Air Transport World

A fare solution. (Business Travel Contractors Corp. plan to negotiate air fares for corporations)

Sometime within the next few months, perhaps by year end, Business Travel Contractors Corp. will send a proposal to U.S. airlines asking them to join a program under which they will offer BTCC clients mileage-based, negotiated airfares for domestic travel.

The goal of the program, according to BTCC Founder and President Kevin P. Mitchell, is to pull costs out of the fare and ticket-distribution system by simplifying what even airlines concede is an extraordinarily complex process.

BTCC is proposing that its clients purchase air travel from participating airlines on a "net fare" basis, which excludes agency commissions and override costs, and other expenses. These fares, which will be uniform and mileage-based, will be known as "Business Contract" fares and will have terms of 18-months. Any airline that participates in the BTCC program must offer BCFs in all of its domestic city-pairs. In return, BTCC participants will commit 90% of their domestic ticket purchases to contract carriers offering BCFs. In the first go around, airlines will be have to accept or reject BTCC's proposal in its entirety. Subsequently, BTCC will ask them to submit bids, which then will be opened up to other airlines to match.

BTCC will negotiate fares on behalf of the corporations it represents but will not actually make reservations nor issue tickets. That job will continue to be handled by travel agents and in-house corporate travel offices. Travel agents will be compensated by their corporate clients, not by airlines. …

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