Corporate Mobile Travel Strategy

This analysis appeared June 14, 2013 in Cornerstone Information System’s “Insight & Opinion” section.


By now you’ve been thoroughly exposed to the idea that mobile applications (affectionately termed “apps”) are an essential part of travel technology. There’s no denying that mobile applications are popular, but understanding why and to what extent is more difficult.

Equally challenging is interpreting the specific implications for your business.

Business Case

Perhaps you’re as tired as I am of being told you “need” a mobile travel strategy, and it would be interesting to first understand what you could accomplish.

Proponents usually start building their case with surveys and research which suggest businesses without mobile capabilities risk being “overwhelmed” by competitors, as the number of people initiating travel transactions on mobile devices expands to eclipse all other methods.

This argument runs aground somewhat because almost all this research isn’t very good. Briefly, almost all popular industry researchers don’t disclose their financial backers and biases, or their research methods, and their products aren’t scientifically designed or operated.

We’re left to conclude that, from among the hundreds of millions of smartphones and tablets, consumers simply must be looking for travel products, even if specific numbers can’t be verified.

Competition among the literally millions of app developers is intense–for room on the device and consumer attention if nothing else. Of the dozens of apps on your device, how many do you really use?

Five or six is an oft-quoted number.

I’m not arguing against mobility or applications, just pointing out that the barriers to successful entry are significant, and assuming these are unimportant because the market must be huge doesn’t make it so, or drive travelers to use a mobile app simply because you offer it.

In the simplest terms, people probably use mobile applications for some of the following reasons:

  • Having a computer with you everywhere you go is certainly handy.
  • Most people didn’t do that much with their PCs anyway–the transition to mobile is fairly straightforward.
  • The apps can look and behave better than on a PC, because building tools in a web browser was never a really great idea.
  • Most travel vendors have made communicating with them so difficult and unpleasant that the simplest, handiest form of electronic access looks very attractive.

As you start thinking about a mobile strategy, consider carefully the real reasons you believe travelers will support it.

The Best Tool Is the One That Works

Corporate travel buyers are often presented a surprisingly sparse list of mobile application choices. Much of what is on offer doesn’t do much or work very well.

Consumers have always had a high tolerance for flawed travel technology–a frequent reaction being that, if it works at all, it works wonderfully. The basis for a successful mobile strategy might be to insist on delivering real value and performance to the customer.

Determine what the service and business needs of your travelers are, then look for products that can approximate those requirements with an acceptable level of change to your operation.

For example, if you’ve determined that travelers should be able to request, change, and reconcile their trips from a mobile device, be certain that the tools you select allow that to happen with very few failures, limited training, modest traveler effort, and acceptable recourse when things go wrong.

These sound like “everybody does that” goals, but in practice they are difficult. Don’t be coaxed into accepting marginal products simply because they’re mobile.

It appropriate to set more modest goals that support your overall service strategy and that you can successfully reach.

The Best Tool Is No Tool

The travel industry is often anxious to build solutions to problems that shouldn’t be solved. No tool, mobile or otherwise, can change the fact that most “technology problems” are really unresolved management problems.

Often your business goals are better supported by altering procedures and requirements to make problems go away, as opposed to looking for the latest apps that might solve them.

The distance between mobile applications and other computer-based tools isn’t very great, and no computer ever compensated for poor procedures and policies, unrealistic expectations, traveler misbehavior, or a failure to manage.

Mobility is best viewed not as the centerpiece, but rather as an intelligent and convenient enabler for your comprehensive product, service, and travel strategy.

 

Rethinking Data

This analysis appeared April 30, 2013 in Cornerstone Information System’s “Insight & Opinion” section


Data and their application have been a travel industry fixation since ADS was discovered over 30 years ago. When it became practical to collect the specifics of what travel customers were buying, suddenly it was an essential management task, effective competition hinged on being the best data manipulator, and travel managers were left to wonder what they should do with the piles of reports TMCs were cheerfully offering.

Most people are still wondering. Making better decisions that are enabled by travel data is a goal industry experts, acknowledge, respect, desire to achieve, and find surprisingly elusive.

A correct and productive data strategy for the travel industry is not difficult to identify, but its successful implementation requires discarding several cherished ideas.

Big Data…Big Deal

Some years ago, the CEO of a major national TMC (herein nameless) was fond of telling industry groups that it once “came to me in a flash of light that I was really in the information business.”

As I worked for a major competitor, I was also fond of telling the same story–with full attribution to its author. I added that perhaps his next corporate account proposal would be successful if he offered just reports…and no tickets.

Travel is not an information business; it is a service business and many of the most indefensible and irrational travel products were conceived when people lost sight of that fact. Where data support the delivery of effective and affordable customer service, analysis has a role.

Analysis for its own sake has few uses and is something for which most travel managers have a difficult time writing a check.

The current hot topic in reporting circles is “big data,” (ten years ago it was “data warehousing”). Apart from the fact that big data means lots of data from multiple sources, most people are challenged to explain its business rationale.

Under most conditions, “big data” is a term without meaning in the travel industry. Effective managers in all sectors of the industry need realistic business analysis goals, without regard to the size or complexity of a data set. Collecting the most data sounds highly scientific to most people and from that they incorrectly infer that the exercise must be valuable and that ill-defined real-world applications are justified.

Big data might have a role in such predictions as what travelers will buy, but even there the variables are so complex as to confound all but the most determined and expert analysts.

Where’s Your Talent?

Decision support tools for the travel industry have proven difficult to build and maintain, and the few companies that produce truly good ones are highly underrated for the value they deliver. A successful decision support tool enables better, more informed business decisions that cannot necessarily be anticipated when the system and the databases that sustain it are conceived.

As essential to such a system’s success as the skill with which it was designed is the insight it enables for its human operator. Systems people are prone to highlight data, reports, and analysis while overlooking the fact that a skillful, insightful, talented operator is what moves decision support into action.

The system’s role is to make that talent productive.

Without recognizing the role and composition of decision support, travel data analysts are likely to dive down any number of rabbit holes looking for new projects. One good example is the current fascination with data analysis projects that have subjective outcomes.

Systems that contrive to use data for calculating such things as traveler dissatisfaction with policy are ill-conceived in my view. A “dissatisfaction” report cannot escape the subjective and occasionally irrational nature of what it attempt to measure, a problem which is compounded by dozens of other variables that combine to make the result about as meaningless as arguing that green is better than blue.

Successful corporate travel data analysis is built upon clear business goals, and supported by decision support tools that empower insight and better conclusions in their human users.

They recognize the elegance found in simplicity and employ the shortest, most efficient way to deliver their results, and the travel managers using them do well to require specific answers from them to their real-world problems.