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Dispelling the myths for effective airline negotiations.

Publication: Business Travel News
Publication Date: 19-JAN-04
Format: Online - approximately 1002 words
Delivery: Immediate Online Access

Article Excerpt
Volume alone was formerly considered enough leverage for a travel buyer to secure a good deal from airlines--regardless of how much incremental share that program actually delivered in return. But in today's negotiating environment, that has changed. Airlines are becoming more demanding in defining what constitutes a "good" program for an account; the advent of sophisticated airline analytical tools is making it increasingly possible for travel buyers to find and focus on the major drivers of a "good" deal for both partners.

Those corporate travel buyers who are successfully gaining leverage in airline sourcing have embraced a three-pronged interdependent approach that encompasses building a solid foundation, applying a fact-based analytical approach and ensuring effective program management.

Unfortunately, the perpetuation of certain myths among many corporate travel buyers continues to allow the airlines to retain the leverage. Some of the most common myths pertain to size of spend, mandated travel...

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