Airline sourcing for small business travel programs can be challenging. There are ways you can make the most of this hurdle.
If you’ve been following along with our series on negotiating with travel suppliers as a Travel Manager, then you already know that airlines are the toughest travel supplier for SME Travel Managers to negotiate with, due to airlines’ high spend thresholds. (And, if you haven’t been following along, take this opportunity to go read our recent post on negotiating with hotels.)
However, while securing SME air supplier partnerships can be difficult, that doesn’t mean you’re left paying standard airfare with no other choices. There are myriad opportunities for SMEs to secure lower rates while also leveraging other resources at their disposal.
Key Takeaways
- Negotiating with airlines can be tricky due to the high spend threshold that airlines require.
- SMEs can look for unique forms of leverage when negotiating with airlines.
- Some airlines offer non-negotiated SME programs. These can provide discounts and perks. They can also allow you to compile valuable data for later negotiations.
Challenges in Airline Partnerships
According to the Business Travel News (BTN) 2025 Small & Midsize Travel Program survey, 55% of surveyed SMEs say that they never even bother with the RFP process for airlines. Instead, they largely save those efforts for Travel Management Companies, first and foremost, followed by lodging providers. Additionally, for those that do pursue the RFP process with air carriers, the majority of SMEs say that their negotiating power has weakened as compared to prior efforts.
There are a few reasons why this is the case. For one, any travel provider is going to come to the negotiating table with expectations. They want to ensure that the SME can provide them with a certain level of business. Airlines’ volume requirement, though, is often set at much too high a level for the average SME to accommodate.
Additionally, SMEs often have a plethora of options when it comes to booking, say, hotels. The same number of options do not exist when it comes to airfare. The SME may only have two or three options (or even just one!) on the routes its Travelers utilize most often. The airlines know this. Without negotiating at all, they may still be nearly guaranteed to get the SME’s business anyway.
When negotiating airline corporate rates, then, it’s easy to see why the SME may be at a slight disadvantage, unless they’re working with a TMC that can negotiate rates on their behalf.
Opportunities for Airline Sourcing for Small Business Travel Programs
That said, it’s not all bad news and your options aren’t just limited to negotiated small business airline contract.
If you do want to go with a negotiated contract, however, there are some areas where you might have more leverage as an SME.
For example, you might go after contracts with regional carriers versus one of the handful of major national or international carriers. Similarly, you might consider an alliance partnership versus a partnership with a singular airline.
You might also look at which niche routes your Travelers may utilize on a regular basis. If it’s a route that’s less traveled overall, the airline may be more willing to negotiate.
Leveraging TMCs and Programs
Other options include non-negotiated SME programs, a choice that’s fairly popular with SMEs, according to the same BTN survey. It found that 44% of SMEs use a non-negotiated program with airlines. In contrast, less than 40% of SMEs use these types of programs with hotel brands, car rental companies and TMCs.
These types of programs give you discounts and perks right away. They can also be used to gather travel data that you can harness in future negotiations.
As one surveyed travel buyer noted in the BTN report, “You need to be able to talk to [your vendors], and even if you have to go with a small business program for the moment—or certain terms in your contract to begin with—you should be able to go to them after six months and see if they can offer you something more customized if you’ve proven that you can deliver. If you can’t get that, maybe it’s not the right vendor for you.”
Many travel providers currently offer some sort of non-negotiated program. You can expect them to almost work similarly to a standard loyalty program.
For example, United for Business offers SME programs for businesses of all sizes. Members save on travel costs via pre-paid travel, enjoy discounts on published and fixed zone fares, have access to flexible booking options, and can get extra perks like points and MileagePlus status. The programs even extend beyond United, allowing Travelers to access flights from partner airlines worldwide.
To make Travel Managers’ roles easier, the United for Business travel portal also offers unique features such as the ability to set a travel policy (control how much business Travelers can spend on their flights, and what kinds of cabin fares they can purchase), track spending and more.
Other airlines that offer SME programs include American Airlines, Delta Air Lines, Air France-KLM, Singapore Airlines, British Airways and Korean Air, just to name a few.
Secure the Airline Discounts Your Travelers Need
As an SME, you may not be able to land a deal with a global airline right away. However, you can strategically focus on securing niche airline discounts while also taking advantage of the benefits that come with a non-negotiated SME program.
Stay tuned for our next post in our supplier partnership negotiations series. We’re covering all things related to securing negotiations with ground travel providers. In the meantime, enjoy more insights and advice for Travel Managers, Travelers and Executives, on the JTB Business Travel Waypoint blog.
JTB Business Travel may reference reporting or research published by Northstar; however, all commentary and recommendations in this article are independently developed.
