Stages of Travel Management Excellence TRAVEL ANALYTICS INC Industry Scores and Future Goals Presented by Scott Gillespie, CEO.

Stages of Travel Stages of Travel Management Management ExcellenceExcellence

TRAVELANALYTICSINC

Industry Scores and Future Industry Scores and Future GoalsGoals

Presented byPresented byScott Gillespie, Scott Gillespie, CEOCEO

Scott Gillespie’s Background• Founder of Travel Analytics

– Developed TANGO™ and BRAVO™ for negotiating and managing airline supplier contracts

– Analyzed in excess of $10 Billion of annual air spend– Recipient of ACTE’s Industry Professionalism and Distinguished

Fellow honors– Named by Business Travel News as one of the travel industry’s most

influential executives

• Previously A.T. Kearney’s expert in strategic sourcing of travel suppliers

• MBA, University of Chicago– Concentration in Statistics

Some Past and Current Clients/Teachers

– AXA

– Baxter

– Capital One

– Coca-Cola

– Chevron

– Compaq

– DaimlerChrysler

– Dell Computer

– John Deere

– Ernst & Young

– ExxonMobil

– Ford

– Hewlett-Packard

– Hoffmann La Roche

– Invensys

– International Monetary Fund

– Lockheed Martin

– Microsoft

– Lucent Technologies

– Procter & Gamble

– Nortel Networks

– PricewaterhouseCoopers

– Saint-Gobain

– US Bank

Today’s Agenda• Framework, Methods, Limitations and Benefits• Who Participated and What Are Their Scores?• A Closer Look• The Road To Glory• What’s Working, What’s Not?• Where Are We Headed?• Is Bigger Better?• What’s Needed?• Individual Reports• Appendix

Some Appetizers:• Only 6% of firms rate their programs currently as

Stage 4 (the best) • 98% of firms want to be either Stage 3 or Stage 4• The highest-scoring dimension? Senior Management• The lowest-scoring dimension? Groups & Meetings• The two most important dimensions are Senior

Management and Travel Policy – True or False?

Stay Tuned!

Framework, Methods, Limitations and Benefits

What is the Stages of Travel Management Excellence Framework?

No real travelprogram; mostly

fighting fires

Basic travelprogram;

limited support

Advanced travelprogram;

good support

World classprogram;

Great support,Excellent

results

Stage 1

Stage 2

Stage 3

Stage 4

A set of dimensions and criteria with prescriptive power

Method for Conducting the Study• ACTE and Travel Analytics solicited a wide variety of

participants– Drawn from the ACTE Global membership base– Drawn from Non-ACTE travel and procurement managers

• All surveys were self-scored – no 3rd party validation• Data coded and analyzed by Travel Analytics• 63 Elements assigned to 14 Dimensions, in turn assigned to 4

Quadrants– Each Quadrant given equal weight– Each Dimension given equal weight within its Quadrant– Each Element given equal weight within its Dimension

• Each respondent given equal weight; i.e, not weighted by air spend

14 Major Dimensions

• Controls• Data• Demand Management• Feedback

• Goals• Groups and Meetings• Procurement

• Senior Management

• Suppliers• Transient Management• Travelers• Travel Organization• Travel Policy• Travel Strategy

Each Dimension Broken Down Into 63 ElementsDimension Elements

Controls Exceptions to travel policySupplier preferencing at the point of saleAbility to move business away from key suppliersAbility to pass travel costs to business units, divisions, etc.

DataAbility to consolidate enterprise-wide travel spendingAirline dataHotel dataAgency dataOther information needed for managing travel

Demand Mgmt.

Ability to eliminate unnecessary trips before they are takenGuidelines for evaluating the need for a tripSystem for evaluating a trip's valuePromotion of non-travel alternatives

Feedback Traveler SatisfactionTravel Policy ComplianceSenior Management SatisfactionSelf-Booking AdoptionContract ComplianceFinancial Performance

Dimension ElementsGoals Travel Policy Compliance

Senior Management SatisfactionAgency performanceSelf-Booking AdoptionContract ComplianceSupplier PerformanceTravel Department's Financial Performance

Groups and Meetings Ability to measure G/M spend

Communication between internal GM plannersCentralized visibility of G/M eventsProcesses for planning, sourcing and managing G/M events

Procurement Tender or RFP processAnalysis of pricingAnalysis of qualityAnalysis of risk (implementation, contract cancellation, traveler dissatisfaction)Travel's integration with ProcurementBasis for awarding contractsLegal Department's input

Dimensions and Elements, Cont’d.Dimension Elements

Senior Mgmt. Understanding of Travel ManagementOwnership of Travel ManagementLevel of Support and EnforcementUtilization of a Travel Council

Suppliers Delivery of the expected level of serviceResolution of traveler complaints and other operational issuesCurrent pricing

Transient Mgmt. Agency consolidation

Ability to control the point of saleAgency service qualityAgency productivityAgency as a trusted advisor/consultant

Travel Organization

Ability to execute major new travel policies and initiativesStaffingRecruitingCareer Advancement

Dimension ElementsTravel Policy Quality of travel to be purchased

Processes to be used for purchasing travelTypical consequences of not complying with a key travel policy

Travel Strategy Travel viewed as a factor for business success

Travel viewed as a factor in employee productivity and retentionSuccess at budgeting travel costsSuccess in tracking and reporting travel cost savings

TravelersAwareness of travel policies and preferred suppliersCompliance with key travel policiesInput on travel policies and suppliersOpinion of travel department

(Deleted)

Definitions were not provided

Two Levels of Analysis

Dimensions:

Feedback

Traveler Satisfaction

Travel Policy Compliance

Elements:

1 2 3 4

1 2 3 4

Criteria

Better

Little or none sought

1 2 3 4

1 2 3 4

Stage 1 Stage 4

Obtained irregularly

Obtained regularly

Clearly drives future actions

Average Feedback Score: 2.0

Current Score&

Goal Score

The Study Focused on 3 Measures

1. Current Score(What’s Working,

What’s Not)

2. Goal Score(Where Are We

Headed)

Scores are reported from the group’s Mean Average score

Overall Industry Scores

1.5

2.0

2.5

3.0

3.5

4.0

Current Score Goal Score

SO

E S

core

3. Gap to Goal

Most

Important

2nd Most

ImportantLeast Im

portant

Some Limitations and Benefits Of This StudyLimitations:• First application of Stages Of Excellence• Scores were not validated• Not a random sampling of the industry

Benefits:• Broad and neutral scoring mechanism• Provides a common lens for assessing travel programs• Facilitates frank discussions and goal-setting

Who Participated and What Are Their Scores?

