Preferred Supplier

A priority supplier (airline, hotel) with which the company has agreed terms and rates. These suppliers are typically promoted within the booking tool and travel policy because the company benefits from negotiated rates, added perks or volume commitments. Encouraging bookings with preferred suppliers is a common way travel managers try to maximise the value of their negotiated agreements.

A company's preferred supplier list might include one or two airlines on its most frequent routes, hotel chains or specific properties in key cities, a car rental company and a transfer provider. Agreements usually specify discounted rates, added benefits — such as free Wi-Fi, breakfast, upgrades or flexible cancellation — and sometimes expected volumes. In return, the company commits to directing a significant share of its travel to these suppliers. Preferred status is typically reviewed annually, often through an RFP.

Preferred supplier programmes work only if travellers actually use them. Booking tools can show preferred suppliers first or highlight them, and the travel policy can require their use where the price is comparable. Companies should regularly check whether preferred rates are still competitive with public prices, whether suppliers are meeting their commitments and whether volumes justify the agreement — and use this data in the next negotiation. Traveller feedback on service quality at preferred hotels and airlines should also be taken into account, since a supplier that employees dislike is unlikely to deliver the expected volumes.

Tumodo supports preferred supplier agreements with both airlines and hotels. Companies can sign contracts directly with carriers and hotels or join corporate loyalty programmes, and Tumodo's account managers can handle the process or connect an existing tour code to the platform. Negotiated conditions then apply automatically when employees book, and analytics show how much the company spends with each supplier.