Rajasthan and the Taj Mahal

Several hours West of Delhi, Jaipur is situated along a trade route between Asia and Persia and is an important stop – and history proves it. In Jaipur I toured the Amer Fort, after riding up the hill on an elephant, and walked around the Jaipur City Palace, and the amazing observatory at Jantar Mantar; we viewed the Jal Mahal (the Water Palace), and the Hawa Mahal (the Wind Palace). I could see the Jaigarh Fort, but didn’t have time to explore it. My guide introduced me to a local craft center where I was compelled to listen to a series of well-rehearsed sales pitches for rugs and other local goods (it was a terrific break – the artists were extremely talented and the building had aggressive air conditioning). At one point a very serious man said, “these Pashminas are not common goats!” I almost laughed out loud at his lecture. He explained how fine the shaved wool was from the legs, chin and thigh… I couldn’t tell what kind of animal it was from, but he cared deeply and was really excited about teaching me as much as he could in the few minutes we had together.

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Predictably I was challenged to purchase a truck load of rugs and paintings to send to my absent wife. I reminded them that Ghandi carried everything he needed in his head and that I came to India to take memories home; I also worked-in an expression that proved effective, “Maybe someday, but not today.” That evening I walked around the old city and found jewelry makers working on gold and silver bracelets down numerous back alleys – a few answered my questions and showed me what they were working on. Jaipur is a fascinating city; it’s history and architecture rival the richest sites in the world.

Jewelry maker

On to Jodhpur and the Mehrangarh Fort, a massive hilltop fortress in the middle of the Western desert, surrounded by blue buildings. Construction started in 1459, but the most visible portions were completed by 1678, and the most famous gate – Victory Gate was constructed in 1806 by Maharaja Man Singh to celebrate a victory over Jaipur. These cities are only a few hundred miles apart but waged war for centuries. The palace and surroundings, like most I visited in India, are stunning, and dominated by the Islamic architecture introduced by the Mughal emperors who reigned from 1526 to 1857. The Air Force base in Johdpur carried-on the finest local tradition and featured the wreckage of a Pakistani Mig they had shot down earlier – prominently displayed at their main gate. Jodhpur has a noticeable military presence positioned to counter threats from their neighbor, Pakistan, and our progress was held-up several times while we navigated around various convoys.

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Jodpur

I departed Jodhpur and traveled East again to Kishangarh and Roopangarh Fort, built on high ground North of the city. I was the only guest and had the run of the palace. I found a picture of Prince Charles from a visit he made years earlier, and during that exploration I also discovered that a staff member was assigned to turn lights on before I entered rooms, and extinguish them when I left. Just before dinner, and a highlight during the trip, I watched the sunset from the highest point on the palace – the wind blew so hard it drowned out every other sound, and bats left the fort for the night while the entire city lit cooking fires and each home turned on a single lightbulb.

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In the morning we left Rajasthan and continued East into the State of Uttar Pradesh and the city of Agra – famous for the Taj Mahal. During a drive that passed through marble quarries and endless desert, Mahendra commented on one particular town, “very filthy, dirty place…Muslims.” To my untrained eye it looked like any other Indian village constructed on a thousand year old trash pile, full of animals and open sewers. I wondered at the irony of a Hindu earning his living by dragging a Western tourist to heritage sites built by Muslim Maharajas. About twenty minutes later I witnessed my first two-legged highway fatality and the excited crowd that formed out of nowhere. We didn’t need to stop and continued on in silence and I thought about the complicated relationships among India’s people.

Next up, two planned stops at nearby World Heritage Sites before settling in at the Taj Hotel in Agra. The Fatephur Sikri was first; my young guide convinced me to ride an empty tour bus, dismissed my objections and reassured me that it was too far to walk and I would be comfortable. Within five minutes I was trapped behind a human wall a hundred people deep who loaded on before I could ditch the bus. Naturally, once it was full, we waited another three minutes to double the crowd again. The bus groaned up the hill as I jealously watched a group of German tourists enjoying their quarter-mile walk to the front gate. When I rejoined my guide he suggested I give him money to pay the guards so I could make a pit stop before starting our tour. Ha! No, I would not pay to urinate in a country that defecates in public. We parted ways on the spot and I walked around the entire site and took pictures of ruins, trash piles and junkies. It was very rewarding…  Slowly and by day my ignorance evaporated.

The Fatephur Sikri is an enormous site on hundreds of acres. It’s a beautiful place, full of fountains, pools, waterfalls and ornately carved brick and huge domes and arched ceilings. Everyone knows about the Taj Mahal, but there are palaces that took longer to build and cost more that few people know exist. India is amazing.

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Ruins

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Next up – Agra Fort at sunset – an incredible Mughal fortress with views of the Taj Mahal. The palace and grounds were impressive. Especially the symmetrical gardens, stone lattice carvings, running water and fountains. Agra Fort and the Taj Mahal are difficult to describe in words. Even before my close encounter with the Taj Mahal it was obvious why my India-Coach insisted that I visit other cities first. Paint and brick are beautiful, but they’re black and white movies to the 3-D Digital Color created by flourescent marble inlays and gemstones that decorate the Taj Mahal. I was off to my hotel and then a predawn tour at the Taj Mahal the next morning.

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Stunning. I viewed many Mughal Palaces and Fort’s during my ten day visit, but the Taj Mahal is breathtaking. Seeing it from different angles at the first morning light was exciting.

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Somehow that night I managed to get home in First-Class on American Airlines’ Boeing 777-200 service from Delhi to Chicago. It was nice to catch up on my sleep and reflect on the previous two weeks; International Flagship Service was a fitting end to days spent wandering around Royal stomping grounds.

Trip Reports

Trip Planning For India

Planning your next adventure? Consider these suggestions and best practices before you leave home, and let me know if you have other ideas I should add to this list.