Partial Participant ListABBAgilent TechnologiesAllied DomecqAMSAppleraAvayaBaxterBertelsmanBPCanadian PacificChironCoca-Cola EnterprisesConAgraDeloitte & Touche

84 participants with $4.5 Billion in annual air spend

Eli LillyEricssonErnst & YoungFedExFranklin TempletonIngersoll-RandInter IKEAKPMGLucentMicrosoftNikeNovo NordiskON SemiconductorOracle

Parker HannifinPharmaciaPraxairProcter & GambleSchlumbergerSeagate TechnologySICPA GroupSolvaySwiftUCLAUnited TechnologiesUS BankWashington MutualXerox

Key Demographics of Participants

Job Title Distribution

12%

15%

8%

64%

Travel Operations and Management, including Procurement

Travel Procurement

Procurement of Travel and other categories

Other

Spend Distribution

Large26%

Small35%

Medium39%

Small is < $15MM

Medium is $15MM to less than $50MM

Large is $50MM or more

2002 Annual Air Spend

Sample Size = 84 Participants

Region Distribution

Europe/N America

12%

Europe6%

North America

82%

Region from which the majority of travel

originates

How Did We Score?• Very close to the 2.5 mid-point for Overall Current Score• Most firms aspire to one full higher stage of excellence

Overall Industry by Stages

43%

50%

46%

52%

0%

20%

40%

60%

80%

100%

Current Stage Goal Stage

Stage 1 (0.5 - 1.4) Stage 2 (1.5 - 2.4)

Stage 3 (2.5 - 3.4) Stage 4 (3.5 - 4.5)

Overall Industry Scores

2.6

3.6

1.5

2.0

2.5

3.0

3.5

4.0

Current Score Goal Score

SO

E S

core

Are We Different by Spend?• At first glance, no obvious difference based on program size• More Large programs did better; Medium programs have

higher goals

Overall Industry Scores by Spend

2.72.5

2.7

3.53.6

3.5

1.5

2.0

2.5

3.0

3.5

4.0

Small Medium Large

SO

E S

core

Current Score Goal Score

Stages by Spend

38%52%

36%

55%39%

59%

59%

36%48%

48% 41%

64%

0%

20%

40%

60%

80%

100%

Sm

all

Me

diu

m

La

rge

Sm

all

Me

diu

m

La

rge

Current Goal

Are We Different by Region?• “Split” programs appear strongest, but…

Non-North American sample sizes are too small to be meaningful

Overall Industry Scores by Region

2.62.4

2.8

3.6 3.53.7

1.5

2.0

2.5

3.0

3.5

4.0

No

rth

Am

eri

ca

Eu

rop

e

Eu

rop

e/N

ort

hA

me

rica

SO

E S

core

Current Score Goal Score

Stages by Region

44%60%

30%

49%

40%

60%

47%60%

30%

10%

51%40%

70%

0%

20%

40%

60%

80%

100%

NA

mer

ica

Eur

ope

Eur

ope/

NA

mer

ica

NA

mer

ica

Eur

ope

Eur

ope/

NA

mer

ica

Current Goal

A Closer Look

The Study Drew a Broad Sample• Fairly well-balanced distribution• Indicates the scales, criteria and sample are reasonable

Distribution of Average Scores

0

2

4

6

8

10

12

14

1.3

to 1

.5

1.5

to 1

.7

1.7

to 1

.9

1.9

to 2

.1

2.1

to 2

.3

2.3

to 2

.5

2.5

to 2

.7

2.7

to 2

.9

2.9

to 3

.1

3.1

to 3

.3

3.3

to 3

.5

3.5

to 3

.7

Nu

mb

er o

f R

esp

on

ses

Scale’s Mid-Point

Who’s Best In Class?• The top 25% of all respondents based on Current Scores were

assigned as Group A; the other 75% were assigned as Group B

• Group A’s average size = $71MM; half are larger than $35MM

• Group B’s average size = $51MM, half are larger than $21MM

Overall Group A and B Scores

3.3

2.4

3.83.5

1.5

2.0

2.5

3.0

3.5

4.0

Group A Group B

Current Score Goal Score

Overall Group A and B Stages

57%76%

41%24%

0%

20%

40%

60%

80%

100%

Group A Group B

Stage 1 Stage 2 Stage 3 Stage 4

The Road To Glory

How Do “B” Programs Get To Be “A” Programs?

No real travelprogram; mostly

fighting fires

Basic travelprogram;

limited support

Advanced travelprogram;

good support

World classprogram;

Great support,Excellent

results

Stage 1

Stage 2

Stage 3

Stage 4

By taking a series of prioritizedand often difficult steps

Let’s Look At What We Can Control…

SuppliersDemand ManagementGroups / Meetings

Senior Management Transient Mgmt.DataTravelersTravel StrategyFeedbackControls

Travel Organization Travel PolicyProcurementGoals

…And What’s Most Critical

Travel Manager’s Degree of Control Over the 14 Dimensions

Low HighModerate

Why Are These “Big Six” The Most Critical?• Senior Management

– Clearly necessary, but not sufficient

• Travel Policy– Critical for controlling traveler behavior

• Transient Management– The heart of delivering a managed travel program

• Procurement– Smart sourcing means big savings

• Data– The building blocks of business decisions

• Travel Organization– Good programs are built by good people

Why Are These Dimensions Not As Critical?• Suppliers

– Selected by the travel organization

• Travelers and Travel Strategy– Good scores are more the result of a good program, rather

than the cause

• Control, Goals and Feedback– A function of the travel organization

• Demand Management and Groups/Meetings– Often not in scope of Travel’s responsibility

Important Dimensions, Yes – but Not on the Critical Path

Are Any of the “Big 6” More Critical Than Others?

