REVIEWER IN COTM
etc.
WHO IS THE TRAVEL MANAGER?
➢ Corporate travel managers are
responsible for planning, developing,
and creating a corporate travel policy for
a company.
➢ Their duties include setting up travel
budgets, negotiating rates with travel
agencies, monitoring travel activities,
and reconciling expenses.
WHAT IS THE PROFESSIONAL TRAVEL MANAGER
LIKE?
➢ Fully trained
➢ Knows the environment well
➢ Has a good relationship with the team
and with service providers
➢ Has proven negotiating skills
➢ Knows how to prioritize
HIGH VERSATILE PROFILE
➢ This is a professional with a highly
versatile profile, who needs to be skilled
in many areas or branches such as
negotiating, logistics, protocol, team
management, etc.
➢ Ideally, he or she needs to combine
theoretical training with practical
experience and knowledge.
➢ It is usually a professional with a
background in tourism, specializing in
business tourism or business
administration, with emphasis on the
management of teams, resources and
budgets.
➢ Depending on the organization of each
company and/or institution, the Travel
Manager may report to the Human
Resources, Finance or Purchasing
Department, or the Management team,
HAVE IN-DEPTH KNOWLEDGE OF THE
ENVIRONMENT
➢ A Travel Manager needs to have in-
depth knowledge of the environment.
➢ The tourism industry has been changing
greatly in recent years, at an ever faster
pace: the needs, trends and ICTs used for
reservations and for travel management
in general.
➢ In addition, the way we travel is not the
same as it was ten years ago, and will not
be the same in another ten years’ time,
meaning that travelers' needs also
change and evolve.
➢ Thus, it is necessary for a good Travel
Manager to undergo a process of
constant updating and training.
CORDIAL, PLEASANT AND SYMPATHETIC
SERVICE
➢ We also need to bear in mind that a
company's Travel Manager has a direct
relationship with the travelers, as well as
with the service providers.
➢ On the one hand, achieving a business
traveler's satisfaction is not always easy,
but it is useful to offer a cordial, pleasant
and sympathetic service.
➢ On the other hand, having good
relations with service providers also
facilitates negotiations and the
relationship between providers and
company.
➢ It is necessary to be in direct contact
with “allies” (preferred providers or
those approved by the company), which
can be helpful when organizing business
travel.
➢ Offering a more personal service, in
order to work more closely with these
professionals, can be the difference
 between good management excellent
management.
THE ABILITY TO NEGOTIATE
➢ The ability to negotiate is essential for
anyone performing travel management
functions.
➢ It is one of the most important tasks we
face, as it has to take into account not
only the economic aspect but also other
factors such as needs, type of travel,
travelers' personalities, etc.
➢ We go into more detail about
negotiations in the next chapter
SAVINGS ON THE RATES ARE NOT ALWAYS
PARAMOUNT
➢ In any negotiation, whatever the
product or service, it is essential to stick
to a budget, and if possible to optimize
it.
➢ But the Travel Manager has to know
exactly what is being negotiated.
➢ Applying a win-win policy is always
positive, especially in medium- or long-
term negotiations, where savings on the
rates are not always paramount, and do
not translate into real savings.
➢ It is important to try to include the other
“added-value items” that the provider
can offer us, which complement the
basic price and give value to the service.
A SAVING IN PARALLEL
➢ This will then allow us to make a saving
in parallel.
➢ For example, when an employee has to
spend a considerable period of time
working outside his or her environment,
often the additional services, such as a
good internet connection in the room or
a late check-out so as to have more time
and be better adjusted to the flight or
train schedule, etc.
➢ Will be very important and will not be an
expense on which to possibly cut costs
but rather a necessity that can have an
impact on the quality of the employee's
work.
➢ For this, having as much information,
data, etc. as possible on expenses made
by employees can be an important
trump card in negotiating with suppliers.
FACTORS OTHER THAN PRICE
➢ For example, to negotiate the services
related to business travel (mainly travel,
accommodation and meals), it will be
necessary to review many costs, but also
to take into account trends within the
industry and the company itself, as well
as reviewing the needs of employees
during the trip.