  1. Negotiate all itineraries, fees and prices upfront.
  2. Demand no add-on’s while touring (you should have control over every place your guide will take you and your time-line; this includes planned restaurant stops).
  3. Always have a copy of every confirmation number, hotel address and phone number. You will need it at some point. Paper beats digital in most places, especially India.
  4. Insist that your tour company provide a bio and photo of your driver and every guide before you arrive. You will have a much better experience if you use mature, experienced local guides. Veteran guides are more likely to have a good relationship with the Army or Police guarding historical sites and may be able to get you access to areas and features that are off-limits to the general public or help you navigate through heavy crowds quickly via staff entrances or other secured areas.
  5. Always carry 2X more local currency than you think you will need.
  6. Always make change from big bills into useable denominations at your hotel – never change large bills at street vendors or other locations.
  7. Insist that your driver keep doors locked, and leaves separation from the cars ahead of you in traffic and at stops.
  8. Sit behind and opposite your driver. You must be able to make eye-contact with him while riding together. And always wear a seatbelt.
  9. Keep medicine (aspirin, visine, chapstick)/glasses/socks/earplugs/sunscreen/insect repellent/sunglasses/iphone charger/spare headphones/extra pens in your personal bag.
  10. Never take physical keys from a hotel off property – leave them with the hotel staff when you leave. Consider leaving a note for yourself that includes where you’re going, who you will meet and when you plan to return.
  11. Assume insects are harmful – don’t let them bite you. Use insecticide and wear long-sleeved shirts and long pants.
  12. Always ask hotel/restaurant staff to provide mosquito coils if you’re dining outside.
  13. Do not use deodorant and if you must, use a fragrant-free version. This will reduce your attractiveness to many insects.
  14. Stay dry.
  15. Cover open cuts.
  16. Do not drink anything that was not opened in front of you or boiled. Wipe or rinse bottle tops before opening.
  17. Arrange your room to make a clear path to your door in case of darkness/power loss.
  18. Stay hydrated/rested and avoid heavy alcohol consumption.
  19. Be polite, but firm.
  20. Do not accept drinks from strangers.
  21. Do not wear jewelry, fancy watches, etc.
  22. Never have both hands full.
  23. Be aware of your surroundings.
  24. Women should not travel alone.
  25. Women should never use public transportation.
  26. Always keep two extra water bottles with you for emergencies – buy more when you get down to the last two.
  27. If you’re approached by a stranger, expect them to have a partner. It’s not usually the person who approaches you first who is your greatest threat.
  28. Do not spread out your belongings in your hotel or vehicle. Keep your belongings organized and packed as much as possible in case you need to make a fast exit. Additionally – when you keep your room neat and organized, you’re making it easier on the hotel staff to make up your room. They’ll reciprocate – it’s especially helpful when you forget an item and leave it in your room – they’re much more likely to “find” it.
  29. Don’t fall in love with anything you own – be prepared to leave it behind.
  30. Keep immodium accessible (you’ll know when you need it, and when you do speed will make a difference).
  31. Share the same safe combination with your group – someone else may need you to collect your valuables for you.
  32. Carry several “chip clips” in your luggage to keep stubborn drapes closed in your hotel room, or to hang wet laundry.
  33. Never keep all your cash, ID’s, and Credit Cards in the same pocket. Use multiple pockets and spread things around.
  34. Never store your full data cards with your camera, put them somewhere else (but never in checked luggage).
  35. Pack using 1 gallon Ziploc bags. They’re great for all kinds of things, and water-proof.
  36. Carry a number 2 kit: Toilet paper (1 roll); wet wipes (1 pack); baby powder (1 10oz container) – keep it in a single 1 gallon Ziploc bag.
  37. Stow your overhead luggage across the aisle from your seat, where you can see it.
  38. Never set anything down at airports, taxi stands, train stations that isn’t between your legs.
Risk Management Travel Management

Delhi India – A Journey Through Time

There is no greater expression of freedom than to cross borders and visit countries, cities and places for the first time. It’s more productive to learn about property rights, court systems, infrastructure, tax authorities and other systems that define modern life around the world as you pass through it. How does a country pay for school, medical care and retirement? I have always approached travel with a sense of adventure and wonderment and these are fun topics to bring up with locals and other travelers during my trips.

As an Army Platoon Leader security and sanitation were pounded into my head. You could not achieve one without the other and they are both critical to a high quality, sustainable existence. That experience taught me that developed countries must have frequent, consistent garbage removal, clean water, and steady electricity. Without any one of those three, other systems fail and the community cannot compete globally.

During trips to Europe, South America and Asia I would ask people about the most unusual places they’ve visited? The most out-of-the-ordinary, different experience? I kept hearing – “Oh – if you’re looking for different, go to India.” So I did. And it exceeded my expectations in every way. I lived in South Korea eight years after the 1988 Olympics. Infrastructure was defined as “pre” or post-Olympics. The entire country was dominated by three things: craggy mountains, concrete high-rises, and rice patties. South Korea advanced rapidly leading up to the Olympics and into the present day. It is a modern country (even with occasional ox-carts, honey-dippers, and other features from Korea’s past). Not so with India.

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India isn’t a country so much a collection of States – each with their own identity, languages, customs, traditions, and governments. British Colonial rule established the framework for present-day India, but the British couldn’t conceal India’s identity.

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Indians suggest that you spend months in India to experience the real place; as an experienced traveler I concede that it would take weeks to experience the whole place, but few visitors have that much time. My trip was an exploration into the Western desert in the North, to Rajasthan. Rajasthan is the place Steven Spielberg must have used as inspiration for Indiana Jones; you’ll feel like you stepped into a movie as soon as you leave the airport in New Delhi. The ride to my hotel was incredible – what do you get when you cross a traffic jam with a zoo? Camels, elephants, cows, monkeys, rickshaws, and a huge assortment of cars, trucks, tractors and buses merged together without any thought about lane markings or traffic rules.

