Report
The Open Booking Effect and Its Impact on Corporate Travel
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Read MoreThe Open Booking Effect and Its Impact on Corporate Travel
- Published:
- April 2014
- Research Type:
- Article
- Figures:
- 7
- Segments:
- Air, Car Rental & Ground Transportation, Hotels & Lodging, Traditional Agencies & TMCs
- Regions:
- U.S. & Canada
Summary
In 2012, "managed travel 2.0" – often referred to as open booking – became a popular but controversial topic throughout the corporate travel industry. The concept, which allows business travelers to book via any channel as long as they meet certain budget and program criteria, is actually not new. Large tech companies (e.g., Google) have implemented some form of managed travel 2.0 (MT 2.0) for many years, abandoning the traditional travel management company (TMC) or corporate booking tool (CBT) method of corporate travel management. While the purpose of corporate travel management was to mandate certain behaviors (e.g., use of TMC-provided booking tools or certain suppliers) to reduce travel expenses, the marketplace has changed. Supplier direct and consumer channels have grown in popularity.This article reviews the strengths and pitfalls of the MT 2.0 approach and some technology solutions that help integrate out-of-channel bookings into a managed travel program.
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