Gillespie’s Views on Travel KPIs...$6 $34 $- $- $-Savings Travel Spend Attrition Cost Ineffective...

Gillespie’s Views on Travel KPIs

Scott GillespieVP, Innovation & Analytics at ARC

Travel industry’s leading expert on traveler friction

Founder of Travel Analytics and co-founder of tClara

AT Kearney’s former travel procurement expert

Speaker and trainer at travel industry events worldwide

Author, Gillespie’s Guide to Travel + Procurement

Author, US patent covering airline bid analysis

MBA, University of Chicago

Always glad to connect on LinkedIn

© Airlines Reporting Corporation (ARC)

All Rights Reserved.

If you were designing a travel program…

…what would be your main goal?



o Successful Trips

o Retention of Road Warriors

o Productive Travelers

o Safe and Healthy Travelers

o Travel Cost Savings

We Asked Travel Buyers

Choose the single most important outcome.



What does senior management want most?

Travel buyers said:



42%

28%

16%

11%

3%

Travel Cost Savings

Productive Travelers

Safe, Healthy Travelers

Successful Trips

Road Warrior Retention

Percent of travel buyers who chose each goal as the most important. N=78 in May 2017




42%

28%

16%

11%

3%

Travel Cost Savings



Successful Trips


Percent of travel buyers who chose each goal as the most important. N=78 in May 2017

Senior Management said:Compared to what Travel Buyers said



Senior Management said:



42%

28%

16%

11%

3%

6%

9%

53%

32%

Travel Cost Savings



Successful Trips


Percent of travel buyers who chose each goal as the most important. N=78 in May 2017Percent of senior executives (SVP, EVP or CEO) who own travel budgets. N=186. “Productive Travelers” was not an option.

Compared to what Travel Buyers said

If this is true, then…???

Senior Management said:



42%

28%

16%

11%

3%

6%

9%

53%

32%

Travel Cost Savings



Successful Trips


Percent of travel buyers who chose each goal as the most important. N=78 in May 2017Percent of senior executives (SVP, EVP or CEO) who own travel budgets. N=186 “productive travelers” was not an option.

Compared to what Travel Buyers said

Road warriors are those who travel at least 35 nights a year.

Focus on road warriors

~10%

of all

Business

Travelers

~50%

of all

Travel

Spend

~80%

of all

Travel

Value-Add

Source: ARC Data, tClara analysis; value-add is Scott Gillespie’s estimate© Airlines Reporting Corporation (ARC)


100% domestic travel

In thousands of dollars per yearJoe Road Warrior

A Road Warrior’s Costs and BenefitsPay: $150K /Year

Tenure: 3 Years

Estimated values are illustrative for a domestic road warrior. Source: tClara© Airlines Reporting Corporation (ARC)


$6

$34

$- $- $-

Savings Travel Spend Attrition Cost Ineffective Trips Traveler's Value Add




Tenure: 3 Years

Estimated values are illustrative for a domestic road warrior. Source: tClara© Airlines Reporting Corporation (ARC)


$40K gross spend on air, hotel

with 15% average discounts

$6

$34

$100

$- $-


Estimated values are illustrative for a domestic road warrior. Source: tClara




Tenure: 3 Years



2X annual salary, divided by

3 years expected tenure

$6 $34

$100

$300






Tenure: 3 Years



2X annual salary

$6 $34 $100

$300

$600






Tenure: 3 Years



4X annual salary

$6 $34 $100

$300

$600



Traveler friction affects these

traveler outcomes.



$6 $34 $100

$300

$600



Traveler outcomes…

…dwarf

savings.



Linking Travel Programs to Outcomes



Source: “Achieving Better Business Results – Insights from U.S. Road Warriors” October 2018

Desired Outcome Travel Program Dials

More successful trips Better sleep; Business Class (pg. 6)

Better retention Business Class; less personal time (pg. 8)

Healthier travelers Traveler wellness programs (pg. 17)

Need Benchmarks?



Trip Success

Rate63%

Share of trips taken in the last 12 months rated mostly or very worthwhile

Source: “Achieving Better Business Travel Results” 2018 by ARC, Delta, FlightGlobal, tClara© Airlines Reporting Corporation (ARC)


Estimated Road WarriorAttrition Rate*

14%

Share of 2016 road warriors who did not travel under the same ARC ID in 2017

N = 1.2 million travelers who took at least eight trips in 2016

* Includes travelers who are still employed but have stopped traveling. Source: ARC© Airlines Reporting Corporation (ARC)


22

ARC benchmarks these elements



Q1 Q2 Q3 Q4

Average Trip Price Up 16%

Trip Success Rate Up 22%

Trip Friction Index Better by 20%

Use new KPIs to show strategic value.

Attrition Rate Down 15%



Gillespie’s Views on Travel KPIs...$6 $34 $- $- $-Savings Travel Spend Attrition Cost Ineffective...

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