Start policy conversations with the right questions – and Phat Data will reveal the answers
Building a data plan that will elevate your travel program as a strategic asset in your organization means putting the wisdom gained from data into action. And that comes from creating travel policy that aligns with your company’s business objectives and at the same time engages travelers.
A key part of building a Phat Data strategy is to be keenly aware of which data elements need to be tracked and what story they will tell the leadership of your company. If we think back, one of the first steps in building a managed travel program is to develop a policy.
Policy is often built on such common metrics as lowest logical airfare, advanced purchase, preferred supplier and the like. The problem with this policy-first approach is that quite often there is not enough data to support the enforcement of the policy. And then the question becomes, do we really need a policy at all?
Most companies have all kinds of policies to guide their employees, to obtain more dependable results and most of all to protect the organization itself. So before we delve into the realm of not having a travel policy at all, let’s take a look at how to better structure your policy through the use of Phat Data.
Beginning with the assumption that there is a current policy in place, a travel buyer should use data either to support its effectiveness or to identify the need for policy reform. Looking at current key policy items such as lowest airfare, supplier usage, etc., a buyer can easily butt these metrics up against the data provided by your travel management company, expense system and credit card programs to determine if you have compliance issues. But what you can’t uncover with this simplistic strategy is the story behind compliance.
The story is what is most impactful – but it also can be the most risky.
When your CEO is told that 65 percent of our travelers are not compliant to lowest logical airfare, you can bet that he or she is going to ask why. With the basic data you have at hand, that is an awfully hard question to answer.
But what if the story went more like this? Your CEO hears that 65 percent of our travelers are not compliant to lowest logical airfare, and the reason is because our policy isn’t actually logical for our business.
The only way to uncover Phat Data like this is to garner better insights into the actual behaviors of your travelers; and the only way to do this is to actually talk to them. Data is just numbers on a page; but Phat Data is a culmination of a variety of sources that drives decisions and traveler behavior.
Ask Why?Those readers who have followed our discussions in previous issues about building a Phat Data strategy know that policy development is driven by conversations with key stakeholders. In turn those discussions determine which data elements you need to identify, track and report on.
So if you are just starting out and want to design a better travel policy or possibly eliminate it altogether, begin with conversations about why people are not compliant. Is the policy not responsive to a changing business climate? Do you not have the right supplier mix? Are you trying to box every department in your organization into the same policy structure that actually restricts them from getting business done?
It is questions like these that will help drive better policy-making decisions. So if you are determined to have a policy, start with the areas where you can readily identify good compliance versus bad compliance and then talk to those non-compliant travelers and ask them why.
Next aggregate that data by traveler, by department and by company. This will allow you to see trends in the different areas. Are you going to change policy because one guy doesn’t like it? No, but you may if it’s impacting multiple people and creating barriers to the overall success of the business.
A travel buyer’s next approach is to use this data to develop a strong, living, breathing policy that is flexible enough to change as your company’s objective changes, culture changes, and work force changes. A travel policy should not be a once-and-done document.
Travel buyers should be using Phat Data to alert them to potential shifts in behaviors that are being impacted by policy, so they can be prepared to justify any necessary changes. This doesn’t have to mean that we are taking every individual’s personal preferences into account – we need to keep the greater good of the program in mind. But it certainly allows travel buyers to be more strategic in their approach to policy.
The No-Policy PolicyNow let’s talk about the tantalizing prospect of not having a travel policy at all. What would become of the managed travel program? Of the travel manager? Scary thoughts come to mind for some of us when we consider this scenario as a possible outcome. So let’s see how Phat Data could make this happen.
Right now we are seeing a slight uptick in the number of companies that are eliminating travel policies and relying on travelers to “do the right thing.” Taking into consideration the importance of the traveler experience and creating a more personalized approach to travel, companies are really re-thinking their travel policies. If you are a department head and have a budget of $X, shouldn’t you be able to spend those dollars as you see fit?
To give travelers the information they need to make the right choices, companies are relying on historical Phat Data. So what if we collect the right data, then apply benchmarks and guidance for travelers to give them a place to start their travel planning. For example, with holistic trip tactics you push out information about other employees booking patterns and spend to influence the traveler’s decision.
At the time of booking for instance, the traveler could see the average trip cost by other company employees for this trip is all-in $1500. Or the airfare benchmark for this route is $450. There are a number of occasions where historical data can drive traveler behavior without having to box them into a strict policy.
If you have been a travel buyer for more than six months, you probably know that travelers can justify their buying decisions in the blink of an eye. Most travelers aren’t trying to game the system; they’re just trying to make the best arrangements they can to meet their business needs and create a positive experience. What we usually hear is, “But I can find it cheaper elsewhere.” So does the industry really need to “police” their travelers or embrace them?
As we see more and more companies going in this no-policy, use-your-best-judgment direction, the data coming in as companies begin to measure the success will be fascinating. A lot of buyers may cry “Duty of Care” to justify strict policy adherence. But let’s face it, where your travelers booked doesn’t necessarily reflect where they actually are. Plus there are tools on the market to help with that.
So travel buyers, embrace the opportunities that Phat Data can bring to your travel policy or lack thereof! Just remember either way, moving from being tactical and reporting compliance to becoming more strategic and telling the right story is critical to the success of your program and your position within your organization.
Just one more hip, cool and relevant use of Phat Data!
Jennifer Steinke is manager, corporate travel for Dycom Industries, and an industry thought leader with over 27 years experience managing corporate travel. She holds an MBA plus Certified Corporate Travel Executive (CCTE) and Global Travel Professional (GTP) certifications from GBTA. Jennifer strives to deliver innovative and thought provoking ideas to the corporate travel industry.