Trip Friction is tClara's way of measuring traveler wear and tear. This unique measure gives travel manaers and HR executives new ways to identify and reduce travel-related turnover among road warriors.

1. Trip Friction™
A Traveler-Centric KPI
Scott Gillespie
Managing Partner
tClara
Travel Data Made Brighter

2. About tClara and Scott Gillespie
 Scott Gillespie is a
leading expert in
corporate travel
analytics, travel
procurement and
Managed Travel 2.0
 Former Founder and
CEO of Travel Analytics
(now Concur), ex-AT
Kearney principal
 MBA, Univ. of Chicago
 tClara makes travel
data brighter
 Pioneer in travel-
related turnover
analyses
 Inventor of synthetic
airfare benchmarking
 Joint venture
between Diio and
Scott Gillespie

3. Where we’re headed
The Leadership Opportunity
The Benchmarking Opportunity
Linking Trip Friction and Turnover
Trip Friction KPIs
Trip Friction™ - Concept and Findings
The Need for New Value

4.  Consolidate TMCs
 Consolidate T&E card programs
 Consolidate travel data and reporting
 Comply with duty of care
 Use KPIs and benchmarking
 80+ % online adoption
 90+ % travel policy compliance
 “Optimize” air, hotel and car programs
After 20 years, best practices for
Managed Travel 1.0 are well known

5. We’ve reached diminishing returns
5
Gillespie’s Guide to Travel+Procurement
1995 2015
High
Value
>
Incremental Value,
Year over Year
Low
The castles
have been
built

6. Solid, safe, enduring
– a valuable base
Immobile,
inflexible

7. value
7Gillespie’s Guide to Travel+Procurement
it’s time
new sources
to find
of

8. 8
not
Castles
Ships
We need

9. Some of you are ready for this now
Rogers Innovation Adoption Curve
16% will adopt early

10. 10
Trip Friction™ Concept and Findings
10
Tough
Travel

11. Travel Policy
5 Star 1 Star
High
Costs
Supplier Cost
Travel Supplier Costs Are
Controlled by Travel Policy
and Procurement
Source: Scott Gillespie

12. High
Costs
Supplier Cost
Traveler Friction Is The Hidden
Cost of Travel. It’s an HR Issue
Source: Scott Gillespie
Human Cost, or
Traveler Friction
• Lost productivity
• Reluctance to travel
• Negative impacts on
recruiting & retention
•Traveler health issues
Travel Policy
5 Star 1 Star

13. High
Costs
Supplier Cost
The Total Trip Cost Is What Matters
Source: Scott Gillespie
Total Trip Cost
Supplier Cost + Human Cost
= Total Trip Cost
Travel Policy
5 Star 1 Star
Human Cost, or
Traveler Friction
• Lost productivity
• Reluctance to travel
• Negative impacts on
recruiting & retention
•Traveler health issues

14. tClara measures traveler wear and
tear with Trip Friction™ points
6-hour non-stop in
Business Class,
arriving home on
Friday afternoon,
after 2 nights away
Trip A
6-hour red-eye flight,
with a 4-hour layover,
connecting on a
regional jet,
both legs in Coach,
arriving home on
Saturday afternoon,
after 5 nights away
Trip B
300
Trip Friction
Points
1,000
Points

15. “My Worst Trip Ever” Contest Winner
15
3 FEB EUG-SFO-LAX, 4 FEB LAX-SFO-EUG, 5 FEB
PDX-DFW, 6 FEB DFW-EWR-BOS, 7 FEB BOS-
SFO-PDX, 8 FEB EUG-PDX, 9 FEB PDX-ORD-FRA,
15 FEB FRA-LHR, 18 FEB LHR-SFO-EUG, 19 FEB
EUG-SFO-ORD, 23 FEB ORD-CLT, 25 FEB CLT-
ORD, 26 FEB ORD-MSP, 29 FEB MSP-SFO-EUG.
Highlights include 7 FEB 1:00 AM - 7:00 AM drive
from PDX to EUG in 1 foot of snow, jackknifed
semis, 8 FEB 10:30 scheduled departure to FRA
cancelled because EUG had no de-icing fluid.
Arrived in FRA at 6:00 AM with only 4 hours of
sleep over three nights -- going right into
client/airline meetings. 25 FEB was my birthday.
“25 Day, 26,000 Miles”

