Sourcing

In corporate travel, sourcing is all about negotiating deals with airlines, hotels, car rental companies and other suppliers. Of course, organizations want to get the best value, but travel procurement is about more than price. It’s also about using data to monitor performance on both sides, working with intermediaries, building deeper relationships and exploring new technologies that improve processes.

Some examples
Extending or renegotiating contracts
• Assessing marketshare and volumes
• Hotel RFPs, rates, LRA and security
Political and social considerations
Working with intermediaries

American Airlines Pivots From Managed Corporate Travel

American Airlines’ decision to wind down the 41-year-old AirPass prepaid program is a small piece of a grand strategy to alter relationships with the corporate travel community. AA during the past several weeks told corporate clients that it would reduce discounts and scrutinize underperforming accounts, according to people familiar with the company’s plans. The airline…

Research: In Supplier Negotiations, Lying Is Contagious

Being deceptive — or not totally honest — in negotiations is fairly common. But two experiments found that it can have a harmful effect: It can spread in an organization. Fortunately, there are measures that can curb the practice of potentially contagious excessive deception. By Leopold Ried, assistant professor at Erasmus University’s Rotterdam School of…

Buyers Fret (Privately) About Airline Ticket Tour Codes

On airline tickets using corporate negotiated airfares, travel agents and booking tools typically include tour codes to identify bookings as coming from a particular travel agency, corporate TMC or airline corporate client. When these codes are wrong or missing, there may be financial ramifications or an impact on traveler benefits. Corporate travel buyers speaking during…

New Cvent Hotel Sourcing Tech Fails At The Wrong Time

Cvent tried to make its transient hotel sourcing technology more than “adequate” as of this summer. At this point, though, “functional” would please clients. Sources said the new tools were falling down just when they’re most needed — deep in the negotiating season for 2023 rates. A Cvent media official did not respond to an…

Single-Carrier Route Mandates Cut Air Spend For Software Firm Finastra

Multinational travel programs typically use at least two of the three major airline partner groupings, and many use all three. U.K.-based financial software firm Finastra in 2019 committed to providing all its business on a lucrative international route to just one. After seeing savings by aggregating that spending, the company is hunting for similar opportunities…

CWT RoomIt Lures Amazon From HRS For Hotel Sourcing

CWT last week announced that its RoomIt division would provide Amazon with hotel category services including sourcing, booking and rate reshopping. Amazon previously used HRS for worldwide sourcing as part of a “multi-year” agreement due to commence in 2019, according to a late 2018 announcement. Business Travel News in September identified Amazon as the largest…

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