49% 40

3.0

2.9

2.8

2.7

2.7

2.6

2012

2013

2014

2015

2016

2017

1 0

80

46%

43%

38%

33%

5.1

20 0

Feature phone users

Smartphone users

Smartphone users as a % of all mobile users

Source: eMarketer, December 2013

1

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eMarketer, Worldwide Mobile Phone Users: H1 2014 Forecast and Comparative Estimates, summary published on emarketer.com, January 2014

As Figure 6 shows, some of the worldâ&#x20AC;&#x2122;s largest mobile markets are developing economies, not simply because of the size of their populations but often because mobile phone infrastructure has leapfrogged over landline development.

Smartphone use in these leading markets varies

quite significantly, as indicated by 3G and 4G penetration figures. Penetration starts as low as 3 percent in India and does not exceed 50 percent, apart from in Brazil (55 percent).

Germany (56 percent), Japan (85 percent) and the United States (92 percent).

Figure 6: The worldâ&#x20AC;&#x2122;s largest mobile markets (feature phones and smartphones) Mobile subscriptions (million)

Mobile subscriptions (% population)

3G/4G subscriptions (% population)

World

6,587.4

93

27 33

China

1,246.3

92

India

772.6

62

3

United States

345.2

110

92

Indonesia

285.0

115

18

Brazil

272.6

137

55

Russia

237.1

165

29

Japan

137.1

108

85

Nigeria

128.6

76

8

Vietnam

127.7

144

20

Pakistan

126.1

70

-

Bangladesh

116.0

75

22

Germany

113.6

139

56

Philippines

109.5

113

17

Mexico

102.7

95

16

Source: National telecoms regulators (2013)

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Work phones are shifting toward the most app-friendly devices The previous corporate favorite, BlackBerry, has retained a significant share (28 percent, according to surveyed travel managers), largely due to its strong security features. However,

other devices are capturing an increasing share of the market, as reflected in the CWT survey.

An estimated 4-5 percent of all apps are travelrelated, based on app store statistics.

Figure 7: Breakdown of devices carried by travelers, according to travel managers What type of mobile devices do your travelers use (multiple answers possible)?

Respondents (%) 40 35

35

30

28

25

23

20 15 11

10 5 0

iPhone

BlackBerry

Android

Windows Mobile

Source: CWT Travel Management Institute Based on a global survey of corporate travel managers (375 respondents), 2014

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2

1

Other

My phone is not internetenabled

iPhone and Android devices are clearly ahead of the market in terms of the number of apps

available to users, according to app store statistics (Figure 8).

Figure 8: iPhone and Android users can access the most apps Number of apps (thousand) 1,000 800 600 400 200 0

2010 iPhone

2011 Android

2012 BlackBerry

2013 Windows

Source: CWT Travel Management Institute Based on various app store metrics

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One of the reasons for this trend toward app-friendly phones is more companies introducing a “bring your own device” (BYOD) policy. Currently, 56 percent let employees choose their own devices, according to the

CWT survey. Approximately 198 million devices were involved in BYOD programs in 2013, and this figure is expected to double to 405 million by 2016.2

Figure 9: 56 percent of companies have a “bring your own device” policy Does your company provide employees with a mobile device or can they use their own ?

No, employees must use their own device and are reimbursed

3%

56% 53%

44%

Yes, the company provides a mobile device

Yes, the company provides a device or employees can use their own

Source: CWT Travel Management Institute Based on a global survey of corporate travel managers (173 respondents), 2014

2

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Source: PhoCusWright, Mobile Hits the Mainstream: Leisure and Business Traveler Trends, January 2012

Tablet usage has increased dramatically While lagging behind smartphones, tablet usage has increased dramatically over the past few years and is expected to reach nearly 50 percent of the general population of the United States, the most mature market,

by 2017, up from an already impressive 41 percent in 2013. In numbers of users, these figures represent 160 million in 2017, compared with 128 million in 2013.

Figure 10: U.S. tablet users* and penetration (2011-17f)

140

149

155

161

128

93 53% 39% 33

41%

56% 44%

58%

60%

61%

46%

48%

49%

2015

2016

2017

30%

14% 11% 2011

2012

2013

Tablet users (million)

2014

% of Internet users

% of U.S. population

* Individuals of any age who use a tablet at least once per month Source: eMarketer, September 2013

In Europe, tablet penetration in the five largest markets (United Kingdom, Germany, France, Spain and Italy) is slightly lower, expected to reach 42 percent by 2017, compared with 26 percent in 2013. The number of users is

forecast to almost double from 102 million in 2014 to 146 million by the end of 2018.

(See Figures 11-12.)

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Figure 11: Tablet users* and penetration in the EU-5 by country (2012-18f) 44% 42% 39% 35% 115

31% 102

14

26% 84 19% 60 8 9 13

11 12

13

2012

17 16

15

19 18

17 34

32 29

Users (million)

26 23

18

30

26

33

36

39

22

14 15

146

139

127

15

14

Penetration rate

20 2013 Germany

30

33

37

38

26

2014

2015

2016

2017

2018

U.K. Spain

France

Italy

Total EU-5

*Individuals of any age who use a tablet at least once per month; numbers may not add up to total due to rounding Source: eMarketer, May 2014

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Tablet sales in the global retail market are now comparable with desktop/laptop sales and expected to overtake them in the next few years.

(See Figure 12.) Not featured in this chart but

another trend worth watching is â&#x20AC;&#x153;phablets,â&#x20AC;? or larger smartphones offering an experience closer to tablets.

Figure 12: Sales of smartphones, tablets and desktops/laptops worldwide (2009-2017f)

Annual growth Million units

(2009-13) (2013-17f)

2,000

Smartphones

152

14

Tablets

288

16

0.1

1

1,500 1,000 500

Desktops/ laptops

0 2009

10

11

12

13f

14f

15f

16f

17f

Source: CWT Travel Management Institute, Gartner and IDS

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What impact do travel managers expect?

Travel managers expect mobile services to make a significant, positive impact on their travel programs in the next two years.

Key takeaways T ravel managers consider the potential impact to be high, rating it 6.8 overall on a scale of 1 to 10, while 48 percent rate it at least 8. hen asked to rate the impact on five key program objectives, travel W managers put emphasis on both facilitating travelersâ&#x20AC;&#x2122; experience and supporting the travel program.

Travel managers expect mobile services to make a significant impact When asked to assess the expected impact of mobile services on their corporate travel program in the next two years, travel managers rate it 6.8 on average on a scale of 1 to 10,

indicating that the topic is top of mind. Almost half of them (48 percent) rate the impact 8 or above, while only 16 percent rate it 4 or below.

(See Figure 13.)

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Figure 13: Travel managers consider the potential impact of mobile services to be high On a scale of 1 to 10, how would you rate the expected impact of mobile services on the corporate travel program in the next two years?

Respondents (%)

Average: 6.8 48%

30 26

20

17 14

10

9

10 8

6 3

4

3

1

2

3

0 Very low

4

5

6

Potential impact

7

8

9

10 Very high

Source: CWT Travel Management Institute Based on a global survey of corporate travel managers (170 respondents), 2014

North American travel managers place it even further up the agenda, compared to their peers in Europe, Middle East and Africa, rating the impact 7.1 (vs. 6.7), while 29 percent of them rate it 9 or 10 (vs. 18 percent for Europe).

Likewise, a greater impact is expected by travel managers whose companies have the largest travel budgets (above $50 million), rating it 7.1 (vs. 6.7 for smaller budgets).

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The impact is expected to be positive current, accurate dataâ&#x20AC;? (6.5 out of 10). The other four ways, relating to traveler productivity, expense reporting, safety and security, and insight into travel spend, are rated 7.5 to 7.7 out of 10. (See Figure 14.)

This impact is expected to be positive across the board. When asked how mobile services will help them achieve their program objectives, travel managers rate five ways rather uniformly, with a noticeably lower score only for â&#x20AC;&#x153;obtaining

Figure 14: Travel managers expect the impact of mobile services to be positive How helpful will mobile services be in supporting your travel program objectives?

Obtaining accurate data to negotiate better rates with suppliers

15

Deepening your insight into corporate spending patterns

13

Ensuring your company addresses its duty of care as thoroughly as possible

7 5

Facilitating expense reporting Ensuring your travelers stay productive on the go

12 12

14 18

15

12

7

8

10

28

31

28

29

30 13

43 24

44

28

50

4

0

20 1-2

40 60 Respondents (%) 3-4

5-6

7-8

80 9-10

1 = not at all helpful and 10 = very helpful Source: CWT Travel Management Institute Based on a global survey of corporate travel managers (165 respondents), 2014

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100

Which benefits and features are in demand?

Travelers and travel managers generally agree on the most important services with some variations. On the whole, they consider mobile services important at every stage of the travel process but rate “on-the-go” features most highly.

Key takeaways F or travelers and travel managers alike, the key benefits of mobile features concern ease of doing business, productivity and well-being. xpectations are high for both populations, who consider the importance of mobile E services to be high across the entire travel process or “trip continuum.“ urrently, flight status updates and itinerary information are universally considered C the most important features.

T ravel managers also place travel alerts in the “critical” category, as do travelers in Asia Pacific and North America, who are most impacted by flight disruptions.

Travel managers’ needs remain the same in a changing service environment Travelers expectations have evolved with the “consumerization” of business travel and mobile services potentially enabling any service required, anywhere, anytime. Meanwhile,

travel managers’ remain focused on ensuring compliance with the travel program and providing safety and security for travelers in a cost-effective manner.

d assisting ring traveler security an su en for l ne an ch y ke a Mobile is today to are already using mobile them in emergencies. We them of safety velers via SMS and notify tra r ou th wi te ica un m tter track com ces could also help us be rvi se n tio ca olo ge e bil issues. Mo our travelers. tion el publica Editor, U.S. business trav

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Figure 15: While travelersâ&#x20AC;&#x2122; expectations have evolved, travel managers remain focused on policy compliance, safety and security, and cost

Travel program

A broader range of services and more customization

Policy compliance

Anything

Travelers

Anytime Increased flexibility

Travel managers Anywhere Multichannel, seamless experience

Safety and security Traveler well-being

Cost-effectiveness Travel program

Source: CWT Travel Management Institute

Ease of doing business, productivity and well-being come first When asked to rank the main benefits of enhanced mobile services, travelers and travel managers identify the same top three, although in a different order. While travelers put ease of doing business first, travel managers consider

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traveler well-being the most important benefit.

