Transforming big data into smart data - FCM INSIGHT - FCM Travel Solutions
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FCM INSIGHT Transforming big data into smart data
FCM INSIGHT Smart Data
SMART
DATA
Not Big Data
More data has been Big Data is everywhere. Today,
Google receives 40,000 search
created in the past two queries every second; Facebook
years than in the entire users send 31.25 million messages
history of the world. and view 2.77 million videos every
minute. Yet less than 0.5% of all
data is ever analysed – let alone
By 2020, about 1.7 megabytes per interpreted and the findings used
second of new information will to improve a product or service.
be created for every human being
on the planet1 using 50 billion Data is also being shared more
connected devices. By then, our than ever before. In 2016, Business
accumulated digital universe of Travel News reported that travel
data will have grown to 44 trillion data distribution was more
gigabytes. important to 60% of chief financial
officers, senior management and
budget owners than it had been 12
months earlier, with 70% sharing
travel policy compliance data with
senior management.
Page 2 FCM Travel Solutions
FCM INSIGHT
Although savings data ranks The opportunity this creates is
highest in importance amongst for corporate buyers to challenge
senior management, travel the reasons for travel, to identify
satisfaction is also a key smarter ways in which to apply
performance metric. The link travel policy and ultimately to
between employee satisfaction leverage further savings.
and company performance is
now overt. In business travel environment, the
term ‘Big Data’ can be misleading.
For most travel managers, data After all, the various fields of
is a tool to reduce costs and travel data from TMCs and other
ensure travellers’ well-being by suppliers has not changed much
enhancing the travel experience over the last 30 years. Smart data
through a better understanding of is more appropriate; the additional
individuals’ needs. data, over and above conventional
travel cost, purpose and policy
compliance, that provides the
Based on assessments context to travel spend by
that 25% of all business explaining why travellers behave
travel spend is un- the way they do.
managed, that means
$278 billion a year is
un-leveraged.
1.7
megabytes
By 2020, about 1.7 megabytes per
second of new information will be
created for every human being1
fcmtravel.co.uk Page 3
FCM INSIGHT Smart Data
Personalisation
& engagement
One of the trends fuelling Meanwhile meetings planners
the mega-trend of Big Data is try to give delegates the best
Personalisation. Increasingly possible experience by collecting
important in travel and meetings, and analysing data collected from
previous events to tailor delegate
messaging and information.
travel managers
want to drive greater Live Engagement Marketing (LEM)
compliance by giving enables planners to create and
leverage engagement at their
travellers options to events using event apps to interact
match their personal with delegates, and vice versa.
tastes and needs.
Data analytics
The task of mining and analysing Their challenge (and opportunity)
57 %
information other than that is making sense of why travellers
captured via the TMC is proving make their buying decisions;
daunting for many corporates. understanding the impact of those
decisions on the travel programme
The problem with Big Data is that and then changing the policy as
of travel managers rank data it’s, well, too big and therefore required.
and analytics in their top three hard to use effectively. Hence
time-consuming activities2. industry terminology moving on to There’s little point crunching
smart data and then to predictive numbers if the process does not
analytics. Smart travel managers add value to travel management.
have recognised that the secret And despite not having the tools
lies in the quality, not the volume of to collate and interpret data from
information available. sources such as social media.
Page 4 FCM Travel SolutionsFCM INSIGHT
So what travel-related data is smart,
and therefore actionable?
Large corporates have in-house However internal, controlled social This knowledge means that
Business Intelligence teams who media platforms can provide choices match the traveller’s tastes
have the systems, such as data valuable additional data through a more closely and, when automated
consolidation platforms, and better understanding of traveller within the online booking
processes that can provide the perceptions of the programme and process, involves no further
required insight into travel-related organisation. human interaction. Meanwhile
behaviour. the traveller feels respected and
To understand traveller behaviour, valued.
