How Corporates Can Use Analytics to Strengthen Supplier Relationships in Business Travel

Travel managers know that managing supplier relationships is both an art and a science. Travel suppliers—airlines, hotels, ground transportation providers, and more—are key partners in ensuring a seamless travel experience for employees while controlling costs. However, fostering strong, mutually beneficial relationships with these suppliers requires more than just negotiation skills; it requires robust data analytics.

Leveraging analytics in supplier management allows companies to optimize their travel programs, enhance service quality, and align supplier performance with organizational goals. Here's how corporates can harness analytics to strengthen supplier relationships:

1. Enhancing Transparency with Performance Metrics

Buyers value transparency, and analytics provides the foundation for open, data-driven discussions. By analyzing performance metrics such as booking volumes, traveler satisfaction, on-time performance, and service disruptions, corporations can identify trends and share actionable insights with suppliers.

For example:

• Airlines can be evaluated based on flight delays, upgrade frequency, and overall reliability.

• Hotels can be assessed by occupancy rates, traveler feedback, and adherence to negotiated terms.

Analytics ensures both parties have a clear understanding of expectations, fostering trust and cooperation.

2. Strengthening Contract Negotiations

Analytics gives corporations the upper hand during contract negotiations by providing a comprehensive view of travel spend, booking patterns, and market benchmarks. This data enables organizations to present well-supported cases for volume discounts, added perks, or enhanced service levels.

For example, if analytics shows that a company consistently books 10,000 room nights annually across a hotel chain, they can use this data to negotiate preferential rates or added amenities, such as free breakfast or Wi-Fi. Similarly, flight data can be leveraged to secure better corporate rates or flexible cancellation policies with airlines.

By aligning spend data with supplier offerings, companies can achieve agreements that are not only cost-effective but also mutually beneficial, setting the stage for long-term collaboration.

3. Predicting Trends and Demand

Using historical travel data and predictive analytics, corporations can forecast future travel demand. This capability benefits both organizations and suppliers by enabling proactive planning and resource allocation.

For example:

• Predicting peak travel periods helps airlines and hotels ensure availability and manage capacity.

• Identifying off-peak seasons allows companies to negotiate lower rates or special deals during periods of reduced demand.

When suppliers see that a corporate client is using analytics to optimize travel planning, they are more likely to view the relationship as strategic and worth prioritizing.

4. Driving Continuous Improvement with Actionable and Intelligent Data

Data analytics allows organizations to monitor supplier performance and address issues as they arise. For instance, if a hotel’s traveler satisfaction scores drop due to repeated service issues, this can be flagged immediately for resolution.

Furthermore, organizations can use analytics to create scorecards or dashboards that track key performance indicators (KPIs) like cost savings, traveler satisfaction, and compliance with service-level agreements. These tools enable suppliers to see how they are performing against expectations and encourage continuous improvement.

5. Aligning Supplier Relationships with ESG Goals

Sustainability is a growing priority in corporate travel, and analytics plays a critical role in aligning supplier relationships with environmental, social, and governance (ESG) goals.

By tracking metrics such as CO2 emissions, suppliers’ environmental certifications, and sustainable practices, corporations can identify partners who share their values. For instance, an airline’s use of sustainable aviation fuel or a hotel’s energy efficiency practices might make them preferred partners.

Suppliers who see that analytics is being used to support sustainability initiatives are likely to appreciate the shared commitment, strengthening the partnership.

6. Enhancing Traveler Experience through Supplier Insights

Supplier relationships aren’t just about cost savings; they’re also about delivering positive experiences for business travelers. By analyzing traveler feedback and service quality metrics, corporations can collaborate with suppliers to improve the end-to-end travel experience.

For example:

• If frequent complaints are logged about airport transfer delays, analytics can help pinpoint the issue and work with ground transportation providers to address it.

• Real-time traveler satisfaction surveys can provide actionable insights that suppliers can use to enhance their offerings.

When suppliers see that their efforts contribute to traveler satisfaction, they are more likely to invest in quality improvements that benefit the corporate client.

The Role of Technology in Supplier Analytics

Tools like dashboards, analytics platforms, and artificial intelligence have revolutionized how corporations manage supplier relationships in business travel. Solution providers such as Grasp Technologies enable companies to consolidate data from multiple sources, providing a unified view of supplier performance and spend.

Automation also plays a role, reducing manual work and improving the accuracy of insights. As a result, organizations can spend less time compiling reports and more time building strategic partnerships with their suppliers.

Contact Grasp Technologies today to learn how we can help you build stronger, more data-driven supplier relationships that deliver lasting value for your organization.

Conclusion

Strong supplier relationships are critical to the success of corporate travel programs, and analytics provides the tools needed to nurture these partnerships. By leveraging data to enhance transparency, drive performance, and align with strategic goals, corporations can ensure that their supplier relationships are not only cost-effective but also collaborative and future-focused.

As business travel continues to evolve, companies that embrace analytics in supplier management will be better positioned to achieve sustainable growth, enhance traveler satisfaction, and maximize the value of their travel programs.

Want to know more about how Grasp can help assist in improving your supplier relationships?