Both rank productivity second and environmental performance (e.g., through paperless boarding passes and itineraries) last. (See Figure 16.)

Figure 16: Ease of doing business, productivity and well-being come first for travelers and travel managers considering mobile services Travelers

Please rank the following benefits of mobile services:

2.2

Ease of doing business

3.0 2.5

Productivity

2.8 3.3

Well-being

2.6 3.6

Savings

3.3 4.2

Policy compliance

3.1 4.9

Companyâ&#x20AC;&#x2122;s environmental performance

5.4 0

1

Most important

2

3

4

5

6

Least important

Source: CWT Travel Management Institute Based on a global survey of business travelers (1,698 respondents) and travel managers (163 respondents), 2014

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These results are similar across all regions for travelers, although some strong regional differences emerge in travel managersâ&#x20AC;&#x2122; priorities: while North American travel managers follow travelers in considering ease of doing business,

productivity and well-being most important (in that order), European travel managers emphasize well-being, productivity and then compliance with travel policy. (See Figure 17.)

Figure 17: Regional differences emerge in how important travel managers consider different mobile benefits Please rank the following benefits of mobile services:

% 3.2

Traveler well-being

2.5 2.7 3.0

Productivity

3.2 3.2

Policy compliance

3.4 3.3

Savings

2.7

Ease of doing business

3.6

Companyâ&#x20AC;&#x2122;s environmental performance

5.7 5.2 0

1

2

3

Source: CWT Travel Management MostInstitute important Based on a global survey of corporate travel managers (150 respondents), 2014

North America

28

4

5

6

Least important

Europe, Middle East and Africa

Mobile services are important at every stage of the travel process Expectations are high for both travelers and travel managers, who consider mobile services important at every stage of the travel process,

especially during actual travel, but also when booking and back in the office (e.g., for expense reporting). (See Figure 18.)

Figure 18: Mobile services should offer continuous support throughout the travel process, according to the CWT survey How important is a travel app for each of the following stages of travel?

7.2

Searching

8.0 6.8

Booking

7.6 7.2

Traveling

8.5 5.3

Post-travel

6.7 0

2

4

6

8

Not at all important

10 Very important

Travelers

Travel managers

Source: CWT Travel Management Institute Based on a global survey of business travelers (1,708 respondents) and travel managers (166 respondents), 2014

For travelers, the results are the same in terms of the order of importance regardless of their region or how often they travel.

Effectively, beyond offering more features, mobile services can facilitate travelersâ&#x20AC;&#x2122; access to information and services when they are away

from the office and provide more choice as to when and how certain tasks are carried out. (See Figure 19.) According to Google, 49 percent of travel-related searches result in bookings, and 57Â percent of these are made on desktop or laptop computers.

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Figure 19: Mobile services should offer continuous support throughout the trip continuum, according to the CWT survey

Key stages of business travel in traditional and mobile channels

Pre-travel

Traditional channels

Booking and changes

Comfort preferences

Mobile channels

Booking

Comfort preferences

During travel

Post-travel

Cancellations and re-booking (mainly over the phone)

Comfort preferences

Cancellation, modification, and rebooking

Expense reporting

Expense reporting

Supplier reviews

Supplier reviews

New features Continuous support: directions, gate changes, flight status alerts, etc.

Paperless travel: itinerary consolidation, mobile boarding passes, etc.

Time savings: mobile check-in

Source: CWT Travel Management Institute

ort ovide continuous supp pr at th ps ap r fo g kin Travelers are loo ption. because of travel disru during trips, especially French travel manager,

30

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Travelers and travel managers rank the same two “on-the-go” features above the rest Travelers’ and travel managers’ expectations for mobile support are largely reflected in the particular features they find critical or important.

“On-the-go” services such as flight status updates and itinerary information are rated highest. The ability to book or rebook travel also scores highly, whereas less time-sensitive services such

as information sharing on social networks are considered least important. In general, travel managers rate all features more highly than travelers do, and there are some differences in ranking, as shown on the following pages.

Figure 20: Rating of mobile service features by travelers and travel managers On a scale of 1-10, how would you rate the importance of the following mobile services?

Critical

Flight status updates

8.5

Itinerary information 7.5 7.4

Travel alerts

7.5 7.1

Hotel rebooking Flight booking

6.9 6.9

Hotel booking

7.2 6.8

Destination map

7.1 6.8 6.2

Link with expense management

6.1

Trip sharing (social networks) 0 Least important

8.4

7.3

En-route compliance push

Nice to have

8.7

8.1

Flight rebooking

Important

9.3

4.2 2

7.6 7.4

4.9

4 Travel managers

6

8

10 Most important

Travelers

Source: CWT Travel Management Institute Based on a global survey of business travelers (1,804 respondents) and travel managers (173 respondents), 2014

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Travelers value flight status updates and itinerary information above all Looking at the survey results in more detail, travelers distinguish between three tiers of features: those that are critical, important or simply nice to have. The most highly valued services help travelers get to the right place at the right time: flight status updates and itinerary

information. In the “important” category are rebooking and booking features, along with other travel information, while the “nice to have” includes compliance information, expense management and social sharing features.

(See Figure 21.)

Figure 21: Travelers distinguish between three categories of mobile features On a scale of 1-10, how would you rate the importance of the following mobile services?

Critical

Flight status updates

8.5

Itinerary information

8.1

Flight rebooking

7.4

Travel alerts

7.3

Hotel rebooking Important

Nice to have

7.1

Flight booking

6.9

Hotel booking

6.8

Destination map

6.8

En-route compliance push

6.2

Link with expense management

6.1

Trip sharing (social networks)

4.2

0 1 2 Least important

3

4

5

6

7

8

9 10 Most important

Source: CWT Travel Management Institute Based on a global survey of business travelers (1,804 respondents), 2014

information itinerary apps. All the in ted es er int ry ve Travelers are don’t forget anything. is in one place so you French travel manager,

32

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This general picture holds true across all regions, where flight status updates and itinerary information emerge universally as the most important or second-most important features, although a few differences do stand out. In particular, travel alerts are very important to travelers in Asia Pacific and North America, where they are rated third, but they are much less so to travelers in Europe, Middle East and Africa, where they are rated fifth and Latin America (eighth). This result can be linked to the impact of extreme weather on delays, which are more common in Asia Pacific (180,000 delays from April 20 to May 20, 2014) and North America (165,000 over the same period) than in Europe, Middle East and Africa (99,000).3 Most likely for the same reason, the ability to rebook or update bookings is considered

3

FlightStats, 2014

4

GBTA, Business Travel Mishap Report, February 2014

most important for air travel by travelers in Asia Pacific and North America, and for hotel rooms by travelers in Europe, Middle East and Africa, and Latin America. An estimated 75 percent of travelers worldwide encounter disruption at least once a year due to poor weather, delayed departure, airplane mechanical issues or missed connections, according to a 2014 GBTA report.4 A number of differences also emerge between different traveler segments in terms of trip frequency. While the same two features (flight status updates and itinerary information) are rated most important for all kinds of travelers, those who travel the least often consider travel alerts slightly more important, ranking them third (vs. fourth for other travelers, who prefer to be able to rebook flights). (See Figure 22.)

33

Figure 22: How mobile service features are rated by travelers Breakdown by region

Asia Pacific

1

Europe, Middle East & Africa

Latin America

North America

8.2

8.2

8.9

8.9

8.5

7.9

7.4

8.9

8.6

8.1

7.5

7.2

8.6

7.7

7.4

7.5

6.8

8.3

7.5

7.3

6.8

8.3

7.2

7.1

7.2

6.5

8.2

7.1

6.9

7.1

6.5

8.0

6.9

6.8

7.0

6.1

7.7

6.8

6.8

6.9

5.9

7.4

6.5

6.2

6.7

5.2

6.7

5.9

6.1

5.5

3.5

5.2

3.8

4.2

7.3

34

1

1

1

Global

1

Flight status updates

Flight rebooking

Itinerary information

Hotel rebooking

Flight booking

Hotel booking

Travel alerts

Destination map

En-route compliance push

Link with expense management

Trip sharing (social networks)

Breakdown by profile (frequency of travel)

1-2 times

1

3-5 times

5-10 times

10-20 times

20 times or more

Global

8.2

8.5

8.6

8.4

8.4

8.5

7.8

8.2

8.1

8.1

8.0

8.1

7.3

7.5

7.3

7.6

7.4

7.3

1

7.3

7.3

7.2

1

1

1

1

7.3

7.4

7.3

7.1

7.0

7.0

7.1

7.1

7.1

6.8

6.8

6.7

7.1

6.9

7.0

6.8

6.7

6.7

7.0

6.8

7.0

6.7

6.7

6.6

6.5

6.8

6.7

6.3

6.1

5.9

5.6

6.2

6.1

6.1

6.1

5.8

6.3

6.1

5.1

4.2

3.8

4.0

3.5

4.2

7.3

Source: CWT Travel Management Institute

35

Travel managers also consider travel alerts highly important Travel managers also differentiate between three tiers of service features, and while the general pattern is similar, a number of differences are worth noting. Like travelers, they consider flight status updates and itinerary information most important, but they also include travel alerts in the “critical” category, recognizing their utility in helping travel to run smoothly. For obvious

reasons, travel managers rate program-related features such as compliance and expense management as important, unlike travelers, who consider them simply nice to have. Like travelers, travel managers consider rebooking to be more important than booking in general, and they give their lowest ratings to social sharing. (See Figure 23.)

