NDC is designed to address the industry’s distribution limitations and provide access to rich and full air content with a transparent shopping experience, as it allows airlines to sell their fares directly to consumers.

NDC enables corporate travel management companies that have technology to aggregate content to transform the way air products are retailed to business travellers.

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A response to the ever-increasing number of travel booking sites and apps, open booking is the practice of allowing travellers to book their travel however they prefer, whether that’s direct with a hotel, airline or rail provider, or via a third party website.

Although open booking provides travellers with the freedom to book their travel using methods they are already comfortable with, its lack of prescription makes it hard to enforce travel policies, as well as compromising duty of care and hindering the accuracy of management information.

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This exercise is designed to simplify and reduce the costs associated with a tender by ruling out travel management companies (TMCs) that don’t fit desired criteria.

Through asking questions based on financials, accreditations, location of office & number of employees, the questionnaire’s purpose is to ascertain a TMC’s financial, operational & commercial capabilities and ultimately, whether they could be a potential supplier.

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It’s a credit card which is specifically designed for business travel expenditure. Typically one credit card number is “lodged” with your travel management provider, and it’s to this number that all expenditure is charged.

Whilst they are relatively simple and universally accepted, they can cause issues from a data perspective if your spend is large.

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Booking travel, altering bookings and checking itineraries are popular functions that feature on most mobile travel apps. Although useful to some business travellers, mobile apps can quickly become out of date and so more innovative travel management companies are remedying this by offering fully optimised mobile booking sites to travellers instead. 

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Within air travel, a SOTO ticket means Sold Outside, Ticketed Outside – ie. an airline ticket that has been bought and issued from a country that doesn’t feature in the travel itinerary.

For example, if a UK traveller buys their ticket in the UK but they’re travelling from New York to Los Angeles, that will be a SOTO ticket. With regards to the location of these operations relative to the origin of the traveller, tickets may also be SITI, SITO or SOTI, specifying inside or outside.

To learn more about SOTO tickets, check out our FAQ below:

What is the significance of a SOTO airline ticket?

Your airline ticket being a SOTO, SITO, SOTI or SITI ticket will make a big difference when it comes to fares. Due to special fare construction rules and regulations, tickets sold outside the origin country (SOTO) will incur additional fees. 

What are the main differences between SOTO, SITO, SOTI and SITI?

STI

This is the most common type of ticket, that means Sold In, Ticketed In [the country of origin]

You buy your ticket at Berlin to fly from BER to LHR.

SITO

Sold In, Ticketed Out [of the country of origin]

SOTI

Sold Out, Ticketed In

i.e. a ticket paid for in LAX for a customer in HKG that is issued when the customer checks in at HKG, or picks up the ticket there.

SOTO

Sold Out, Ticketed Out — i.e. an E-Ticket you purchase for someone in another country.

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The abbreviation TNC stands for Transportation Network Companies. This is a new term that describes an increasingly popular method of finding personal travel, fast. TNCs provide users with transportation through an online platform that connects them to drivers that are nearby. Examples of such companies include Uber and Lyft.

This term is relatively new, having only come about in recent years, following the development of relevant online technology. TNCs have been steadily increasing in number due to increased demand, based on the ability to book a taxi via an app and the ability to register a debit card to the account.

To learn more about Transportation Network Companies, check out our FAQ below:

How do TNCs work?

Each travel network company will differ slightly in the services that they offer, but generally, they will all use software to connect users with a driver. In order for this to work, the TNC will recruit a driver that passes the company’s requirements on training, vehicle specifications and background checks. The driver will then download the software (usually a smartphone app) in order to receive pickup requests from the customer.

How do TNCs differ from traditional taxi companies?

The main difference between a traditional taxi company and a TNC is that drivers for transportation network companies will provide their own vehicle that meets the requirements.What’s more, the efficiency of TNCs cannot be understated. Billing can be handled by pre-registered bank cards which makes paying for travel simple. Users of the app will also be kept informed in real time when their car will arrive using GPS Capabilities. It really is a no-brainer when organising business travel.

