Negotiating the best savings and value with
travel suppliers
Don Swartz
Managing Director
@BTShowLondon #BTShow
Margaret Birse
Air/Hotel Practice Area Lead
Produced in
association with
Market Trends
Airline
Hotel
Car
• Ancillary Fees
• Ancillary Fees
• Ancillary Fees
• Individual/Alliance
• Dynamic Pricing
• Basic Economy
• Shared Services
Competition (AirBnB)
• Shared Services
Competition
• Direct Deals
@BTShowLondon #BTShow
• Consolidations
Produced in
association with
SWOT Analysis – A Good Starting Point
W
O
@BTShowLondon #BTShow
T
Produced in
association with
Key Data Baseline/Format Requirements
AIR
HOTEL
City pair
Segments
Spend
Class
Location
LHR-YUL
50
200K
Premium
Economy
Montreal
200
USD350
YUL
200
USD45
ICAR
LHR-EDI
100
40K
Economy
Edinburgh
100
GBP200
EDI
100
GBP18
CCMN
@BTShowLondon #BTShow
Nights
CAR
Average
Rate
Location
Rental
days
Average
Rate
Produced in
association with
Car Type
Minimum Scope Requirements
Hotel Deals
Airline Deals
•
•
•
•
Individual Carrier
Alliance
2.
Volume Discount
Route Deals
Hard deals >1M
@BTShowLondon #BTShow
•
•
Individual Property
Chains
100 Room Nights
2-10M
Car Deals
•
•
•
Local
Regional
Global
Hard Deals >100K
Produced in
association with
Develop or define your sourcing strategy
Category
RFI
RFP
RFQ
AIR
X
?
HOTEL
X
CAR
X
√
√
√
√
@BTShowLondon #BTShow
√
Produced in
association with
Results – What can you expect?
Deal Type
Airline
Hotel
Car
Negotiated
Rates
2 - 50% (may be off full fare)
5 - 30% (may be off rack rate)
5 - 40%
Volume
Discounts
2 - 10% (may not apply to all
fare levels)
2 -10% (typically off Best Rate
of the Day)
2 - 10%
•
•
•
•
•
•
•
•
Soft Deals
•
•
•
Tickets
Status Upgrades
Waivers & Favours
@BTShowLondon #BTShow
Upgrades
Value adds
Status Upgrades
Upgrades
Value adds
Status Upgrades
Insurance
Refuel
Produced in
association with
Contract Terms/Sourcing Cycle
Category
Airline
Hotel
Car Rental
Standard Terms
Comments
2 – 3 years
Requires managing and potentially renegotiating
biannually.
1 year
Historically one year, more options for extended terms (2
– 3 years with dynamic pricing).
2 – 3 years
@BTShowLondon #BTShow
Produced in
association with
Five keys to success
1. Solicit traveller feedback upfront.
2. Be organized & prepared (SWOT & Market analysis).
3. Deploy Custom travel sourcing RFQ/RFP process.
4. Negotiate Buyer Centric Agreement (Sustainable Pricing, SLAs, T&Cs).
5. Successful Implementation.
@BTShowLondon #BTShow
Produced in
association with
Sourcing Performance Scorecard
Performance Category
Score2
Score1
6 – 12 months later
1. Project completed ontime/budget
Failed
XXXXXX
2. Right suppliers/vendors selected?
Passed
Failed
3. Competitive, sustainable pricing
Passed
Passed
4. Buyer centric pricing controls and SLAs
Passed
Failed
XXXXX
Passed
5. Successful Implementation
@BTShowLondon #BTShow
Comments
Produced in
association with
Questions
Thank you for attending
@BTShowLondon #BTShow
Produced in
association with