➢ If we consider factors other than price,
such as management of travel expenses,
we may find that an apparent saving is
actually an additional expenditure and
vice versa.
➢ For example, in a manual and paper-
based expenses environment,
accommodation in which drinks are
included can involve savings: although it
may be slightly more expensive, it will
avoid subsequently having ten bills for
ten bottles of water during a ten-day
trip, which would have to be managed,
monitored, reviewed, etc. involving
considerable administrative costs.
➢ In addition, often in these situations,
employees will be happy because they
will have a bonus service which they did
not expect.
KNOWING THE PEOPLE INVOLVED management and display analytical
prowess.
➢ A fundamental element in negotiations
➢ Ultimately, a top-notch corporate travel
is knowing the people involved, i.e.
manager should have excellent
those to whom the service is provided.
communication skills and the ability to
➢ There are differences which at first sight
manage multiple tasks at once.
seem superficial but which can influence
each person's needs. CORPORATE TRAVEL MANAGER
➢ Working for a team of older, more RESPONSIBILITIES:
mature employees is not the same as
➢ Developing and implementing a
working with a more junior team.
corporate travel policy.
➢ The junior team will seek to combine
➢ Setting up and organizing a monthly or
business and pleasure, to do its work but
annual travel budget.
also to get to know the environment,
➢ Negotiating rates, travel deals, and
etc.
contracts with travel agencies.
➢ There are other differences that are not
➢ Maintaining a good working relationship
so superficial and may pose a real
with travel service providers and
problem if not taken into account in
vendors.
managing travel arrangements.
➢ Completing daily travel tasks, such as
➢ Bearing these factors in mind will mean
booking tickets and managing credit
a saving of time and resources,
card operations.
anticipating problems or avoiding
➢ Tracking and reconciling travel
mishaps.
expenses.
➢ This is the case when there are people
➢ Recording travel activities to ensure they
with disabilities, who may have
comply with the company travel policy.
problems with certain types of transport
➢ Providing guidance to employees on
or accommodation, so if it is not taken
travel documents, insurance, and travel
into account in the negotiation, it will
laws.
mean having to undo everything done
➢ Updating the company travel policy as
earlier in order to find a suitable
needed based on market research and
solution.
travel regulations.
CORPORATE TRAVEL MANAGER JOB
CORPORATE TRAVEL MANAGER
DESCRIPTION TEMPLATE
REQUIREMENTS:
➢ We are looking for a dynamic corporate
➢ A bachelor's degree in tourism, travel,
travel manager to join our company. In
hospitality, or a similar field.
this role, your duties will include setting
➢ At least two years' experience working
up a corporate travel policy, as well as
as a corporate travel manager.
tracking and managing travel expenses.
➢ Excellent knowledge of travel
You'll also ensure that the company
management processes.
adheres to all relevant travel regulations
➢ Exceptional managerial skills and proven
and procedures.
ability to work with a variety of service
➢ To ensure success as a corporate travel
providers and staff members.
manager, you should have exceptional
➢ Proficiency in financial management.
knowledge of best practices in travel
 ➢ Strong computer skills.
WHAT TASKS FALL UNDER TRAVEL
MANAGEMENT?
➢ ITINERARIES
➢ PRICING
➢ ACCOMMODATIONS
➢ TRANSPORTATION
➢ MEETING&EVENTS
➢ COSTS&POLICY COMPLIANCE
➢ TRAVEL SUPPORT
➢ REPORTING & DATA ANALYSIS
CREATE AND MANAGE TRAVEL ITINERARIES
➢ If you book your flights directly with an
airline or use an online ticket service, it’s
likely you’ll get charged high fees for any
changes you wish to make to your
itinerary.
➢ Schedule changes are difficult to avoid in
the world of business, but in order not to
get penalized, you should use a
corporate travel agent to make the
necessary changes without any extra
charges.
➢ By leaving all your business travel plans
in the hands of a corporate travel agent,
you can rest assured that nothing will go
wrong during your business trip. This is
thanks to the agents’ extensive
knowledge of the travel industry.
ITINERARIES
➢ Companies have different
approaches when it comes to how
employees create itineraries for
their business trips.
➢ Considerations include cost,
balanced with an employee’s
business responsibilities and the
company’s travel polices.
