Home | Business News | Browse by Publication | B | Business Travel News

Procurement involvement in travel buying rising as corps. eye value.

Article Excerpt
The percentage of companies in which travel buyers work with, or report directly to, procurement departments has risen dramatically in the past five years, as a couple of mega agencies claim procurement is involved in about half of the decisions made by their clients.

Procurement's involvement in travel in the past has ebbed and flowed with industry's fluctuations between buyer's and seller's markets. As 2007's seller's market tide rises, history predicts procurement's influence over travel would wane, as objectives for many travel programs shift from getting the best price to getting the best value.

When procurement departments and practices began a rapid increase in involvement in travel about five years ago, buyers at first felt threatened. A BTN story regarding a rise in the use of procurement practices drew a petition from travel buyers protesting the coverage of the phenomenon (BTN, March 26, 2001).

Many buyers feared procurement would convince their companies that travel is a commodity, and then try to buy air, hotel and car rental services as they would paper clips: at the lowest price. Today, many buyers report that tension has faded as their procurement counterparts acknowledge the importance of service in making travel decisions and how service can be furthered through networking relationships--not just with suppliers, but with travelers as well. "A good procurement...

View this article FREE - Now for a Limited Time, try Goliath Business News
Free for 3 Days!