CBTG, SeattleFebruary 5, 2014

Defining the Standards, Setting the Expectation

(Proprietary and Confidential, for CBTG member use only)

Where we left off………

• Times, they are a changin’!• Expectations of the buyer (a NEW buyer) have shifted

– Demanding more for less– Access to RELEVANT information is a must– Willing to outsource non-core competencies….but you better “be good!”

• Sales presentations– Used to be mostly about “operational things”– Now

• A good Operation is a given, or you don’t get to bid• Primary focus for most is on

– Access to information (end to end and big data)– Technology– Consulting– Traveler experience

Where we left off………

• TMC’s are going through the next EVOLUTION of our businesses• We are truly becoming Professional Services companies• Given that price is cheap and demand for more services is high

– We MUST• Internally…..define the STANDARDS• Externally……better set the EXPECTATIONS• Get great at this

– Or else, the customer thinks they get “everything” as part of their transaction fee

• What areas are getting pushed the most internally?– IT

• ”I promised this,” “I need this yesterday,” “The client says they already pay for “this” through their transaction fee, so we can’t charge,” “This report takes the client a ton of time internally so they want us to do it now”

• “How can I best “touch” my travelers along the way on their travels?”

Where we left off………

• What areas are getting pushed the most internally (Continued)?

– Consulting

• “TMC should handle our airline, hotel, black car, etc RFP processes,” “Give us a shift analysis,” “Do you have supplier programs that save us money?”

• Compliance consulting

– “What if we do this, what would it save?”

– “What is it costing us for those that book outside of the managed program?”

• On-line expertise

– Site builds, site optimization, best practices

– Leveraging the online providers, holding them accountable

– Expertise on who is doing what in the online space

Defining Standards

• Traditionally, the customer paid one fee and got “everything”

• That’s a CRAZY business model

• Fees paid to TMC’s have dropped precipitously

• Without having “Standards,” there is no way to CONSISTENTLY “set expectations”

• What do you mean, define the standards?

– When a request comes in to one of your departments

• Who makes the promise to the customer on

– Timing?

– Cost?

– The deliverable?

• Is it consistent?

• Can the “requester” follow the progress of their request?

Defining Standards (continued)

• IT Example– “My client wants us to produce this…….”

• The standard might be as follows– Request must be in writing – Request must be signed off by client– Always talk to/email “Joe/Mary” when making a request – No promises on date of delivery until bullets 1 and 2 are completed– You can view the progress of your request “here”– If it is a reporting change, our standard is a one week turn around– If it is a new report, our standard is a 2 week turnaround– If it is a fundamental change to our reporting system, it will be available in our

“next software release”– Delivery promises will depend on the list of requests in the pipeline, AT THAT

TIME– Someone will help prioritize or everyone thinks their request takes precedence– XX will decide if we charge, it’s not for you to worry about

Defining Standards CBTG Group

• How many of you are good at doing this today?

• Who wants to have to go through this every time?

• Well, if you don’t

– You are setting yourself up for potential failure

– You are not likely to get paid OR get credit for the value you are delivering

– You will have no consistency in what is “promised” by your sales and service organizations

• This seems very “big company”

• No, it seems very Professional Services

• Today’s buyers are used to paying for professional services

– But, the deliverable has to be good

– The deliverable needs to have an ROI or perceived value

– Do you know more than they do?

• Remember, you are an EXPERT in travel. Believe in yourself!!

Setting Expectations

• Without Standards, Expectations are

– All over the board

– Often unrealistic

– Rarely paid for

– Not valued like they should be……this is key!!

– Even if you don’t charge, this process can help capture the value you are providing!

Respective business interests

TMC’s Interests

- Delivering

- A happy client

- Managing and exceeding expectations

– Getting paid for OR at least “credit” for extra work performed

– Managing the workload

– Making sure you don’t silo your business and create a lot of finger pointing

– Evolving your business

Customer’s Interests

- Getting what they want, exactly

- NOW!

- For “free,” if possible

- Moving fast

- Pushing information up the ladder

- Showing savings

- Proving their value

- Happy travelers

Let’s do this thing!

• So, what are realistic standards for

– IT reporting?

– IT programming?

– Supplier consulting?

– Online site setup?

– Online site consulting?

– New products and services? (GDS model shift…..)

• Best Practices

– Do you have standards? If so, what are they?

– Who can make the promise to the client

• On timing?

• On cost?

• On the deliverable?

• When is the promise to the client made?

Let’s do this thing!(Cont.)

• Best practice “things to consider”

– Quantify everything you can on quarterlies

• Otherwise, there is often no perceived value

– Credit banks in contracts

– Shared savings

– Hourly rates, establish them in the contract

– Better define where account management stops and “consulting services” start

– Others?

• What else is on your mind?– Rebecca, disruption travel calls during the day….

THANK YOU!