Intersection in Delhi

Delhi is complicated – I was amazed by the care and expense that went into building monuments and government offices, but disappointed by how neglected they were. On my first day I walked past countless embassies and around the government buildings until I reached India Gate. It was a long walk, but I enjoyed taking in details that I would have missed from a car. Everyone I met seemed friendly. I stopped to watch kids playing cricket and even spotted a young girl riding a ten-speed bike that was way too big for her. She rode with her legs straddled between the lower frame bar and held the top bar against her side while she peddled. That was the only picture I regret not taking.

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Delhi Spice Market

My tired feet forced me to ride the subway from Connaught Circle to Jama Masjid where I was hijacked by more than one unscrupulous rickshaw driver. The cabs weren’t much better, but it beat walking. It’s worth warning that if you’re on foot, watch out for people on scooters and motorcycles who make it a sport to hit you with their handlebars or mirrors – you must be alert; I enjoyed playing along like a clueless pedestrian and would step out of the way a second before they passed me.

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In Delhi I recommend visiting the Red Fort and Jama Masjid along with the Delhi spice market. They are very close together and easy to see in two or three hours. In the afternoon I enjoyed seeing the home were Ghandi spent his last days, and Muyaman’s Tomb and the Lotus Temple. There are few places where you can visit multiple World Heritage Sites in one day, but India is full of them. After spending the first two days exploring Delhi – New and Old before I was ready to go West with my driver, Mahendra.

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He was equipped with a ubiquitous white Toyota crossover (half station wagon, half mini-suv) with blue pin-stripes that marked it as a tourist car – the paint job acted like a glow-in-the-dark target that attracted offers for every imaginable product. Guests are expected to ride in the back, but I moved to the front seat to improve my view and quickly learned how to snap pictures on the go – there’s so much craziness to see! I was amused to learn that every State requires drivers to pay a road tax once every month in person when they cross into the territory. Since my visit straddled two months I enjoyed people-watching from the highway tax office parking lots at every border. India gives the Griswold’s a run for their money.

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Back on the road the next adventure would always appear in the distance. This one caught Mahendra’s attention and he quipped, “so dangerous”. I agreed, but you’ll soon discover that people adapt to their situation and surroundings very well. I caught myself repeating “welcome to India” as a mantra for every unexpected scene…and I said it a lot.

Dangerous

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The unvarnished truth – India is a difficult place to visit and more difficult to navigate, but it’s full of once-in-a-lifetime experiences and rewards patience, tolerance and mild discomfort. Once I linked-up with my driver many problems were solved. Mahendra drove the car, and coordinated with local, English-speaking guides, who met us at local landmarks, and then give me a guided tour for the day. I had mixed experiences with the guides but developed a rule of thumb that seemed to hold up throughout the trip. Guides belonged in one of two groups – either older men who spent their entire lives as guides and made a good living at it, or younger men, college aged, who used it for fast cash from a summer job. The problem with the later group was their propensity to manufacture history on the fly that contradicted the three guide books I reviewed every evening, but it took a bad one to really appreciate how knowledgeable and professional India’s experienced guides are.

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Over the next week we drove more than a thousand miles during twenty-five hours on the road and visited many incredible places and met unforgettable people.

Trip Reports

Measuring Web Site Quality With Net Promoter Scores

Mike Premo, ARC’s President, gave a presentation during the CTDA conference in Lake Las Vegas last week. Mike showed us how ARC has turned to the Satmetrix Net Promoter Score to measure their performance. It turns out ARC’s score is a 70 – which basically means a lot of their customers are raving fans. See more about other companies’ scores here.

The Satmetrix Net Promoter Score is gaining traction as a way for retailers to measure key performance indicators that lead to increased profitability. I like it because it’s simple and offers powerful insights about your company’s performance. Keeping in mind the profit equation is profit = revenue – costs, then NPS can help.

NPS

Let’s look at the online retail world where site bugs can have an outsized impact on NPS, but are difficult to quantify in other ways. Bugs lower revenue. When they affect a Website’s shopping or check-out paths their impact will show up initially as lower conversion rates and higher bounce rates. Fatal errors and other bugs that annoy customers to the point they shop elsewhere will also reduce visitor numbers to your site over time. Since it’s difficult to measure this effect it’s easy to ignore. Online Travel Agencies (OTA’s) face another problem – interactions across different lines of business. Visitors who start their search for a particular product, flights, may end up purchasing a hotel or package (usually flight plus hotel).

For this discussion the site architecture for flights, hotels, packages and cruises is designed as discrete shopping paths with a bespoke checkout process that ties into consolidated back office accounting and reporting systems. Great online marketers design intuitive paths that minimize customer frustration, but bugs can undermine every designers’ best efforts. Customers will tolerate errors in their own way and may forgive slow response times but bounce when an ad flashes at them. Once the customer chooses a product, an error during checkout, or a price jump (we’re talking about travel here) can drive customers away before the transaction is complete and these problems add up. How much do bugs cost?

Most Web sites track numerous statistics and site performance metrics to uncover friction points or areas to improve, but these reports often miss interactions across paths or temporal changes. I’ll set up an example and describe several assumptions to show you how. For simple math, let’s assume that Hotel and Flights each drive 40% of an Online Travel Agency’s site traffic, while Packages and Cruises account for another 10% apiece. There are many use cases, but most leisure travelers who are flexible about their destination and timing will search for flights fist, and then hotels. This experience suggests that the ratio of flight searches to completed checkouts is higher than it will be for Hotels. Moreover, once a customer settles on a specific flight, they’re able to begin shopping for a hotel. But what if the customer experienced a major bug during checkout? They’ll leave the site and never become a hotel shopper. In this case the poor experience with the flight path caused the customer to search another OTA and they never showed up as a visitor in the hotel path.

