If you’re part of the 87% of travel professionals who feel frustrated or resigned by the current airline sourcing process, you’re in good company. At this year’s GBTA Convention 2025 in Denver, we hosted a panel in which industry leaders unpacked why the traditional “set it and forget it” approach to air contracts is broken and offered a new, data-driven path forward.
The session “Beyond the Discount Mirage: Securing Realizable Air Contract Savings” was monitored by Sam Basson, Oversee’s Head of Customer Solutions, and included the panelists Ariel Lifschitz, Director of Product at Oversee, April Bridgeman, Senior Vice President & Managing Director at Advito/BCD, and Kelly Green, America’s Travel Manager at Apple, Inc.
They tackled the critical gap between expected savings and actual performance, providing a clear action plan for travel managers.
The mirages we all see
Negotiated air contracts can often give an illusion of savings, but these don’t necessarily translate to the bottom line. Polling the audience clearly revealed a shared struggle for simplicity, transparency, and clarity in this complex landscape.
Two core mirages distort the true value of an air program:
Mirage #1: Our contracts are fully utilized.
The reality: Data shows that after 18 months, only about 50% of negotiated airline contract terms are ever actually used. This leads to bloated agreements where a significant portion of your hard-won discounts provide zero value.
Mirage #2: Our preferred carriers deliver competitive fares.
The reality: A great discount means nothing if it’s not available at the point of sale. Fare availability can vary dramatically even on similar routes. Without a way to track this, you’re flying blind, unable to know if your travelers can access the rates you negotiated.
Your action plan: A toolkit for performance and clarity
Moving past the mirage requires shifting from assumptions to analytics. Here is a clear, actionable toolkit to help you secure realizable savings:
1. Trim the fat: Analyze your coverage
Start by implementing a coverage assessment to identify unused contract terms. Focus your monitoring and negotiation efforts on your highest-volume routes where the biggest savings opportunities lie, rather than getting lost in overall coverage percentages.
2. See in real-time: Monitor fare availability
Establish a system for real-time fare availability monitoring, likely with an AI or advanced analytics partner. This is the only way to cut through complex airline revenue management strategies and see if your discounts are being offered when your travelers are booking.
3. Upgrade your QBRs: Introduce new metrics
Transform your Quarterly Business Reviews from a look-back exercise into a forward-looking strategy session. Incorporate key metrics like:
- Savings Realization Rate (SRR): How often are you actually getting a discount?
- Net Effective Discount: What is the real dollar impact of your discounts on the final ticket price?
These metrics drive accountability and foster more meaningful partnerships with your airlines.
4. Level the playing field: Invest in data
The panel was clear: data advantage is crucial. Airlines invest heavily in their analytics platforms; buyers must do the same to sit at the table as equals. Without robust data, you can’t challenge their numbers or have a truly data-driven discussion.
5. Future-proof your contracts: Address NDC
Insist that your negotiated discounts apply regardless of the channel. NDC should function as another pipeline for your discounts, not an exception. Push for standardized contract language that covers all fare sources to avoid losing value as the industry evolves.
6. Broaden your view: Evaluate total trip cost
Stop focusing solely on base fare discounts. A carrier might offer a cheap fare but have high ancillary costs. By evaluating the total trip cost, including baggage, seats, and Wi-Fi, you get a comprehensive view of true carrier performance. This is especially important when conducting cabin class analysis, as costs and value can differ dramatically between economy and business.
7. Get creative: Trade discounts for experience
Consider an innovative negotiation strategy: trade unused fare class discounts for traveler experience benefits. If a deep discount on a premium cabin is rarely used, perhaps its value can be converted into complimentary Wi-Fi or lounge access that benefits more employees and improves satisfaction.
8. Make it continuous: Ongoing optimization
Adopt a continuous sourcing approach. Replace the static, once-a-year negotiation with regular, data-driven dialogues with your suppliers. This allows for constant optimization and ensures your program remains agile and responsive to market changes.
The panel’s core message was clear: airline sourcing can’t be a set-it-and-forget-it exercise.
By leveraging these tools and strategies, travel managers can shift from being reactive to proactive, ensuring the savings they negotiate are the savings they actually realize.
“If you’re not actively monitoring and adapting, you’re leaving money on the table.”
Oversee’s air sourcing analytics platform empowers travel programs to capture negotiated value, uncover missed opportunities, and make confident, data-backed decisions.
Turn promised savings into real results. Book your demo today.