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Procurement Market Intelligence Report

Domestic Air Travel
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Domestic Air Travel?

What is the average price of Domestic Air Travel?

This procurement report includes pricing information to help you purchase Domestic Air Travel. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Domestic Air Travel been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Domestic Air Travel yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Domestic Air Travel?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Domestic Air Travel with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase Domestic Air Travel?

Market share concentration in the domestic air travel market is high and has been mostly stable in the three years to 2018. About 11,000 suppliers serve this market, with the top four airlines accounting for close to 65.0% of total market revenue. First, barriers to entry into the market are... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Travel Policies

What are your recommendations for a travel policy based on the number of travelers at my company and their frequency of travel?

When creating a travel policy, how do you account for the type of work that traveling employees do (e.g. contract signing or customer support)?

How will you implement different rules for travel based on an employee's position?

How will your systems increase travel policy compliance and reduce costs?

How do you measure the effectiveness of a travel policy?

Workforce

What are the credentials and work histories of the team members that will implement and support travel management services for my company?

Are all employees that provide customer support accredited by the International Airlines Travel Agent Network, Airlines Reporting Corporation or Cruise Lines International Association?

What regular training do your agents receive?

What is your turnover rate?

In the event that any of your senior employees who implement or support travel services leave, what is your plan for replacing them?

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Key elements for every RFP

What should my Domestic Air Travel RFP include?

Project Budget

Buyers should state their total annual budget for the contract.

Buyers should request a detailed breakdown of the ancillary costs that will be charged outside of the ticket price, including baggage and seat selection fees.

Buyers should request information on how vendors adjust ticket prices in accordance with their own costs, including how these adjustments will affect flights covered under this contract.

Buyers should clarify the billing process, including how often they will be charged and the payment method.

Selection Criteria

Buyers should prioritize vendors that offer competitive prices in accordance with the level of service that they offer and the buyer’s preferences for amenities.

Buyers should evaluate the vendor’s experience and reputation.

Buyers should consider the vendor’s ability to provide related services.

Buyers should weigh the vendor’s communication and customer service standards.

Buyers should reference the Buying-Decision Scorecard section of this report for key criteria to consider when evaluating providers.

Project Schedule

Buyers should state the deadline for proposal submissions.

Buyers should indicate when award information will be available.

Buyers should specify their desired start-date for services, as well as the length of the contract and options for extension or renewal.

Evaluate major factors to mitigate risk

How risky is the Domestic Air Travel supply chain?

This market's supply chain risk is medium, indicating that most upstream suppliers for commercial airlines carry moderate risk levels. For example, suppliers of aviation fuel, including wholesalers and bulk stations, are moderately risky due to recent fluctuations in the price of crude oil. Market suppliers pass most fuel cost increases... Subscribe to learn more.

HIGH

MEDIUM

LOW