Bugs are typically rated by their frequency, severity and location in the purchase path. Frequent, severe bugs that occur during payment have the greatest effect on financial performance since the customer was extremely likely to complete their transaction. Digging deeper you’ll find a second layer that’s often missed too, since the customer has already invested a lot of effort in the process, they are more likely to bolt later in the path to avoid finding the same bug the next time around. Sharp marketers must estimate this behavior to gain better visibility over a particular bug’s impact. Managers who identify a bug that occurs during 1% of visits when typical conversion is 100% would incorrectly assume that the bug will lower conversion by the same amount. That’s wrong from the start if, as most travel sites know, buyers visit to shop many times before they make their purchase, so errors in early parts of the path that frustrate visitors and interfere with shopping will drive shoppers away and site visitors will decline over time, thus conversion rates may decline by 1%, but shoppers may decline 10% too, which would compound the losses and be indistinguishable from other problems.You might spot this by tracking changes in the ratio of new visitors to returning visitors but this metric is affected by new browser and device releases and doesn’t provide the detail you need.

In the previous example as one line of business drives a customer away permanently, than visitor numbers in the other lines of business will experience a steady decline. Once again the bug’s effects are invisible in the conversion rates throughout the checkout path, and it will be unclear why direct visitors and returning visitors have declined. The OTA will need to spend more on paid search to drive ever more new customers to their leaky bucket.

This thought exercise demonstrates that it’s important to measure bugs across the enterprise and the Site’s 1-N list should be discussed widely and in the context of corporate strategies about staffing, and marketing spend. The Net Promoter Score can rescue Travel Agencies from internal bug lists and give you actionable intelligence about the ways you might be preventing sales. NPS is independent from the hidden correlations and mountains of data that overwhelm online marketers and site-health professionals each day. Fix the biggest problems and watch your revenues and profit climb.

For more information about these topics check out Avinash Kaushik on twitter @avinash Author, Web Analytics 2.0 & Web Analytics: An Hour A Day | Digital Marketing Evangelist, Google | Co-Founder, Market Motive; Bryan Eisenberg @TheGrok, Marketing Optimization & use the Data expert (small or big data), keynote speaker & New York Times best selling author. Austin, TX  bryaneisenberg.com; and great dashboard ideas: Juice, Inc. @JuiceAnalytics “We craft applications that help people understand and act on data.” Reston, VA · juiceanalytics.com

Sales & Marketing

Travel Risk Management and Trip Safety

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Originally published at Cornerstone Information Systems’ “In Your Corner” blog.

Duty of Care is the idea that Corporations are responsible for the security of their employees during travel and when engaged in activities that support the company’s interests. The European Union’s Duty of Care Act is the most prominent regulation in Europe to codify this requirement. The EU spells out how companies should behave regarding employee safety and security, but the United Kingdom took this a step further with the UK Manslaughter Act that allows companies to be held criminally liable for harm that come to their employees. The regulation applies to UK employees abroad, or the non-UK Company employees while they are in the UK to conduct business. These regulations jump-started the Duty of Care industry in Europe and North American Corporations are still playing catch-up.

Duty of Loyalty is the concept of employee compliance with their employers’ efforts on their behalf, while Duty of Care describes the set of behaviors, planning, and actions companies must take to safeguard their employees. When a company makes a car service available, or requires employees to meet minimum safety guidelines, Duty of Loyalty is the force that compels an employee to meet those standards. Companies that go out of their way to create a high quality of life during employee travel and are proactive about serving travelers on the road will generate much higher loyalty. Companies undermine their employees’ loyalty through cumbersome or overly-restrictive policies and should strive to strike a balance that rewards loyal behavior while not driving the employee to another company.

Personal security in the real world starts with your employees. It’s great to have Navy Seals and Special Forces consultants demonstrate the latest hand-to-hand combat techniques, and defensive driving in up-armored Suburbans with run-flat tires. But…security designed for the CEO does little to help the intrepid sales person walking through the commercial district in Buenos Aires or London with a Starbucks coffee in one hand and the latest smartphone in the other.

There are simple principals that, when followed diligently, can increase your employees’ safety hundreds of percent.

1. Pay attention to your surroundings. Make eye contact with people around you. Do not text, read email or walk down the sidewalk while participating in a conference call via a Bluetooth headset. You must appear alert.

2. Never read a map in public. Find a hotel lobby, retail store or restaurant to determine where you are and where you’re headed.

3. Do not wear jewelry or flashy watches. Men should avoid cufflinks. Your shoes, hairstyle, and clothing will already set you apart during international trips so reduce the other signs that mark you as an easy target.

4. Tell others where you are going and about your daily plans.

5. Before your trip, or as soon as you arrive, send a note to your corporate travel team to let them know which hotel you’re staying in (if you didn’t book it through your corporate booking tool).

6. If you walk, don’t walk alone, especially after dark. Leave a note to yourself at the front desk that contains information about where you are going or who you will meet. This will give investigators a head start if you don’t return.

7. Never leave a hotel with a metal room key. Leave it with the concierge or front desk to let them hold it for you while you’re out. Don’t let the staff give you a keycard sleeve with your room number printed on it to hold your keys.

8. Check in on foursquare periodically to give your friends & family location information (do not do this if you are at risk for a targeted crime).

9. Keep your passport, credit cards, and other ‘chipped’ items in a faraday cage (a special wallet or bag designed to remove their ‘electronic’ signature so they are invisible to card readers).

10. Know local customs and signs that will get you in trouble. Some well-known advice includes carrying a “mugging” wallet with at least $100 USD in Argentina and Brazil, but in China you should increase your cash to >$300 in case you need to pay for emergency medical care.

11. When you use cabs, always sit diagonally from the driver so you can see his eyes in the mirror. If he notices something behind you that doesn’t look right you’ll pick up on it immediately.

12. Never ride in a cab or car at night with the interior lights on, and always lock the doors.

13. For trips where you will use the same driver or in high-risk areas, you should insist that the driver leave ½ car length between you and the car in front of you at stoplights or stop-signs; on wider roads, the driver should stay in the outside or curbside lane, but never the middle (the driver should always have enough room to maneuver around other vehicles – in an emergency sidewalks and medians are fair game).