• Senior Management

• Travel Policy

• Transient Management

• Procurement

• Data

• Travel Organization

Necessary Dimensions

(Understands and Owns Travel, Level of Support)

Travel Org., Data

Senior Mgmt., Feedback, Travel Org., Data

Suppliers, Control, Travel Org., Data

Data, Feedback

Suppliers, Travel Org.

Senior Mgmt. - Maybe

What’s Working, What’s Not

Current Score Analysis

Group A vs. Group B

Both Groups Emphasize Senior Mgmt., Procurement , Transient Management & Policy

Low Control Moderate Control High Control

Current ScoreOverall, Group A

2.7

2.9

3.1

3.2

3.2

3.3

3.3

3.3

3.4

3.4

3.4

3.5

3.5

3.7

1.5 2.0 2.5 3.0 3.5 4.0

Groups/Mtgs.

Demand Mgmt.

Suppliers

Data

Controls

Feedback

Goals

Procurement

Travel Org.

Travel Policy

Transient Mgmt.

Travel Strategy

Travelers

Senior Mgmt.

Current ScoreOverall, Group B

1.8

1.9

2.1

2.3

2.4

2.4

2.4

2.5

2.5

2.5

2.5

2.7

2.7

2.7

1.5 2.0 2.5 3.0 3.5 4.0

Demand Mgmt.

Groups/Mtgs.

Data

Travel Org.

Feedback

Goals

Suppliers

Travel Strategy

Travel Policy

Travelers

Controls

Transient Mgmt.

Procurement

Senior Mgmt.

Transient Mgmt.

Travel Policy

Travel Org.

Senior Mgmt.

Procurement

Data

Transient Mgmt.

Travel Org.

Travel Policy

Procurement

Senior Mgmt.

Data

Current ScoreOverall, Group B

1.8

1.9

2.1

2.3

2.4

2.4

2.4

2.5

2.5

2.5

2.5

2.7

2.7

2.7

1.5 2.0 2.5 3.0 3.5 4.0

Demand Mgmt.

Groups/Mtgs.

Data

Travel Org.

Feedback

Goals

Suppliers

Travel Strategy

Travel Policy

Travelers

Controls

Transient Mgmt.

Procurement

Senior Mgmt.

Transient Mgmt.

Travel Policy

Travel Org.

Senior Mgmt.

Procurement

Data

Current ScoreOverall, Group A

2.7

2.9

3.1

3.2

3.2

3.3

3.3

3.3

3.4

3.4

3.4

3.5

3.5

3.7

1.5 2.0 2.5 3.0 3.5 4.0

Groups/Mtgs.

Demand Mgmt.

Suppliers

Data

Controls

Feedback

Goals

Procurement

Travel Org.

Travel Policy

Transient Mgmt.

Travel Strategy

Travelers

Senior Mgmt.

Transient Mgmt.

Travel Org.

Travel Policy

Procurement

Senior Mgmt.

Data

Group A Has Done Much Better on the “Big Six” Dimensions

Low Control Moderate Control High Control

A’s avg.=

3.4 B’s avg.=

2.5

Group A Does Much Better On 2 Key Dimensions Than Group B – Travel Organization and Data

Low Control Moderate Control High Control

Current ScoreOverall, Group A

2.7

2.9

3.1

3.2

3.2

3.3

3.3

3.3

3.4

3.4

3.4

3.5

3.5

3.7

1.5 2.0 2.5 3.0 3.5 4.0

Groups/Mtgs.

Demand Mgmt.

Suppliers

Data

Controls

Feedback

Goals

Procurement

Travel Org.

Travel Policy

Transient Mgmt.

Travel Strategy

Travelers

Senior Mgmt.

Transient Mgmt.

Travel Org.

Travel Policy

Procurement

Senior Mgmt.

Current ScoreOverall, Group B

1.8

1.9

2.1

2.3

2.4

2.4

2.4

2.5

2.5

2.5

2.5

2.7

2.7

2.7

1.5 2.0 2.5 3.0 3.5 4.0

Demand Mgmt.

Groups/Mtgs.

Data

Travel Org.

Feedback

Goals

Suppliers

Travel Strategy

Travel Policy

Travelers

Controls

Transient Mgmt.

Procurement

Senior Mgmt.

Transient Mgmt.

Travel Policy

Travel Org.

Senior Mgmt.

Procurement

Data

Data

What’s Holding Group B Back?

Travel Organization ElementsDistribution by Current Stages, Group B

16%

35%

6%

10%

63%

37%

16%

40%

18%

23%

51%

46%

27%

0% 20% 40% 60% 80% 100%

CareerAdvancement

Recruiting

Staffing

Execute MajorInitiatives

Travel Organization

Recruiting, Career Advancement, Execution

Data ElementsDistribution by Current Stages, Group B

17%

48%

19%

57%

62%

37%

27%

41%

22%

29%

10%

57%

32%

11%

8%

0% 20% 40% 60% 80% 100%

Other Data

Agency Data

Hotel Data

Airline Data

Consolidation ofspend

Data

Hotel, Agency and Other Data; Unconsolidated

Spend

What’s Working, What’s Not - Summary• Six critical dimensions:

– Senior Mgmt., Transient Mgmt., Travel Policy, Procurement, Data and Travel Organization

• Group A programs have strong scores on all six critical dimensions– Of the six, Data is scored the lowest at 3.2

• Group B does fairly well at Senior Mgmt., Procurement, Transient Mgmt. And Travel Policy

• Groups/Meetings and Demand Mgmt. are well below average at most firms

• Group B scores below average on Travel Organization and Data – The two most critical dimensions

Where Are We Headed?

