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.
Miami — Managing travel should generate at least 8 percent to 20 percent in reduced spending. The offsetting cost to achieve that should be 4 percent to 7 percent. Sourcing a travel management company to support all that should take seven to 21 months. Sadly, implementation fails seven out of 10 times. These are some…
Sometimes the things we write about peter out. Sometimes more developments happen, but they don’t warrant an entirely new article. In other cases, something unexpected or counterintuitive is noteworthy in its continuance. Hence, the Updates post. Click these links to jump to updates on airline consolidation, New York lodging rates, hotel safety, GBTA’s risk management…
Hilton Worldwide declined to comment, but several sources said it’s planning to reduce agency commissions on its new HHonors rates. Those are the discounted rates that Hilton revealed in February as part of its “Stop Clicking Around” marketing campaign, designed to compete with online travel agencies. Other travel agencies at first worried they also would…
American Airlines clients wanted negotiated discounts to apply to more of their purchases. The airline is now rolling out a new corporate pricing structure for international routes that does just that. To make it so, AA is basing discounts on fare basis codes rather than booking classes. It’s not a new concept in the industry. AA…
Hotel rates come in lots of flavors. They relate to room and bed types, prepayment, nonrefundability and more. Some corporate rates are static and some are discounted off fluctuating public market rates. All this is not as complicated as airline-style pricing, but it sounds like that’s what Hilton is after. Considering the hurdles, the goal…
Businesses are paying less for some international airline tickets than they have in years, according to corporate travel benchmarks. It’s not because airlines have cut published pricing. Instead, they have kept selling more low-bucket inventory closer to departure. That brings down passenger yield, a proxy for fare paid. Some U.S. routes to London and China are showing sharply reduced…
Our eighth podcast episode features a discussion recorded this month with three procurement experts: former Thomson Reuters VP of sourcing operations Linda Doty, former Guardian Life chief procurement officer Frederic Khalil and ROA Consulting Group managing partner Sharon Tolliver. They spoke with Jay Campbell about how travel relates to procurement, procurement transformation and professional certifications….
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