How to improve your company's adoption of self-service reservations
From BCD Travel's In Motion
Editors Note: Atlas Travel's online booking adoption rate with Cliqbook, our managed online booking tool, is far above the industry average, running as high as 94 percent with some customers. More than 33 percent of Atlas' corporate bookings are done online by customers, driving resulting savings directly to the bottom line. We are currently developing an additional online channel for unmanaged business travel that will be available later this month. Watch Communiqué for more details.
Increasing numbers of businesses are introducing self-booking tools, but travelers are not using them as much as they could – and that means lost savings. A new report explains how organizations can drive up adoption rates.
Organizations which have introduced self-booking tools are making significant savings but could reduce costs even more if they improve their adoption levels. That is the main conclusion to emerge from a report published by the Business Travel Research Centre of Cranfield University, UK on behalf of the travel technology company Amadeus.
The survey of 424 businesses worldwide found companies save an average of 9.1 percent on their average air ticket price by using an SBT. They also save 25.6 percent on their travel management company fee because automation of much of the process enables TMCs to reduce transaction fees proportionally.
However, although the percentage of bookings that travelers make through their SBT is higher than a few years ago (53 percent for air and 38 percent for both hotel and car hire), the report says even more bookings could be pushed through the tools. After extensive analysis, the report has identified several "drivers" that it says maximize adoption rates and therefore savings.
Management buy-in
Adoption rates in companies where senior management lead by example by using SBTs themselves is 70 percent. In those where they do not, the rate is 36 percent. Walking the talk by senior executives is most common in smaller companies and organizations with flat management structures, because in both cases the lines of communication are shorter.
Policy
Adoption rates in organizations where the use of SBTs is mandated is 65 percent. In organizations which do not even mention SBTs in their travel policy, the average adoption rate is 41 percent. "Given the potential savings, it is remarkable that 38 percent of organizations in our study do not yet enforce a travel policy which recommends online booking," says Dr Keith Mason, director of the Business Travel Research Centre, who wrote the report.
Communication
A recurrent finding was that adoption rises significantly if the organization invests time and resources in communication. This should be done when the tool is introduced, such as educating travelers on why the company benefits from having an SBT. It should also continue once implementation is complete, including issuing regular reports on adoption levels by different departments.
SBT capabilities
The better the tool, the higher the adoption rate. Issues considered particularly important by users are diversity of content (especially the ability to book low-cost carriers), ease of use and speed.
Systems integration
Integrating SBTs with other important company systems also seems to help. If it is linked to accounting and human resources systems, then travelers know that using a booking tool will make post-trip administrative functions, such as expense reporting, much easier.
Culture and employee profile
Some companies have a self-service culture, where employees are expected to carry out their own administrative functions and are comfortable with organizing themselves online. Age is a factor too, with younger employees generally more willing to use a booking tool instead of calling their TMC.
"The findings of the Cranfield University study are broadly in line with the experiences of our clients," says Ellen Trotochaud, senior vice president for online technology solutions at BCD Travel. "Booking through an SBT has already moved from being the exception to the norm in North America, and now it is heading that way in Europe too, with Asia-Pacific not far behind. Making a few important changes in behavior can really help organizations to boost their adoption rates and maximize saving opportunities."