➢ In most cases, employees now use
online booking tools to create their
own itineraries.
➢ Some larger companies may have
personnel or travel agency
resources to create itineraries for
senior leaders or those who travel
frequently.
➢ Companies with a corporate travel
program can configure travel
management software with online
booking tools to ensure travelers
create itineraries that meet the
firm’s travel guidelines while
providing a mechanism for trip
approval and the reporting of travel
and expenses.
FIND THE BEST PRICE
➢ A major part of the corporate travel
management involves finding the best
possible rates, and even negotiating
with a number of different service
providers.
➢ Travel agents for businesses have the
adequate expertise in handling the task
of negotiation since they deal with
different parts of the travel industry on a
day-to-day basis.
➢ This means they can find you the best
rates or even get special discounts that
you may not otherwise be able to get
yourself.
PRICING
➢ Corporate travel management is
responsible for keeping costs in check, as
travel prices are notoriously variable.
➢ Optimizing pricing can have a
measurable impact on maintaining
budgets and help companies fund more
business trips without significantly
expanding the budget.
 ➢ Corporate travel management can set
guidelines for how much employees can
spend on various travel costs, based on
reasonable and customary prices in a
given locale.
➢ Some companies negotiate prices with
certain providers, while others rely on
agencies and other third parties who
may have more leverage. Some might
rely on both internal teams and a travel
management company.
➢ Where it makes sense, companies
should also leverage any business client
relationships they may have with those
who provide transportation, hospitality
or other travel support functions.
ARRANGE SUITABLE ACCOMMODATION
➢ Arranging the most suitable
accommodation for business travelers is
another key responsibility of a corporate
travel agent.
➢ The agent looks for all the available
options at the right price, including guest
houses, hostels, and hotels, before
booking the rooms for the required
number of days and employees.
➢ If you were to take care of this task
yourself, you wouldn’t have enough
time to look for inexpensive
accommodation in the right location.
➢ This is where a corporate travel agent
comes handy for finding the best
TRANSPORTATION
accommodation without going over
budget.
ACCOMMODATIONS
➢ Lodging costs are cyclical depending on
economic conditions, location, time of
year and other factors.
➢ The cost of accommodations also varies
considerably throughout the world.
➢ Thus, corporate travel management may
negotiate prices with major hotel chains
or those who provide alternative
accommodations such as Airbnb—or
oversee an agency who does so.
➢ In addition to costs, businesses should
consider accommodations that meet
employees’ business needs and have
favorable cancelation polices or are
willing to waive certain fees.
ARRANGE FOR TRANSPORTATION
➢ One of the biggest parts of travel
planning is transportation. This can
easily be handled by a corporate travel
agent, who will arrange your
transportation needs in advance.
➢ They will ensure your flights are booked,
a rental car is organized, airport transfer
is arranged, and train tickets are
purchased. Sure, you will be required to
pay the agency for these services;
however, considering the amount of
time and money they save you, the fee
or commission they charge is well worth
it, especially if you or your employees
travel regularly.
➢ By using a corporate travel
management agency, you’ll not only get
better accommodation rates, but you
will also benefit from cheap business-
class flights for your employees.
➢ This means the overall business travel
costs can significantly be reduced.
➢ When it comes to transportation,
corporate travel management plays
several roles, including determining the
best mode of transportation for a given
destination.
➢ It is the conduit through which
employees make their arrangements
with preferred carriers and ensures
transportation arrangement comply
with company polices.
ORGANIZE BUSINESS MEETINGS AND EVENTS would benefit much more by allowing
someone with extensive experience to
➢ Whether your company needs to
handle this job.
organize annual events or meetings
➢ Specialized agents comply with
abroad, the process can take time and
corporate travel policies by using real-
investment.
time travel policy management to
➢ By hiring a specialized corporate travel
maximize functionality for the business
agent to take care of this task, you will
traveler.
reduce costs and make your business
➢ Hiring a professional agency to take care
events more profitable.
of your company’s travel needs will not
➢ The planning process for hosting an
only drive cost reductions but it also
event can be complex and time
optimizes business relationships while
consuming.
complying with travel policies.