(Goal Analysis)

Both Groups Have Similar Relative Priorities

Goal ScoreOverall, Group B

3.0

3.3

3.3

3.4

3.4

3.5

3.5

3.5

3.5

3.6

3.6

3.6

3.7

3.8

2.5 3.0 3.5 4.0

Demand Mgmt.

Travel Org.

Groups/Mtgs.

Procurement

Travel Strategy

Controls

Feedback

Travel Policy

Goals

Data

Suppliers

Travelers

Transient Mgmt.

Senior Mgmt.

Transient Mgmt.

Procurement

Senior Mgmt.

Data

Travel Org.

Travel Policy

Low Control Moderate Control High Control

Goal ScoreOverall, Group A

3.6

3.6

3.6

3.7

3.8

3.9

3.9

3.9

3.9

3.9

3.9

3.9

3.9

4.1

2.5 3.0 3.5 4.0

Demand Mgmt.

Controls

Groups/Mtgs.

Procurement

Travel Org.

Feedback

Data

Travel Policy

Travelers

Travel Strategy

Transient Mgmt.

Suppliers

Goals

Senior Mgmt.

Travel Policy

Travel Org.

Transient Mgmt.

Senior Mgmt.

Procurement

Data

Improving Supplier Quality and Pricing Is a High Priority; Groups and Dem. Mgmt. Are Not

Low Control Moderate Control High Control

Goal ScoreOverall, Group A

3.6

3.6

3.6

3.7

3.8

3.9

3.9

3.9

3.9

3.9

3.9

3.9

3.9

4.1

2.5 3.0 3.5 4.0

Demand Mgmt.

Controls

Groups/Mtgs.

Procurement

Travel Org.

Feedback

Data

Travel Policy

Travelers

Travel Strategy

Transient Mgmt.

Suppliers

Goals

Senior Mgmt.

Transient Mgmt.

Senior Mgmt.

Procurement

Travel Policy

Travel Org.

Goal ScoreOverall, Group B

3.0

3.3

3.3

3.4

3.4

3.5

3.5

3.5

3.5

3.6

3.6

3.6

3.7

3.8

2.5 3.0 3.5 4.0

Demand Mgmt.

Travel Org.

Groups/Mtgs.

Procurement

Travel Strategy

Controls

Feedback

Travel Policy

Goals

Data

Suppliers

Travelers

Transient Mgmt.

Senior Mgmt.

Travel Org.

Travel Policy

Transient Mgmt.

Procurement

Senior Mgmt.

Data

Data

Group A Wants It All

Low Control Moderate Control High Control

Goal ScoreOverall, Group A

3.6

3.6

3.6

3.7

3.8

3.9

3.9

3.9

3.9

3.9

3.9

3.9

3.9

4.1

2.5 3.0 3.5 4.0

Demand Mgmt.

Controls

Groups/Mtgs.

Procurement

Travel Org.

Feedback

Data

Travel Policy

Travelers

Travel Strategy

Transient Mgmt.

Suppliers

Goals

Senior Mgmt.

Transient Mgmt.

Senior Mgmt.

Procurement

Travel Policy

Travel Org.

Data A’s avg.=

3.8

Group B Wants a Better Steering Wheel

Low Control Moderate Control High Control

Goal ScoreOverall, Group B

3.0

3.3

3.3

3.4

3.4

3.5

3.5

3.5

3.5

3.6

3.6

3.6

3.7

3.8

2.5 3.0 3.5 4.0

Demand Mgmt.

Travel Org.

Groups/Mtgs.

Procurement

Travel Strategy

Controls

Feedback

Travel Policy

Goals

Data

Suppliers

Travelers

Transient Mgmt.

Senior Mgmt.

Travel Org.

Travel Policy

Transient Mgmt.

Procurement

Senior Mgmt.

DataData

Goals

Feedback

Controls

But Why Is Travel Organization Near the Bottom for Group B?

Low Control Moderate Control High Control

Goal ScoreOverall, Group B

3.0

3.3

3.3

3.4

3.4

3.5

3.5

3.5

3.5

3.6

3.6

3.6

3.7

3.8

2.5 3.0 3.5 4.0

Demand Mgmt.

Travel Org.

Groups/Mtgs.

Procurement

Travel Strategy

Controls

Feedback

Travel Policy

Goals

Data

Suppliers

Travelers

Transient Mgmt.

Senior Mgmt.

Travel Org.

Travel Policy

Transient Mgmt.

Procurement

Senior Mgmt.

Data

Goal ScoreOverall, Group A

3.6

3.6

3.6

3.7

3.8

3.9

3.9

3.9

3.9

3.9

3.9

3.9

3.9

4.1

2.5 3.0 3.5 4.0

Demand Mgmt.

Controls

Groups/Mtgs.

Procurement

Travel Org.

Feedback

Data

Travel Policy

Travelers

Travel Strategy

Transient Mgmt.

Suppliers

Goals

Senior Mgmt.

Transient Mgmt.

Senior Mgmt.

Procurement

Travel Policy

Travel Org.

Data

Where Are We Headed - Summary

• Both groups set high goals (3.5+) for Senior Mgmt., Transient Mgmt., Suppliers, Travel Policy and Data

• Group B wants much stronger ability to control their programs

• Both groups put Demand Mgmt. and Groups at or near the bottom

• Group B puts less emphasis on Procurement and Travel Organization (3.4, 3.3)– Travel Organization is ranked the second-lowest goal

This looks like a self-imposed “Travel Ceiling”

Is Bigger Better?

Having a Large Program Does Not Mean Strong Scores on Travel Organization or Data

Current ScoreLarge Spend, Group B

1.9

2.1

2.2

2.4

2.4

2.5

2.5

2.5

2.5

2.6

2.6

2.6

2.6

3.1

1.5 2.0 2.5 3.0 3.5

Demand Mgmt.

Data

Groups/Mtgs.

Travel Org.

Goals

Feedback

Travel Policy

Travelers

Controls

Travel Strategy

Suppliers

Senior Mgmt.

