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Corporate Contracts - How To Start The Process?  
User currently offlineNYC2theworld From United States of America, joined Mar 2007, 666 posts, RR: 0
Posted (6 years 4 months 1 week 1 day 14 hours ago) and read 2318 times:

I was wondering about the corporate contracts companies negogiate with airlines start? For example, what type of information should one have collected about their company's travel paterns? (I'm guessing how often, city pairs, # passengers would start).

Also, what travel minimuns do airlines typically require in order to start the process?

I'm trying to figure out if my company does enough travel in order to go to the airlines and see if they can get a corporate travel agreement in place and would like to know what the first steps are.

Any help is greatly appricated.


Always wonderers if this "last and final boarding call" is in fact THE last and final boarding call.
3 replies: All unread, jump to last
 
User currently offlineBigOrange From United States of America, joined Apr 2004, 2375 posts, RR: 3
Reply 1, posted (6 years 4 months 1 week 1 day 14 hours ago) and read 2290 times:

Do you already use a corporate travel agent for your company's travel arrangements?

If so, ask them to get in touch with the airlines on your behalf. They will already have all the information the airline's need, and can just go direct to their sales manager, and will save you being passed from pillar to post if you call direct.


User currently offlinePA201 From United States of America, joined Apr 2005, 33 posts, RR: 0
Reply 2, posted (6 years 4 months 1 week 1 day 14 hours ago) and read 2281 times:

All of the requirements you stated above in terms of facts and figures are indeed required.

In addition, you will need at least 200k in volume to get an airline sales rep to return your call.

Also, and most importantly, you will need to be able to "give them something" above and beyond what you are already giving them today in terms of revenue and business. Shift of market share from carrier X to CO for example, if you were in fact interested in a deal with CO. Airlines are not pre-disposed to discount business you are already giving them without something in return, and that is almost always increased market share. Tough part about that is that they will be routes they don't dominate. i.e. ATL-LAX for example. They will want a good piece of what you are putting on DL's nonstops in that market and shift it to connections via their CLE hub . Getting your company's ATL based travelers to agree to connect via CLE can be a real headache, as you can probably imagine, but it's the key to a succesful deal. (again, just CO, CLE, LAX etc just figurative examples). They will require your corp travel agency to report to them when your travelers don't comply and fly the DL nonstops, and that puts your contract at risk of cancellation.

Bottom line, they won't just discount the business you are already giving them without providing a meaninful incremental gain in areas where they need the business, notably thier non-hub markets.

Hope that helps. Good luck.


User currently offlineBobnwa From United States of America, joined Dec 2000, 6517 posts, RR: 9
Reply 3, posted (6 years 4 months 1 week 1 day 14 hours ago) and read 2263 times:



Quoting NYC2theworld (Thread starter):
I was wondering about the corporate contracts companies negogiate with airlines start? For example, what type of information should one have collected about their company's travel paterns? (I'm guessing how often, city pairs, # passengers would start).

Also, what travel minimuns do airlines typically require in order to start the process?

I'm trying to figure out if my company does enough travel in order to go to the airlines and see if they can get a corporate travel agreement in place and would like to know what the first steps are.

Any help is greatly appricated.

First off your company has to willing to direct its travelers to fly a certain carrier even if the routing is not the best in return for receiving contract rates on routes where the carrier has the best scheduled. Example, if your company flies a lot between TPA-BOS and the carrier with the best schedule is DL, They are not going to give a contract fare between those city pairs, unless it something in return, for instance all of your travelers have to use them between CLT and ORD where DL does not have the best schedule. The carrier will require city pair numbers preferably for a whole year and fare basis used in the past. They will want the city pair info fro all city pairs both intl. and domestic, not just the ones your company is interested in.They will also want to know the form of payment used and how the trips are booked. A travel policy in writing will also be required.

Good luck


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