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

Host, Marriott Welcomed A White Nationalist Group, Raising ‘Uncomfortable’ Questions

The decision by the Orlando World Center Marriott to host a White Nationalist conference offers a “moment of reflection,” according to Grant Caplan, the Global Business Travel Association’s Diversity Committee chair.  Reports by the Orlando Sentinel and HuffPost of the Feb. 25 America First Political Action Conference dominated some social media feeds following the event….

Hertz Claims Share Gains At Amex GBT, Ditches ‘Unprofitable’ Corporate Deals

Hertz emerged last year from bankruptcy as a leaner company with a new outlook on corporate sales. It used reorganization to get out of what it deemed unfavorable corporate deals and now, according to interim CEO Mark Fields, “We do not chase unprofitable business.” That’s easier to justify when there is tight supply relative to…

Tripbam Hotel Booking Data Shows Glimpses Of Normalcy

Demand for corporate travel lodging is accelerating but it’s not just volume that’s closing in on familiar territory. Average rates and the brands getting bookings also look more like they did in 2019, according to Tripbam data presented this month. “We are seeing a rapid increase in rate,” said Tripbam CEO Steve Reynolds during his…

Forecasters: Business Travel Pricing Set To Rise This Year

No one should be surprised that it’s coming, and consultant Mark O’Brien expects it in the second half of this year: higher pricing for transportation and lodging. What does it mean for corporate travel buyers? According to O’Brien, a BCD Travel exec until 2021 who now runs Avenue5 Consulting, hotel prices will be up by…

Big Three U.S. Airlines’ Travel Agency Commissions (Mostly) Continue Slide

After hitting a 14-year high in 2019, passenger commissions paid by U.S. airlines to travel agencies bottomed out in 2020 along with passenger volumes, and stayed low through the first nine months of last year. The pandemic also changed the passenger mix, as mainly domestic leisure passengers made for a lower-value booking environment. Lower-value bookings…

How B2B Businesses Can Get Omnichannel Sales Right

“Buyers want it; sellers need it,” according to Harvard Business School professor Doug Chung, McKinsey & Company partners Isabel Huber and Jean-Charles Devignes, and McKinsey associate partner Tom Clauwaert. “It’s not trivial, but it’s not rocket science either.” During the early stages of the pandemic, many B2B companies considered remote interactions as a temporary patch,…

Op Ed: Andy Menkes On Fixing The Imbalance Of Knowledge In Travel Management Company Bids

Andy Menkes has spent a career working with travel management companies — as a buyer, a TMC exec and an industry consultant. As companies assess their travel management service needs, he describes what he sees as a problem with fairness in TMC bids and offers a solution to resolve it. We are starting to see…

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