Transient Mgmt.

Procurement

Travel Policy

Procurement

Transient Mgmt.

Senior Mgmt.

Travel Org.

Data

Low Control Moderate Control High Control

Current ScoreLarge Spend, Group A

2.4

2.9

2.9

3.2

3.3

3.3

3.3

3.3

3.3

3.3

3.3

3.3

3.4

3.6

1.5 2.0 2.5 3.0 3.5

Groups/Mtgs.

Demand Mgmt.

Data

Travelers

Suppliers

Controls

Travel Policy

Feedback

Travel Strategy

Transient Mgmt.

Goals

Travel Org.

Procurement

Senior Mgmt.

Transient Mgmt.

Travel Org.

Senior Mgmt.

Procurement

Travel Policy

Data

Medium Programs Show 1-Stage Difference

Current ScoreMedium Spend, Group A

2.7

3.0

3.0

3.0

3.2

3.2

3.3

3.3

3.4

3.4

3.4

3.5

3.6

3.7

1.0 2.0 3.0 4.0

Demand Mgmt.

Groups/Mtgs.

Suppliers

Data

Travel Org.

Controls

Procurement

Goals

Feedback

Travel Policy

Travel Strategy

Travelers

Senior Mgmt.

Transient Mgmt.

Travel Org.

Senior Mgmt.

Transient Mgmt.

Travel Policy

Procurement

Current ScoreMedium Spend, Group B

1.6

1.6

2.1

2.1

2.3

2.3

2.3

2.3

2.3

2.3

2.4

2.6

2.6

2.7

1.0 2.0 3.0 4.0

Groups/Mtgs.

Demand Mgmt.

Data

Travel Org.

Suppliers

Travel Strategy

Feedback

Travelers

Travel Policy

Controls

Goals

Procurement

Transient Mgmt.

Senior Mgmt.

Transient Mgmt.

Travel Policy

Procurement

Travel Org.

Senior Mgmt.

Low Control Moderate Control High Control

Data

Data

Current ScoreSmall Spend, Group A

2.6

2.8

2.9

3.1

3.2

3.2

3.3

3.3

3.4

3.4

3.5

3.5

3.6

3.7

1.5 2.0 2.5 3.0 3.5 4.0

Groups/Mtgs.

Demand Mgmt.

Suppliers

Controls

Feedback

Transient Mgmt.

Goals

Travel Org.

Data

Procurement

Travel Policy

Travelers

Travel Strategy

Senior Mgmt.

Current ScoreSmall Spend, Group B

1.9

2.0

2.2

2.3

2.3

2.3

2.4

2.4

2.5

2.5

2.7

2.7

2.7

2.7

1.5 2.0 2.5 3.0 3.5 4.0

Demand Mgmt.

Groups/Mtgs.

Data

Goals

Feedback

Travel Org.

Suppliers

Procurement

Travel Strategy

Travel Policy

Transient Mgmt.

Travelers

Senior Mgmt.

Controls

Transient Mgmt.

Travel Policy

Travel Org.

Senior Mgmt.

Procurement

Transient Mgmt.

Travel Policy

Travel Org.

Senior Mgmt.

Procurement

Data

Data

Small Programs Also Show 1-Stage Difference

What’s Needed?

Better Use of Numbers and People• Deliver better data across the board

– Airline O&D data should be an “on tap” commodity

– Hotel folio data will drive better deals for everyone

• Develop integrated systems for stronger control of data, travel policies, goals and feedback– More executive dashboards and balanced scorecards

– Likely anchored at the point of sale

• Eliminate the ‘Travel Ceiling” – real or perceived• Re-write the role and reputation of the travel

manager

What Role Are We Talking About?

• Mission-Critical Processes• Globalization• Operations• Cost Control / Bottom-line Impact• Supplier Management• Strategic Sourcing• Customer (Traveler) and

Stakeholder Satisfaction• Change Management• Staff Development• Distribution Channels• Information and Internet

Technology

Key Management Challenges The Travel Manager, or…

(Sales and Manufacturing)

• General Manager• President• COO or CEO

Travel Management Is a

Great Career Opportunity……But Not

Without Risk

Upgrading a Travel Program One Full Stage Is a Big Challenge – and Therefore a Risk• Get the best resources

– Especially Travel Organization and Data

• Don’t accept budget constraints as an excuse– Most Dimensions can be improved at no significant cost

– Build a solid business case for those that do

• Set priorities carefully – you can’t do it all at once!– What’s really on the critical path?

– From whom can you learn and leverage?

All Set For Take-Off

With the Right Vision Our Industry Can Really Take

Flight!

Stage 1 Stage 2 Stage 3 Stage 4

Distribution of Current Scores by Stage

1%

43%50%

6%

0%

10%

20%

30%

40%

50%

60%

Stage 1 Stage 2 Stage 3 Stage 4

Where We Are Today Distribution of Goal Scores by Stage

0% 1%

46%52%

0%

10%

20%

30%

40%

50%

60%

Stage 1 Stage 2 Stage 3 Stage 4

Where We Want to Be

Individual Reports

What Does an Individual Report Include?• Your responses are benchmarked against

– The entire ACTE/Travel Analytics peer set– A peer set based on your spend– Overall Group A– Overall Group B

• Covers Current Scores and Goals– For all 14 Dimensions– For all 63 Elements

• Custom benchmark groups can be arranged– Need more European participants for Regional

Benchmarking

How Can You Get an Individual Report?• If you contributed a survey by April 18th:

– You will want your individual report for Tuesday’s session• Interpreting Your Stages of Excellence Report• Tuesday, 4:15 to 5:30 pm in the _____ Room

– Pick up your sealed report at the podium after this presentation, or leave a message for Scott Gillespie at the Cyber Cafe

• If you contributed your survey between April 18-25th

– Your report will be e-mailed to you next week at no cost

• If you’d like to obtain an individual report:– $300 fee for current ACTE members and conference

attendees– $600 for all others

Ordering an Individual Report

To obtain an individual report,

1. Download the Stages of Excellence Scoring Tool from

www.travelanalytics.com/mainfree.htm

2. Submit the scored file by e-mail to

[email protected]

Your report will be e-mailed to you within 10 days

Discussion, Please!• What other conclusions can be drawn from

this data?• What works well about this approach?• How can the Stages of Excellence framework

be improved?– What’s missing?– What’s misunderstood?– What could be done better?

