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FCM Travel Solutions Smart Technology in Business Travel

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FCM Travel Solutions Smart Technology in Business Travel 1 2018 2 3 Table of contents 1. Forewords 04 2. Executive Summary 05 3. Concept of digi-smart Indian business traveller 10 4. Key business travel technology trends 15 5. Potential disruptors in business travel 54 6. Enablers for digi-smart travel 58 7. Way forward for a digi-smart future 69 8. Glossary 74 4 Forewords The year 2018 will be the year of embracing In early 2017, KPMG India and FCM Travel Solutions smart technology in business travel. After our first came out with a comprehensive report on the Indian whitepaper on ‘Business Travel in India’, we’re business travel market — capturing various facets delving deeper into the biggest disruptor in travel – of it, including the size, potential, drivers, inhibitors digitalisation and how we’re preparing ourselves to and challenges. This year, we have chosen to explore stay ahead of the increasingly tech-savvy business a niche, however rapidly evolving aspect of global traveller. business travel — technology. This whitepaper on the ‘The Digi-Smart Indian Globally, technology has penetrated deep into business Business Traveller’ will focus on how technology travel practices — from generating a booking request is rapidly revolutionising travel by maximising to expense management and reimbursements. It efficiencies, improving experience and increasing finds a host of applications in travel, including online choice and options for the average traveller booking tools, sharing economy services, travel worldwide and increasingly in the Indian market. analytics, virtual assistance, payments and compliance. Rapid penetration of smart phones, near field Coupled with key enablers of a technology-driven communication, in flight WIFI, faster networks travel experience — including in-flight Wi-Fi, near-field and many such advances are only accelerating the communications and integrated ticketing — these penetration of technology into every aspect of travel. applications are likely to significantly enhance business Self-booking tools, travel analytics, AI, and sharing travel in the near future. economy services are not only here to stay but hold myriad and exciting possibilities for the future. India is also witnessing a gradual rise in the adoption of these technological advancements, which have For the travel industry, this has not only given rise to led to the birth of what we call the ‘digi-smart Indian many opportunities but also challenges that need to business traveller’. These travellers — primarily be addressed. Security concerns, cost effectiveness comprising millennials — are technology-savvy and user acceptance need to be carefully evaluated and progressively seek simplification of travel- while working out the pace and operating process related processes ranging from booking to claims for introduction of any new technology. Reskilling of settlement. This trend is expected to drive the travel employees and an attitudinal shift that embraces ‘the management companies in India to equip themselves new’ are other areas which might have to be worked with ‘smart offerings’, and push the corporate travel upon. managers to adopt the aforementioned technological advancements. Any organisation that wishes to serve today’s digi- smart traveller must align itself with their expectations However, will technology truly change the way and even anticipate them. This whitepaper will help business travel is managed in India? If yes, by when? such organisations understand the needs of their Also, what do travel managers expect from their TMCs customers and make strategic decisions for 2018 and and what can the TMCs do to brace for the imminent beyond based on these insights. changes? With this whitepaper, we set out to answer the aforesaid questions, and explore the concept of ‘digi-smart business traveller’, technology trends in business travel, their enabling ecosystem, as well as some potentially disrupting developments that could transform business travel landscape. Rakshit Desai Jaideep Ghosh Managing Director Partner and Head FCM Travel Solutions – India Transport, Leisure and Sports FCM is part of Flight Centre KPMG in India Travel Group, Australia 5 Executive Summary 6 Growing smartphone penetration and internet accessibility is making Indian business travellers more demanding.. Business travellers who have been at the increasingly veering towards technology for virtually forefront of using technology as part of their all answers for their travel needs. routine work are slowly demanding its extension for their work -related travel. This is leading to the emergence of a new age digi - smart business traveller, which implies “a Growing smartphone, internet and digital technology-empowered