Business Travel News - November 30, 2009 - (Page 20)

Using Booking Tools As Tech Backbones BY SETH HARRIS With large market company travel spending becoming more multinational, travel buyers in the segment are requiring more capabilities and enhanced functionality from travel technology to raise their control over travel expenditures and traveler behavior as they seek to bring consistency to increasingly complex travel footprints. Online booking systems are becoming the backbones of most corporations’ technology portfolios. Larger programs that have considerable expenditures in other countries are deploying online booking systems abroad. In countries where online booking tools already have been implemented, corporations are encouraging travelers to book online in an effort to shed costs without having to significantly reduce trip volume. According to BTN’s large market travel buyer survey, 84 percent of respondents are using an online booking system in the United States, with another 11 percent planning to buy or replace their tools by 2010. Online Booking Use, 2008 Percentage of U.S. air bookings made through company-approved online booking tool Percentage of online U.S. air bookings without agent intervention 63% 70% With booking compliance through the preferred company agency and self-booking tools continuing to reach new heights, more savings can be generated by improving touchless transaction rates. According to BTN's survey, the average first-pass yield rate percentage on online U.S. air bookings has reached 70 percent. On average, a touchless reservation can save a company $10 per transaction versus an online booking with some agent interaction. Booking tools have improved in that area significantly in recent years by enabling such previously offline processes as unused ticket application and multi-leg booking to occur online. In Europe, online booking tool penetration among these U.S.based large market buyers is less overwhelming, with only 40 percent of respondents currently using a self-booking tool. Meanwhile, 30 percent have no plans to buy one. “Internationally, booking tools have matured to the point where Online Booking System Status, 2009 5% Currently using a system Now buying or implementing Plan to buy/replace by 2010 Plan to buy after 2010 No plans to buy Don’t know 84% 3% 11% 11% 40% 11% 30% 5% U.S. Europe you can use them in most countries,” said Travelocity Business vice president of sales and account management DeAnne Dale. “Once you have a consistent booking tool across the globe, you can set some controls within that tool by country or region on what and how travelers are buying.” With even a slight increase in online adoption, companies can save considerable sums of money through traveler visual guilt, better policy messaging and the most straight-line savings method of paying less in transaction fees for an online booking. Large market companies on average pay $11.50 per touchless online air transaction, while for air reservations made with an agent they pay $30.70, according to BTN research. Estée Lauder in 2009 increased its online booking adoption in the United States from about 50 percent to nearly 80 percent after issuing a company directive that all domestic point-to-point roundtrips be booked on the company’s preferred self-booking tool, Concur Cliqbook, according to executive director of global travel and meeting services Cynthia Shumate. The company now is measuring the adoption of each of its brands, and those still at low adoption levels will receive new training. Communications with data points on lost savings also will be sent to non-compliant travelers in an effort to shift bookings online. Shumate also is evaluating expanding the online booking tool program in Europe, used currently in three of its eight November 30, 2009 www.BTNonline.com Business Travel News http://www.BTNonline.com

Table of Contents for the Digital Edition of Business Travel News - November 30, 2009

Business Travel News - November 30, 2009
Contents
Sizing Up the Large Market
Finding Travel Program Opportunities
Large Market Profile: Estee Lauder's Cynthia Shumate
Business Class Use No Longer Dropping
Expanding Travel Agency Consolidation
Keeping Buyer Control of Hotel Rates
Using Booking Tools as Tech Backbones
Large Market Q&A: Ingersoll Rand's Thomas Barrett
Embracing Meetings Management Practices
Finding Room For Making Ground Moves

Business Travel News - November 30, 2009