Corporate Airfare Negotiations: Top 10 Tips for Travel Managers

Dos And Don'ts When Negotiating Corporate Airfares

Negotiating the best deal with airline suppliers is one of the most significant tasks for a travel management company – and it’s rarely easy. Airlines operate on narrow profit margins, strained further by fluctuating oil prices, increased competition, and higher passenger expectations. To secure the best possible deal, you need to approach negotiations strategically. Here are our top dos and don’ts to help you position yourself effectively and achieve the best outcomes.    

DO... build relationships

Successful negotiation hinges on strong relationships. Building and maintaining rapport with key airline decision-makers is crucial. After all, this is a people-centric industry, where open and friendly relationships can last throughout entire careers.    

DO... go armed with data

Before any negotiations, it’s essential to have an in-depth understanding of both your supplier’s business and your own. Securing discounts on airfares can be challenging, but justifying your value with solid data significantly increases the likelihood of reaching a mutually beneficial agreement. Oversee’s travel sourcing optimization tools and historical spend analysis provide the precise data needed to achieve this.    

DO... be flexible and compassionate

The airline industry is volatile and ever-changing. Adopting a flexible and empathetic approach to negotiations will help you achieve mutually beneficial agreement. Authenticity is also crucial. Being transparent about your company’s goals builds credibility and paves the way for smoother future negotiations.    

DO... be open to alternative negotiations

Airlines’ narrow      profit margins      often make them reluctant to      discount fares. However, they may be able to offer alternative benefits such as      such as business class upgrades, loyalty perks, and surcharge waivers. These incentives can accumulate over time and may ultimately provide greater value.

DO... talk to your TMC

A TMC’s buying power, especially at the      higher end of the market, can significantly help you secure the best fares. They frequently negotiate special rates, which they then pass on to their clients.

DON'T... overcommit

While it may be tempting to commit more to win a deal, avoid setting targets you can’t realistically meet. Doing so will jeopardize your relationship with the supplier and make subsequent negotiations more challenging.

DON'T... undersell your company

Similarly, don’t be overly cautious and sell yourself short. Being too conservative about what you can achieve may cause you to miss out on valuable deals. As mentioned earlier, entering each negotiation with reliable data will help you understand what commitments you can realistically make based on past demand and volume.

DON'T... rely on just one supplier

Many TMCs rely on strong relationships with multiple suppliers. Don’t rely on securing just one good deal. Instead negotiate with several airlines to avoid being vulnerable to the actions of a single supplier.    

DON'T... hide business shortcomings

Strong relationships are built on trust. It’s important not to withhold negative information about your business or its performance, as this could backfire. The best deals often come from demonstrating sales volume. If you haven’t met previous commitments, engage in open and honest dialogue and work collaboratively to resolve any challenges.

DON'T... burn bridges

If you didn’t achieve the outcome you wanted, it’s okay.  Take a logical approach, detach yourself from the decision, and consider your next steps. How can you enhance your travel program with other initiatives? Are there alternative ways to reduce spending? Since you’ll likely interact with this airline again, ensure you set yourself up for success in future negotiations.    

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