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Buyers Eye Airline Negotiations, Service.

Article Excerpt
Verizon travel services senior specialist Debra Goldmann and Wal-Mart director of global travel services Duane Futch sat down with Business Travel News editors at the Association of Corporate Travel Executives conference in Miami this month to discuss airline negotiating and customer service.

BTN: Some analysts have pointed to evidence that domestic demand is weakening. Is that being reflected in your corporate discounts?

Futch: I think what's happening is the airlines are back to being able to manage six months to a year out. Over the past three years or so, they've been managing the cash flow every hour. Now they're able to manage out further and take a look at this. They're looking at some of their advanced bookings and they're starting to see a bit of weakening in that. I think they're going to start reducing prices.

You can't turn on the TV right now without hearing it's going to be $4 gas. What are people going to do? They're going to cut back. Their vacations aren't going to be long. I really haven't seen an airline come out and say, "We're reducing our fares by $10 because the price of gas went down." The other day an airline said they were charging another $5 because fuel is going up--but, hold it, the price of fuel is still below where it was a year ago, the last time there was an increase.

Goldmann: It depends on the carriers. I hate to say that. It feels like some are really tightening their belts. Others, I feel, are enjoying being in the black and are being even a bit more flexible.

BTN: After the new contracts with global distribution systems last year led to more pass-through fees for agency customers, are airlines taking care of their best customers after mangling them a...

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