Aggregated fares set for growth

14 April 2004
More news

15 April 2004

Aggregated fare prices for airline journeys and hotel rooms are expected to feature heavily in the next phase of travel management outsourcing.

Delegates at the Institute of Travel Management's event in Wales heard that a one-price-fits-all approach for hotels and airfares was becoming increasingly popular.

"Aggregated" fares are agreements in which a travel procurement company does a bulk deal for flights or hotel rooms with the provider, leading to lower cost for the traveller and guaranteed revenue for the provider.

Such an approach - which is common among big procurement service providers and travel management companies - drove down costs for the customer and offered flexibility, said Corin McGrath, head of travel services at outsourcing provider Xchanging.

"Top of the agenda for outsourcing is saving money. People want to try to improve the service too, but ultimately it is about money," he said.

Many companies did not have enough influence to insist on bulk buying with providers, he added.

Ian Nurdin, business travel manager for Nestlé UK, said: "I am keen on the process of aggregation, if airlines are starting to accept it.

"If they are prepared to offer aggregated rates for flights to a third party, I'd be disappointed if they were not prepared to offer us the same sort of deal."





SMapr2004

LATEST
JOBS
Hounslow, Heathrow /Richmond upon Thames
Competitive salary depending on experience plus generous share award
Tails.com
London
GBP60000 - GBP70000 per annum + Excellent Package
Bramwith Consulting
SEARCH JOBS
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates
GO TO CIPS KNOWLEDGE