Focusing on Airfare Fuel Surcharges

With all the hue and cry for transparent pricing, buyers need to look more closely at fuel surcharges.

For starters, spending on fuel surcharges probably dwarfs ancillary fees.  Why? Unlike ancillary fees, surcharges are not optional. They apply to every passenger who buys a ticket with a surcharge filed as part of the fare.  Quite different from those who may elect to pay for a checked bag or an aisle seat.

Now for the salt in the buyer’s wound – corporate discounts Continue reading

Maturity Models for Travel Programs

Ever since working at AT Kearney, I’ve liked the concept of maturity models.  You might know them by the term “Stages of Excellence”, or some other label.  Done well, they are good at helping you quickly get a feel for where your company stacks up against others.

Here are two maturity models for travel programs that Continue reading

Buyers Right to be Crabby About LH’s Demands

Lufthansa (LH) has drawn a deep line in the corporate contracting sand this year. It is demanding financial clawbacks and access to detailed, perhaps unprecedented, corporate travel data in return for providing corporate discounted fares. More on this here.

Many buyers, big and small, take advantage of airlines by getting discounted airfares before ever delivering the promised volume or market shares. If those volumes are not delivered, the airline is the loser Continue reading