16. Trip Friction Benchmark Categories
16
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Group 2, Low Friction
Group 1, Very Low Friction
Group 3, Fairly Low Friction
Group 4, Medium Friction
Group 5, Fairly High Friction
Group 6, High Friction
Group 7, Very High Friction
Group 8, Extremely High Friction
Trips are scored, then travelers are sorted
by their Trip Friction Scores
Middle 20%
Top 15%

17. Trip Friction Driver:
Nights Away from Home
Trip Friction Benchmark Findings
17
Source: tClara LLC

18. Trip Friction Driver:
Hours on a Plane
Trip Friction Benchmark Findings
18
Source: tClara LLC

19. Trip Friction Driver:
Hours in Economy Seats
(by booking class)
Trip Friction Benchmark Findings
19
Source: tClara LLC

20. Trip Friction Driver:
Traveling on Personal Time
From 6pm to 8am, M-F
Anytime on a weekend
Trip Friction Benchmark Findings
20
Source: tClara LLC

21. Road Warrior* Benchmarks
(*Top 15% of all travelers by Trip Friction points)
21
Selected Trip Friction Metric U.S. Travelers European
Travelers
Nights Away per Month 9.4 6.1
Flight Hours per Month 32.0 15.9
Share of Flight Hours
Booked in Economy Class
82% 66%
Share of Flight Hours on
Personal Time
65% 65%
Source: tClara LLC

22. 22
Trip Friction™ KPIs
22
Tough
Travel

23. Find How Many Travelers
Are in Each Category
Source: AirPlus Trip Friction Benchmark Study, June 2014

24. 24
Compare your distribution to
the Benchmark
Source: AirPlus Trip Friction Benchmark Study, June 2014

25. Trip Friction Key Performance Indicators
25
Firm-wide Trip Friction
Score, where
100% = Industry Average
“Ours is 93%, seven percent
lower than our peers.”
Road Warrior Score,
based on
Top 15% of Travelers
“Ours is 104% - four percent
higher than our peers.”
Individual Traveler
Trip Friction Scores
For tracking, trending and
turnover prevention

26. 26
Linking Trip Friction™ and Turnover
26
Tough
Travel

27. Companies spend
about the same on
travel as
they do on
turnover: 1-2%
of revenues1
1) “Retention of Key Talent and the Role of Rewards”, Scott, Hay Group, June 2012. tClara analysis
2) WorldatWork's "Survey of Bonus Programs and Practices 2014"
The use of sign-on
bonuses is at an
all-time high2
Turnover is a Worthy Problem

28. 28
U.S. business travelers
avoided taking 2.7 trips
on average last year due
to the hassle of air travel¹
International travelers
submit 80% more
health claims than
non-travelers2
1) U.S. Travel Association survey, June 2014
2) Occupational and Environmental Medicine, May 2002
Traveler Burnout Problems

29. 29
Is
too much
travel
hurting your
business?

30. Travel Policy
5 Star 1 Star
High
Costs
Supplier Cost
Source: Scott Gillespie
• Lost productivity
• Reluctance to travel
• Negative impacts on
recruiting & retention
•Traveler health issues
Lowest
Total Cost
Total Trip Cost
Human Cost, or
Trip Friction
The Total Trip Cost Is What Matters

31. Step 1 – Identify two cohorts of travelers
within your firm
P. 31
Use Trip Friction analysis to categorize travelers objectively
Top 15%Source: AirPlus Trip Friction Benchmark Study, June 2014

32. Travel Impact Metrics
Turnover
Engagement Scores
Health Costs
Sales
Productivity
HR
Business
Step 2 - Choose metrics that matter,
and build a fact base from each cohort

33. P. 33
Travel Impact
Metrics
Turnover
Engagement Scores
Health Costs
Sales
Productivity
Customer Satisfaction
High Friction
Travelers’
Differences
+9%
-11%
+7%
-12%
-8%
+15%
Step 3 - Then test for differences
between the two cohorts
HR
Business

34. P. 34
Step 4 - Develop mitigation strategies
for this key group of travelers
Less
Travel
Easier,
Safer,
Healthier
Travel
Trip
Bonuses
Recognition,
Gamification
Support,
Counseling
High
Friction
Tiered Policies Traveler-specific