Figure 23: Travel managers’ rating of mobile features On a scale of 1-10, how would you rate the importance of the following mobile services?

Flight status updates

9.3

Critical

Itinerary information

8.7

Flight rebooking

Important

8.4

Travel alerts

7.6

Hotel rebooking

7.5

Flight booking

7.5

Hotel booking

7.4

Destination map

7.2

En-route compliance push

7.1

Link with expense management Nice to have

Trip sharing (social networks) 0 Least important

Source: CWT Travel Management Institute Based on a global survey of corporate travel managers (170 respondents), 2014

36

6.9 4.9 2

4

6

8

10 Most important

A few differences in opinion emerge by region.

For North America and Europe, Middle East and Africa, the top three features are identical, but North America places more importance

on expense management (ranked fourth vs. eighth in Europe, Middle East and Africa) and destination/direction mapping (ranked fifth vs. 10th). (See Figure 24.)

Figure 24: Ratings by travel managers in North America vs. Europe, Middle East and Africa On a scale of 1-10, how would you rate the importance of the following mobile services? % 9.5 9.3

Flight status updates Critical

9.2

Itinary information

8.5 8.8

Flight rebooking

8.1 7.6 7.5

Travel alerts

Important

Hotel rebooking

7.9 7.5

Flight booking

7.8 7.4 7.4 7.1

Hotel booking Destination map

7.0 7.1 6.7

En-route compliance push

7.9

Link with expense management Nice to have

6.6 5.3

Trip sharing (social networks)

4.6

0 Least important North America

8.0

2

4

6

8

10 Most important

Europe, Middle East and Africa

Source: CWT Travel Management Institute Based on a global survey of corporate travel managers (150 respondents), 2014

37

(over $50 million annually), while integration with expense management is considered more important for those with smaller budgets. The top three features, however, remain the same.

Interestingly, some differences also appear when looking at the size of travel managersâ&#x20AC;&#x2122; budgets. Rebooking is considered much more important for companies that spend more

Figure 25: Breakdown of rated features by size of annual travel budget Features ranked by order of importance (1 = most important and 11 = least important)

<$10M Flight status updates

1

1

1

1

Itinerary information

2

2

2

2

Flight rebooking

3

3

3

3

Travel alerts

8

5

6

4

Hotel rebooking

7

8

4

5

Flight booking

4

5

6

6

Hotel booking

5

4

9

7

Destination map

9

7

10

8

En-route compliance push

6

9

5

9

Link with expense management

10

10

8

10

Trip sharing (social networks)

11

11

11

11

1

Source: CWT Travel Management Institute Based on a global survey of coporate travel managers (173 respondents), 2014

38

$10-50M $50-100M >$100M

How critical is mobile booking?

Mobile booking is considered important and expected to grow fast, complementing, rather than replacing, other service channels.

Key takeaways ost surveyed travelers and travel managers consider on-the-go mobile booking M important (54 percent and 65 percent respectively). oth populations predict that the number of mobile booking transactions will more B than double between 2014 and 2017 in the three main travel categories (air, hotel and car rental).

F ast growth is also confirmed by CWT forecasts, with mobile representing around 25 percent of all online bookings in 2017, compared to 7 percent in 2014. either travelers nor travel managers expect booking to shift completely to mobile N devices, considering the initial offerings less convenient and easy to use than other channels. Rather, mobile is currently considered complementary to these channels.

Travelers and travel managers consider mobile booking important Just over half of all travelers (54 percent) and nearly two-thirds of travel managers (65 percent) consider the ability to book by

mobile while on the go â&#x20AC;&#x153;importantâ&#x20AC;? or â&#x20AC;&#x153;critical.â&#x20AC;?

(See Figure 26.)

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39

Figure 26: Most travelers and travel managers consider mobile booking on the go to be an important or critical feature

How important is it to be able to book travel or update bookings on the go via mobile devices?

Respondents (%) 60

65%

53

50

54%

43

40

30

24 20

10

23

12

10

11

12

8 4

0 Not at all important

Not very important Travelers

Ambivalent

Important

Critical

Travel managers

Source: CWT Travel Management Institute Based on a global survey of business travelers (1,748 respondents) and travel managers (168 respondents), 2014

There are some differences, however, between regions and traveler profiles. Travelers in Asia Pacific and Latin America place more importance on mobile booking on the go (62 percent considering this feature “important” or “critical”)

40

compared with in North America (55 percent) and Europe, Middle East and Africa (45 percent).

Employees who travel most often consider onthe-go booking to be the most important. (See Figure 27.)

Figure 27: Travelers in Asia Pacific and Latin America, as well as frequent travelers, consider on-the-go mobile booking an important or critical feature How important is it to be able to book travel or update bookings on the go via mobile devices?

Breakdown by region Asia Pacific Europe, Middle East and Africa

7

12

11

19

53

12

9

62% 37

32

8

45%

Latin America

14

5

19

46

16 62%

11

North America

13

42

21

13 55%

Respondents Not at all important

0%

20%

40%

Not very important

60%

Ambivalent

80%

100%

Important

Critical

Breakdown by profile (frequency of travel) 1-2 times 3-5 times

16

25

17

11

13

37 42% 38

29

5 9

47%

5-10 times 10-20 times

9

11

25

6 12

23

44

11

55% 49

10

59%

20 times or more

6 11

21

45

17 62%

Respondents Not at all important

0%

20%

Not very important

40% Ambivalent

60%

80% Important

100% Critical

Source: CWT Travel Management Institute Based on a global survey of business travelers (1,748 respondents), 2014

41

Travelers do not necessarily use their mobiles to book or change bookings at the last minute while traveling. Data provided by consumer app WorldMate shows that only about a third of its mobile hotel bookings are made in the 24 hours before checking in, and this figure has decreased over the years, from 55 percent in

October 2008 to 36 percent in October 2012.

On the other hand, more and more mobile hotel bookings are made at least a week in advance: 40 percent in October 2013 and 37 percent in 2012, compared to 14 percent in 2018. (See Figure 28.)

Figure 28: Mobile hotel bookings are being made longer in advance WorldMate mobile hotel bookings (%) 100 14 37

80

40

31 60 27

25

40 55 20

35

36

0 October 2008 Last 24 hours Source: WorldMate data

October 2012 1-7 days

Time booked in advance

For comparison, corporate travel bookings made through traditional channels (online booking tools or travel counselor) in October 2013 involve a dramatically smaller share of lastminute bookings (only 1 percent in the last 24 hours, according to CWT global transaction data) and a higher share of bookings made at least

42

October 2013 One week or more

one week in advance (62 percent). Corporate travel bookings made via mobile devices are expected to come somewhere in between, with a higher share of last-minute bookings compared to traditional channels but a lower share compared to consumer mobile apps.

Travelers and travel managers expect mobile booking to grow fast of all bookings in the three main categories (air, hotel and car) in 2014 and 14-15 percent in 2016, compared to the 4-5 percent and 11-12 percent estimated by travel managers.

(See Figure 29.)

Travelers and travel managers alike expect mobile booking to grow fast, predicting that the number of mobile transactions will more than double overall in the next two years. Travelers are the most optimistic, estimating 6-7 percent

Figure 29: Travelers and travel managers expect mobile booking to grow fast Respondents (%) 20

Estimated share of mobile transactions in corporate travel bookings 15.4

15.1

15

14.2 12.3

11.7

11.4 10 7.0

6.6 5

0

5.9

5.2 4.1

4.1

2014

2016

Air

Travelers

2014

2016

Hotel

2014

2016

Car

Travel managers

Source: CWT Travel Management Institute Based on a global survey of business travelers ( 1,757 respondents) and travel managers (160 respondents), 2014

43

CWT also forecasts fast mobile growth According to CWT forecasts, mobile booking will rapidly outpace the kind of growth seen in online booking in the early 2000s, given the market readiness discussed earlier, combined with companiesâ&#x20AC;&#x2122; experience in integrating new service channels. Using the U.S. online market penetration as a minimum and the expected mobile penetration in online leisure and unmanaged travel as a maximum, CWT estimates

that mobile could represent 25 percent of online bookings by 2017. Growth in usage could be even faster if more user-friendly, policy-compliant booking apps are launched sooner and adoption is encouraged by corporate travel managers and efficient communication with travelers. In a faster development scenario, mobile bookings could reach 33 percent of online bookings by 2017.

(See Figures 30-31.)

Figure 30: Mobile booking in business travel will grow faster than online booking did in the early 2000s (U.S. market example)

Mobile bookings as a % of

online leisure and unmanaged travel bookings

% 17f

30 16f

25

15f

20 15

0

2013 2000

15f 14f 01

03

02

Sources: eMarketer, CWT Travel Management Institute, HeBS, IHS and Jupiter Research

44

online managed travel bookings

04

U.S. business travel bookings

16f

14f 2013

10 5

17f

Figure 31: Two scenarios for mobile and online booking growth (2013-17f)

CAGR% (2013-17f)

$ billion 500

c.13

485 439

400

389 343

300

Other online business bookings

297

c.6

200 160 c.92

112

100 58

86

121

12

30 24

42

2013

14f

15f

16f

17f

Base scenario

4.0

7.0

10.7

19.5

25.0

Faster development scenario

4.0

8.7

14.8

25.4

33.0

0

Mobile business bookings

c.79

Source: CWT Travel Management Institute, GBTA, PhoCusWright and WTTC

Some major differences between countries can be expected due to varying levels of smartphone or tablet penetration, as well as cultural differences. For example, adoption of mobile booking apps could be influenced

by the self-service booking culture, which is widespread in North America and Europe, but less so in Asia Pacific (e.g., travelers more often delegate this task to assistants in markets such as Singapore and Hong Kong).