The organisations able to draw on travel managers are segmenting
this resource tend to have mature their travellers, looking at the most
programmes and need to do things frequent trips made by air, rail or The Return on
differently to find more savings car and assessing how much could Investment from Big
and are doing so by challenging be saved by switching travel mode Data depends on what
existing thinking. By adding the or by meeting virtually instead.
travel category they can spread Travel managers can also use
each organisation is
the cost across different areas of smart data to quantify the impact trying to do or change.
the business to create a compelling of business travel on employee
business case faster than if the productivity by comparing the time
travel category was managed on cost of different travel modes. Forbes magazine estimated
its own. that, for a typical Fortune 1000
Traditionally, TMCs relied upon company, a 10% increase in data
Social media and apps are traveller profiles to segment their accessibility will result in more
increasingly used by travellers travellers and to capture personal than $65 million additional net
to share information, although preferences. Today, smart data income. There are other, less
the problem with this medium is takes that understanding to a easily quantified benefits such as
it tends to reflect one person’s new level by highlighting whether better employee engagement,
perspective on the truth. a traveller changes their seat on highlighting serial non-compliance
the plane or requests a room in a and proactively bringing suppliers
specific part of a hotel. into policy.
fcmtravel.co.uk Page 5FCM INSIGHT Smart Data
Stakeholders
D
All too often, the time,
emotions and money invested
don’t add up to the hoped-for
value.
10
W
%
increase in data accessibility will
T
result in more than $65 million
additional net income.
As always, stakeholder buy-in is implementation of smarter
essential. Big Data provides an working policies and processes.
opportunity for buyers to bring However this requires the TMC
procurement, travel managers, to invest in the technology that
finance, security, IT and HR to the enables changes to be made within
table, followed by travellers and travel programmes, bringing
meeting planners, by shining a together data analytics and the
light on how corporate travel and people with travel and expense
meetings activity really impacts expertise to create meaningful
on the financial performance of an outputs.
organisation.
Both TMCs and their clients
have to understand that there
Many have already are no cure-all solutions. TMCs
recognised the link are investing heavily in their
between travel policy data capabilities but can only
extrapolate travel data across
and employee retention, their own client bases, and each
company data set has its own
but few know the tipping point for unique needs.
a high performer’s resignation.
Amongst the plethora of data
The analysis of smart data analytics providers, data standards
should give a valuable insight into between the various data sources
business travel frequency, mode are often different, requiring
of transport and length of trip that further investment and lower ROI.
could lead to absenteeism.
The TMC should play a central
role in data analytics because
the TMC is responsible for the
Page 6 FCM Travel SolutionsFCM INSIGHT
DATA
WITHOUT
TEARS There are eight key
steps to travel data
analytics.
1. 4. 6.
Bring business Once you’ve received Engage with your
stakeholders together the analysis of your steering group and TMC
to discuss the business’ available data, your at every stage. Each
objectives, challenges, group of stakeholders should will contribute expertise, toolkits
opportunities and priorities such review to review and assess the and technology to initiate business
as employee engagement and the findings against the business’ transformation.
organisation’s digital channels. priorities. The travel programme
7.
has to suit the needs of both the Recognise your travellers
2.
Identify the potential traveller and the company. for giving their feedback.
sources of travel-related Rewarding good behaviour
5.
data available from your Apply the analysis to is the natural progression from
TMC and expense management your travel programme, understanding what motivates the
providers, as well as data from evaluating any possible traveller – and why.
employee feedback forms, social changes to policy based on the
8.
media and other channels. findings, but ensuring that your Always respect data
TMC’s systems can implement the protection rules and
3.
Don’t try to analyse the required changes. regulations.
data yourself. Engage
your organisation’s
Business Intelligence unit or
outsource to a team of people who
know what they are doing.
fcmtravel.co.uk Page 7Sources
1. www.forbes.com/forbes/
welcome/?toURL=https://www.forbes.
com/sites/bernardmarr/2015/09/30/
big-data-20-mind-boggling-facts-
everyone-must-read/&refURL=https://
www.google.co.uk/&referrer=https://
www.google.co.uk/
2. Sabre - Travel Manager 2020 report
About FCM
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comprehensive range of corporate travel that sets FCM apart from the rest and
and expense management solutions. We we blend this with innovative technology
have a presence in more than 95 countries and unrivalled access to content to drive
and are regarded as one of the top five the optimum performance of your travel
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world. FCM is responsible for the travel
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