14. In high risk locations you should also insist your driver use a “box” maneuver instead of making turns in front of oncoming traffic. In countries with left-hand drive (US, Germany, France) when you want to turn left, the box method requires you to cross your intended road, then execute three right-hand turns around the next block. This will put you on course without exposing your side of the car to oncoming traffic while it increases the probability that you will identify anyone who is following you.

Steps for travel management teams:

1. Establish policies to protect travelers in high-risk locations or mission essential personnel anywhere. Distribute information about potential threats several days before travel.

2. Publish and disseminate information about after-hours service to support medical or travel emergencies and include phone numbers for international access. This could include a twitter account and hashtag travelers should use when they need help. Example (@YourCompany911, or #YourCompanytravelassist).

3. Publish your security team’s phone number and distribute it with every itinerary.

4. Develop an easy way for travelers to add passive segments (hotels booked outside your booking tool or agents). Use this as a KPI to measure Duty of Loyalty.

5. Every manager is responsible for employee safety, including trips between sites that don’t involve the travel management group. Travel Management and Corporate Security should work together to provide reports and business reviews that cover travel risk, employee health, on-duty accidents and ‘near’ misses to a steering committee that includes representation from HR and Legal and other operating divisions as necessary.

Call us if your program needs help to implement pre-trip approvals, reporting, notifications and agent and employee training.

Risk Management Travel Management

A week in New Zealand (Part II)

New Zealand is easier to see than write about so this post includes more photos and less text (see part I here). Auckland welcomed China Southern Airlines’s Airbus A380 and our delegation with a water-cannon salute as we taxied to the terminal. A cool start to a fantastic trip.

New Zealand is dominated by two islands Southeast of Australia. The major population centers are on the North island, but the grand scenery made famous in Peter Jackson’s Lord of the Rings trilogy are found on the South Island. Even now New Zealand’s location offers protection from over-development and a property law called “the Queen’s Chain” a regulation that set aside a strip of land sixty-six feet wide along every beach, river and large lake for public use. This allows residents and visitors to use beaches and waterfronts for camping and other recreation. The idea is deeply embedded in New Zealand culture and a lot of the pop icons I came across reflect how important outdoor activities and water sports are to New Zealand.

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New Zealand is a new country; the oldest residents claim ancestors from the Maori, Polynesians who settled New Zealand more than 700 years ago, and the European influence arrived in 1769 with English Captain James Cook’s first visit.

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James Busby’s home, The Treaty House (above), is where the Waitangi treaty was signed to establish New Zealand as a British Colony in 1840.

Our group arrived on a Monday evening and checked into the Skycity Hotel and Casino in downtown Auckland. The hotel is situated on a hill in the central business district and has excellent views of the harbor and surrounding city. Its location was an easy walk to restaurants and bars along the waterfront and a short drive to most attractions. For efficiency our delegation was divided into manageable groups and each was assigned to a single tour bus. Each group had a different itinerary which reduced the disruptions that would occur if four hundred people showed up to every attraction.

Auckland from Sky Tower

Auckland from Sky Tower

Things to do and places to visit: We used Great Sights New Zealand as our tour operator. They offered an extensive list of day-long and overnight activities in and around Auckland and the North island. We managed to do most of them and all of us enjoyed the Bay of Islands tour and Hole-in-the-rock. Another favorite was our Auckland Harbor sailing which included a close-encounter with the Emirates Team New Zealand yacht preparing for the America’s Cup Race in San Francisco in September, 2013. Our tour at Kelly Tarlton’s aquarium, home to the original shark tunnel was outstanding, and only fifteen minutes from downtown. Even our hotel got in on the action since it featured Auckland’s most prominent landmark, Skytower. The tower was an excellent place to view the harbor and many of the numerous volcanic domes around the city. Our last tour included a visit to Hamilton, and the glowworms in the Waitomo caves. They’re amazing creatures and well worth the beautiful three-hour drive South of Auckland. It’s also worth saying that we enjoyed excellent food everywhere – from fresh sushi at the fish market to perfect fillets and local dishes in a variety of restaurants around the port.

Dolphin Cruise

Dolphin Cruise

Bay of Islands tours depart Pahia near the Waitangi Treaty Grounds North of Auckland (pictured above). The Great Sights boats navigate through the Hole in the Rock (below).

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New Zealand is a unique blend of people, geography, history, location and weather; you could travel a long way before you find anything else like it. I can’t wait to visit again and next time I’ll check out the South island.

Trip Reports

China Southern Airlines A380 flight to Guangzhou

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China Southern Airline Company invited me to attend their 2012 partner conference in Auckland, New Zealand. This gave me a chance to learn more about Asia’s largest carrier and the world’s sixth largest. Conference participants were invited to connect via the new Baiyun International Airport (CAN) in Guangzhou, China enroute to Auckland (AKL). Since my journey started in Dallas (DFW), I transferred to China Southern’s daily Airbus A380 service from Los Angeles. This gave me time to explore their new plane and three days in Guangzhou and the Pearl Hotel (owned by the airline and available to passengers with tickets in Business Class and First Class on International flights).

The short notice required a call to CIBT Visa services to add pages to my passport at the US State Department’s processing center in Miami, then on to the Chinese Consulate in Houston for a six month, multiple-entry, business visa to enter China and join the other delegates.

My American flight to LAX was uneventful, and the connection was long enough to visit the Admiral’s Club at Terminal 4. I recharged, enjoyed the refreshments and updated the settings on my Iphone before the short walk to the Tom Bradley Terminal.  The International Terminal at LAX is undergoing a renovation, but still provides a convenient connection from the domestic terminals. Once past security travelers with lounge access will find a quiet atmosphere, inviting finger food and a well-stocked bar at the China Southern Airlines’ multi-airline lounge. After a quick look around it was clear that good weather and the additional jumbo-jet gates to handle A380’s and 747-800’s will maintain LAX’s position as one of the busiest airport in the world (6th) and North America’s favorite gateway to Asia.

