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Sabre Contract Optimization Wins Agency Support

October 5, 2010 By: Staff

Sabre Travel Network reports strong customer feedback for its Contract Optimization Services, launched last year. According to Sabre customers, including Tzell and Valerie Wilson Travel, Sabre’s solution delivers bottom line benefits that translate into measurable cost savings and increased revenue and commissions. Some agencies report a 20 percent increase in preferred airline bookings, Sabre says.

Ttravel management companies (TMCs) using Contract Optimization Services can receive an increase in targeted bookings by up to 20 percent; up to 10 percent increase in supplier override revenues; up to 5 percent reduction in corporate travel spending; and capturing more than 90 percent of missed or incorrectly entered front-end commissions.

Part of the Sabre Red total travel solution, Sabre’s Contract Optimization Services is a comprehensive solution that helps TMCs and their corporate customers efficiently manage multiple, overlapping air supplier contracts.

For example, an agency may have four or five airline supplier agreements with multiple sales targets for overlapping sets of markets. When booking, Contract Optimization Services analyzes the thousands of possible city-pair, carrier, and point of sale combinations and makes valued suppliers and itineraries simple to find. Customers are able to set, track, and reach performance goals that provide them with maximum financial value.

"Sabre’s Contract Optimization Services allow us to bring more value to our preferred carriers and the reporting capabilities provide us with the tools we need to show that," said Mimi McGuire, director of airline relations for Valerie Wilson Travel. "Sabre Contract optimization capabilities have solidified our relationships with our preferred carriers and give us increase marketing power, creating a win/win for all involved – our airline partners, Valerie Wilson Travel and the corporations that we serve."

As a result of their use of Contract Optimization Services, Tzell Travel Group, one of the largest TMCs in the country, has recouped an average of more than $1,000 per day in what would have been lost commission revenue.

"Almost every agent misses a commission opportunity on a weekly basis and Sabre's contract optimization tool made it fast and easy to catch these missed opportunities," said Barry Liben, president of Tzell Travel Group. "It also assists in debit memo prevention by finding instances where commission was taken but the necessary ticketing codes were not entered."

Sabre’s Contract Optimization Services empower agents to present flight options at its agent point-of-sale that drive maximum value for both the agency and its corporate client base.

After a year of success in North America, Sabre is now supporting Contract Optimization Services globally. A number of pilot customers have already been engaged in Europe, Sabre reports.

Contract Optimization Services comprise three integrated components that allow agencies to  manage all aspects of their air supplier agreements:

*    Sales Planning evaluates supplier deals and determines ideal sales targets, at the city-pair or even flight level, to maximize overall profitability
*    Content Customization lets customers tailor their displays, reflecting market and customer-specific objectives
*    Reporting and Analysis constantly track performance on each term and goal for every supplier agreement, including daily alerts that keep managers from missing opportunities.


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