Negotiating contracts with offline carriers 


Negotiating contracts with offline carriers

Problem

James is the GM for a large TMC. He was confident of achieving increased income from airlines without any increase in sales over the next few months. His income targets for the year would be cushioned with what he was about to do with four offline carriers. Each of the carriers were keen to meet him to discuss how they could work together.

Solution

James spoke to each carrier and used his Airline Metrics Web-based app to prove what flown revenue and passenger numbers his TMC was generating.

They were surprised at these results as their own reporting didn’t have such detail and always arrived well after a period had closed.

Outcome

The TMC and airlines agreed new improved incentives and special fares that would subsequently benefit James’ sales performance for the year. James had exploited how the offline carriers were keen to pick up sales from indirect POS (point of sale) locations.

Note:  Due to the dynamic nature of the travel industry it helps to keep an eye on flown revenue by carrier, even if they do not fly into the country.