The Airbus A380. An incredible airplane. Since all seventy, read Seven-Zero, business class seats are on the upper deck, you’re not faced with a simple, “which side of the plane are you sitting on” question from the flight crew. Before the gate staff release you to approach one of the three jet-bridges they asked if my seat was upstairs or downstairs? After climbing the ramp to a jet-bridge that led to the upper-deck I noticed the view over the Boeing 777 at the next gate. The fuselage is almost 28′ high and 34′ above ground level. It was a long way down from the doorway.

Flight to Auckland 001

The interior was well-designed. China Southern’s business class seats are very good. The 1-2-1 configuration offers aisle access to every seat and adequate privacy between seats. They’re staggered so the foot-well for the seat behind you is under your table and storage bins. The best seats are at the windows with a ‘table’ between the aisle and the seat, but even the least desirable seats were good. The fabric-trimmed seats are comfortable, and open to a level and flat position for sleeping. They provide lots of personal storage, power ports for different plugs and a USB cable, and a large LCD screen with an excellent movie selection (I spent sixty hours on-board over ten days and only made it through half the movies I wanted to watch). The amenity kits included all of the items you would expect to find: a toothbrush, toothpaste, mouthwash, comb, perfume, lotion, lip balm, earplugs, and an excellent eye-shade with two straps. They also provide a comfortable, two-piece, pair of dark blue cotton pajamas to size, trimmed in dark-red, and matching slippers. Many of the travelers in my cabin took advantage of them for the sixteen hour ride.

Onboard service was excellent – the menu included a mix of familiar Chinese and Western dishes offered in several courses that didn’t leave anyone hungry. Mid-flight snacks and beverages were available on request in the galley or self-service from the forward bar (yes – there is a bar, no lounge,  but a good selection of wines, liquor, fruit and chocolates). After the dinner service I descended the grand staircase to the forward cabin to start my self-guided tour. First stop, the superb First Class seats, actually very private ‘compartments’ in the nose on the lower deck. Next, three sections containing typical Coach Class 3-4-3 seating. The seats reclined well, but self-service snacks and personal LCD screens were competing for recognition as the most popular feature. Mission accomplished I climbed the spiral staircase in the tail and passed through the coach cabin on the upper deck before stopping in the business class galley for a snack before I started my next movie.

The Westbound flight arrived in Guangzhou on Saturday at 5AM local time two days after the midnight departure from LAX. It was strange to spend sixteen hours in the dark, but the long flight left me ready to tackle a tour in Guangzhou after clearing immigration and my morning check-in at the Pearl Hotel.

Baiyun International Airport – Shares features with other contemporary greenfield airports, its massive and well-designed. Passenger movement is easy and signage is clear. Open for only a few years they are already working on a third runway to increase capacity. There are dozens of shops and restaurants and every service you would expect to find in a major International hub. The modern Guangzhou Metro is located in the central terminal and downtown is accessible with luggage in tow.

The Guangzhou Metro rivals any of the smoothest, most comfortable subways in the world. The modern gates, new trains, continuously welded rail, and digital moving-maps displays in the cars combined to create a stress-free travel experience. People were friendly and courteous, but the trains did fill up later in the day, and service ended earlier than I was accustomed to especially compared to London, or New York schedules.

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Although Guangzhou is a large metropolitan area the new subway doesn’t have closely-spaced stations. I covered considerable distances by foot and used cabs to move between attractions in the city. Cabs were inexpensive, ten Yuan for the first 2.5km translated to roughly $2 for the first 1.5 miles. They didn’t charge extras for more passengers, but you should insist they start the meter once they’re moving. Additionally, I found that few drivers spoke English, so I frequently used a tourist map from my hotel to explain to drivers where I wanted to go.

Where to go. New Town, is an incredible collection of modern buildings, arenas and sporting venues with a large mall through the center (above and below ground). I found thousands of people everywhere I went, but New Town was a great place to start. When I finished there I took a train to the South side of the Pearl River to view the city from the Canton Tower. The tower was a great place for perspective on the enormous city. Next I took a cab to Beijing Road Shopping Mall for a quick look, then another cab to the Chen Family Temple Compound (Guangdong Folk Art Museum), and finally the Shangxiajiu Pedestrian Street in the Liwan district.

Flight to Auckland 007

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Shangxiajiu Pedestrian Street above, and a shoe store in Liwan below.

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Guangzhou is one of the busiest retail cities in the world – it’s full of malls and markets and hosts several markets for corporate buyers throughout the year. There are entire streets dedicated to a single item – I found the belt street, framing shops, and several extensive jade markets. The back alley shops were the most interesting for me – I could have stayed a week to explore the neighborhood markets in Liwan. I did return the next day, and again the following weekend with several colleagues, but Sunday evening, I joined the China Southern Airlines Company delegation at the Pearl Hotel for our flight to New Zealand.

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A sidewalk restaurant a few blocks west of Beijing Road (above), and a jewelry-maker near the Jade Market North of the Shangxiajiu Pedestrian Street (below).

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In part 2 I’ll describe Auckland and the surrounding sites.

Aviation Trip Reports

Duty of Care and Duty of Loyalty

Duty of Care is the idea that Corporations are responsible for the security of their employees during travel and when engaged in activities that support the company’s interests. The European Union’s Duty of Care Act is the most prominent regulation in Europe to codify this requirement. The EU spells out how companies should behave regarding employee safety and security, but the United Kingdom took this a step further with the UK Manslaughter Act that allows companies to be held criminally liable for harm that come to their employees. The regulation applies to UK employees abroad, or the non-UK Company employees while they are in the UK to conduct business. These regulations jump-started the Duty of Care industry in Europe and North American Corporations are still playing catch-up.

