Wednesday, August 29, 2012

BLOG COMMENT - Buyers and airlines

The Bald airline facts about business travel. 1/ In the main companies will not mandate travel i.e. they will not say ‘you must use this airline’. They will ask you to but very rarely will they mandate it. It is not in global company nature to do so. 2/ It is practically unheard of for corporations to insist (and follow through) on their travellers using their loyalty miles for business purposes. This has a bearing on fact no 1. 3/ If a corporation is told by a national airline that they no longer have a deal then at least half of their travellers will still fly on that airline. 4/ Buyers may bluster and dictate to airlines but they seem unable to do so in their own business. Procurement is very low in the political pecking chain of any corporation. Internally people may endorse procurement tacitly but not authoratively. 5/ Whilst this situation remains it will be very difficult and perhaps foolhardy to direct connect with just one major airline. I wonder how long it will take before somebody calls the buyers bluff.

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