➢ A reputable travel management
company will, therefore, be highly COSTS AND POLICY COMPLIANCE
advantageous in such situations.
➢ Many companies require corporate
MEETINGS AND EVENTS travel management to not only set cost
thresholds but also track and enforce
➢ Companies that host their own meetings
employees comply with them.
and events need resources with which to
➢ Ideally, corporate travel management
book restaurants, hotels, convention
ties compliance to reimbursement
centers or other venues that can
policies.
accommodate everything from small
➢ Moreover, its systems should prevent
executive meetings to large
employees from making arrangements
conferences.
that fail to meet the company’s policies.
➢ A corporate travel management team or
➢ Because circumstances at times may
tool facilitates these bookings.
necessitate exceptions, corporate travel
➢ For important meetings and events, the
management should have flexible
team will scout various venues and
approval mechanisms.
ensure each can meet the needs and
➢ Many businesses also issue a corporate
budgets of a meeting or event.
credit card, which allows for better
➢ If it’s a major gathering that will bring
tracking of travel and expenses,
together customers, investors or other
simplified travel booking, faster
influential stakeholders, corporate
reimbursement and access to real-time
travel management teams will visit the
data regarding employees’ costs.
venue.
➢ Besides evaluating the meeting facility, TRAVEL SUPPORT
the team will ensure the surrounding
➢ Sometimes, corporate travel
accommodations and logistics are
management teams will serve as a
suitable.
conduit between employees, their
CONTROL TRAVEL COSTS AND POLICY supervisors and accounts payable.
COMPLIANCE ➢ Larger organizations may outsource this
role to travel agencies, such as American
➢ While managing travel costs is the main
task of a corporate travel agent, you
 Express, which have sophisticated travel ➢ Going forward, each of these pillars
management platforms. should be considered while selecting a
➢ Some organizations will provide higher TMC, instead on focusing solely on price.
levels of support, such as arranging for ➢
transportation to airports, making
VERSATILITY
dinner reservations or serving as a
liaison to travelers when they need ➢ A comprehensive travel management
assistance. program aims to integrate and fulfil the
➢ In both scenarios, other than top needs of various stakeholders.
executives and VIP guests, employees ➢ While travel management companies
are increasingly expected to rely on self- (TMCs) can provide the basic day-today
service tools to address common travel travel services to corporates, there are
needs. other aspects that also need to be
accounted for.
REPORTING AND DATA ANALYSIS
➢ For employees, it plays a role in keeping
➢ Corporate travel management must them safe and productive while
report all travel expenses to accounting. travelling on business, and equipping
➢ Finance departments use that them to make necessary choices through
information to not only track expenses assimilation of relevant information.
incurred during an accounting period ➢ For travel and procurement managers,
but also inform current and forward- it centers around advising them on how
looking budgets and forecasts. to optimize their business travel
program, through in depth analysis of
THE FOUR PILLARS OF CORPORATE TRAVEL
travel spends and traveler behavior.
MANAGEMENT
➢ For senior executives, it ensures that
➢ Corporate travel management refers to the corporate travel programme
the strategic management of a supports company objectives, by
company’s approach to travel. This allowing them to focus on their core
includes vendor negotiations, daily business.
operation of business’s corporate travel
programme, safety and security in the
sky and on ground, travel-related
expenses and appropriate credit-card
management.
➢ There are four key pillars that sustain a
good travel management program;
ensuring safety of employees, increasing
cost effectiveness of the program,
increasing productivity of employees
while travelling for business and
increasing transparency within the
program.
 appropriate security and support at all
times.
➢ As the importance of safety in travel
gains momentum, corporate travel
managers are well-positioned to fill
travel policy gaps, as well as prepare
their organizations for future safety
challenges.
➢ Proactive initiatives to support and
protect employees such as safety
briefings, trainings, pre-trip documents,
etc. can instill a sense of security in
employees. This may, in turn, result in
increased productivity and loyalty
among employees, thereby boosting the
business.

ROLE OF CORPORATES IN DUTY OF CARE

SAFETY
➢ Duty of Care refers to the moral and
➢ Ensuring employee safety during
legal obligations of employer towards
business travel is the top concern for
their employees, contractors,
most organizations irrespective of the
volunteers, etc. in maintaining their
sector they operate in or the scale of
well-being, security and safety,
their operations.
especially during travel.
