Airline contracts are evolving past simple flight pricing

To continue being competitive in the corporate market, airlines are being pushed to include more in their contracts than ever before. The demand for additional features and inclusions into contracts assists with organisations with being efficient while on the road.

At the ACTE Educational Forum in Zurich, eighty-one participants, with 21 travel buyers representing local and global companies based in Europe, gathered to discuss how airlines can better meet their needs. Topics included: buyers’ lists of what they would like to see negotiated in business contracts; how smaller companies can get the same support as big companies in terms of pricing and travel benefits; simplified discounts and best-price guarantees against market fluctuations; as well as additional savings such as buying in-flight WiFi in bulk.

The Association of Corporate Travel Executives (ACTE) executive director Greeley Koch, stated,

“With today’s tight labour market, prospects are choosing companies that will allow them to be most efficient while on the road. Expectations travellers have for airline contracts include: lounge access; fast-track through security; in-flight WiFi; priority seating; and quick airport in and out.”

Today’s modern business traveller requires more than just on-time arrival for flights into order to stay productive.

“We’ve seen that travel policies and how companies treat their travellers is an important factor in retention and motivation of current employees. Recruits also want to know a company’s travel policy before they sign on so that they understand how they will be treated when on the road.”

Koch said the mindset for travel executives has shifted to meld procurement approaches, in terms of lowest price, with the idea that they must secure amenities that will improve the journey.

“Today’s modern business traveller requires more than just on-time arrival for flights into order to stay productive. Companies want to get the best ROI from every trip. They’re invested in making sure travellers can stay focused on business – not logistics – throughout their journey. Procurement groups now are charged with making sure airline contracts go beyond price.”

ACTE and CAPA – Centre for Aviation continue to be industry leaders in education forums and full-day industry strategy summits. With a partnership that spans eight conferences in 2017 alone, both organisations continue to deliver informative, innovative and inspiring events unmatched by any other.

CAPA and ACTE regularly achieve the highest buyer/supplier ratios in the market and over 50 corporate travel buyers registered for this week’s 2017 CAPA-ACTE Melbourne Aviation & Corporate Travel Summit (30-May-2017).

The next CAPA – ACTE event is schedule for 04-Jul-2017 in Perth. Register here.