35. The Very Real Cost of Turnover
35
Sally generates $600K per
year in revenue.
She earns $150K all in;
Her travel costs $70K, none
is client-billable.
So Sally contributes $380K
per year to her firm.
HR knows it takes 4 months
to find and train a
replacement for Sally

36. The Very Real Cost of Turnover
$50K
36
Losing Sally
costs $128K
How much should you pay to
keep Sally from leaving?

37. Sally’s Annual Travel Costs
Sally spends 100
nights on the road
And 300 hours on
planes.
Current
Travel Policy
At $150/RN
=$15,000
Better
Travel Policy
$250/RN
=$25,000
At $120/hr
=$36,000
At $300/hr
=$90,000
$51,000/Yr $115,000/Yr
A Better Policy Costs $64,000 per year

38. Some Good Questions:
38
 Should the firm pay $64K to save $128K?
 What is Sally’s likelihood of leaving due to
her travel workload?
– What does Sally really want?
 If Sally traveled 10-20% less, what would
her revenue do?
– Could you fund some part of the better
travel policy by decreasing the travel
workload?
 Would a better travel policy shrink the time
needed to find Sally’s replacement?
 Would a better travel policy help recruit
better hires?

39. 39
The Benchmarking Opportunity
39
Tough
Travel

40. Four Benefits of Trip Friction Benchmarking
40
1. Puts your travel program into a new and
better context
• How much your firm travels
• How hard your firm travels
2. Measures traveler wear and tear
consistently within and between firms
• Identifies Road Warriors using objective
metrics
3. Brings new light to travel policy decisions
4. Frames the travel-related turnover problem
• Essential to true travel program
optimization

41. Trip Friction Customized Industry
Benchmark Package
 Trip Friction Industry
Benchmark Score
 Road Warrior Index
Score
 Detailed report on all
major drivers of friction
 Controllable vs. not
 Trip Friction scores and
percentiles for each
traveler
 One year
of ticket
data from
your TMC
 No HR data
 Five firms
or more per
benchmark
group
41
We Need: You Get:

42. 42
The Leadership Opportunity
42
Tough
Travel

43. Travel Policy
5 Star 1 Star
High
Costs
Supplier Cost
Source: Scott Gillespie
Lowest
Total Cost
Total Trip Cost
Human Cost, or
Trip Friction
The Total Trip Cost Is What Matters
Must quantify
the red curve

44. 44
None >> Accumulated Trip Friction >> Extreme
Travel-driven
Turnover
High
None
Your Traveler Friction Curves
Can Be Measured

45. 45
Travel-driven
Turnover
High
None
None >> Accumulated Trip Friction >> Extreme
Your Traveler Friction Curves
Can Be Measured

46. 46
Travel-driven
Turnover
High
Begin Retention
Risk Management
None
None >> Accumulated Trip Friction >> Extreme
Your Traveler Friction Curves
Can Be Measured

47. Solving the Travel-Related Turnover Problem
47
 Score all travelers’ Trip Friction for the
last 2-3 years
 HR: calculate turnover rates
 HR and Finance: estimate cost of
turnover
 Business leaders: decide the priority
 Travel, HR and Finance: develop
options, make recommendations
 Business leaders decide; affects
Travel, HR and Procurement

48. Expected Benefits Go Well Beyond Travel
48
 More attractive travel culture
 Better road warrior retention
 Stronger road warrior engagement
 Lower health care costs among road
warriors
 Truly optimized travel program
 Better recruiting results, shorter
replacement times
 Reduction in turnover costs

49. You’re a Good Candidate If:
49
 Your firm has a lot of valuable road
warriors, and retention is a problem
 You need to find new sources of value in
the travel category
 You have access to at least two years of
TMC (travel agency) ticketing data
 Your travel policy is influenced by HR
 Bonus: The travel category reports to HR
 You have a Business Exec sponsor in mind
 You want to become a more valuable
partner to senior management

50. How big is the problem?
50
Finance HR
Business Travel
What are the best solutions?
You!
Travel-related Turnover at Your Firm

51. What we’ve covered
The Leadership Opportunity
The Benchmarking Opportunity
Linking Trip Friction and Turnover
Trip Friction KPIs
Trip Friction™ - Concept and Findings
The Need for New Value

52. 52
Thank you!
52
Questions and comments?
Scott Gillespie
scott@tclara.com
Glad to connect on LinkedIn