Globalizing Air Contracts for Deeper Discounts

The Client

Our client is a global company in the pharmaceutical industry with approximately $30 million in annual air volume.

The Opportunity

The client approached Direct ATPI Global Travel (Direct ATPI) about the opportunity to globalize their air contacts by leveraging their consolidated spend in the U.S., Europe, Canada, and Asia-Pacific.

The Solution

Direct ATPI began an intensive negotiation process by gathering TMC data from each global point-of-sale and loading all air contracts into our analytics tool to identify key airline partners and outline opportunities for increasing discounts. We supported the client through preparing the RFP and provided analysis of their negotiations with the airlines.

The Results

Direct ATPI moved the client from multiple regional airline deals to global JV deals with two major airline alliances. Alliance 1 offered a 2% increase in savings, resulting in projected contract savings of $1.96 million. Alliance 2 saw an additional 1% discount, with projected savings equaling over $1.15 million. Further, emerging markets in the client’s travel program now have discount coverage, and we were also able to secure added benefits for the client’s travelers, such as airline status upgrades and concierge services for VIPs.