How to Negotiate Rates With an Airline

Preparing for negotiations

We all know that air passengers pay different fares, even if on the same flight. We also know that leisure passengers generally pay less than business travelers. But many do not know that many business travelers can also get discounts. It all depends on travel volume, destinations and class of service. If your company is growing and sending staff afield particularly to international destinations, here is a process to negotiate the best deal with an airline.

Things You'll Need

• Corporate travel statistics

Instructions

Step One

1. Analyze your company's previous 12-month travel. List each trip including passenger name, city pair traveled, class of service and fare paid.

2. Contact your company's travel decision-makers and forecast travel needs for the next 12 months using the criteria outlined in Step One. Summarize the findings to include total fare cost, number of trips and number of trips for most traveled city pairs. Highlight international destinations, particularly travel in business class.

3. Survey company travelers and travel decision-makers (including financial department) to determine relative importance of airline services, e.g. connections versus nonstops, rule waivers, flyer club memberships, fee waivers, class of service upgrades, frequent flyer points, etc.

4. Review airline route systems and analyze your company's travel needs versus the route systems offered. Determine the best two airlines.

5. Contact the airline corporate sales department, provide your anticipated air travel needs and request a bid.

6. If your company's projected air travel needs meet minimum revenue criteria, the airline may bid on the business. Be prepared to guarantee a travel purchase minimum and to designate the airline as "preferred" to all company travelers.

7. In exchange for guaranteed revenue, the airline may offer guaranteed or discounted fares, or a travel rebate. Other items such as special "rule-waived" fares, upgrades or flyer club memberships may be placed on the table.

8. 

   Finalize airline selection

   Select the airline that best serves company needs, noting cost, flight frequency and use of traveler time.

Tips & Warnings

• Share your company's travel policy with the airline and illustrate how it can be used to guarantee travel. Approach the agreement as a joint effort beneficial for both the airline and buyer.

• While smaller companies have less leverage, some airlines have programs designed for small and medium-sized businesses. These perks may include upgrades and premium seating. Another option is to contact a corporate travel management company who may be able to offer discount options.

• Unless you have more business than one airline cannot handle, you will get a better deal if you select one airline as "preferred." Make sure to meet your revenue commitment, otherwise the relationship may sour.

References

• First Class Flyer: Negotiating with an Airline
• United Airlines: Corporate Plus