45

In the hotel leisure market, booking.com announced that its bookings from smartphones and tablets more than doubled to over $8 billion in 2013, up from more than $3 billion in 2012. (See Figure 32.) In 2012, mobile booking represented 20 percent of

online travel agent Expediaâ&#x20AC;&#x2122;s hotel bookings, and 7 percent of hotel-owned website bookings in the United States (vs. 0.6 percent in 2010), according to PhoCusWright, which in 2013 predicted a rise to 20 percent by 2014.5

Figure 32: Mobile hotel booking revenues through booking.com (2011-2013) $ billion 8

3 1 2011

2012

2013

Source: Booking.com data

Mobile is seen as complementing existing booking channels Even though they expect mobile booking to grow fast, neither travelers nor travel managers expect mobile to replace other channels in the near future.

When asked how realistic they expected a complete shift away from desktop or laptop computers to smartphones or tablets to be, the

answer is only just positive: on a scale of 1 to 10 (1 = completely unrealistic, 10 = very realistic), the average rating for travelers is 5.4 and for travel managers 5.8. Within these scores, however, it emerges that many survey respondents consider the shift realistic: 41 percent of travelers and 42 percent of travel managers give a score of 7 or above. (See Figure 33.)

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Chief editor, travel public

5

46

PhoCusWright, U.S. Mobile Travel Report: Market Sizing and Consumer Trends, February 2013

Figure 33: Most travelers and travel managers do not consider a complete shift to mobile booking realistic How realistic do you consider a complete shift from desktop to mobile/tablet booking in business travel?

40%

Average: 5.8 32

30%

42%

32

41%

29 26 22

20%

14 10%

0

1-2 Completely unrealistic

23

Average: 5.4

15 13

14 12

3-4

5-6

7-8

15

9-10 Very realistic

Source: CWT Travel Management Institute Travelers Travel managers Based on a global survey of business travelers (1,700 respondents) and travel managers (170 respondents), 2014

Currently, mobile channels are considered the least convenient and easy to use for booking When asked to rate the ease of booking through different channels, travelers give the lowest scores to mobile booking by tablet and especially smartphone (5.8 and 5.2 out of 10 respectively).

The highest scores go to desktop/laptop booking through an online booking tool (7.6),

followed by calling a travel counselor (7.4). While 77 percent of travelers consider OBTs very easy to use, giving a score of 7 or above, and 71 percent consider agents very easy to book through, only 44 percent say the same of tablets and 36 percent of smartphones. (See Figure 34.)

47

Figure 34: Travelers consider mobile booking channels the least easy to use How easy is it to book a trip using the following channels?

(1 = very difficult, 10 = very easy) Respondents (%) Average: 7.6 100

7.4

5.8

5.2 15

19 80

41

41

21 25 60 27 40

31

36

28 14

20

0

10

15 14 6

5 4 Desktop/laptop

Ease of use:

23

18

7 Phone to agent

1-2

3-4

Tablet

5-6

Smartphone

7-8

9-10

Source: CWT Travel Management Institute Based on a global survey of business travelers (1,698 respondents), 2014

Further, when asked to rate the most convenient ways of booking travel for different travel categories, travelers and travel managers all rated mobile rather low. While travelers considered the least convenient method to be booking

48

through a mobile corporate online booking tool, perhaps reflecting the early maturity of the market offering, travel managers considered it to be booking directly with suppliers through their apps. (See Figure 35.)

Figure 35: Mobile booking channels are currently considered the least convenient What are the most convenient ways of booking business travel?

(1 = least convenient, 10 = most convenient)

AIR

HOTEL

Travelers

Travel managers

Online booking tool via desktop/laptop

8.1

8.7

Online booking tool via mobile

7.2

Phone travel agent

Travelers

Travel managers

Online booking tool via desktop/laptop

8.2

8.6

6.7

Phone travel agent

7.1

6.7

6.6

6.9

Direct with supplier via mobile

6.7

4.7

Email travel agent

6.5

6.6

Email travel agent

6.4

6.4

Direct with supplier via desktop/laptop

6.0

4.2

Online booking tool via mobile

6.1

7.0

Direct with supplier via mobile

5.4

4.0

Direct with supplier via desktop/laptop

5.7

4.9

CAR

RAIL

Travelers

Travel managers

Travelers

Travel managers

Online booking tool via desktop/laptop

8.0

8.7

Online booking tool via desktop/laptop

7.5

7.4

Phone travel agent

6.9

6.6

Phone travel agent

6.5

6.1

Direct with supplier via desktop/laptop

6.5

5.1

Direct with supplier via desktop/laptop

6.3

5.3

Email travel agent

6.3

6.4

Online booking tool via mobile

6.1

6.4

Online booking tool via mobile

6.1

7.1

Email travel agent

6.0

6.0

Direct with supplier via mobile

5.6

4.7

Direct with supplier via mobile

5.5

4.6

Source: CWT Travel Management Institute Based on a global survey of business travelers (1,722 respondents) and travel managers (169 respondents), 2014

49

terms of screen and keyboard size, as well as more established booking technology. Surprisingly perhaps, tablet performance is closest to desktops or laptops (16 minutes). (See Figure 36.)

These results are reflected in the time taken to complete a booking using different devices, which is longer for smartphones (19 minutes), than desktop computers (15 minutes), which offer a more comfortable user experience in

Figure 36: Travelers say they take longer to book on phones vs. desktop computers On average, how long does it take you to book using the following devices?

Average: 15 min.

16 min.

10

12

11

13

19 min.

18 16

16

18 20

26

26 20

27

21

17

10

10

9

Desktop/laptop computer

Time spent by tablet

Time spent by smartphone

0-5

5-10

10-15

15-20

20-30

>30

Time taken to book (minutes)

Source: CWT Travel Management Institute Based on a global survey of business travelers (1,729 respondents), 2014

Clearly, mobile is a booking channel that may be most useful in specific circumstances; e.g., for lastminute reservations or changes while on the road.

50

CWT expects improved applications, user interfaces and ease of booking to continue boosting mobile booking.

Which services are currently available?

Providers across the market are developing services relevant to business travelers. For the moment, only a select number of key features are available specifically for managed travel, but this situation is changing fast. In time, the offering is likely to move toward a single â&#x20AC;&#x153;power appâ&#x20AC;? or one-stop shop.

Key takeaways orporate travelers needs are currently being served by a variety of apps from C five types of providers: TMCs, technology companies, travel suppliers, niche app providers and social media networks. cquisitions and deep partnerships are enabling players to move faster and extend A their offerings across the travel value chain (from pre-trip to post-trip). s one of the first apps designed for the managed travel market, CWT To GoTM is A the most downloaded and most positively rated by travelers.

Mobile services can bring value to every step of the travel process As mentioned earlier, although travelers and travel managers tend to consider pre-trip and on-the-go features the most valuable, mobile

apps can potentially bring value to every step of the travel process. (See Figure 37 for examples.)

ile devices, xibility thanks to mob fle e or m ve ha s ler ve Tra better manage trips and the ability to eir th t ou ab on ati m or inf the go. ibly change tickets on ss po d an es tim g itin wa bal travel management

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51

Figure 37: Examples of possible mobile features at different steps of travel

Corporate features

Pre-travel Planning

Booking

Door-todoor planning

Preferencing

Peer reviews (colleagues, etc.)

Discussion platform

Mobile payment Virtual agent Loyalty manager

Professional social network

During travel Itinerary consolidation

Alerts (delays/ cancellations)

Flight requirements (visa, etc. )

Search for alternate flights Re-booking

Loyalty manager

Transportation/hotel comfort

Extra travel information

Flight/ gate info

Paperless check-in

Extra bag

Traffic info

Advanced check-in (hotel/ flight)

Lounge

Local restaurants

Airport store

Discount possibilities

Cancellation/ Continuous modification support

Trip itinerary/ flight details

Refund possibilities

Calendar sync.

Airport maps Parking Bag tracker

Fast check-in/ check-out

Other features

Local details/ news

Ability to book travel extensions for leisure

Expenses

Reviews

Pictures of expenses

Events Suppliers

Upload invoices Expense approval

Seat choice

Overall information

Car type Mobile room key

Timetables Meetings and events

Upgrades Hotel menu

Security and assistance Reviews/ recommendations

Post-travel

Fast check-in/ check-out

Trip sharing

Wake-up call

Tracking on social media

Social business travel

Safe arrival Weather

Vouchers Restaurant reviews

Supplier reviews

Events and ticket purchases

Cash point Strong traveler expectations Source: CWT Travel Management Institute

quite painful al and reporting is often ov pr ap e ns pe ex l ve Tra nses directly to a process linking expe nt wa ey Th s. ler ve tra for of receipts. approval with pictures ick qu g lin ab en ., e.g ; trips Global travel manager,

52

der

telecommunications lea

Five main types of providers offer mobile travel services to business travelers A huge variety of travel apps are on the market, helping travelers with anything from planning their trips and keeping track of itineraries to finding local taxis and handling expense management.

Although few dedicated managed travel apps with selected features are currently available, the corporate offering is fast developing.

Five main categories of suppliers provide mobile travel services relevant to business travelers: T ravel management companies offer a growing suite of services, with the ultimate aim of providing corporate travelers with a one-stop shop. Key features such as itineraries, flight status updates and destination information are already available, while booking features are due to come on the market soon. (For example, CWT To GoTM will integrate hotel booking in the second half of 2014, as well as air and ground booking from 2015.)

T echnology providers with established corporate expense management or online booking tool offerings have launched mobile apps, expanding their presence in the value chain from pretravel (booking) or post-travel (expense management). Examples include KDS and Concur.

T ravel suppliers (airlines, hotel chains and car rental companies) have been on the app market longest, enabling travelers to book directly, receive flight status/gate updates, view loyalty points, and so on. On the downside, travelers need to have as many apps as the suppliers they use. iche app providers focus on specific services for all travelers (e.g., SeatGuruâ&#x20AC;&#x2122;s advice on N seating for flights, The Weather Channel for forecasts, etc.). ocial media networks enable travelers to connect and share reviews. In addition to S ubiquitous networks such as Facebook, Twitter and LinkedIn, a number of apps specifically target the travel market (e.g., TripAdvisor).

53

For the moment, no single provider is able to cover every need met by a variety of different apps.

(See Figure 38.)