➢ Rise in business travel volumes and
➢ This concept has evolved over the years,
disruptions due to numerous factors
with an increasing relevance in business
such as climatic changes, natural
travel. Earlier, safety was a primary
disasters, terrorist activities, accidents,
concern only for organizations operating
political unrest, etc. have created a high
in high risk industries such energy and
need for organizations to have a
shipping. For other organizations, ‘Duty
comprehensive and structured safety
of Care’ was limited to managing
program.
emergency situations. It now extends
➢ Companies need to ensure that business
beyond this to ensuring safety of
objectives do not overshadow other
employees in all travel scenarios,
important factors such as providing all
applicable across small, medium and
members of the organization with
large enterprises.
 ➢ As companies expand their businesses
and explore new geographies, ‘Duty of
Care’ has gradually become a significant
component of any corporate travel
programme. Under this programme,
employers have the responsibility to
develop and deploy appropriate travel
policies and travel risk management
approaches to protect their employees
from possible harm.
TRAVEL SAFETY CONCERNS OF EMPLOYEES
➢ Most organizations have high emphasis
on ‘Duty of Care’ processes, travel risk
management and technology- enabled
safety features for international
business travelers. However, there is an
equal need to consider the
aforementioned factors for domestic
traveler.
➢ For example, hotels within the allocated
budget may not be located in a good
area, leading to safety concerns for
employees.
➢ Despite rising security concerns,
business travel volumes have not been
affected as 98% of employees are
confident in receiving safety support
from their employers30. With robust
systems and technologies in place to
ensure safety, employers and
organizations can assuage the travel
centric concerns of employees.
TRAVEL SAFETY CONCERNS OF TRAVEL
MANAGER
➢ Over the years, there has been an
accelerated rate of change in business
travel. However, the corresponding
change in corporate travel policies has
been gradual.
➢ Many travel managers have taken initial
steps to introduce or enhance several
measures intended to alleviate the
anxieties faced by employees during
business travel. Few travel managers
have begun leveraging traveler locating
technology and provide proactive safety
communication to employees.
➢ Safety training, emergency check-in
technology, safety and security services
from their travel management company
(TMC) and detailed emergency action
plans are some additional tools used by
most travel managers. However, travel
managers still face some gaps in the
travel management program.
➢ These organizations are critical when
situations require a more active
response. In cases of emergencies,
ISOS’s highly trained teams step in to
provide global medical assistance and
 additional security measures such as
evacuation of travelling employees, etc.
➢ Hence, collaboration and discussions
between all stakeholders, including
Travel managers, TMCs, employees and
other parties is crucial to mitigate or
overcome all challenges that may arise
during the course of employee travel.
TRAVEL RISK MANAGEMENT
➢ A travel risk management program is a
well rehearsed plan that provides Duty
of Care to employees. Various situations
can arise while employees are on their
business trip, ranging from natural
disasters to civic unrest. A robust travel
risk management program properly
equips employees to handle such
situations and complete their travel
safely. It does not eliminate risks, it
highlights them and mitigates them to
some extent.
➢ For an effective travel safety course, all
aspects of travel risks, how to mitigate
GDS: GLOBAL DISTRIBUTION SYSTEM
them, and how to react if they do
happen must be understood by
employers and conveyed to all
employees.
➢ To ensure all travel associated risks are
covered, organizations can follow
certain principles or guidelines such
GEBIR principles of travel risk
management. With the right travel risk
management solutions and travel
security services in place, an employer’s
ability to uphold their Duty of Care can
become much easier.
WHAT ARE THE BENEFITS OF YOUR HOTEL USING
A GDS?
HOW TRAVEL COMPANIES CAN BENEFIT FROM
CORPORATE TRAVEL MANAGEMENT COMPANY
➢ Travel companies like hotels and airlines
can optimise their travel strategy with
the help of a corporate travel agent. This
is because travel management
companies are responsible for booking
flight tickets, accommodation, car
rentals, transfers, and business events.