traveller, who leverages networking penetration combined with ever- technological touch points and tools to minimise growing plethora of online travel choices encumbrances in his travel journey, improves his/ accessible have made technology part of a her travel experience while also ensuring a safe, business traveller’s DNA. Business travellers are compliant and cost -effective business travel”. Figure 1: Factors driving digi-smart business travel in India Population to comprise of Average work hours/week of 64% millennials by 20211 52 millennial workers in India2 Rank by 2019 vs the current 10th Travel service providers 6 ranking, globally by business enhancing online presence travel spends3 Introduction of the GST to drive Rise of use of one stop GST the need for ‘online compliance’ ‘intelligent’ travel tools ..and expected to drive them towards a futuristic ‘digi-smart travel experience’.. Figure 2: Current journey of Indian business Figure 3: Future digi-smart journey of Indian travellers business travellers Travel request, approval and bookings Travel request, approval and bookings User travel request through TMC makes bookings Travel request Mobile Notebook TMC AI assists user Physical Email SBT as per policy using TMC enabled enabled specific queries Policy check Employee ready provided / internal SBT initiated policy Employee ready and approval for travel SBT check and approval for travel Departure from origin Departure from origin Airport arrival and boarding Book taxi using Airport arrival and e-boarding Book taxi using Mobile app. Hailing Mobile app. Taxi to airport Departure from origin Taxi to Departure from origin airport Arrival at destination hotel Arrival at destination hotel Book taxi using Arrival at hotel Book taxi using Arrival at hotel In flight Wi-Fi Mobile app. Hailing mobile app. and Taxi to connectivity Collect baggage at Taxi to Land at destination hotel destination hotel Stay at destination to departure Stay at destination to departure Mobile app. Hailing Local travel using Check-in at Taxi to Local travel using AI and Verify details Taxi to mobile app. assistance at reception airport Mobile app. Local taxi reception airport Activate “Mobile Electronic key Leave destination User alerted on for check-in mobile app. For taxi room key” allotted room Leave destination (taxi book) Arrival at origin Arrival at origin Airport arrival and e-boarding Airport arrival and boarding Land at origin Land at origin Departure from Departure from destination destination Claims submission to settlement Claims submission to settlement Claim settlement Online expense claim Claim settlement Expense claim submission TMC analysing submission in SBT Offline Online traveller data for process and cost Offline verification SBT enabled verification and approval optimisation and approval 1. “Economic Survey 2013 - 14”, Ministry of Finance, Government of India, February 2013 2. “Millennial Careers - 2020 Vision”, Manpower Group, May 2016 3. “Business travel in India - Emerging Trends and Opportunities”, FCM - KPMG Report, January 2017 7 ..entailing increased usage of technology for a more immersive corporate travel experience. Table 1: Key business travel technologies - concept, value proposition and implications for TMCs Technology Value proposition Value proposition Implications for TMCs • Online based tool where users • Enhance end-to-end travel • Integrate other solutions such themselves make travel bookings visibility as travel analytics and AI etc. enhancing functionality • Users are able to make travel choices • Control cost and increase with little or no human / external • Develop common user SBT for intervention savings SME travellers / business • Based on “Do it yourself” principle • Enhance policy compliance • Offer end-to-end SBT solutions • Integrate GDS, corporate travel policy • Reduce turnaround time to address integration issues Self-booking tool and internal systems such as HR, for end-to-end travel finance, legal etc. making it one-stop management travel management solution • Machine capable of replicating • Give 24/7 ‘touch and • Shift “routine queries” to intelligent human behaviour feel’ with minimal human AI chatbot, enhance travel • Four core tasks - sense, think, act and intervention along with assistant productivity learn real-time assistance • Identify traveller pain points and • Key applications: chatbots, driverless • Track, records and store ‘programme’ chatbot to address Artificial cars, smart devices, virtual assistants travellers’ preferences for them real-time to enhance Intelligence (AI) etc. future use and reference travellers’ experience • Peer-to-peer sharing of travel services • Service available across • Interface between business • Different from traditional renting multiple locations travellers and sharing economy of services like hotels, taxi etc. as • Easy
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