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QBT - Business travel made simpleQBT – Business travel made simple

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Airline Deal Renegotiation

Situation

Client A was renegotiating their airline deal. Their major concerns were:

  • $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 Client A with the minimum level of discount required to make this feasible and the probable savings (based on current behaviours and benchmarked airline agreements).

Result

 Savings of more than $1 million annually

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