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

Competition Pushing Airfares Down

At the beginning of the year, this publication laid out reasons why airfares may not follow dropping fuel costs. Nine months on, it’s clear they have, but it’s not all because of oil prices. Demand growth this year isn’t as robust as expected, dragged down by sharply reduced volumes from the energy sector. There’s been some pick-up in overall capacity led by…

Delta Aims To Get ‘Em Young

Delta Air Lines has taken its interest in building loyalty among young business travelers to the corporate level. A relatively new, sometimes aggressive discount program targets up-and-coming midsize and tech businesses. It doesn’t require marketshare or volume commitments to get started. Sources said the deals run from 2 percent discounts off restricted coach to several…

2016 Price Forecast: Flat Airfares And More Hotel Hikes

[UPDATE, Nov. 24: Forecast data from American Express Global Business Travel is included.] [UPDATE, Oct. 1: Information from NYU’s outlook on expected hotel rate increases is included.] For 2016, corporate travel buyers should expect hotel rate growth in the low- to mid-single-digit percentages while airfares on average show little change. Those are the bottom-line conclusions forecast by BCD…

Podcast 3: Pam Massey, Patrice Simon, Miriam Moscovici

On our third podcast episode, Jay Campbell interviews Pam Massey about the new and old challenges of managing travel in a non-governmental organization, and how leadership change is prompting new approaches. Pam shared tips on communication and being flexible on policy for the sake of service quality, as well as her new thinking on travel management company RFPs. Later…

Clients Like Delta’s Performance Guarantee, But It’s Only A Start

Delta’s been on a roll during the past few years, and now it’s pressing the advantage. The airline will compensate well-performing corporate accounts when on-time performance and completion factor are worse than both American’s and United’s after a full calendar year. Because Delta has been running a tight ship, it’s not a very risky move. Travel managers like it and they, too, have…

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