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.
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 “On October 3, 2022, the Business Extra system will begin excluding any unpublished fare tickets, including travel agency private fares, from…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…
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…
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…
Cvent tried to make its transient hotel sourcing technology more than “adequate” as of this summer. At this point, though, “functional” would please clients. Sources said the new tools were falling down just when they’re most needed — deep in the negotiating season for 2023 rates. A Cvent media official did not respond to an…
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