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Article Excerpt
Noting a growing appetite among global companies for single-point multi-airline contracting, the three major airline alliances--Oneworld, SkyTeam and Star Alliance--in recent years have signed an increasing number of corporate contracts.
Even so, some sources noted that pricing from the alliances rarely beats what a company could get from a single carrier and that antitrust regulations make it difficult to structure singularly priced deals.
While noting that alliance-wide discounts rarely beat out single-carrier bids, Bob Brindley, vice president of the Americas for Advito, BCD Travel's consulting division, said alliance-wide negotiating could yield corporations benefits both in sourcing and managing travel. Alliance deals give travel buyers one account manager, unified reports and, in many cases, one set of negotiated commitments, he said, adding that the benefits of contracting with an alliance become stronger if the alliance's route structure closely matches the travel patterns of the corporate client.
"Where we've seen clients benefit is the efficiency level. Instead of managing eight contracts, they have one contract, so there's one set of goals they have to work toward," Advito's Brindley said. "They're really only meeting with one carrier or account manager, because they'll take the lead from an alliance perspective. And also, from the...
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