What are the pros and cons of TNCs?

PROS:

• TNCs often cost less than a traditional taxi service, unless surge pricing is in effect.
• TNC apps are widely accessible and easy to use. They are streamline to make travelling as easy as possible, and they even provide important information such as the driver’s registration number, contact information and the driver’s ETA.
• Customers can pay without needing to present a bank card or cash. Users can simply use a pre-registered card to pay for a journey at the tap of a button.
• Service is just as good as a traditional taxi service due to the ability to rate both drivers and customers after the ride.

CONS:

• Costs of TNCs may be higher at times just to surge pricing. This is most prevalent at peak times and can be avoided by travelling during less busy periods.
• During busy periods, it may be difficult to book a trip at all.

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The hotel rack rate is the price that a hotel charges for a room before any discounts have been applied. It is sometimes referred to as the published rate and is usually set artificially high, which means that discounts can look extremely generous by comparison.

If you’re working with a travel management company or a business travel agency, make sure any savings reports you receive don’t compare the hotel rates you’ve paid with the rack rate as this will be giving you inflated and inaccurate savings figures.

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Prepayment is when you pay for something in advance. When booking a hotel, this means paying for the room at the time of booking instead of on departure or arrival.

The benefit of paying upfront means that all costs are accounted for at the time of reservation. Travellers therefore, do not need to part with their own money and submit an expense claim. However, it’s important to review the terms and conditions of the booking. More often than not, a prepaid booking will be non refundable if you cancel.

To learn more about hotel booking and prepayment check out our FAQ below:

What is Hotel Booking Prepayment?

When you’re booking travel accommodation you can often find yourself face to face with a number of terms that may not be entirely clear as to what they mean. For Hotel bookings one of the most common culprits of this is the term “Prepayment”. Put simply, prepayment refers to the process of paying for your hotel accommodation up front, either in full or in part. This is often done as a way to secure your reservation, and ensure that a customer is serious about renting a room.

What hotels use prepayment?

Hotels are free to use prepayment as they deem necessary, so there isn’t really a way to break down which  ones do or do not use prepayment. When booking your hotel accommodation it’s advisable to check the terms and conditions or do a dummy run through of their booking process to find out exactly how & when payments will be made.

What does this mean if I have to cancel my booking?

Your standard consumer rights will apply to any hotel booking that’s made, whether for personal or business reasons. If you have to cancel your booking you should be able to get a refund, but it will be entirely dependent on the terms and conditions of the hotel you’re booked with. Normally hotels operate to a point where you can cancel your booking one or two days before, but this can vary and it’s important that you look into what the deadline for cancelling your booking is before you book your room so you can avoid any problems if a cancellation is needed.

Are there any alternatives to pre-payment?

Yes there are, again this will depend on what the hotel you’re looking to book is set up for, but there are normally two alternatives to prepayment:

Guarantee

A guarantee is often the simplest system in place that hotels can use to secure bookings. The customer will provide card details which will be held against the booking and used for securing the reservation. No money is charged at this time. The card is only charged after your stay is complete and you’ve checked out of the hotel OR you’ve cancelled the booking outside of the acceptable limit for the hotels terms and conditions. In the latter case the card held against your room will be charged in line with the terms and conditions you agreed to when booking the room originally.

Deposit

Deposits function as a part payment for the booking. A charge will be made to the card provided to the hotel ( this is usually for one nights stay, but may be more depending on the hotels terms and conditions). Once the card is charged the room will be held in reservation for the customer. Should the booking be cancelled though the deposit is forfeited to the hotel as a way to recoup their costs.

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An international business traveler is an individual who travels across national boundaries to fulfil their professional duties. Cheaper and faster flights mean that corporate travel is more common than ever before: an estimated 12% of airline passengers are now business travelers. As corporate travel continues to become more commonplace, there is a better shared understanding of the priorities and challenges of international business travelers.