Thank You!

Appendix

All Programs

What’s Working, What’s NotCurrent Score

Overall, Group A

2.7

2.9

3.1

3.2

3.2

3.3

3.3

3.3

3.4

3.4

3.4

3.5

3.5

3.7

1.5 2.0 2.5 3.0 3.5 4.0

Groups/Mtgs.

Demand Mgmt.

Suppliers

Data

Controls

Feedback

Goals

Procurement

Travel Org.

Travel Policy

Transient Mgmt.

Travel Strategy

Travelers

Senior Mgmt.

Current ScoreOverall, Group B

1.8

1.9

2.1

2.3

2.4

2.4

2.4

2.5

2.5

2.5

2.5

2.7

2.7

2.7

1.5 2.0 2.5 3.0 3.5 4.0

Demand Mgmt.

Groups/Mtgs.

Data

Travel Org.

Feedback

Goals

Suppliers

Travel Strategy

Travel Policy

Travelers

Controls

Transient Mgmt.

Procurement

Senior Mgmt.

Stage 1 (0.5 – 1.4) Stage 2 (1.5 – 2.4) Stage 3 (2.5 – 3.4) Stage 4 (3.5 – 4.5)

Top 10 Elements, Current Scores

Group A, Overall Group B, OverallDimension Element Average

Score

1 Senior Mgmt.Ownership of Travel Management 2.94

2 Travel PolicyProcesses to be used for purchasing travel 2.93

3 ProcurementBasis for awarding contracts 2.90

4 Travel Org. Staffing 2.895 Transient Mgmt. Agency consolidation 2.88

6 Controls

Ability to pass travel costs to business units, divisions, etc. 2.79

7 ProcurementTravel's integration with Procurement 2.78

8 ControlsSupplier preferencing at the point of sale 2.76

9 Transient Mgmt.Ability to control the point of sale 2.76

10 Procurement Analysis of pricing 2.73

Dimension Element Average Score

1 Senior Mgmt.Ownership of Travel Management 4.08

2 Travel PolicyProcesses to be used for purchasing travel 3.84

3 Travel Org. Staffing 3.76

4 Travel Strategy

Success in tracking and reporting travel cost savings 3.67

5 Goals Agency performance 3.66

6 TravelersCompliance with key travel policies 3.64

7 Travel StrategyTravel viewed as a factor for business success 3.62

8 GoalsTravel Department's Financial Performance 3.58

9 Travel PolicyQuality of travel to be purchased 3.54

10 Transient Mgmt. Agency productivity 3.53

Bottom 10 Elements, Current ScoresGroup A, Overall Group B, Overall

54 Demand Mgmt.Guidelines for evaluating the need for a trip 2.87

55 Demand Mgmt.Promotion of non-travel alternatives 2.86

56 Demand Mgmt.System for evaluating a trip's value 2.84

57 Travel Policy

Typical consequences of not complying with a key travel policy 2.82

58 Suppliers Current pricing 2.79

59 Groups/Mtgs.Ability to measure G/M spend 2.79

60 Travel Org. Career Advancement 2.75

61 Groups/Mtgs.Communication between internal GM planners 2.65

62 Groups/Mtgs.

Processes for planning, sourcing and managing G/M events 2.60

63 Groups/Mtgs.Centralized visibility of G/M events 2.60

Dimension Element Average Score

54 Travel Org. Career Advancement 2.0

55 Groups/Mtgs.Communication between internal GM planners 1.9

56 Groups/Mtgs.

Processes for planning, sourcing and managing G/M events 1.9

57 Groups/Mtgs.Centralized visibility of G/M events 1.9

58 Travel Policy

Typical consequences of not complying with a key travel policy 1.8

59 Demand Mgmt.Guidelines for evaluating the need for a trip 1.8

60 Demand Mgmt.

Ability to eliminate unnecessary trips before they are taken 1.8

61 Travel Org. Recruiting 1.8

62 Data Hotel data 1.7

63 Demand Mgmt.System for evaluating a trip's value 1.5

Dimension Element Average Score

Tall Goals, Small GoalsGoal Score

Overall, Group B

3.0

3.3

3.3

3.4

3.4

3.5

3.5

3.5

3.5

3.6

3.6

3.6

3.7

3.8

2.5 3.0 3.5 4.0

Demand Mgmt.

Travel Org.

Groups/Mtgs.

Procurement

Travel Strategy

Controls

Feedback

Travel Policy

Goals

Data

Suppliers

Travelers

Transient Mgmt.

Senior Mgmt.

Goal ScoreOverall, Group A

3.6

3.6

3.6

3.7

3.8

3.9

3.9

3.9

3.9

3.9

3.9

3.9

3.9

4.1

2.5 3.0 3.5 4.0

Demand Mgmt.

Controls

Groups/Mtgs.

Procurement

Travel Org.

Feedback

Data

Travel Policy

Travelers

Travel Strategy

Transient Mgmt.

Suppliers

Goals

Senior Mgmt.

