Travel procurement

Sourcing of travel services: negotiating rates with airlines, hotels and suppliers and selecting partners. It involves comparing supplier offers, running RFPs where needed, and agreeing terms that fit the company's travel volume and destinations. The outcomes of travel procurement — negotiated rates and preferred suppliers — feed directly into the travel policy.

The procurement cycle typically starts with an analysis of travel data: which routes, cities and hotels employees use most often, and how much the company spends with each supplier. This data defines negotiation priorities. The procurement team then invites airlines, hotel chains or travel management companies to submit proposals, compares prices and service terms, and signs agreements covering preferred rates, discounts, loyalty benefits or more flexible conditions. For smaller companies without large volumes, the main procurement lever is often the choice of booking channel itself.

Good travel procurement is not only about the lowest price. Contracts need to reflect fare flexibility, cancellation terms, included services, payment conditions and supplier reliability. Negotiated terms also only work if employees actually use them — which is why procurement relies on a booking channel that displays preferred suppliers and on reporting that shows whether volume commitments are being met. Contracts are usually reviewed annually as travel patterns change.

Tumodo supports travel procurement in two ways. First, the platform analyses hundreds of supplier offers and shows prices direct from suppliers with no hidden markups, giving companies a transparent market benchmark. Second, it gives access to corporate airline loyalty programmes with discounts and cashback, while detailed analytics by trip, team and cost centre provide the data needed for supplier negotiations and budget planning.