➢ Most corporate travel management
companies turn to GDS (global
distribution system) in order to carry out
their tasks, such as finding the right
accommodation, flights, and
transportation.
➢ GDS is also an important distribution
channel for hotels as it connects them
with the corporate travel agents and
provides them with up-to-date
information about their latest room
prices and availability.
➢ Thanks to GDS systems, the chances of
corporate travel management
companies finding your hotel and
booking your rooms are maximized. By
becoming part of this vital distribution
system, your hotel will increase its
revenue and reach a wider audience.
➢ A global distribution system is a
computer network, which empowers
service providers in the travel industry to
carry out seamless transactions. In
particular, a GDS is often used by a travel
agency, in order to see real- time
information and data about the
availability of hotel rooms, flights and
other travel services.
➢ Using that information, travel agents can
then sell travel products and services to
their clients.
➢ Although those in operating in hotel
management aim to maximise the
number of direct bookings they attract,
using a global distribution system helps
 to reach a larger number of customers.
This is because the GDS provides a single
point of access for thousands of travel
agents across the globe, who can then
book hotel rooms for their customers.
➢ Furthermore, a GDS can be especially
beneficial for a hotel aiming to attract
AMADEUS GDS
business or corporate travellers. This is
because a large number of organisations
still turn to a travel agent to book
business travel, rather than attempting
to book directly, as it can be easier for
them to manage expenses this way.
WHAT ARE THE COSTS OF USING A GLOBAL
DISTRIBUTION SYSTEM?
➢ While there are numerous benefits of
using a GDS, it comes at a cost too.
Standard practice is that a hotel will pay
a small initialization fee, followed by
transaction and/or agent fees on every
booking that is made. These fees can
vary significantly, but it is not unusual for
the fees to account for around 10
SABRE GDS
percent of the amount paid.
➢ For hotel owners, it is important to
balance room rates with this in mind.
Ideally, to optimize revenue, a hotel
should keep room rates low enough to
maintain a good relationship with travel
agents, but should also ensure they
never drop low enough for the payment
of transaction or agent fees to become
too problematic.
TRAVELPORT GDS
THE ‘BIG THREE’ GLOBAL DISTRIBUTION
SYSTEMS
➢ Hotels can turn to a number of different
GDS systems around the world, with
each one having its own unique features
and target markets. However, it is
generally accepted that there is a ‘big
three’ within this industry, which are
responsible for the vast majority of
travel agency bookings.
➢ When looking at market share for global
distribution systems, Amadeus GDS
ranks as the market leader and it is
estimated that somewhere in the region
of 40 percent of all travel agency
bookings using GDS systems go through
this particular network. However, most
of these bookings are linked to flights,
rather than hotel rooms.
➢ Nonetheless, Amadeus can provide the
hotel industry with excellent access to
the European market, in particular, as its
database is hosted in Germany and its
company headquarters is situated in
Germany.
➢ The Sabre global distribution system is
the closest competitor for Amadeus
when it comes to total market share, and
it is actually more proportionally reliant
on the hotel industry than Amadeus is. In
total, it is estimated that more than
200,000 hotels use the network to
connect with travel agencies.
➢ The company itself is situated in the U.S.
state of Texas, and is comparatively
stronger in the North American market
than its rivals. Sabre also offers a
number of hotel technology solutions.
➢ Finally, Travelport is a company that
owns the Worldspan, Galileo and Apollo
systems. While the parent company is
based in the United Kingdom, the
 Worldspan and Galileo GDS databases
are situated in the United States. As an
organisation, it provides GDS services
and a variety of other travel industry
solutions.
➢ One thing to note about Travelport is
that it offers access to diverse markets,
including those in the Americas, Asia and
Europe. Galileo is slightly more popular
with hotels, as Worldspan is more
closely associated with airlines.
CONNECTING YOUR HOTEL TO ALL GLOBAL
DISTRIBUTION NETWORKS
➢ For the most part, hotels connect to GDS
networks via a GDS provider. Such a
provider will function as an intermediary
between the hotel and the global
distribution system, and in most cases a
GDS provider will actually connect your
hotel to all of the three major GDS
systems at once, rather than focusing on
single one.
