The world of Open Booking is a confusing one. No one seems to understand how it’s supposed to work in sufficient detail. Beyond some broad statements about how much travelers want it and how you can apply the concept to suit your situation, those devilish details are left to look after themselves.
Its business case has never been fully or adequately developed. No one has ever successfully demonstrated, using adequately supported data and research, that Open Booking (to the degree it is described and understood) even works, financially or operationally.
Some of our colleagues also claim too much for Open Booking. There is a tendency to believe that Open Booking is inevitable because there are serious flaws and failings with how travel management is conducted. Open Booking is not the sole alternative–there are equally, if not more valid management techniques that can be employed.
It’s one choice among many, and based upon the answers that are available it isn’t a very good choice. It would be great if more solid information were forthcoming, but even asking questions carries its own challenges.
Here’s an experiment for you to consider.
While the setting is intended to be light-hearted, the issues discussed are quite real and the responses are all based upon incidents in my own experience with the Open Booking Question.
Pick any of the national, regional, or larger local travel management companies that specializes in business travel, or an on line travel agency with the same specialty. Call someone from the sales department, introduce yourself and your company, and tell them that you’d like a few questions answered.
Begin by asking for a detailed explanation of how the would propose to handle your business. Respond to their questions directly and intelligently, and listen to their explanation. You may not like what you hear, but you’ll be told in sometimes painful detail how their operation works and where you fit in.
Ask all the difficult questions you want that reflect your real concerns, possible issues and contingencies you may have heard about, and criticisms of their process that you may have heard from competitors or read in the trade press. Typically, answers will be immediately forthcoming or a quick follow-up call will offer clarification.
Then, pointedly ask how they will “prove” to you that their service is any good, how it is cost-effective compared to their competitors, what evidence they will provide as to their ongoing purchasing efficiency, and how they can project and measure your savings. Remember to ask where their data come from and why these are accurate.
Without much hesitation, you’ll probably be told about benchmarking, reporting tools, econometric models, and various gadgets and systems that the person on the phone is convinced are just what you want.
Some of the answers you will receive will be interesting, others quite inventive, and still others less so–but the point is that you will get answers. These are legitimate inquiries and the business development area within travel distribution is happy (even anxious) to address them.
Try the same process on someone who is anxious to talk about the inevitability of Open Booking (or Managed Travel 2.0) and the benefits that idea provides.
You’ll be challenged to get a comprehensive description of how Open Booking works, largely because no one has adequately defined the operational details and how they apply in the real world. People have their own ideas but there is no shared view–and the experts create explanations as they need them.
Even though Open Booking has been a popular topic for some time, difficulties continue to pop-up that no one has thought through (see here for example). The list of questions that should have been considered and have not is long and tedious.
You’re likely to learn that Open Booking is a concept that you must apply in ways that suit your own situation. Patiently remind the person that, if this is true, Open Booking has descended to the level of how you’ve been handling your travel for the last 40 years, and suggest that the proverb “there is nothing new under the sun” may also be true.
Remind them that the apostles of the Open Booking doctrine want the industry to adopt it as a premise for doing business, as an overriding concept that reshapes how managed travel is understood in the current century, and as an inevitability brought about as a result of how traveler attitudes and expectations have been reshaped in the Internet age.
In such a toplofty setting, some comprehensive definition, description, and attention to detail is not too much to ask.
Next, take a deep breath and ask your contact to prove to you that the operational system they have described to you (to the degree this has happened) can and will work, that they have considered all relevant details, and that sustainable savings (offset by any costs and business risks that you might incur) have resulted in other settings and will result for you.
Remember to insist on clarity as to where the data come from, how reports were developed, and why they are accurate. Don’t be content with unsourced figures pulled at random or comments from published materials with an equal lack of transparency.
Your spokesperson will likely be affronted at your having the temerity to ask such questions. You may be informed that “proof” is unreasonable and impolite, and that countless satisfied travelers are enjoying excessive (but unspecified) savings and satisfaction through Open Booking, so it is up to you to join their happy throng.
Such requests for “proof” will likely be dismissed by comments such as “that’s what the marketplace is doing.”
As you politely close the conversation, a gentle reminder that it is the “marketplace” that just asked the question may be in order. When the call is over, you might also reflect upon how long a TMC that gave a similar answer would remain in business.
What Have We Learned?
I’m not sure why many observers are prepared to give Open Booking “a pass” in settings where other parts of the travel distribution system are held to a much higher standard.
This may be because Open Booking sounds technological or scientific, that they are beguiled by its promises that amount to the benefits of managed travel without much of the work, or that it’s simply (at least for many) an attractive and new idea.
Open Booking is none of these things. It is essentially the same complaints and objections to managed travel that have been wandering about for decades, now in a new suit of technological clothes, with the promises that gadgets, web sites, and reporting methods have succeeded in changing human nature.
Travel buyers should rightly expect better answers to how Open Booking works, how real-world problems can be affordably addressed, and the financial benefits it delivers (in all instances using better data and analysis than has been forthcoming thus far).
Advocates of Open Booking should consider it their obligation to provide nothing less.
Open Booking, lacking better evidence, simply doesn’t make sense. Because many people believe Open Booking to be a good idea, I’d have thought that an adequate, specific, detailed business case would not only be easy to produce but would have been forthcoming long ago.
I’m anxious to see it.