Consolidation key to cutting costs

Consolidation key to cutting costs
By admin


Carlson Wagonlit Travel has urged travel managers to use preferred suppliers to optimise savings on air travel.

The travel management firm’s 2012 Travel Management Priorities research showed savings of 8% were possible through consolidation of air sourcing.

“One of the basic principles of air sourcing is that the more business a company can commit to an airline, the better the discounts it can obtain,” CWT said.

Shifting to low cost carriers could also help companies to slash costs by around 11%, but the report underscored the “significant trade-offs” involved in making the switch.

Instead, it advised looking for ad-hoc savings through low cost carriers “while ensuring they do not erode the preferred carrier program”.

Ancillary charges and fuel surcharges were highlighted as key costs, accounting for 5% to 10% and 7% to 12% of the corporate air budget respectively.

The report advised negotiating these costs where possible.

Choosing restricted fares over flexible fares could generate savings of 30% to 40%, with earlier bookings also resulting in significantly lower prices.

“The main challenge is getting travellers to book earlier than they do,” the report said. It suggested imposing a 14-day deadline to ensure savings.

Latest News

  • Aviation

Low-cost Indian carrier SpiceJet continues to burn cash

It’s not just low-cost Australian carriers that are facing hardship. SpiceJet, India’s version of Bonza, recently announced a 72 per cent reduction in its net loss versus last year. But, despite this improvement, the airline has posted losses for six straight years. But it has secured board approval to raise up to INR 30 billion […]

  • Attractions

SAKA Museum recognised in TIME magazine’s World’s Greatest Places 2024

AYANA Resort Bali’s newly-opened cultural and events centre, SAKA Museum has been recognised in TIME magazine’s World’s Greatest Places list for 2024. Part of AYANA Bali’s resort destination, the museum integrates Bali’s rich history with state-of-the-art facilities, making it the centrepiece for the island’s spiritual and cultural heritage. TIME magazine’s inclusion of SAKA Museum in […]

  • Cruise

Silversea taps Barbara Biffi as senior vice president for global sales

Ultra-luxury and expedition cruise travel brand, Silverseas, has announced Barbara Biffi as its new senior vice president of global sales. Biffi joined the company in 2007, holding numerous positions and gaining a deep understanding of the brand, the preferences of its guests and its strategic goals, the company said. An Italian national with a wealth […]

  • Technology
  • Travel Agents

Amadeus welcomes FCM Travel as new reseller partner of Cytric Easy

Cytric Easy, the travel management tool embedded in Microsoft Teams, is to be integrated into FCM Travel portfolio. Amadeus and FCM Travel have extended their Cytric distribution agreement to include Cytric Easy. With this new agreement, global travel management company FCM Travel, becomes a reseller of the innovative travel management collaboration solution embedded into Microsoft […]