How Open Booking Can Benefit Managed Travel
Presented by Ethan Laub Founder and CEO, TripScanner 1
Agenda
• Defining “Open Booking” • The Challenge of Program “Leakage” • How Open Booking Solutions Can Help
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What Is Open Booking?
The Perception: Chaos!!
Our Definition: Solutions that help manage bookings made outside of a traditional travel program / TMC
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The Opportunity for Open Booking Open Booking solutions are being developed to fill gaps in the managed travel landscape ~80% of U.S. companies lack a tightly “managed” travel program*
“Unmanaged”
“Lightly Managed”
“Managed”
No travel agency
Recommended travel agency
Mandated travel agency
No travel policy
Policy guidelines
Firm travel policy
No reports / controls
Partial control / visibility**
Good controls / visibility
32%
47%
21%
** Global Business Travel Association *** PhoCusWright Study - 40% of business travelers book outside of their company’s travel program
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Travel Program “Leakage” Travel Program “Leakage” is a real problem for many travel buyers and TMCs • 40% of business travelers don’t always book through their company’s TMC.1 • 54% of travelers book hotels outside their company’s travel program.2 • Up to 20% of Expedia’s bookings are for business trips.3 Duty of Care Reporting / Visibility
Challenges of “Leakage”
Supplier Leverage
Policy Compliance
1. PhoCusWright: U.S. Business Traveler: Managed, Unmanaged, and Rogue (2012) 2. CWT Travel Management Institute Study (2012) 3. Interview with Expedia CEO Dara Khosrowshahi
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How Open Booking Solutions Can Help
Open Booking Solutions can help TMCs and their corporate customers manage program “leakage” Reporting / Visibility
• Track out-of-program bookings, providing a complete view of an organization’s total travel spending. • Understand who is booking outside of the travel program, and why?
Policy Compliance
• Identify out-of-program trips that are out-of-policy when the booking is made.
Service / Duty of Care
• Locate and service travelers who booked outside of the travel program, in case of a travel disruption / emergency.
Supplier Leverage
• Improve supplier negotiation leverage by using 100% of booked travel data, including out-of-program bookings. 6
Travel Agents: Evolving from a Booking Provider to a Travel Management Company
As booking services become a commodity, TMCs can differentiate themselves by helping clients control total travel spending. Travel Management Company
Differentiated TMC
Help clients service, control, and optimize all travel activities, regardless of booking channel Booking Provider • Book reservations • Service travelers en-route
Commodity
• Provide reports / controls for bookings made through the travel agency
In-Program Bookings
Scope of Services
All Bookings
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