In many families there is a fight for the TV remote control or we end up buying a television for each room. But previously we had access to two or three national channels and now we have the world at our fingertips and can view series and films from Bollywood to Hollywood. This access is not confined to just those rooms or a few channels as we all have our own smartphone and with it access to the whole world.
What made this change possible? It's mainly due to distribution and technology making hundreds of channels available and affordable alongside instant access in the mobile world.
As parents we care about controlling what access our kids have. This battle has been on-going for many years and it is going to get harder as internet and mobile access expands. The key element is that parents are losing control.
You could say there is a similar situation for travel managers and travellers. For decades companies have been trying to successfully treat their travellers the same globally. This has worked well as there has been some uniform rules created. However during recent years more travellers are voicing that they are unhappy to be away from their desk for long periods. It can be stressful and hard. This means that many companies are looking at improving conditions for travellers and are increasingly focused on keeping them safe.
One of the so-called stopping stones has been that rigid travel policies have become a bible in size. Some policies consist of just one page but others go up to 50 or more. These have then just been loaded onto the intranet carrying these basic messages among others.
- You need to follow the global rules and use specific global airlines otherwise our company will spend too much.
- You have to use this specific global airline otherwise it ruins our agreement.
- You have to stay at this specific global hotel chain and rent a car with this specific company because we have global agreements.
- Your allowance is this much at the various destinations. Finish your expenses no more than three days after you return and use this specific tool.
- Use this TMC as they inform our insurance company of your whereabouts according to the reservation.
- Please remember to register for insurance.
Few policies really try to add value and help the traveller. Mostly it is all about control.
What has changed?
Everyone seems to have forgotten that the physical cost of travelling has decreased. The airfare for a ticket from Stockholm to Los Angeles is less than €500 today and in 1960 the amount was the same. Today low cost carriers and freedom of the sky has created a huge number of new city pairs and major decrease in fare prices.
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Flexibility is needed in policies otherwise some travellers will always fight against the rules ©adempercem/iStock
The internet has made an opaque pricing system transparent and online booking engines have made many travel management companies obsolete or at least less important. Plus we all know the consequences of new companies like those in the sharing economy.
Digitalisation is very high on any company strategy. It is clear that it is difficult to keep up with the constant flow of new, faster and better products being launched. The key is, of course, to create value and security to the company.
Travel, or even just being away from your desk, is actually a key area among digitisation and the way people are working. Travel is perhaps the strongest management signaller as it touches every operational site, department, top management, mid-management and all production units. Lots of stakeholders are involved who all have opinions.
Technology and products in travel change rapidly; it is one of the sectors that sees a consistent flood of new technology, products and systems. Travel managers need to think about evaluating their systems more often for updates and integration.
What travellers are looking for
When it comes to the traveller I believe:
- Every traveller wishes to have a successful trip at the destination and they all know time is valuable.
- Most travellers know their destinations, how to get there and use local and other relevant apps.
- Most, if not all, travellers check the schedule possibilities before booking and this includes company travel bookers.
- Very few travellers will look up the policy on the intranet before booking.
- A lot of travellers are members of one or more loyalty programmes and use supplier apps.
- Every traveller is worried about the increasingly uncertain world and their personal security.
We already know road warriors account for the biggest spend and most time away. In many companies they account for 40% of travel activity. The wear and tear of those jobs and the need for flexibility should be included in any policy in the future.
However, the employees travelling less also need to feel secure and valued from management. Now that duty of care is a key area, companies have to bring in new ways of establishing return on investment and link those to the overall values of the company and supply management structures.
We know that travel suppliers are doing their best to offer the most support for travellers. Suppliers are investing huge resources into improving their mobile platforms and overall services towards what they see as their customer. The combination of new and personalised software products and the individual reliance on their smartphone or tablets is forcing all companies to rethink their structure.
How does a company retain at least some future control?
- Send clear signals and policies matching, or at least in line with, company values.
- Use the fact that virtually all travellers and employees have a smartphone and are experienced apps users.
- Rethink supplier selection and data collection in a world with thousands of apps and cloud products.
- Try to keep competition alive by selecting more than one supplier at a destination or between city pairs.
- Make travellers feel valued and respected. Listen carefully to their wisdom and experiences about culture, local and business structures. Listen to their travel suggestions and ideas.
- Secure a proper duty of care structure.