CLIVE WRATTEN WAS APPOINTED AS CHIEF EXECUTIVE OF CTI at the end of last year, having joined the travel management company (TMC) in May. He moved from Etihad, where he was UK general manager for the Abu Dhabi flag carrier. He’s an airline veteran, having clocked up more than 20 years in the sector.
When we meet in London, I ask him what this experience brings to the table at a TMC. Well, for starters a new term to describe a TMC. “We call ourselves a ‘travel partnership company’, because it’s about introducing partners to each other, and understanding what is needed that’s best for the business,” he says. New partners for CTI include Maiden Voyage, the network for women business travellers; private jet charter company Victor; and a “full product suite” agreement with expenses management firm Concur, announced at the Business Travel Show in February.
With Wratten’s time with airlines spent predominantly in sales and revenue management, does an inside knowledge of airlines’ sophisticated pricing strategies put him at an advantage? “Knowing what airlines’ aims are and how they work gives us a competitive edge,” he says.
But it also gives him empathy. While most people understand their own side of an issue, he says, “having been going into travel companies and negotiating, I understand some of the frustrations that I had as a supplier. One of the reasons I’ve moved to calling this a travel partnership company is I see all of our suppliers as partners – how do we work together? What benefit can we get together?”
Part of the evolution of the TMC model is around traveller security, he says. “I think by the nature of what’s been going on in the world it’s become more prominent, as it sadly has to be.” And while it’s the clients’ responsibility to decide their CSR (corporate social responsibility) policies, the TMC’s role is advisor and facilitator. “A key part we play is giving information ahead of time – if you’re about to sign a project in whatever country, talk to us about what the current dangers are. I also believe we need to be involved with companies’ HR and finance departments, and understand what their objectives are, rather than just the travel part.”
As CSR becomes a more important aspect of company policies, so these stakeholders should be more involved in the buying process — “to make sure their best asset, their employees, are looked after wherever they go, and that the right policies are in place, not just around the cost”.
CORE BUSINESS MODEL
This holistic approach to managed travel is indicative of the changes the sector is seeing. But while some industry pundits say traditional TMC services, such as booking tickets, are a dying art, Wratten strongly disagrees. “It’s core to our business model,” he says. “I see the focus of my organisation as very much around that knowledge and experience, and the booking power that we have. It’s vital that we invest in great technology, but at some point there needs to be human intervention. There’s a crucial space for us to deliver a personal service, absolutely.”
Another key area for TMCs and their clients is data, and Wratten believes there’s potential to make better use of it. “There’s a view that it’s the panacea for all problems, but it isn’t the data in itself – it’s what you do with it.” He says CTI is introducing “three-dimensional reporting” – essentially, travel data is historical, but what can be learned from it is where the value lies. There is a lot of talk around data but often no objectives are set – or achieved, he says. And various stakeholders may interpret data differently, or want to analyse and act on different data-sets – but will often have a common goal of changing behaviour. “My belief is we need to understand the DNA of a company,” he says.
In an ideal world, Wratten would like to see this level of understanding come early in the relationship – as early as the RFP (request for proposal) process. What can be a quote-by-rote process is something he finds frustrating. “We need to come and talk to the various parts of your company to understand what your objectives are, where your growth is coming from, what your travellers want, what your bookers want – and then design a response. You don’t go and get married without a courtship or just sign the piece of paper – you get to know the person first, and then think about proposing. But in this business if you don’t meet until stage two or three, you may have missed what could be a perfect fit. This is an area that we need to enhance as an industry.”
Travel is a “massive spend” that enables companies to build relationships with their customers and get business done, so should be treated as an investment, in the same way as research and development, he says, giving another less romantic allegory: “Nobody goes out and just buys IT kit for an organisation without testing what it is they need first. It’s about cost – we get that. It’s about value – we get that. But it’s also about service, experience, knowledge and that key word, partnership. The best relationships work when there’s a partnership.”