Figure 38: Business travelers are currently served by a variety of apps rather than a single provider

* 355,000 downloads on all app stores Source: CWT Travel Management Institute Based on data from Google Play app store data, May 2014

should be rporate mobile booking co r fo s ion lut so e tiv Effec r business because TMCs and othe ar ye a in th wi ed lop deve a and the ring investing in this are ide ns co are rs ye pla l trave market is moving fast.

Chief editor, U.K. business

54

travel publication

Toward a “power app”?

While there are currently a limited number of apps and features designed specifically for managed business travel, these are likely to develop significantly over the next few years. TMCs and technology providers in particular are integrating features such as booking that rank highly for

this market, while their improved interfaces are enhancing the user experience. The ultimate goal is a “power app” that would provide a onestop shop for all business travel needs, from the viewpoint of both travelers and travel managers.

(See Figures 39-40.)

Figure 39: The managed travel mobile offering will develop significantly in the coming years

Client expectations

Travelers

Developing needs influenced by consumer habits and the desire for flexibility, simplicity and customization

Offer

Deeper functionalities Booking

Travel managers

Itinerary consolidation Alerts and information

Need to act quickly or face the risk of rogue travel Reluctance regarding travel policy compliance and data security

Few corporate offerings

Offering

Flight status

2014

Lack of integration and poor user-friendliness of many offers Current development of mobile booking functionalities Investments to improve corporate offerings

As the mobile managed travel offering matures, adoption should take off in the next few years.

Source: CWT Travel Management Institute

55

Figure 40: A “power app” would combine extensive features with depth of service

Extensive “Power app“

Specialized apps

Suppliers

Technology providers Depth of service

TMCs

Social media

Limited Number of features

Limited

groups of providers, Relative positionning ofRelative groups ofpositioning providers, notofspecific companies Source: CWT Travel Management Institute

not specific companies

ing ions providers are think All business travel solut strategy. it’s at the heart of their Marketing director, travel

56

Extensive

technology provider

mobile:

Developing a “power app” involves a number of challenges. First, significant investment is required in development resources and server technology. Second, for a truly global offering, agreements need to be reached with a very large number of suppliers, given that they vary by country and city, especially for hotels and car

rental. Third, those suppliers may be reluctant to cooperate fully and risk driving traffic away from their own apps. For this reason, the leading companies in this market have either built deep partnerships or made strategic acquisitions.

(See Figure 41.)

Figure 41: Key partnerships or acquisitions aimed at providing more powerful mobile offerings TMCs and technology providers

KDS

CWT

Sabre

Preferred partnership between KDS and TMCs to launch KDS Neo in North America in 2014

Partnerships

KDS

TMCs and GDSs American Express

Sabre–American Express partnership to create TripCase (itinerary consolidation and flights alerts)

American Express

American Express–KDS partnership to distribute KDS Door-to-Door in France Concur

American Express

Concur–American Express partnership to offer mobile expense management

By TMCs

Acquisitions (mainly specialist apps)

By technology providers/GDSs

2012

2011

2000

CWT

Concur

Sabre

+

+

+

TripIt

GetThere

TripIt

GetThere Mobile

WorldMate

WorldMate

Source: CWT Travel Management Institute

57

How does CWT To GoTM compare with other apps on the market?

CWT To GoTM is an app available exclusively to CWT clients worldwide via iPhone, iPad, Android, Windows Phone, Blackberry and Kindle Fire devices. As one of the first TMC apps on the market, its first features include itinerary management, flight status alerts, mobile checkin and destination information.

Among TMC apps, CWT To GoTM is the most downloaded (based on Google Play statistics) and enjoys the most positive ratings in both the Apple and Google Play app stores.

Figure 42: CWT To GoTM is the most downloaded TMC app

TMC

Downloads Android

Ratings

(June 3, 2014)

Android 4.4

iOS 4.0

CWT To GoTM

50-100 k*

4,268 reviews

Egencia TripNavigator

10-50 k

106 reviews

76 reviews

Amex MobileXtend

5-10 k

2.7

2.0

BCD TripSource

HRG Mobile**

5-10 k

2.6

29 reviews

859 reviews

2.5

13 reviews

2.5

N/A

32 reviews

1.4

Not enough ratings

78 reviews

* 355,000 total downloads on all app stores. ** HRG also offers OnTrack (available in Germany only): 100-500 downloads from the Android store and a 4.0 rating based on 4 reviews.

Source: CWT Travel Management Institute, based on publicly available information

58

In fact, a comparison of features offered by the main TMC apps indicates that, along with Egencia, CWT To GoTM currently offers the widest range of features. More will follow shortly; for example, CWT To GoTM will soon launch booking capabilities: hotels first in second half

2014 and then air by early 2015. Other key features are also in the pipeline, such as traveler profile management with the same degree of control and integration as other channels (July 2014) and travel policy (2015-16).

Figure 43: CWT To GoTM compared with other major TMC apps

Feature

Egencia American Express TripNavigator MOBILEXTEND

CWT To GoTM

BCD TripSource

Air/rail booking Hotel booking Planning and booking

H2 2014

Car booking Automated itinerary sync Profile management

2014

Travel policy

2015-2016

Approvals Itinerary management Mobile check-in Flight alerts During travel

Ancillary services (including ground transportation, parking, WiFi, etc.)

Safety and security alerts Trip disruption (alternative flight search) Loyalty program (view points, status, etc.)

Posttravel

Own loyalty scheme

Expense management Data reporting (incl. off-channel bookings) Consumer-oriented U.S. & Canada

Available worldwide User experience Multilingual Devices supported

Android, iPhone, BlackBerry, iPad, Windows, Kindle Fire Current feature

iPhone, Android

Future feature

Android, BlackBerry, iPhone

iPhone

Unavailable

Unclear

Source: CWT Travel Management Institute, based on publicly available information (company websites and press articles)

59

CWT To GoTM currently lacks some of the planning and booking features available on competing OBT and consumer apps. This

gap will close, particularly when CWT To GoTM integrates booking features later in 2014.

Figure 44: CWT To GoTM compared with major OBT apps Feature

CWT To GoTM

KDS Neo

AeTM

Concur Mobile

GetThere

Air/rail booking Hotel booking Planning and booking

H2 2014

Car booking Only if booked via AeTM OBT Incorporated but not managed

Automated itinerary sync Profile management

2014

Travel policy

2015-2016

Approvals Itinerary management Mobile check-in PRO

Flight alerts During travel

Posttravel

Ancillary services (including ground transportation, parking, WiFi, etc.)

Safety and security alerts

PRO

Trip disruption (alternative flight search)

PRO

Supplier loyalty program management (i.e. view points, status, etc.)

PRO

Expense management Data reporting (incl. off-channel bookings) Consumer-oriented Europe

In beta

BlackBerry, Android, iPhone

iPhone, Android

Available worldwide User experience Multilingual Devices supported

Android, iPhone, BlackBerry, iPad, Windows, Kindle Fire

Current feature

Limited feature

Future feature

iPhone, iPad, BlackBerry, Android

Mobile web (no app)

Unavailable

Unclear

Source: CWT Travel Management Institute, based on publicly available information (company websites and press articles)

60

Each of the providers mentioned has particular strengths linked to their historic activity: DS has branched out from expense management technology to offer integrated travel and K expense management solutions. Its mobile offering,, enables travelers to book pre-approved travel from door to door (including hotels, air, rail and car rental), with each search producing a selection of options, including the cheapest, fastest and greenest. Among the other features provided, the app provides a preliminary estimation of the total trip cost.

Figure 45: KDS mobile solution Pre-travel

During travel

Post-travel

Core offering

Expansion

Core offering

App

Downloads

Rating

(Android)

Expense management

Approvals, receipts, etc.

KDS Mobile

1-5 k

3.7

Travel management Door-to-door offering booking/rebooking of complete trip, itinerary consolidation, etc.

Source: CWT Travel Management Institute, based on publicly available information (company websites and press articles)

ve to be good the best service, you ha er liv de to nt wa u yo If ed on the go. channel that can be us ly on e th is It . ile ob m at and after travel, ed to be mainly before us le ro â&#x20AC;&#x2122; Cs TM s ea er Wh vel. more present during tra now they need to be ny

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Sales director, global tra

61

nother technology provider that has extended its offering to integrated travel and expense A management solutions is Concur. This providerâ&#x20AC;&#x2122;s apps provide mobile access to Concur tools such as TripIt, an itinerary management tool acquired by Concur in 2011, and Concur Expense, allowing travelers to book, manage their itineraries and make changes, capture receipts and submit expense reports electronically.

Figure 46: Concur mobile apps Pre-travel

During travel

Post-travel

Core offering

Expansion

Core offering

App

ExpenseIt

Expense management

Expense reports generated via pictures

Downloads

Rating

(Android)

10-50 k

3.7

500 k -1M

4.4

15M

4.4

Approvals, receipts, etc.

Concur Mobile

Booking/rebooking of airlines and hotels, and integration with TripIt

Travel management

TripIt

Itinerary consolidation calendar sync., trip sharing and flight status alerts.

Source: CWT Travel Management Institute, based on publicly available information (company websites and press articles)

s a global distribution system provider, Amadeus has naturally launched an online booking tool A with mobile access, known as Amadeus e-Travel Management (AeTM). This allows travelers to plan, book and purchase air and rail trips that comply with their companiesâ&#x20AC;&#x2122; policies. s an online booking tool provider, GetThere has developed mobile web access for its users, A providing a consistent look and feel with its internet interface. This service is not provided through an app.

62

T he gap between consumer and business travel apps is closing, as providers continue adapting features to support managed business travel. While the main consumer travel apps currently offer extensive features and enjoy positive reviews, they lack some of the necessary features to support managed travel programs (compliance with policy, integration with preferred suppliers, profile management, safety and security, etc.).

