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

Observers Question How ‘Quickly’ AA Could Reverse Corporate Sales Retreat

While the latest sales reorg at American Airlines appears to dim any hopes for the carrier reversing its shift away from managed corporate travel, an important entity won’t rule out the notion: American Airlines.  “If managed corporate travel becomes a bigger share of the pie, we will quickly add back resources to support that growth,”…

Big Hotel Firms Fight For Midscale Extended-Stay Guests As Use Cases Proliferate

Hoping to capitalize on the work-from-anywhere phenomenon that led to more flexibility for workers, more relocations and longer lengths of stay, big hotel companies are adding new brands in the midscale extended-stay segment. Since last fall, Best Western, Hilton, Hyatt, Marriott and Wyndham each announced new products in the space. They augment these companies’ pre-existing…

RTX Takes On The Challenge Of Shifting From American Airlines

RTX, the $67 billion multinational aerospace and defense conglomerate, mainly uses American Airlines. It’s been … difficult. RTX associate director for travel Colleen Kearney at the GBTA convention last month said the company was “actively managing against what’s happening in the industry,” but that’s “not easy, by any means.” “By far” RTX’s largest airline, AA…

Why Corporate Hotel Rates Will Keep Rising

Though some forecasters expect moderation next year, corporate hotel rates continue to rise. There are several reasons, notably inflation, cost pressures and lagging corporate recovery relative to other segments. While several hotel executives in recent weeks said all three challenges were easing, they also described a “normalized” environment featuring elevated pricing levels. Buyers should expect…

Notebook: NDC As Contract Component? It’s Under Consideration

Dallas – Utilization targets for the New Distribution Capability are part of the “new contracting process with many of the airlines,” according to FCM Travel’s head of consulting for the Americas, Ashley Gutermuth.  That companies could negotiate with airlines on this basis was fascinating and “eye-opening” for Matt Patterson, senior director of client relationship management…

Dispatch 5

[CORRECTION, Aug. 11: The last line of this Dispatch was updated to eliminate an inaccurate description. AmTrav’s findings are that American Airlines’ NDC fares beat the GDS fares “33 percent of the time for Main Cabin and 93 percent of the time for Main Cabin Flexible.”] Last month, United Airlines chief commercial officer Andrew Nocella…

Corporate Travel Data Trio: Domestic Airfares Keep Falling

U.S. government domestic airfare data published a few weeks ago showed a deepening downward trend. A few Wall Street analysts and Delta CEO Ed Bastian said that information did not reflect market realities. But data from several other airfare benchmarking sources, including a trio of corporate travel data handlers, formed a consensus: despite solid demand…

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