how to negotiate with travel suppliers

How to negotiate with Travel Suppliers

Nick Hurrell

Partner, 3SIXTY Global

Nick Hurrell

• Background with a major TMC and Hotel Booking Agent– Board level experience in sales, account management and

operations

• 2 years with 3SIXTY Global– Procurement of TMC, Airline and Hotel programmes, Interim

Management

Nick.Hurrell@3sixty-global.com

07836 236279

Let’s discuss…

• Why negotiate with suppliers ?• How to prepare• Air, Hotel, Rail, Car rental

– When does it make sense to do a deal?

– What sorts of deal are available?

– How many suppliers should I have per category?

– How do I make sure the deal works?

– Who should take the risk – me or the supplier?

• Contracting• Benchmarking• What do I do if the negotiation doesn’t go well?

Why negotiate?

Better financial arrangements (discounts!)

But consider also…

•Quality – service improvements, traveller benefits (guaranteed upgrades, free wifi, breakfast included)

•Duty of care – known and trusted suppliers

•Compliance to policy – better data, improved negotiation stance

Preparation

Knowledge isn’t Power…….

…..It’s a weapon of mass destruction !

Get ahead of the supplier….

Preparation

Good data is vital

Sources:•Travel Management Company•Existing suppliers (ie hotels, etc)•Corporate cards•Finance / Accounts payable

Preparation

What does the Business want?•Engage with your stakeholders – find some internal “friends”•Travellers can be emotional – don’t introduce new and untested suppliers unless you have stakeholder support

Can you deliver?•Will your company mandate the chosen supplier?•Who will mandate that supplier?•Are preferred suppliers included in the travel policy?

Understand what the supplier wants too … and the questions they will ask you

Airlines

The remaining 22 pages from our presentation on 6 February are tailored specifically to the Business Travel Show audience. Many of these pagescontain situation-specific information. We are happy to share some of these situations and case studies with you.

For more information on how we recommend negotiating withAir, Hotel, Rail, Car Hire and Meetings Management suppliers, please contact us at:

Email: enquiries@3SIXTY-global.com

Telephone: +44 (0) 8456 808 360