Duty of Care describes the set of behaviors, planning, and actions companies must take to safeguard their employees. Duty of Loyalty is the concept of employee compliance with their employers’ efforts on their behalf. If a company makes a car service available, or requires employees to meet minimum safety guidelines, Duty of Loyalty is the force that compels an employee to meet those standards. Companies that go out of their way to create a high quality of life for during employee travel and are proactive about serving travelers on the road will generate much higher loyalty. Companies undermine their employees loyalty through cumbersome or overly-restrictive policies and should strive to strike a balance that rewards loyal behavior while not driving the employee to another company.

Risk Management Travel Management

Do You Know How to Maximize Hotel Savings?

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Travel Management

Loyalty Programs that Work

Background

Contemporary loyalty programs generate power by transforming dreams into action. The Marina Bay Sands hotel pictured above epitomizes the aspirational destinations customers enjoy through participation in a travel loyalty program. Great loyalty programs inspire customers to choose the host company even when less expensive alternatives exist. So when the search for profitable customers drives you to create a loyalty program, here is how to do it right.

There isn’t a single recipe, but certain ingredients are known to taste better and every compromise you make to the set of principles outlined here will reduce the number of people you can influence. When applied carefully these principles will improve customer engagement and lead to higher profits and lower costs. Exceptional loyalty programs offer meaningful value. That value is accrued seamlessly without obstacles. Great programs are transparent and customers understand them intuitively; they eliminate friction at every turn.

Loyalty is measured by the number of customers you inspire to select you over and over again. Loyal customers spend more than average customers, they do it more frequently, and they’re more likely to stick with you after a bad experience. Your Customer Relationship Management team has segmented your customers thoroughly and you know how much your best customers are worth, and numerous white-papers and empirical research conclude loyal customers are responsible for a disproportionate share of business profits. But how do you inspire customers to remain loyal? More importantly, how do you convert ‘good’ customers to behave more like your most profitable, loyal disciples?

To answer those questions and for a thorough understanding of the loyalty space its worth exploring consumer and business loyalty programs including American Airlines’ AAdvantage program, Delta’s Skymiles, the Citibank AAdvantage credit card, Capital One cards, Starwood Preferred Guest for Business, Starbucks Rewards, and a host of business-to-business programs designed to engineer loyalty or drive customer retention. I’ll focus on travel industry programs and a few non-travel schemes.

History

Loyalty programs have spread to include everything from hotels, rental cars, sandwiches, haircuts, oil changes, and home mortgages. Many of the largest programs allow customers to transact with partners on both sides – earn and burn. Before Capital One credit cards, AAdvantage Miles and AMEX Rewards Points, companies rewarded consumers with “green stamps” from Sperry and Hutchinson (S&H). Greenstamps were literally stamps awarded to customers at the point of sale for a variety of behaviors. They started in 1896 and continued through the mid 1980’s. Retailers, supermarkets and other retailers purchased “Greenstamps” from S&H to issue to their customers and once the customer accumulated enough stamps they would redeem them for products from an S&H catalog. At their peak in the 1960’s S&H’s reward catalogs were the most widely distributed publication in the United States, while they issued more than three times as many stamps as the US Postal Service.

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By 1978 competition following deregulation of the airline industry and the widespread use of more powerful computers supported expansions in airlines’ sales and marketing programs. In 1981 American Airlines launched the AAdvantage frequent flyer program (followed closely by United Airlines) and a few years later added a co-branded credit card product with Citibank. The frequent flyer program gave people a chance to accumulate credits quickly, while the Citibank AAdvantage card offered another way for less well-traveled consumers to enjoy the benefits of cheap flights. Throughout its history, American’s AAdvantage program had the highest enrollment and member participation rates among frequent flyer programs and loyalty credit cards. Over the past decade American’s partners have purchased more than $1 billion annually to distribute across 50 million members making AAdvantage one of the most influential contemporary consumer loyalty programs. Mergers have driven Delta’s Skymiles and United’s Mileage Plus programs ahead recently, while global alliances including Oneworld, Skyteam and the Star Alliance expand program reach to customers who may never step foot on a US or European owned aircraft.

Airlines operate ‘anchor’ programs that drive scale and reach that few retailers can match (McDonald’s and Starbucks are notable exceptions). The most successful travel programs have powerful, exclusive relationships with consumer banks. Those banking relationships are driving the next wave of business-to-business loyalty programs and the future looks bright.

Value Proposition

Loyalty programs must be meaningful – the accrued value must be worth managing. Customers must be able to calculate value intuitively. Earning behavior must be easy to describe, easily understood, and programs should give credit for wide-ranging transactions, not just a narrow band of profitable behavior. This is distilled to Simple, Seamless, and Comprehensive.

Global Airlines run the largest programs and typically offer a free domestic coach ticket for 25,000 flown miles. An average round trip is 2,500 miles, so travelers generate 10% of the award value from each trip. That’s a good value trade-off. Travelers who also spend $25,000 on an airline credit card have an easy way to earn two award tickets every year.

Effective loyalty programs drive customer behavior. They reward profitable behavior – they are structured to generate more frequent, higher value business from program participants. So why doesn’t everyone join your program? A look at the airlines reveals that about 50% of all passengers do not belong to the airline’s program. Customers participate in programs that are personally relevant. The public is inundated with offers to join various programs, but they will not participate unless they’re offered enough value to justify wallet-space. Marginal Airline offers end up in the trash while a favorite restaurant makes the cut by offering a free entrée every tenth trip.

Currency

Currency choice matters – it must be intuitive and the average customer should be able to calculate the currency’s value and identify the activity or behavior required to earn common awards. Consumers get it when their barber issues a card that requires ten visits to earn a free haircut. Simple, seamless, comprehensive.

The earliest airline programs called their currency ‘miles.’ Miles are intuitive – when a traveler flies between New York and Los Angeles – they’ll earn one mile of currency for each mile in the air. That’s 2,472 miles each direction in this example. Miles are the basic building block – they’re analogous to a penny. Once you ‘earn’ 25,000 mile you can redeem them for a free coach ticket (treating miles like pennies is equivalent to $250 value). Loyalty credit cards lean towards ‘Points’ and a typical value is one ‘point’ for every dollar spent. The pure credit card programs often offer travel awards as a redemption option so a currency that converts easily to ‘miles’ makes it simple for most consumers to adopt the ‘point’ system and it gives them confidence about an already well-understood earn and burn structure. In the largest programs points and miles are equivalent and fungible – it’s like a foreign exchange system, you can often trade airline miles for the same number of hotel points.

