Commentary on August 16th, 2005 New York Times Article
By Soren B. Jacobsen
17 August, 2005

On August 16th, 2005 an article written by Christopher Elliott was published by the New York Times. In this article I was quoted as follows:

Ms. Sullo is one of the lucky ones. Soren Jacobsen, a consultant with ManagementReporting.com, said technology in general, and online travel management companies in particular, are pushing some travel managers out of their jobs altogether. The most vulnerable are those who are slow to adapt.

"There is no future for someone who wants to manage travel traditionally, the way we've always thought of it," Mr. Jacobsen said. "I think people are going to be caught unaware by some of the changes taking place as a result of the online travel management companies. I think the changes are going to hit them like a freight train."

Mr. Jacobsen has a stronger view, suggesting that the old breed is heading for extinction. "Five years from now, it's possible that you could call a large company and ask for a travel manager, and you would be told, 'I'm sorry, there is no such person,' " he said.

What follows is a more detailed version of my views on this matter, which should clear up any misconceptions. I welcome calls from anyone who would like me to elaborate on my position.

In 2001 while attending the National Business Travel Association (NBTA) conference and dining with Doreen Baca, then Travel Manager of Gateway Computer Company, we had an interesting conversation about the future roles of Travel Managers. It started with me telling her that I thought she was the embodiment of what the position of Travel Manager could become. I would love to claim this view as my own, but it was being advanced by Business Travel News, the NBTA, and other enlightened people before I had the pleasure of an introduction to Mrs. Baca. What she had done at Gateway was staggering. Within a month of the roll out of their online booking tool (then called "Book It In A Box") Gateway had achieved roughly 98% usage. They had reduced their dedicated agent positions, once 12, to zero, and overall staffing from 15 to 4 (the 4 remaining employees were responsible for customer service and technical support). Gateway had reduced their spending on travel agency transactions by around 50% and was looking for more.

How had Doreen and Gateway achieved such remarkable turnaround in such a short amount of time? They were organizational leaders. They did not limit themselves to negotiating contracts with airlines, or haggling for reductions on agency transaction fees. They took a holistic view of where their company was going, where the industry was going, and looked for solutions that made sense long term, in or out of the box. They were agents of change in their company and achieved what few, if any, would have thought possible.

In early 2001, I said people like Doreen were the future of Travel Management, and I have not changed that opinion one bit since then. Innovative professional thinkers are going to shape the landscape of the travel industry going forward. Changes are already in progress. There is a measurable shift in the position of Travel Managers into procurement and finance. Their responsibilities are constantly growing and changing. Like Mrs. Baca, Travel Managers of today need to be adept at managing a multitude of vendors, not just travel providers. Online booking companies, ERP companies like SAP and Peoplesoft, various technology providers (like my company, yes, these people are my customers as well) are all examples of relationships that a modern travel manager must be able to maintain. In short, the position of Travel Manager is becoming a more specialized position, requiring a more robust tool set, and with the potential for a far more rewarding career than in years past.

Am I alone in this way of thinking? No, in an August 15, 2005 article by Chris Davis of Business Travel News Carol Devine (outgoing president of NBTA) had this to say:

Four percent of NBTA's travel manager members shifted from reporting to administrative or human resources divisions to purchasing or finance departments. This, too, could lead to greater career-development opportunities for travel managers.

... There's more of a career development scenario in procurement than in administration and HR. There are so many functions in procurement and so many more opportunities for advancement. We have many members that are taking on meetings - when you take on additional responsibility, you see higher levels of titles.

One-quarter of us now report into procurement or purchasing, and 30 percent report into finance or accounting. These reporting structures signal more than a change in the methodology of purchasing travel, they indicate a change in the way companies think about purchasing travel. Travel Management is no longer just about negotiating savings and ensuring that travelers are safe and comfortable. We now manage every component of corporate travel, with duties including controlling costs, centralizing data, driving online purchasing and online expense reporting, mitigating risk, creating and enforcing good travel policy, negotiating and monitoring savings, ensuring good customer service for travelers and more.

I see these changes as a classic case of what happens when you do your job well - people will keep coming back and asking you to do more.

I did, in fact, say that in five years you may be able to call a company and be told there was no such position as a travel manager, because I believe that to be true. There will be companies where the responsibilities and achievements of "Travel Managers" will be far too broad to be limited by that moniker. Will some travel managers lose positions if they do not embrace these new opportunities? Certainly, this is true in any growing profession. Just as I'm sure that a constantly decreasing number of writers are sill using their Smith-Corona's; Travel Managers that are still doing business as they were in the 80's, will be fewer and farther between. The position has matured too much since then. It is flourishing under the ever more watchful eye of senior management, and carving an ever improving niche for itself as a professional career. When I meet people like Doreen Baca I am excited about the future of the profession. I just happen to view it with a title somewhat more indicative of their capabilities and business acumen than Travel Manager.

Soren B. Jacobsen
President - ManagementReporting.com