A new approach
Travel contracts are being widely renegotiated, often for the first time since Covid. However, many buyers cannot offer the same travel volume as they could pre-pandemic, resulting in higher rates and less generous supplier discounts.
A shift to long-term planningExpect more reservations made in advance if leisure travel continues to elevate prices. Planning ahead allows buyers to explore more options at better prices, as well as achieve better leverage in negotiations.
Consolidate and compromiseBuyers must aggregate travel spend to maximize value with regular contract proposals. The aim is to negotiate improved terms. Data analytics can do the heavy lifting, highlighting opportunities to reduce costs. Businesses can also compromise on when their staff travel.
Drilling down on value generatorsFocus on business trips that provide the greatest return on investment, also create experiences that attract talent and enable employees to be at their most productive when traveling.
Get to grips with price optimization toolsPrice tracking can help customers avoid overpaying. Pricing systems are becoming three-dimensional. Suppliers are resorting to sophisticated algorithms and artificial intelligence to assist in pricing models including continuous pricing. Buyers must be ahead of the game.
Use loyalty rewards to your advantageVolumes and leverage are down in a supplier’s market, yet suppliers still want to reward loyalty. If travel is concentrated on a small number of routes and destinations, buyers have a better chance of controlling costs and achieving discounts.
ExperimentTest new travel technologies, policies and strategies. Businesses need to think outside of the box in terms of where they travel to, where they stay and the types of events they conduct.