Figure 47: CWT To GoTM compared with key consumer travel apps Feature

CWT To GoTM

TripCase

WorldMate

TripIt

Air/rail booking Hotel booking Planning and booking

Car booking Automated itinerary sync Profile management Travel policy Approvals Itinerary management Mobile check-in Flight alerts

During travel

GOLD

PRO

GOLD

PRO

Ancillary services (including ground transportation, parking, WiFi, etc.)

Safety and security alerts Trip disruption (alternative flight search) Loyalty program management (view points, status, etc.)

Posttravel

PRO

Expense management TripCase Corporate

Data reporting (incl. off-channel bookings)

with Concur

Consumer-oriented Available worldwide User experience Multilingual Devices supported

Google store reviews

Android, iPhone, BlackBerry, iPad, Windows, Kindle Fire

4.5

4,047 reviews Apple store reviews

4.0

807 reviews

Current feature

iPhone, Android, BlackBerry

4.1

3,463 reviews

4.5

981 reviews

Limited feature

Android, iPhone, BlackBerry, iPad, Windows

4.5

12,686 reviews

5

4,529 reviews

Future feature

Android, iPhone, BlackBerry, iPad, Windows

4.4

27,094 reviews

4

24,438 reviews

Unavailable

Source: CWT Travel Management Institute, based on publicly available information (company websites and press articles)

T he above table compares the main global apps but does not take into account apps that have launched a strong offering in specific regions. In China, for example, CTrip has gained a strong following for domestic fares, while Indiaâ&#x20AC;&#x2122;s MakeMyTrip has been massively successful, driving many users directly from an offline environment to mobile booking. These remain consumer-focused apps rather than specifically adapted to the corporate market.

63

How popular are travel apps today?

Contrary to popular belief, travelersâ&#x20AC;&#x2122; phones are not overloaded with travel apps. The vast majority download only a handful and use one or two. Only a slight variation is seen between different traveler segments.

Key takeaways Among surveyed travelers, 70 percent use two travel apps at most.

T he most frequent travelers download and use slightly more apps than other travelers (4.3 and 2.8 for travelers taking at least 20 round trips a year, compared to 2.1 and 1.7 for those taking fewer than two).

T he penetration of TMC apps is low for the moment as mobile managed travel offerings are still young on the market, while companies are just starting to address mobile travel management. TMC app penetration currently stands at 5-21 percent in the top 15 companies downloading CWT To GoTM.

Most travelers use only a few travel apps Surveyed travelers download on average just over three travel apps and use only two. Only 14 percent of travelers have more than five travel apps, compared to 54 percent who have two at most. The contrast is even greater in

terms of usage: only 5 percent use more than five travel apps, while 70 percent use two at most. Clearly, travelers are not yet overwhelmed with travel apps.

r and make their lives easie ll wi at th re tu fea y an Travelers want ey want to on during their trips. Th provide useful informati get a cabâ&#x20AC;Ś ich gate and where to know where to go, wh Chief editor, U.S. business

64

travel publication

Figure 48: Surveyed travelers download and use only a few travel apps on average How many travel apps do you have on your smartphone?

How many do you actually use?

Respondents (%) 50 47

Average: 2.2

Average: 3.2

40 35 30 23 19

20

15

13 10

0

11

9

7

8 5

4 1

1

2

3

4

5

6-10

3

>10

Number of apps On smartphone In use Source: CWT Travel Management Institute Based on a global survey of business travelers (1,360 respondents), 2014

Road warriors use slightly more apps than other travelers However, these results hide some noticeable differences between types of travelers. â&#x20AC;&#x153;Road warriorsâ&#x20AC;? who take more than 20 round trips a year tend to have and use more travel apps, downloading more than four and using nearly three on average. (See Figure 49.) This is important to note, given that these travelers represent proportionately more spend in the travel budget (the 10 percent of employees

6

who travel most often account for 50 percent of travel spend, according to previous CWT research).6 Companies can take this into account, targeting road warriors specifically when launching and communicating about a corporate mobile offering.

CWT Travel Management Institute, Mastering the Maze: A Practical Guide to Air and Ground Savings, 2012

65

Figure 49: Road warriors have around four apps and use around three on average How many travel apps do you have on your smartphone?

How many do you actually use?

Number of apps 5 4.3 4 3.4 3.0

3 2.4

2.3 2

2.8 2.4

2.2

1.7

1.9

1

0

1-2

3-5

5-10

10-20

20 or more

Frequency of travel (return trips annually) In use

On smartphone

Source: CWT Travel Management Institute Based on a global survey of business travelers (1,407 respondents), 2014

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66

Adoption of managed travel apps is limited fewer provide apps for a mobile online booking, expense management or other more specialized business functions. (See Figure 50.)

Looking at managed travel apps specifically, adoption is limited for the moment. Most surveyed travel managers (63 percent) say their companies provide a TMC app, while

Figure 50: More companies have TMC apps than other mobile business travel services Which of the following mobile services does your company provide?

A travel management company app or mobile site

63

A banking app or mobile site

37

43

An expense vendor app or mobile site

57

31

69

An app or mobile site for meeting attendees

16

84

An app or mobile site for meeting registration

14

86

An internally developed travel app

7

93

0

20 Yes

40

60

80

Respondents 100 (%)

No

Source: CWT Travel Management Institute Based on a global survey of travel managers (165 respondents), 2014

For now, only 27 percent of surveyed travelers say their companies provide them with a TMC app, while travel managers say that on average

18 percent of travelers are equipped in this way.

These low figures reflect the gradual rollout in many global companies.

67

Figure 51: An estimated 18-27 percent of travelers on average have a TMC app on their mobile device Travelers Do you have a TMC app on your mobile device?

Yes

27%

No

73%

Travel managers What percentage of your travelers have a TMC app on their mobile devices?

Respondents (%) 35

Average:18% 32

30 25

23

23

20 15 10

10 5

5

4

0-10

10-20

20-30

30-40

2 40-60

60-80

1 >80

Travelers (%) Source: CWT Travel Management Institute Based on a global survey of business travelers (1,788 respondents) and travel managers (171 respondents), 2014

68

No response

Actual figures are even lower, according to an analysis of CWT To GoTM downloads by travelers at the 10 companies with the most users of this app, underlining the early stage at which many companies are in terms of their mobile managed travel strategy.

(See Figure 52.) When the figures are broken down by traveler profile, however, penetration is significantly higher among frequent travelers, reaching 46 percent in one company (for travelers taking 20 or more round trips a year).

lers who often ntage of frequent trave There is a small perce o need to ey want comfort but als visit different places. Th when. know where to go and Chief editor, U.K. business

travel publication

69

Figure 52: Penetration rate of the CWT To GoTM app in the 10 companies with the most users

Company

Average

A 13

B

C

16

9

D

E

F

G

H

8

4

I 6

9

J

0

44

12

34

20

17

13

11

21 11

24

14

10

20

29 10

30

40

Round trips per year 1-2

3-4

Source: CWT global client transaction data, 2014

70

14

25

23

12

8

4

15

13

19

13

5

16

18 17 16

13

7

35

32

23

15

6

18

38

32

22

14

6

32

25

23

42

36

26

17

9

44

35

26

46

5-9

10-19

20+

50 %

Usage of managed travel apps is low to moderate for the time being When downloaded, usage of managed travel apps is also limited, according to the CWT survey. Most travelers (83 percent) and travel

managers (84 percent) estimate very low to moderate usage. (See Figure 53.)

Figure 53: Most surveyed travelers and travel managers consider TMC app usage very low to moderate If you or your travelers have a TMC app, how do you estimate the level of usage?

Respondents (%) 40 37 30

30 28

20

23

23

26

14 15 10

3 0

Very low

Low

Travelers

Moderate

High

1

Very high

Travel managers

Source: CWT Travel Management Institute Based on a global survey of business travelers (406 respondents) and travel managers (156 respondents), 2014

71

How satisfied are travelers so far?

This latest research counters the idea that consumer apps offer a better user experience than corporate apps. According to surveyed travelers, the gap in satisfaction between business and leisure mobile services is surprisingly small.

Key takeaways verall, 57 percent of travelers say their mobile experience is similar for business O and leisure travel, although satisfaction is slightly lower for the most frequent travelers. atisfaction scores are slightly higher for travelers than travel managers regarding S TMC mobile services and the way mobile technology and communications are managed by companies.

Traveler satisfaction with mobile apps is similar for business and leisure travel Because of their earlier development, consumer travel apps could be expected to offer a better user experience. Yet most surveyed travelers (57 percent) consider their experience with mobile services to be similar for business and leisure travel, while 18 percent of travelers even say their experience is better for business travel.

When the results are broken down by region, most travelers report a similar experience, except in Latin America, where this is the case for only 41 percent. However, frequent travelers, who use more apps, note a larger difference in quality, with greater room for improvement in corporate apps. (See Figure 54.)

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72

intelligence company

Figure 54: Most travelers consider their mobile experience similar for business and leisure travel All travelers How would you rate your mobile experience for business vs. leisure travel?

Respondents (%) 60 57

40

25

18

20 15

14

10 0

4 Much worse

Worse

Similar

Better

Much better

73

Breakdown by region 4

100%

3

3 13

10 80%

12

34

30

10

7 29

27 -21

59

60% 49 40%

-10

64

40

+8

+17

20

20%

13

8

17

9

0%

Asia Pacific

Much worse

31

11

23

21

10

10

11

Europe, Middle East and Africa

Latin America

North America

Worse

Similar

Better

Much better

Breakdown by frequency of travel 100%

3 18

3 21

14

4 17

14

3 18

11

3 14

10

13

-17

62

-12

31

13

80%

60% 60

+2

-5

61

56

-7

55

40% 16

20% 13 0%

19

14

17

22

6

8

9

1-2

3-5

5-10

26

12

10-20

20 or more

Round trips per year

Much worse

Worse

Similar

Source: CWT Travel Management Institute Based on a global survey of business travelers (1,804 respondents), 2014

74

25

15

Better

Much better

Travelers are slightly more satisfied than travel managers with their TMC mobile services score is lower for travel managers at 5.3 out of 10. When the results are broken down by the size of travel budgets, this figure rises slightly to 5.7 for annual budgets over $100 million and drops slightly to 4.7 for those under $10 million.

