Overview:
Large travel buyer with over $150 million in annual airline spend. Long-standing, highly compliant relationship with primary global alliance partner. Desire to source the global program, without risking strong partnership built with the supplier over time.
Approach:
Approached primary alliance with an opportunity to submit a pre-emptive proposal in order to avoid inclusion within global competitive RFP. We set a minimum expectation of improved savings and amenities in order to move forward with this strategy. Remaining supplier base would be sourced with remaining volumes not committed to the global supplier.
Results:
Primary supplier exceeded the minimum savings expected and delivered nearly $2 million in incremental contract value, plus expanded its amenity program beyond the US traveler base. Remaining suppliers delivered in excess of $1 million of incremental contract value, despite limited upside opportunity.