Who books the trips for an international business traveler?

This varies depending on the company and its corporate travel policy. Here is a look at the common scenarios:

• In some smaller companies the business traveler might book their own travel, but this can often be expensive and inefficient.
• Smaller companies may ask the HR department to book travel but this can distract an important team from their key tasks.
• Larger companies may have a dedicated travel manager and/or travel department. This department may work with travel agencies, which can be expensive and inefficient.
• Some companies turn to an online booking tool to leverage the power of tech and book travel that is compliant, comfortable, and cost-effective.

Which rules govern the trip of an international business traveler?

A lot of important factors need to be considered when it comes to international corporate travel. The company must ensure it is fulfilling its duty of care. The traveler must be kept safe and informed. Strict rules must be in place about what constitutes “compliant” travel.

All of these rules and regulations are often outlined in a corporate travel policy, an essential document for any company that engages in corporate travel.

These policies will vary depending on the company, but they are critical to ensuring that corporate travel is consistent and comfortable for travelers.

What are the risks facing international business travelers?

It is important that international business travelers pay close attention to their health and wellbeing while they are on the road.

There are a series of steps that a traveler can take, for example, to avoid the effects of jetlag and business travel fatigue. The employer must also fulfill their legal obligations toward their employees, ensuring that travel is legal and safe.

Which expenses are covered for an international business traveler?

This varies from one company to the next, according to the guidelines published in its corporate travel policy. A range of costs are reimbursable, generally including:

• The costs that are associated with operating a vehicle, such as parking and tolls costs.
• Transportation costs such as taxis, public transport, and other modes of transportation.
• The costs that are associated with lodging such as hotel rooms.
• The costs for meals and food while away from home.

Can international business travelers extend their trip for leisure?

Yes, this is known as bleisure travel and it is becoming increasingly common. As the volume of corporate travel continues to increase, so does the number of people looking to capitalize on the opportunity of being abroad to enjoy a vacation before or after their work takes place.

A company’s approach to bleisure travel will be outlined thoroughly in its corporate travel policy.

Related Questions

Can any employee in a company engage in corporate travel?

Yes. If the employee has the legal right to travel it is not uncommon for members belonging to a range of departments to engage in corporate travel.

The post International Business Traveler appeared first on TravelPerk.

A preferred supplier is a company that has an agreement with another company to provide it with both goods and services. These types of partnerships are very common in the travel industry, where there is the potential for symbiotic and mutually-beneficial relationships.

An agency may provide a lot of guests to a hotel chain, for example, in exchange for more competitive prices that will give that agency an advantage.

How formal is the agreement between a preferred supplier and its partner?

The formality of these partnerships can vary from one company to the next. It is not uncommon for these partnerships to be nothing more than informal agreements between two companies that often work together.

On the other end of the spectrum, however, some companies may draw up contracts and decide to work together in this way. These contracts might demand that a particular percentage of customers are sent from one company to the other.

Why do companies enter into these partnerships?

These can often be truly symbiotic relationships where both parties stand to benefit. Let’s imagine a hotel and a travel agency decide to work together: in return for guests and its status as a preferred supplier, a hotel might offer a travel agency preferential pricing to help it attract customers more easily.

This type of dynamic underpins each of these relationships, particularly in the travel industry where this type of business is very common.

What type of companies do travel agencies work with?

Preferred suppliers can take on many appearances depending on the needs and priorities of the agency. Preferred supplier lists are often broken into a category system that resembles this:

• Tour operators
• Rail operators
• Car rental agencies
• Airlines
• Hotels
• Cruise lines
• Travel insurance agencies

Related Questions

How does the traveler benefit from preferred supplier partnerships?

Strong preferred supplier relationships can result in competitive pricing for the traveler, as well as a higher level of customer service. This is because preferred suppliers will want to leave a good impression and demonstrate their quality to travel agencies in a bid to secure repeat business.

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