(See Figure 55.)

When asked specifically about the mobile services provided by their travel management company, travelers say they are generally satisfied: 79 percent of travelers who have a TMC app rate their satisfaction at 5 or above out of 10, and 51 percent at 7 or above, producing an average score of 6.1 out of 10. The average

Figure 55: Satisfaction scores for TMC mobile services If you or your travelers have a TMC app, how satisfied are you with it?

Respondents (%)

Average: 6.1

40

79%

37 33 30

28

28

20 17

16 10

10

14

11 6

0 1-2

3-4

Very dissatisfied

5-6

7-8

Satisfaction Travelers

9-10 Very satisfied

Travel managers

Source: CWT Travel Management Institute Based on a global survey of business travelers (406 respondents) and travel managers (156 respondents), 2014

75

Travelers also tend to be more satisfied with the way mobile technology and communications are managed in their companies low score (4 or under). Meanwhile, the score for travel managers is lower: 4.9 on average, with 40 percent rating it 4 or under. Only 28 percent give a high satisfaction score of 7 or higher.

Travelers are satisfied overall with the way mobile travel technology is managed in their companies, rating their satisfaction at 5.9 out of 10 on average, while nearly one third (32 percent) give a high satisfaction score (8 or above). Only 27 percent give a very

Figure 56: Travelers are more satisfied than travel managers with the way mobile technology is managed by their companies How satisfied are you with the way your company manages mobile technology?

Respondents (%) 25

Average: 4.9

Average: 5.9

20 20

20

32%

16

15

11

10 9 5

12 12

11

9

9

8

7

12

11

8

7

8

5 3

0

1 Very dissatisfied

2

3

4

Travelers

5 Satisfaction

6

7

8

Travel managers

Source: CWT Travel Management Institute Based on a global survey of business travelers (1,804 respondents) and travel managers (173 respondents), 2014

76

9

2 10 Very satisfied

While 73 percent of travelers are at least somewhat satisfied (a score of 5 or above), only 60 percent of travel managers are. (See Figure 57.)

A similar pattern appears for communications on mobile travel solutions, with travelers satisfied overall (an average score of 5.7 out of 10) and travel managers less so (a 4.9 average score).

Figure 57: Travelers are slightly more satisfied than travel managers with their companiesâ&#x20AC;&#x2122; communications on mobile solutions How would you rate your companyâ&#x20AC;&#x2122;s communication on mobile travel solutions?

Respondents (%) Average: 4.2

25

Average: 5.7

21

20

31%

15

16

15

14

14

14

10

5

12 12

10

9

8

13

7

7

8

7

5

5 3

0

1 Very dissatisfied

0 2

3

4

Travelers

5 Satisfaction

6

7

8

9

10 Very satisfied

Travel managers

Source: CWT Travel Management Institute Based on a global survey of business travelers (1,804 respondents) and travel managers (173 respondents), 2014

Travelers

Travel managers

77

What are the main barriers to mobile use in the travel program?

Travel managers consider security to be the main barrier to mobile use in their companies, although they also acknowledge other areas bringing potential challenges

Key takeaways T ravel managers consider security issues and a lack of available features to be the main barriers to mobile app use in the travel program (vs. compliance and the involvement of numerous decision-makers in mobile issues).

T he experience of a global IT company interviewed by CWT confirms awareness of these difficulties.

Four main barriers Although travel managers expect mobile services to take off in the travel program over the next

few years, a number of issues could slow their development.

Figure 58: Security issues rank top of the barriers to mobile use in the travel program, according to travel managers Respondents (%) 40 35 30 26 21 20

18

10

0 Security issues

Source: CWT Travel Management Institute

78

Lack of available features

Lack of program compliance

Many different decision makers in my company

ecurity issues come top of the list—quite S rightly, since smartphones and tablets have surpassed laptops as the devices most likely to be targeted by thieves or hackers. Apart from being smaller and easier to lose or have stolen, mobile devices tend to be less well protected by passwords and IT security policies. Yet these mini-computers offer access to key data and corporate networks, and any security breach can create chaos on both individual devices and networks.

Downloaded apps in particular can weaken security by containing malicious code, but attacks can come in all shapes and sizes.

These include phishing (where users are tricked into giving their passcodes to third parties), spyware (where user activity is tracked without consent), trojans (programs that cause harm to the user’s device) and worms (malware that spreads to other devices).

T he service offering comes next (26 percent of travel managers). First, the right services need to be available on the devices that travelers use, which is not yet a given. Just as importantly, travelers will not want to use mobile services unless they are user friendly

and do what they promise, effectively and efficiently. As discussed, the managed travel offering still lags behind the leisure offering in some areas, such as booking, although providers are fast introducing new features.

T ravelers’ potential lack of compliance with the travel program comes third. If travelers use apps that have not been designed specifically to support the corporate travel program, there is a real risk of travelers booking with non-preferred suppliers and being harder to track, as well as important spend data being lost. A separate CWT report, Where now for managed travel? “Rogue” spend, new technologies and the future of travel programs, provides an overview of this particular risk, with the pros and cons of a selection of early apps targeting the corporate market.

F inally, another important barrier is the involvement of many different decision makers in mobile services (for 18 percent of travel managers).

sed by licy is not fully addres po l ve tra th wi ce an pli So far, com r us. rtant question mark fo po im an is is Th s. ce rvi mobile se Travel manager, global

consulting company

79

Figure 59: Many departments are potentially decision makers on mobile services

Travel manager

Traditional online business travel stakeholders HR department

Finance department

IT department

Procurement department

Controls the data security in the frame of mobility

Stakeholders more involved with mobile business travel

Controls the equipment of employees with smartphones/ tablets

Mobile project manager* Leads the implementation of mobility inside large companies

!

Feedback from the traveler experience

Source: CWT Travel Management Institute

agers or e in-house change man lik , ge er em ll wi les ro New d by TMCs). nsultants (e.g., provide co t en em ag an m ge chan lers may be mented correctly, trave ple im t no are s ge an If ch and prefer ile corporate solutions ob m ing us m fro d re deter their own solutions.

Travel manager, global

80

consulting company

Different stakes are involved, with potiential benefits for all concerned. (See Figure 60.)

Figure 60: The benefits and risks of mobile services for different stakeholders

Benefits

Travel manager

Risks

Higher connectivity with travelers and increased control over trips - Can redirect travelers toward preferred suppliers via push actions - Better tracking to avoid security issues

Diluted power to choose suppliers vs. IT managers and procurement managers Higher risk of missed savings due to non-compliant traveler behavior

Ability to leverage traveler reviews during supplier negotiations

Increased workload to stay aware of new mobile solutions and educate business travelers on new mobile possibilities

Higher well-being/comfort of travelers and better perception of business trips

IT department

Increasing role due to a stronger orientation toward IT tools

Procurement department

Increasing role due to increasing use of work smartphones and tablets

Other stakeholders

Limited impact on finance department HR managers should benefit from increased traveler well-being

Increased workload to protect company data

N/A

0/

Need for finance department to control amount of contracts with travel suppliers

N/A

/0

Limited risk for HR department

Travel managers will require a better knowledge of apps and share this with travelers to impact trips and avoid unmanaged travel.

IT experts must develop efficient solutions to protect company data.

Source: CWT Travel Management Institute

However, all of these barriers can be overcome with the right approach.

81

Case study: Global IT company gets a “village around the table” for mobile security Interviewed by CWT at the end of 2013, the global travel manager of an IT giant pointed out issues her company was looking into before setting up a mobile policy.

These included the importance of safety and security, and the need to consult and work closely with stakeholders from across the company. As she put it, “It takes a village to make sure people are safe in travel and it’s that same village that has to be consulted around mobile.”

The company had just undertaken a companywide survey into mobile usage to understand which tools travelers were already using, the potential risks involved and the best ways to get people the information they need.

Here are some of the points she made: mployees should treat their phones and tablets with as much care as their E laptops. Not only are they easily stolen, but company data may be vulnerable if users do not set up passwords on all their devices. Stolen data can also put employee security at risk; for example, if itinerary information falls into the wrong hands.

T ravel is just one element to consider in a corporate mobile strategy. Close collaboration is required with different teams, from IT, telephony and security to HR and social networking. obile tools complement, not replace, the solutions already in use. When M employees are allowed to choose their own devices and operating systems, not all of them may be compatible with smartphone apps. hen steering travelers toward the best mobile apps, guidelines may work W better than rules. The market is changing so quickly that travel managers are not necessarily aware of the latest offerings, and the company may not want to endorse specific apps if it means paying for travelers to install them. well-defined mobile policy is a high priority for 2014. After analyzing the A results of its audit, the company intended to find ways to fully exploit mobile services within its travel program.

82

How to overcome the barriers and successfully implement mobile managed travel solutions?

All of the barriers to mobile service implementation can be overcome with the right approach.

Key takeaways WT suggest seven points to consider when implementing managed mobile C services:

Take action now to avoid program leakage.

Seek the right external partners.

Avoid app overload.

Keep up with fast-changing supply and demand.

Work closely with IT experts on data security issues.

Get buy-in from other departments.

Educate and communicate with travelers.

F ive key steps are involved in boosting mobile app use: devices, awareness, downloads, registration and active usage.

Seven points to consider T ake action now to avoid program leakage. Managed travel apps are specifically designed to steer support corporate travel programs, and are companiesâ&#x20AC;&#x2122; best bet to keep travelers booking within policy when on the go, rather than booking directly through suppliersâ&#x20AC;&#x2122; apps. eek the right external partners. Most travel managers (60 percent) do not get outside S support for their mobile strategy, but when they do, they tend to ask their TMC for help (32 percent, compared to 6 percent who work with a travel or communication company and 2 percent with a consulting company). (See Figure 61.) Introducing tools from a current partner that support the companyâ&#x20AC;&#x2122;s existing technology platforms often enables a faster, easier rollout and more integration of features into a limited number of apps.

