Price Assurance 101 – do you know the fundamentals?
Price assurance is the guarantee that you’ll get the lowest available purchase price for goods or services. Carefully negotiating the best deals is an important first step in making sure you get the most for your travel budget, but these days it’s not enough. Dynamic price assurance provides you with the next level of savings.
Supplier pricing technologies are always evolving
The travel marketplace is reaching new levels of growth and suppliers are using increasingly sophisticated pricing technologies. As airlines and hotels segment their offerings with more products and attributes—looking to attract the largest customer base possible at the highest price points—corporate travel management and procurement professionals need to be at the top of their game.
Even more disruptive pricing changes are coming
New Distribution Capability (NDC) standards established by the International Air Transport Association will enable the travel industry to transform the way air products are retailed. With NDC, everything will be priced individually for each traveler. This will make pricing more dynamic and significantly more opaque, making price assurance even more vital.
A glimpse into how price assurance works: 5 ways to save
There are five key stages of the corporate travel lifecycle during which travel professionals can benefit from dynamic price tracking technology and advanced analytics.
Stage 1: Search and Book
When travelers think they can find better prices on their own, they are emboldened to search for airfare and hotel prices independently rather than in-program. Dynamic price tracking enables travel managers to drive greater in-program traveler booking compliance.
Stage 2: Post-booking
From moment of purchase through the day of departure, Yapta dynamically tracks prices on a company’s booked airline tickets and hotel rooms, sending instant savings alerts when prices drop. With Yapta’s FareIQ, air travelers enjoy the same carrier, travel dates, departure times, seat classes and other preferences. Yapta’s RoomIQ identifies price reductions and amenity gains on comparable rooms at the same hotel.
Stage 3: Post-travel
Yapta’s TravelAI automatically captures pricing data on available, booked and contract airfares and hotel rates when travelers make reservations. This point-of-sale (POS) data provides actionable transparency into booked rate breakage—whether it’s associated with supplier performance issues (e.g., daily price changes and price yielding) or traveler compliance issues (e.g., booking upgraded rooms).
Stage 4: Performance Analysis
Yapta’s TravelAI captures and presents supplier performance data across three key data points: time of booking, time of price change alert, and time of travel completion. TravelAI also aggregates anonymous hotel pricing data across the millions of travel itineraries tracked by Yapta, creating benchmarks by spend amount, geography, industry and supplier.
Stage 5: Negotiations
Yapta’s TravelAI identifies which vendors, properties and markets are performing as contracted and whether their rates are competitive. This information facilitates more streamlined and optimized supplier negotiations.
Capturing savings: manually or automatically
The upside to manual agent reticketing/rebooking is that it provides a layer of security to help avoid traveler disruptions (e.g. seat assignments, upgrades, etc.). It also provides a logging of non-action reason codes when a TMC decides not to take advantage of the price drop opportunity. The key benefits of automation—customized based on your corporate travel department’s requirements—include reducing TMC agent support costs, driving operational efficiencies and increasing conversion rates via instant conversion which results in additional bottom line savings.
Securing your traveler data
When considering using price assurance technology, you need to be certain that your traveler data is always secure. Yapta employs top data security experts, and applies industry-leading data protections you can rely on when you use FareIQ, RoomIQ and TravelAI. Our Price Assurance 101 white paper provides in-depth insight into how Yapta keeps your data safe.
Always keep learning
Delivering the industry’s best price assurance technology and tools is an ongoing endeavor. Suppliers will continue to become more sophisticated in their yield management practices, resulting in even greater pricing volatility. And the need for advanced data protections continues to be paramount. Your price assurance technology provider must meet globally-recognized standards in security and regulatory compliance. Download our white paper to learn more.