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.
[UPDATE, March 2, 2023: This article was updated to include information from Delta Air Lines.] United Airlines is asking corporate clients to help grow loyalty program membership as part of its new contracting process. “Because we do value our frequent flyer program, it is a consideration when we look at other things we might give…
Delta Air Lines last year began inserting language into corporate contracts that commits both parties to environmental sustainability improvements and discussions about related policies. The wording is intentionally imprecise, according to a Delta executive, who described it as a “conversation starter.” It wouldn’t commit companies to any specific metrics or targets. “Each party is committed…
American Airlines is retreating from the managed corporate travel market and erasing its tracks. According to a World Travel Inc. newsletter, the airline from April 1 will stop providing discounts to companies with less than $1.5 million in annual AA spending. Also as of that date, AA’s corporate accounts “will be provided with points for…
Domestic U.S. airfare growth has moderated and there’s potential for the same in some long-haul international markets. Any company with an appreciable volume of international air travel should see it as a high-value area for spend management. According to Advito, January bookings as of last week for business class tickets to and from North America…
Pricing power for lodging suppliers, an altered traveler profile and uncertainty on the buyer side created unusual outcomes for 2023 rate negotiations. At some Hilton properties, this meant refusing to offer static negotiated rates and walking away from business. As customers sought to move rate programs back to the traditional static structure from a dynamic…
Amidst a remarkable repositioning of corporate travel strategy including the closure of AirPass and reduction of corporate discounts and agency incentives, American Airlines in October tightened up agency benefits related to its company-based loyalty program. “On October 3, 2022, the Business Extra system will begin excluding any unpublished fare tickets, including travel agency private fares, from…
American Airlines’ decision to wind down the 41-year-old AirPass prepaid program is a small piece of a grand strategy to alter relationships with the corporate travel community. AA during the past several weeks told corporate clients that it would reduce discounts and scrutinize underperforming accounts, according to people familiar with the company’s plans. The airline…
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