FlyerTalk Forums - View Single Post - Travel Expenses: Dumb Things your Company has Done
Old Jan 31, 2017, 8:55 am
  #63  
erik123
 
Join Date: Apr 2002
Location: NYC
Posts: 9,125
Originally Posted by zanderblue
You need to be careful when comparing charged prices for travel expenses versus actual cost to company.
Most or if not all big multinationals have contract agreements with providers that trigger significant rebates after preset spend limits are hit.
So although it appears flight costs more than freely available on internet or direct from airline, after rebate is applied the actual cost is a lot less.
This exactly. E.g. If the annual expenditures on travel is $5 million and a corporate agent can generate a $500k reduction, the company doesn't care that your ticket costs double.

These contracts are put up for bid every few years.
erik123 is offline