We’ve been talking about the blurring line between corporate and leisure travel for some time now. But the amount of recent attention on the so-called “unmanaged” set of business travelers, those that sort of fall right in that blur, is astounding.
Examples: Both Orbitz and Expedia have recently unveiled sites specifically aimed at serving unmanaged business travelers (that’s in addition to their regular corporate travel sites). But this somewhat undefined animal can be hard to serve. Here’s how two companies are doing it:
VIEW #1: Think Leisure, Play The Price-Sensitive Card: Unmanaged business travelers typically come from small companies — which often means small budgets. “People sometimes assume that business spend during travel doesn’t matter because the company is paying for it, but a large percentage of these folks are either managing their own budgets or they’re small business owners, so they do care a lot about the value they’re getting,” says Orbitz Worldwide CMO, Randy Wagner. Orbitz’ strategy is to offer the customer the same types of prices they would see when booking leisure travel. “We’ve heard qualitatively that some people don’t like to self-identify as businesses because they’re concerned somehow that they would get a different set of prices,” Wagner tells TDR.
VIEW #2: Think Corporate, Don’t Rule Out Extra Services: When GetThere seeks out potential managed business travel clients, “we do keep an eye on functionality that would bring an unmanaged traveler more readily into a managed program, and that means bringing corporate functionality with a leisure twist to it,” confirms Bev Heinritz, GM for GetThere and senior VP for Sabre Travel Network. Some companies aren’t as strict about their employees following policy, or they will let a segment of their travelers book on low-cost carriers, Heinritz points out. But that doesn’t mean companies with small travel budgets aren’t interested in having employees follow travel policies, Heinritz says. In fact, more and more companies are concerned about security and risk management, which is often “a trigger point for putting a structured program in place,” she says.
You can read more industry analysis of the opportunity unmanaged biz travel offers in the TDR article “Unmanaged Business Travelers — And Their $15B Revenue Stream — Prove A Hot Pick.” Get your free copy by writing to me.
-- Kimberly Gilbert, Managing Editor, Travel Distribution Report