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

Hyatt’s ‘Book Direct’ Program Targets Global Distribution Systems

[UPDATE, May 9 2016: Hyatt reversed course on GDS participation for member rates.] Like two of its rivals before, Hyatt Hotels on Monday announced a marketing and rate program specifically for loyalty program members. The companies are attempting to neutralize online travel agencies. However, unlike Hilton and Marriott, Hyatt’s discounted rates of “up to 10 percent”…

Updates: Air Merger; NYC Room Rates; Hotel Safety

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 To Cut Agency Commissions On New Rates

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…

Hilton Swinging For The Fences?

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…

London, China Among International Fare Soft Spots

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…

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