➢ Moreover, a typical GDS provider will
also have links to at least one property
management system (PMS) or Hotel
Channel Manager. All of this means that
hotels have the ability to manage their
hotel description, room listings, photos
and other information across different
GDS systems from a single place, while
NEGOTIATING
usage can also be automated.
➢ When optimising revenue, a hotel may
prefer to attract as many direct bookings
as possible, but a global distribution
system can be essential for increasing
demand and reaching a wider audience.
➢ While fees will usually need to be paid to
the GDS and the travel agent, room rates
can usually be
adjusted to ensure all parties benefit financially.
SAVINGS IN CORPORATE TRAVEL MANAGEMENT
➢ For many years, business trips often
ended up becoming leisure trips. Today,
this situation is not so common, but
could still occur.
➢ That is why it is important not to lose
sight of the fact that these trips are
about spending time getting to know
the environment, but also (and
especially) getting to know new
products, tools, how to improve their
work, where the industry is going, etc.
➢ It is not necessary to opt for luxury by
default, in five-star hotels or business
class on flights, but rather to look for
pleasant accommodation and
appropriate services, without losing
sight of the fact that this is not the
paramount issue.
➢ The employee needs to make use of the
time and to appreciate and be aware of
the money the company is investing in
him or her. If the person is going to
spend 14 hours away from the hotel, we
would most likely be wasting our budget
on unnecessary expenses if we chose
accommodation of a very high category
with many services included, because
the employee would not take advantage
of them, and neither is this the main aim
of the trip.
➢ Negotiating with travel suppliers tends
to be the most gratifying of travel
management initiatives because it
provides immediate, visible, and
measurable results. A successful
negotiating program can reduce the cost
of travel service by as much as 50
percent. These are the kinds of dramatic
results that often get senior
management attention. (at least of the
positive variety) can benefit the
company’s overall travel management
 effort, not to mention the careers of
those driving it.
➢ Successful negotiation with travel
vendors requires neither a graduate
degree in purchasing nor exposure to
the intricacies of bazaar haggling. It does
require a knowledge of the marketplace,
B. Corporate Rates
documentary evidence of past
purchases, and acceptance of the basic
fact that in a successful negotiation,
both buyer and seller walk away feeling
like winners.
➢ For most travel managers, conducting
the negotiation is the exhilarating and
rewarding part of the process. Yet, the
greater challenge to deriving meaningful
savings from a negotiating effort
maximizing use of the airline seats, hotel
rooms, and rental cars that you’ve
contracted for.
NEGOTIATING HOTEL RATES
➢ According to the American Express
Survey of Business Travel Management,
51 percent of U.S. companies have
access to negotiated hotel rates.
C. Negotiated Rates
However, the ability to negotiate grows
in direct proportion to T&E volume.
KINDS OF HOTEL RATES
➢ Most hotels offer three kinds of rate
structures: rack rates, corporate rates,
and negotiated rates.
A. Rack Rates
➢ are the lodging industry’s equivalent of
retail, or list, prices. They are rates
charged to individuals who book rooms
themselves or walk in.
➢ They are also rates that appear on the
back of the door in your room and that
are printed on rate cards that,
historically, were displayed on a rack
near a hotel’s front desk. In most large
hotels, a range of rack rates is in effect at
anytime, which vary according to the
desirability of the room.
➢ Unlike the rack rate range, the corporate
rate tends to be a single rate that is set
for a full year (except in resort areas,
which typically have high- and low
season corporate rates).
➢ The corporate rate is usually set at the
lower end of the rack rate range, the
corporate rate may be set. Although
there is a cheaper cheaper room (low
floor, dumpster view), it was probably
booked several months earlier by a
leisure traveler who requested the
cheapest room in the house; these
rooms are rarely still in inventory by the
time business travelers make their
reservations, usually no more than two
or three weeks before travel.
➢ Companies with significant volume are
able to procure negotiated rates. These
rates are contracted from a specific
period ( generally one calendar year) and
are discounted below the corporate
rate.
➢ Although conditions vary by property
and by market, it maybe worth
attempting to negotiate a discounted
rate with a hotel if your company is able
to deliver at least 100 room nights per
year.
