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

American Airlines Continues Fallback From Corporate Market

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…

What To Do About Sky-High International Fares

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…

For Some Hilton Properties, It’s Dynamic Discounts Or Nothing In 2023

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…

AA Enforces Prohibition On Business Loyalty Points With Agency Negotiated Fares

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  “On October 3, 2022, the Business Extra system will begin excluding any unpublished fare tickets, including travel agency private fares, from…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 Pivots From Managed Corporate Travel

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…

Research: In Supplier Negotiations, Lying Is Contagious

Being deceptive — or not totally honest — in negotiations is fairly common. But two experiments found that it can have a harmful effect: It can spread in an organization. Fortunately, there are measures that can curb the practice of potentially contagious excessive deception. By Leopold Ried, assistant professor at Erasmus University’s Rotterdam School of…

Buyers Fret (Privately) About Airline Ticket Tour Codes

On airline tickets using corporate negotiated airfares, travel agents and booking tools typically include tour codes to identify bookings as coming from a particular travel agency, corporate TMC or airline corporate client. When these codes are wrong or missing, there may be financial ramifications or an impact on traveler benefits. Corporate travel buyers speaking during…

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