Stage 1 (0.5 – 1.4) Stage 2 (1.5 – 2.4) Stage 3 (2.5 – 3.4) Stage 4 (3.5 – 4.5)

Top 10 Elements, Goal ScoresGroup A, Overall Group B, Overall

Dimension Element Average Score

1 Senior Mgmt.Ownership of Travel Management 4.23

2 Travel Strategy

Success in tracking and reporting travel cost savings 4.20

3 Goals Agency performance 4.12

4 Travelers

Awareness of travel policies and preferred suppliers 4.10

5 Travel PolicyProcesses to be used for purchasing travel 4.09

6 Data

Ability to consolidate enterprise-wide travel spending 4.06

7 TravelersCompliance with key travel policies 4.06

8 Goals Travel Policy Compliance 4.05

9Transient Mgmt. Agency service quality 3.99

10 Feedback Travel Policy Compliance 3.99

Dimension Element Average Score

1 Travelers

Awareness of travel policies and preferred suppliers 3.87

2 Travel Strategy

Success in tracking and reporting travel cost savings 3.86

3 Data

Ability to consolidate enterprise-wide travel spending 3.81

4 Data Airline data 3.81

5 Senior Mgmt.Ownership of Travel Management 3.81

6 Senior Mgmt.Level of Support and Enforcement 3.80

7 Travel Org. Staffing 3.79

8 ControlsSupplier preferencing at the point of sale 3.79

9 Transient Mgmt.Ability to control the point of sale 3.79

10 TravelersOpinion of travel department 3.75

Bottom 10 Elements, Goal ScoresGroup A, Overall Group B, Overall

54 Feedback Self-Booking Adoption 3.56

55 TravelersInput on travel policies and suppliers 3.56

56 Travel Strategy

Travel viewed as a factor in employee productivity and retention 3.55

57 Groups/Mtgs.

Processes for planning, sourcing and managing G/M events 3.54

58 Demand Mgmt.Promotion of non-travel alternatives 3.48

59 Demand Mgmt.System for evaluating a trip's value 3.46

60 Procurement Tender or RFP process 3.45

61 Travel Org. Career Advancement 3.44

62 Controls

Ability to pass travel costs to business units, divisions, etc. 3.40

63 ControlsExceptions to travel policy 3.38

Dimension Element Average Score

54 Groups/Mtgs.Centralized visibility of G/M events 3.24

55 TravelersInput on travel policies and suppliers 3.18

56 Demand Mgmt.

Ability to eliminate unnecessary trips before they are taken 3.16

57 Demand Mgmt.Promotion of non-travel alternatives 3.08

58 ControlsExceptions to travel policy 3.06

59 Travel Org. Career Advancement 3.01

60 Travel Org. Recruiting 2.96

61 Travel Strategy

Travel viewed as a factor in employee productivity and retention 2.96

62 Demand Mgmt.Guidelines for evaluating the need for a trip 2.95

63 Demand Mgmt.System for evaluating a trip's value 2.65

Dimension Element Average Score

Big Steps, Little Steps

Top 4 Are The

Same

Goal GapOverall, Group A

0.36

0.37

0.39

0.42

0.43

0.44

0.49

0.50

0.57

0.60

0.69

0.71

0.85

0.99

0.00 0.50 1.00 1.50

Senior Mgmt.

Procurement

Controls

Travel Org.

Travelers

Travel Strategy

Transient Mgmt.

Travel Policy

Feedback

Goals

Data

Demand Mgmt.

Suppliers

Groups/Mtgs.

All Within

½ a Stage

Goal GapOverall Group B

0.71

0.96

0.97

1.02

1.05

1.05

1.07

1.11

1.14

1.14

1.18

1.21

1.39

1.45

0.00 0.50 1.00 1.50

Procurement

Controls

Travel Strategy

Transient Mgmt.

Travel Org.

Travel Policy

Senior Mgmt.

Feedback

Goals

Travelers

Demand Mgmt.

Suppliers

Groups/Mtgs.

Data

Large Programs

Air Spend $50MM+

Big Steps, Little Steps: Large Programs

Goal GapLarge Spend, Group A

0.31

0.33

0.47

0.48

0.50

0.54

0.56

0.58

0.62

0.63

0.65

0.71

0.89

1.30

0.00 0.50 1.00 1.50

Senior Mgmt.

Procurement

Controls

Travel Strategy

Feedback

Travel Policy

Travelers

Travel Org.

Goals

Transient Mgmt.

Demand Mgmt.

Suppliers

Data

Groups/Mtgs.

Transient Mgmt.

Travel Policy

Travel Org.

Senior Mgmt.

Procurement

Goal GapLarge Spend, Group B

0.43

0.77

0.88

0.94

0.94

0.95

0.95

0.97

0.97

0.98

0.98

1.09

1.18

1.38

0.00 0.50 1.00 1.50

Procurement

Travel Strategy

Travel Org.

Suppliers

Transient Mgmt.

Controls

Senior Mgmt.

Travel Policy

Travelers

Feedback

Demand Mgmt.

Goals

Groups/Mtgs.

Data

Transient Mgmt.

Travel Policy

Travel Org.

Senior Mgmt.

Procurement

Data

Data

Medium Programs

Air Spend $15MM-50MM

What’s Working, What’s NotCurrent Score

Medium Spend, Group A

2.7

3.0

3.0

3.0

3.2

3.2

3.3

3.3

3.4

3.4

3.4

3.5

3.6

3.7

1.0 2.0 3.0 4.0

Demand Mgmt.

Groups/Mtgs.

Suppliers

Data

Travel Org.

Controls

Procurement

Goals

Feedback

Travel Policy

Travel Strategy

Travelers

Senior Mgmt.

Transient Mgmt.

Travel Org.

Senior Mgmt.

Transient Mgmt.

Travel Policy

Procurement

Current ScoreMedium Spend, Group B

1.6

1.6

2.1

2.1

2.3

2.3

2.3

2.3

2.3

2.3

2.4

2.6

2.6

2.7

1.0 2.0 3.0 4.0

Groups/Mtgs.

Demand Mgmt.

Data

Travel Org.

Suppliers

Travel Strategy

Feedback

Travelers

Travel Policy

Controls

Goals

Procurement

Transient Mgmt.

Senior Mgmt.

Transient Mgmt.

Travel Policy

Procurement

Travel Org.

Senior Mgmt.

Low Control Moderate Control High Control

Mediu

m

Pro

gra

ms

Data

Data

Tall Goals, Small Goals: Medium Programs

Goal ScoreMedium Spend, Group A

3.5

3.5

3.6

3.7

3.7

3.9

3.9

3.9

3.9

3.9

4.0

4.0

4.1

4.1

2.5 3.0 3.5 4.0 4.5

Demand Mgmt.

