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

AA Follows UA To ARC’s Corporate Contracting Tool As Sabre Upgrades Prism

Washington, D.C. — American Airlines agreed to use the ARC Corporate Intelligence tool for contract management. ARC CI launched with United Airlines in 2020 as an alternative to the market-leading Prism platform, owned by Sabre. An AA official did not comment on whether the airline would continue using Prism. AA signed on in December 2023,…

Retro Rebates Hang On As Post-Pandemic Legacy For Southwest Customers

Southwest Airlines has always done things differently, but lately, it’s been embracing industry norms in the corporate market. It’s participating in more distribution channels and fielding a bigger sales team. It offers a basket of options for corporate dealmaking, including at least one throwback idea: back-end rebates. Those may be instead of or in addition…

The Future Of Airline Contracting: Engagement And Marketing Edge Out Discounts

What airlines want from their corporate customers and what they’re willing to give in return is changing. For many U.S. accounts, the request for proposals process and resulting contracts look very different than they did five years ago, especially for American and United clients. Airline corporate discounts are getting downsized or eliminated, and carriers want…

British Airways Adjusts To AA’s Stance On Corporate Deals

American Airlines cares less for conventional corporate travel dealmaking, but that’s not working for partner British Airways. As AA cancels corporate deals or allows them to lapse — including agreements struck jointly with its key Oneworld partner — BA wants to hang onto some. It has broken from a practice the carriers followed for over…

Dispatch 10

As American Airlines all but dismantles corporate sales, airline industry pundits scrutinized AA’s latest arguments about going small and emphasizing competitiveness via network and loyalty. The strategy illustrates diversification among big airlines that adds to these challenging times for corporate travel buyers. Chief commercial officer Vasu Raja on March 4 told Wall Street analysts that…

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