In recent years other airlines, particularly the low cost carriers adopted segment based currencies – Southwest Airlines Rapid Rewards famously offered a free round trip ticket every time a customer flew sixteen segments. It’s easy, but customers could earn a ticket after purchasing just three trips if the routing required double connections (three segments each way). The other end of that spectrum is the customer who bought eight round-trip tickets for non-stop flights before earning the free ticket.

Southwest’s program didn’t seem equitable, so Southwest updated Rapid Rewards to issue ‘points’ based on two variables – the type of ticket and the price. Now customers earn six points for every dollar spent on Southwest’s “wanna get away” leisure fares, while it takes 6,000 points to ‘buy’ the same type of ticket. A quick calculation reveals free tickets are available after spending just $1,000. It’s a good system, but it leaves program players shaking their heads to calculate earn and burn values quickly – members need to read their statements carefully.

Companies that offer separate programs for consumers and businesses should think twice before they create parallel currency and banking systems for each type of customer. Specifically, many domestic airlines offer consumers mileage-based currency through their frequent flyer program, while offering companies a spend-based, point currency in their business rewards program. A review of award menus at United and American reveals similar awards are offered through each program, but the redundant systems increase costs and management workload.

An example on the hotel side can be found in Starwood Preferred Business (SPB) program; SPB is integrated with Starwood’s Preferred Guest program and can be managed in parallel and through the same systems – this arrangement reduces the cost and eliminates currency confusion since both programs payout in similar fashion – the traveler accrues points in their individual program, while their employer accrues points in the Starwood business program. This co-mingling makes it easy on the front-desk staff too and the entire company is aligned with the program messaging.

Companies can manipulate value on both sides of the ‘earn and burn’ equation, so consumers need to be familiar with program rules on both sides – the less fine print the better. And don’t neglect cash controls – management often overlooks the cash value of their awards or loyalty currency. Robust controls must be implemented to ensure employees don’t have the ability to give points or awards away without comprehensive tracking and reporting.

Awards

Give ‘em what they want! If you sell widgets because people value them, it goes without saying that widgets should be on the award menu. In fact, your award menu should include ‘starter’ widgets, widget covers, widget ‘bonus-packs’ all the way to up ‘premium’ widgets. Airline awards begin with highly restricted, long advance purchase, mid-week, domestic, coach tickets, and move up to last-minute, international first-class, around-the-world fares. A collection of ancillary benefits are available too – including lounge passes, upgrades, cash plus program credit, reduced fees and other special awards. All priced in loyalty currency.

Hotel award menu’s include rooms, upgrades, all priced in ‘point-based’ currencies tied to spend and room-nights. Another popular option for larger hotel programs allows point transfers into airline miles.

“Earn and Burn”

Program participation must be simple, seamless, and comprehensive.  Loyalty program members should be able to attach their membership numbers or customer identification to their transactions easily. Their purchases should be tied to online profiles or a barcode or a RFID membership card. Companies should take action so members don’t need to remember their member numbers and, if they do need to remember them, companies should create as many opportunities as possible to add the number throughout the purchase or use process. Effective programs make it easy to claim credit long after the purchase.

Avoid obstacles that reduce participation. Awards must be meaningful to the customer – in its simplest form awards should have the following qualities:

  1. Meaningful
  2. Easy to earn
  3. Easy to burn
  4. Supported by seamless customer service
  5. Common currency
  6. Multiple award levels
  7. Bonus structure with point multipliers
  8. Relevant partners

Customer Service

Same rules – simple, seamless, comprehensive. Most common requests – 1. provide ‘earn’ credit; 2. Reset account access; 3. Merge accounts ; 4. Provide enrollment support; 5. Provide redemption support (complicated program rules will drive these requests up). Companies should acknowledge that customers want to communicate in different ways (phone, email, and text) and should offer customer service through common channels. If your program can’t support a live 24/7 operation, at least provide self-help online and find a way to show customers you appreciate their business.

Promotions and acquisition campaigns 

Collect the low-hanging fruit – that means a laser focus on your existing customers before you move on to new or potential customers. Advertise your unique value proposition, currency and program rules to your existing customers with your existing marketing and communication channels. As enrollments begin to climb study your data to determine characteristics your most profitable customers share and seek out non-customer populations that exhibit the same qualities or behaviors. Future campaigns should target those potential customers and develop creative A-B test groups to hone your marketing skills and test intuition about your customers. Enrollment offers should include ‘seed’ points or miles to jumpstart member participation. Follow-up campaigns should segment customers in meaningful ways including a group that have earned enough points for basic awards, but have never redeemed points or miles. The possibilities are endless, but a careful approach that combines your industry knowledge with insight about your most profitable customers will yield the best results.

Common sense and the desire to limit liability suggest acquisition offers should be richer in competitive markets, and lower  where the host has higher market share. Targeted offers and A-B tests may require you to use a promotion code system (one-time use codes are recommended to prevent wide distribution via the Web). Before you get too far down this path it’s instructive to educate yourself about ways promotions can go wrong so here’s a great Website you should spend some time on to avoid making similar mistakes.

Conclusion

This is just a glimpse into the loyalty cook book – these programs are important tools to manage the relationship between companies and their best customers. Done well,  thoughtful programs can give you an edge and drive bottom-line performance. Use this simple guide to create a solid framework as you invent your own program and embrace ideas from successful programs across multiple industries. Finally, ask yourself why programs and their components work and what conditions exist that drive customers to participate in them? Answer those questions and you’ll understand new ways to achieve better results.

Coaching Sales & Marketing Travel Management