Negotiations with Airline

Airlines offer multiple benefits to corporates through a corporate rate program. The basic deals are listed below.

Cut and Pay: Upfront percentage discount on either base fare or base fare + YQ(Fuel surcharge) based on class of booking. These can be accessed by an authorized mapped travel agency.

Fixed Fare: A fixed fare is filed under a special promo code mapped to a particular corporate.

These fares are based on distance and typically filed as 0-750 km, 750-1000km, 1000-1400km and more than 1400 km. These are filed on the airline reservation system and can be accessed by an authorized mapped travel agency.

PLB: Performance linked bonus on achieving targets of business volume on airlines lead to a certain percentage of the spend on that airline passed back to the corporate at the end of the year. Other benefits could include waiver on cancellation and rebooking fee as well as free meals for certain low cost carriers.

Creating a network of preferred suppliers: Preferred travel suppliers typically pass huge benefits to corporates. The challenge is to push employees to choose these travel suppliers over others. Employees would traditionally choose products and services based on convenience, reputation of the supplier and membership to a particular loyalty program.

The best way to start creating a network of preferred suppliers is to look at historical data for cars, hotels and air travel and choose the suppliers more frequently used by employees. The negotiation could lead to value added services such as free pick and drop from hotel companies and lower rates for car rentals.

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