➢ Negotiated discounts normally range
from 10 to 40 percent below the
corporate rate. In most cases, hotel
negotiations must be conducted with
the individual property. Business-
 oriented properties usually have an
employee with title of Corporate Sales
Manager to respond to your inquires.
FACTORS THAT INFLUENCE HOTEL
NEGOTIATIONS
➢ Of the many factors that influence the
direction that your hotel negotiations
take. The principal determinant is rate.
Before you begin negotiations in any
city, it is important that you know your
company’s average room rate there.
That is the benchmark for your
negotiations effort.
➢ Another critical factor in the negotiation
effort is the quality segment of the
property you choose to deal with. Hotels
can be broadly categorized as deluxe,
first class. Moderate, and economy.
➢ To ensure efficient transaction
processing, be sure that the rates you
negotiate can be booked and paid for
through normal processes. Your
travelers should be able to access the
negotiated discounts through your
approved travel agency.
➢ You should also check to make sure that
the property accepts your preferred
form of payment, usually a corporate or
personal charge card.
➢ In limited circumstances you may be
able to negotiate rates that are net of
the usual 10 percent travel agency.
➢ If there is any chance that your company
will be using these properties for
meetings involving 10 or more rooms
per night, negotiate a group rate at the
same time you negotiate a rate for
individual business travel. Hotels are
eager to secure group business; your
ability to deliver it enhances your
leverage in negotiations for both the
group and the individual rates.
➢ Other factors that may influence the
selection of properties and rates to be
paid are the services provided to your
travelers. Amenities such as
complimentary newspapers, cocktails,
and meals can offer additional savings
while generating traveler loyalty to your
company’s discount hotel program.
NEGOTIATING CAR RENTAL RATES
➢ The car rental industry is hotly
competitive, and the vendors employ an
extremely proactive sales force to build
their business. You are encouraged to
stay in touch with these vendors and
keep abreast of market conditions.
➢ However, keep in mind that for the
typical company, car rentals represent
only 8 percent of total travel and
entertainment. Don‘t allow car rental
negotiations to assume a greater
proportion of your time than they
deserve, relative to their potential
impact on your bottomline.
CAR RENTAL RATES
➢ Car rental firms offer three kinds of
rates. As with hotels, their retail, or list,
prices should be merely a last resort for
business travelers.
FACTORS THAT INFLUENCE CAR RENTAL
NEGOTIATIONS
➢ Car rental vendors employ corporate
sales managers who will meet with you
to work out details of a contract. Beyond
the actual rate negotiations, the major
factors in selecting a car rental vendor
are the following:
1. Size and location of fleet
2. Facilities on or off-site at major airports
3. Sophistication of reservation and
reporting systems
 4. Reputation for customer service and
attention to quality
➢ A variety of other contractual issues may
be negotiable, depending on your
company‘s volume. Requirements, and
the priorities of the vendor with which
you are negotiating. This issues may
include the following:
1. Waiver of hourly surcharge
2. Discounted fuel surcharge
3. Waived or reduced one-way rental or
drop-off fees
4. Delivery of vehicles to company sites
5. Traveler amenities such as upgrades,
mobile phones, or access to express
services
bulk of your business along a particular
route and no other airline offer
competing service, your ability to
negotiate may be non-existent.
➢ To negotiate a meaningful airfare
discount, you must prove to the carrier
that you can provide it with incremental
business on frequently traveled routes,
which presuppose competition among
carriers on those routes. It also requires
you to have tight control over the source
of airline reservation activity through
contracted agencies, the airline will
question your ability to direct travelers,
which can seriously jeopardize your
negotiating position.

NEGOTIATING DISCOUNTED AIRFARE

➢ The travel industry trade press has

recently published several accounts that
show a slow but undeniable revival of
corporate discounting for domestic air
travel. The availability and mechanics of
these arrangements vary widely by
carrier.

KINDS OF NEGOTIATED AIRFARES

1. Group
2. Training fares
3. Bulk purchase
4. Waivers of restrictions
5. City-pair discounts
6. One free ticket

FACTORS THAT INFLUENCE AIRFARE

NEGOTIATIONS

➢ The principal factor governing successful

airfare negotiations is airline
competition on your company’s key
route. If one airline already receives the