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Figure 61: When travel managers work with a partner for mobile strategy, most say their partner is a TMC Does your company use a third party to support its mobile strategy?

2% Yes, a consulting company

Yes, a travel technology or communications company 6%

Yes, the travel management company

32% 60%

No

Source: CWT Travel Management Institute Based on a global survey of travel managers (173 respondents), 2014

void app overload. When asked what the best mobile strategy for their company would be, A both travelers and travel managers are clear that they do not want an overload of consumer apps and services but would prefer to have access to a single best-in-class corporate tool.

(See Figure 62.)

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Figure 62: More than 80 percent of surveyed travelers and travel managers would prefer a single corporate mobile tool to a variety of consumer apps In your opinion, what would be the best mobile strategy for your company?

Let me shop around and use the best-of-breed consumer apps

19%

20%

Travelers

Travel managers

80%

81%

Provide me with the best proven corporate tool available in the market place Source: CWT Travel Management Institute Based on a global survey of business travelers (1,804 respondents) and travel managers (173 respondents), 2014

y. It is an ld include data securit The core offering shou travelers all our customers, both of t en m ire qu re ial nt esse and their companies. bal travel management

Technology director, glo

company

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The ultimate TMC app would offer all the key functions expected by travelers and travel

managers, combined with an easy-to-use, attractive interface. (See Figure 63.)

Figure 63: Ideal features of the TMC “power app”

Program compliance

Designed specifically for managed business travel

Safety and security

Geolocation services Continuous support with push/pull alerts Trip disruption services Ability to make bookings, cancellations and changes

Booking

Alerts on gaps in traveler’s itinerary to decrease program leakage (e.g., no hotel booked on overnight trip) Repeat booking option for simple recurrent trips Exhaustive information on authorized travel suppliers

Other services

Consolidated itinerary information Integrated expense management Best-in-class one-stop shop

Ease of use

Intuitive user interface with a limited number of steps for registration and booking Positively rated user experience Peer reviews

Source: CWT Travel Management Institute

Although this kind of app is not yet available, companies can start by implementing a scalable TMC app that offers critical features now and

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other important capabilities, such as booking, in the near future.

Case study: cooperation and communication for a successful mobile app rollout For the senior sourcing manager of a global communications and IT company, cooperation and communication have been integral to the successful rollout of its chosen TMC app. Since being available on Windows, the company’s preferred mobile operating system, starting in January 2014, CWT To GoTM has received an enthusiastic welcome from travelers and was ranked top of the “5 must-have Windows phone apps for business travel.”

As the CWT client explained, “Our travelers are very tech savvy and they were telling us they expected our global TMC to provide an app that would make their lives easier. That was the starting point for our discussions with CWT last year: we wanted to make sure CWT To GoTM would be available on Windows as well as the other platforms on their roadmap.”

In-house, the global travel management team did not have to convince other stakeholders but simply went to their technical development team, whose role is to facilitate technology processes both internally and externally, cooperating with providers such as CWT. Likewise, the travel management team did not consider IT security a barrier, since this aspect is very strong at the company.

The main challenge has been reaching all the company’s travelers and ensuring they download the app. The travel management team has therefore focused on twoway communications, making sure that travelers hear about the app and want to try it.

In particular, travelers can share their feedback socially through their Intranet or address their travel managers directly by email. The company has also boosted word of mouth through editorial content highlighting the benefits and features of the app. In addition, CWT To GoTM is now included in the company’s internal offering, a selection of preferred apps that are distributed automatically to employees’ devices.

For the client, travelers above all want mobile access to essential information on their itinerary and any changes (e.g., flight delays), which are among the features currently available on CWT To GoTM. But they would also like to be able to book anywhere and from any device, which they will soon be able to do through the app. In her opinion, travelers want to access the maximum of services from a single app, and this is also a strong expectation from the technical development and travel management teams. This explains why the company has not promoted apps by online booking tool providers, since it works with different providers in each major region.

As the client put it, “Not all apps will suit the company’s needs. The most important thing is to truly meet needs, bringing value to travelers and the organization.

Joining forces with suppliers is a very powerful way to make that happen.”

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eep up with fast-changing supply and demand. New apps and features are coming onto K the market constantly, and the best consumer apps in particular are influencing travelers’ expectations. Companies might want to conduct a formal survey of traveler needs, and also encourage ad-hoc ideas and feedback through more informal channels such as social media or a corporate social network. ork closely with IT experts on security issues. When it comes to mobile devices and services, W data security is a critical, but often overlooked, issue. Travel managers should work in close partnership with their IT experts and TMC or other technology provider to ensure that the right protection is in place. This can range from approving or banning certain apps and installing security apps, to requiring users to take precautions such as setting up passwords, locking their SIMs and turning off Bluetooth, and avoiding the use of certain apps over public WiFi connections. et buy-in from other departments. Travel managers can play a strong advisory role in the G company’s policy on mobile devices or in travelers’ choice if the rule is “bring your own device.”

According to the CWT survey, only 1 percent of mobile device programs are handled by travel management teams, compared with 77 percent by the IT department. (See Figure 64.) Other departments from across the company may have a stake in other elements of a policy; for example, human resources and legal issues may arise regarding usage.

Figure 64: Most mobile device programs are handled by IT Who manages your mobile device program?

Corporate travel Facilities and real estate

Other businesses (human resources, finance, etc.)

1% 4%

Procurement/general services department

7%

11%

77% IT department

Source: CWT Travel Management Institute Based on a global survey of travel managers (173 respondents), 2014

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ducate and communicate with travelers. Most travelers want to do the right thing but can E be easily misguided; for example, when they book outside the policy simply because they have found what appears to be a cheaper up-front price (not taking into account the cost of changes, negotiated corporate rebates and the importance of booking through preferred channels for tracking purposes). As always, communicating the companyâ&#x20AC;&#x2122;s policy clearly, simply and regularly makes a critical difference. According to the CWT survey, only 29 percent of surveyed companies have included mobile rules or guidelines in their travel policies so far. But the majority (51 percent) intend to do so over the next two years. (See Figure 65.)

Figure 65: Most companies intend to have a mobile travel policy in the next two years Does your company have a mobile policy for the travel program?

No and we do not plan to have one

Yes 20% 29%

51% No, but we plan to have one in the next two years

Source: CWT Travel Management Institute Based on a global survey of travel managers (173 respondents), 2014

The remaining 20 percent may have a mobile policy under the responsibility of another department, such as IT, which would not necessarily cover mobile solutions for managed travel.

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Figure 66: Most travelers say their company does not have a mobile travel policy or they are unaware of one Does your company have a section on mobility in the travel policy?

Donâ&#x20AC;&#x2122;t know Yes

41% 48%

11% No

Source: CWT Travel Management Institute Based on a global survey of travel managers (173 respondents), 2014

travel ssroads, having to apply cro a at are s er ag an Travel m e toward obile policy and evolv policy, implement a m ide their to own the change ins ve ha ey Th s. ce rvi se mobile companies.

Global travel manager,

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der

telecommunications lea

Five key steps for boosting mobile app use Getting travelers to use the right managed mobile travel apps does not have to be complicated but it does involve at least five key steps: evices. Travelers need to have a smartphone or tablet that is compatible with the D app and secure to use for work. wareness. Once the company has identified a suitable app, travelers need to know A what it is and what it can do for them. ownloads. A pilot can be run with a sample of travelers to gather feedback and find D out what works and what could be improved and communicated to the provider. egistration. The process here should be easy to avoid travelers abandoning the app R before even trying it out. ctive usage. The company needs to monitor usage and troubleshoot if it is low; A e.g., compared to downloads.

Key steps 1

Devices

2

Awareness

3

Downloads

4

Registration

5

Active usage

Leading app

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Conclusion This CWT research shows that the majority of travelers are now equipped with smartphones and have high expectations of mobile apps, just like travel managers. The most valued features (itinerary information and flight status alerts) are already available to business travelers, while other key features such as mobile booking are fast emerging on the managed travel market. Some, such as trip disruption (including alternative travel options pushed to travelers) could well be considered critical once available. Providers are tailoring services to corporate needs across the travel continuum, and eventually all the essential features may be offered in a single â&#x20AC;&#x153;power app.â&#x20AC;?

In the meantime, travel managers can implement a scalable TMC app such as CWT To GoTM, which is fast integrating new features for business travelers and their companies worldwide. TMCs can also help travel managers to navigate the available technology and overcome any barriers to travelers using the desired mobile apps, such as device compatibility or data security concerns. The time to act is now: by exploiting mobile technology, companies can maintain control over their travel programs while giving travelers more freedom over when and how to organize their travel, thanks to mobile access to service wherever they go.

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Google, The 2013 Traveler, November 2013 H eBS Digital, 2013 Hotel Mobile Technology Trends, December 2012 ITB, Mobile Travel App Guide, 2013 M obiThinking, Global Mobile Statistics 2013 (website) T om Newcombe, “Going Mobile at Business Travel Show 2014,” Buying Business Travel, January 29, 2014 PhoCusWright, Mobile Hits the Mainstream: Leisure and Business Traveler Trends, January 2012 PhoCusWright, The Mobile Travel Experience: Pitfalls and Possibilities, April 2013 PhoCusWright, The Mobile Travel Landscape: A Multi-Region Spotlight, April 2013 PhoCusWright, U.S. Mobile Travel Report: Market Sizing and Consumer Trends, February 2013 Smart Mobility Management Magazine, Mobility Management in 2013 – Breaking down the silos on the journey to total mobility solutions (report), June 2013 T ravelport, Servicing the Digital Leisure Traveler (white paper), 2012 TRX, Integration and Management of Mobile Applications for Business Travel, 2013 W ebtrends, Optimize Traveler Experiences to Increase Bookings Across Digital Channels, 2013 Brandon Workman, “Mobile is beginning to define the multitrillion dollar global travel industry,” Business Insider, January 31, 2014

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Tap into mobile services: managing travel in the digital economy

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