Controls

Groups/Mtgs.

Travel Org.

Procurement

Feedback

Data

Goals

Travel Strategy

Travel Policy

Travelers

Senior Mgmt.

Suppliers

Transient Mgmt.

Goal ScoreMedium Spend, Group B

3.0

3.4

3.4

3.5

3.5

3.5

3.6

3.6

3.6

3.6

3.7

3.8

3.8

3.8

2.5 3.0 3.5 4.0 4.5

Demand Mgmt.

Travel Org.

Groups/Mtgs.

Travel Strategy

Travel Policy

Procurement

Controls

Feedback

Travelers

Goals

Data

Suppliers

Transient Mgmt.

Senior Mgmt.Transient Mgmt.

Travel Org.

Senior Mgmt.

Procurement

Travel Policy

Transient Mgmt.

Travel Org.

Senior Mgmt.

Procurement

Travel Policy

Low Control Moderate Control High Control

Mediu

m

Pro

gra

ms

Data

Data

Big Steps, Little Steps: Medium Programs

Goal GapMedium Spend, Group A

0.31

0.37

0.40

0.43

0.44

0.46

0.50

0.51

0.55

0.60

0.69

0.83

0.87

1.04

0.00 0.50 1.00 1.50 2.00

Controls

Senior Mgmt.

Transient Mgmt.

Procurement

Travel Org.

Feedback

Travelers

Travel Strategy

Travel Policy

Goals

Groups/Mtgs.

Data

Demand Mgmt.

Suppliers

Goal GapMedium Spend, Group B

1.00

1.12

1.16

1.19

1.21

1.26

1.27

1.32

1.33

1.34

1.34

1.51

1.64

1.84

0.00 0.50 1.00 1.50 2.00

Procurement

Senior Mgmt.

Transient Mgmt.

Travel Policy

Travel Strategy

Controls

Goals

Travel Org.

Feedback

Travelers

Demand Mgmt.

Suppliers

Data

Groups/Mtgs.

Transient Mgmt.

Travel Policy

Travel Org.

Senior Mgmt.

Procurement Travel Policy

Travel Org.

Senior Mgmt.

Procurement

Transient Mgmt.

Data

Data

Small Programs

Air Spend Less Than $15MM

What’s Working, What’s Not: Small Programs

Current ScoreSmall Spend, Group A

2.6

2.8

2.9

3.1

3.2

3.2

3.3

3.3

3.4

3.4

3.5

3.5

3.6

3.7

1.5 2.0 2.5 3.0 3.5 4.0

Groups/Mtgs.

Demand Mgmt.

Suppliers

Controls

Feedback

Transient Mgmt.

Goals

Travel Org.

Data

Procurement

Travel Policy

Travelers

Travel Strategy

Senior Mgmt.

Current ScoreSmall Spend, Group B

1.9

2.0

2.2

2.3

2.3

2.3

2.4

2.4

2.5

2.5

2.7

2.7

2.7

2.7

1.5 2.0 2.5 3.0 3.5 4.0

Demand Mgmt.

Groups/Mtgs.

Data

Goals

Feedback

Travel Org.

Suppliers

Procurement

Travel Strategy

Travel Policy

Transient Mgmt.

Travelers

Senior Mgmt.

Controls

Transient Mgmt.

Travel Policy

Travel Org.

Senior Mgmt.

Procurement

Transient Mgmt.

Travel Policy

Travel Org.

Senior Mgmt.

Procurement

Lo

w C

on

trol

Mo

derate C

on

trol

Hig

h C

on

trol

Data

Data

Tall Goals, Small Goals: Small Programs

Goal ScoreSmall Spend, Group B

3.0

3.1

3.1

3.2

3.3

3.4

3.4

3.4

3.5

3.5

3.5

3.6

3.7

3.8

2.5 3.0 3.5 4.0

Demand Mgmt.

Procurement

Groups/Mtgs.

Travel Org.

Feedback

Travel Strategy

Goals

Controls

Data

Suppliers

Travel Policy

Transient Mgmt.

Travelers

Senior Mgmt.

Goal ScoreSmall Spend, Group A

3.6

3.6

3.7

3.7

3.8

3.8

3.8

3.9

3.9

3.9

4.0

4.0

4.0

4.3

2.5 3.0 3.5 4.0

Controls

Demand Mgmt.

Groups/Mtgs.

Travel Org.

Suppliers

Procurement

Transient Mgmt.

Data

Goals

Travel Policy

Feedback

Travelers

Travel Strategy

Senior Mgmt.

Transient Mgmt.

Travel Policy

Travel Org.

Senior Mgmt.

Procurement

Transient Mgmt.

Travel Policy

Travel Org.

Senior Mgmt.

Procurement

Low Control Moderate Control High Control

Data

Data

Big Steps, Little Steps: Small Programs

Goal GapSmall Spend, Group A

0.36

0.36

0.41

0.47

0.48

0.50

0.52

0.53

0.59

0.63

0.75

0.84

0.88

1.06

0.00 0.50 1.00 1.50

Travel Strategy

Procurement

Travel Org.

Travelers

Travel Policy

Controls

Data

Senior Mgmt.

Transient Mgmt.

Goals

Feedback

Demand Mgmt.

Suppliers

Groups/Mtgs.

Goal GapSmall Spend, Group B

0.63

0.66

0.87

0.90

0.94

0.98

1.00

1.04

1.06

1.06

1.09

1.10

1.10

1.28

0.00 0.50 1.00 1.50

Procurement

Controls

Travel Org.

Travel Strategy

Transient Mgmt.

Travel Policy

Feedback

Travelers

Goals

Suppliers

Demand Mgmt.

Groups/Mtgs.

Senior Mgmt.

Data

Travel Policy

Transient Mgmt.

Travel Org.

Senior Mgmt.

Procurement

Transient Mgmt.

Travel Org.

Senior Mgmt.

Procurement

Travel Policy