This post is part of the 2015 Keynote Vote for The Beat Live, in Arlington, Va., Sept. 29-Oct. 1.
Topic: Why Our Industry Must Adopt A Total-Cost-Of-Travel Model
Travel management hasn't changed much in the last 20 years. It remains largely fixated on price reductions and cost avoidance. This harms our industry in three important ways:
- Travel managers face fast-diminishing returns on sourcing, compliance, consolidation and duty of care. This locks their role into a low-value future.
- Suppliers have little incentive to increase the value of their products if it means increasing their prices.
- Delivering significant savings in a mature travel program requires tight controls around travel policies, often at the expense of traveler productivity and satisfaction.
Moreover, HR execs swear there is growing need to recruit and retain top talent. This war on talent clearly includes road warriors. These folks are among a firm's most valuable employees and are expensive to replace. We need to squarely address this.
The solution? Expand the traditional definition of travel costs to include costs of traveler wear and tear. These costs are real, easy to measure and significant. It's the only way buyers can truly optimize their travel programs.
Why The Audience Should Listen
Buyers need a better, more strategic way to manage travel. Suppliers need buyers to place more value on the quality of their products. I'll explain how the total-cost-of-travel model meets both needs.
Why This Won't Be A Commercial
I'm selling a paradigm shift, not a product or service. Buyers can do this on their own.
Scott Gillespie is tClara managing partner.