As BTiQ wraps up its DeepDive month into data, we spoke to Sue Reeves of Data and Detail about the widespread challenges with crunching the numbers and why it's important to start looking even if you have no interest in becoming a data expert.
BTiQ: How is the way companies deal with data changing?
SR: Having been in TMC account management for some years I've found there's now very much a demand for strategic account management more so than relationship management especially when it comes to data. The relationship side looks at A + B and the strategic side looks at A + B = C demonstrating more value and opportunities. Travel managers need help understanding the travel industry, the jargon and what is sold while TMCs want detail in the data to better account manage.
Sometimes buyers are from HR or finance; they have the same outcome but the areas of focus are quite different. For example facilities usually takes a holistic view that needs drilling down where HR is focused on people so it's more the commercials that they need help with.
BTiQ: What has technological change meant for data?
SR: A few years ago there would have been a platform with a moving bar saying how much was saved or changed over time but those platforms are evolving more to buyer needs, for example a company can know that 20% of workers are engineers and need to book late so it will always be difficult to control costs for that group. It's about looking at what is the most relevant.
The newest change is that it's so important now, everyone is looking at data and the speed of access. You can normally get access the next day on management information (MI) now, where it used to be that you had the wait until the 10th of the month following to have access. It's so much easier to predict and plan ahead when it's that quick and it's easier to correct mistakes too especially in relation to compliance.
BTiQ: What major challenges are there?
SR: Quality of data, everywhere.
It's always best to look at the source too to understand it better. For example are there compliance issues because people don't understand the impact? Ask who owns the profile, who builds changed the shells. When it comes to company data having consistency is key such as the department name convention.
BTiQ: Buyers often struggle with supplier data — what do you make of it?
SR: With suppliers buyers have really got to understand what they're looking at especially when making comparisons to TMC data. Below are just a few examples.
- Airlines: Usually report exclusive of tax but that can be a large percentage of spend and costs ancillaries need to be considered
- Hotels: Most TMCs report on booked nights where the hotel reports based on stayed nights, so that shifts where you see the peaks and troughs in the months. This needs to be understood to make recommendations
- Car hire: Especially when bill backed check the add-ons as these can add up and impact the daily rate
- TMC: Are invoices itemised or do they just go with one price? Buyers have to be aware of what TMCs are doing especially if they want to benchmark average ticket prices and average room rates
BTiQ: Are you seeing a shift in how buyers using data?
SR: A number of people have automated management information (MI) but still want someone to look at it for them. It might be a lack of confidence in reading it correctly or whether they have the time. Quite often people want a quick number, for example in a supplier review.
I can only speak based on my clients but I do not find an appetite for data mining or being a data scientist. I'm often told that travel is 20% of the job but 80% of the work! People don't have the skill, appetite or time which is why there's an opportunity for consultants and account managers to demonstrate value.
BTiQ: What do you think could make things easier?
SR: A lot of buyers say they need a report to look at particular aspects but they have to understand what they're using data for: why they're using it, what they're getting from it or do they even need it.
By knowing the programme well they can look at a summary and instantly know where to look deeper. But you can't just look and say "that's interesting" then leave it to one side, buyers need to take action when the data is fresh. When using a dashboard you need to be confident that data sitting behind it is correct; have the ability to see behind the dashboard and dig deep.
BTiQ: What advice do you have?
SR: Be open to what you're looking at and what the end goal is. Data is very powerful and once trends are identified they easy to correct with good communication.eg if you see non-compliance in one department and ask why. It may be that they (bookers or travellers) didn't know there was a policy or something was missed in a handover. This can be quickly corrected and have the relevant conversations when there is data to back it up.
In another example one buyer implemented reason codes. When I looked at the data it was clear travellers were comparing pre-paid rates with corporate rates and the company was losing money when people cancelled or changed last minute. They were also missing out on value-adds such as breakfast, free WiFi and free parking and a generous cancellation policy. After discussing with the relevant teams there was an increase in compliance and room nights.
There will be more and more reliance on data and we need to be focused on the quality and that it is auditable. When making recommendations always show an audit trail and be realistic with expectations and time frames to change behaviour.