Stephen J. Dubner told corporate travel buyers and suppliers that they are “perfectly placed” to experiment, during a keynote speech at the ACTE Global Education Conference in New York.
The Freakonomics and Superfreakonomics author said travel executives should follow a trial and error system to ultimately find better ways of working – for the travel manager, for example, this includes improving traveller compliance.
Addressing employee behaviour, Dubner said the key to changing the way people act is with incentives, but to be successful experimentation is vital.
“The incentive that you think will work might be brilliant, but it might also backfire, which is why trial and error in small, experimental settings is so important – you are set up to do this beautifully,” he said.
“Especially with the internet, you can divide it up and experiment as much as you want.”
Freakonomics’ Dubner added that incentives aren’t all about money – “never underestimate the power of free,” he said – although money can be a flexible and powerful tool.
He also warned that while incentives are incredibly useful, they can backfire, citing the example of a bid to reduce the rat population in a South African town by cash rewards for carcasses handed in, which resulted in a rat-farming industry among the residents.