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QBT - Business travel made simpleQBT – Business travel made simple

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Airline Deal Renegotiation

Situation

Our client was renegotiating their airline deal. Their major concerns were that they were spending the following:

  • $140,000 in change costs annually (1.5% of their spend)
  • up to $160,000 in outstanding ticket credits at any one time.

Action

We modelled the impact of renegotiating the airline deal with higher discounts on more flexible fares, sacrificing discounts on the lower fare types.

We presented our client with the minimum level of discount required to make this feasible and the potential savings (based on current behaviours and bench-marked airline agreements).

Result

 A savings of more than $1 million annually.

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