Maximise the airline volume discounts for your business!

Travel

This can be a confusing topic for Travel Managers as they can get easily bogged down in the details of the various programs.

To keep it simple I have provided an overview of the available options in Australia for Qantas and Virgin Australia.

If you want to investigate further, this blog also contains airline links and contact numbers, alternatively you can email me jmartin@mettrex.com.au.

How much do I need to spend?

As you would expect the amount of discount varies with the annual air expenditure you commit to the airline.

The programs available by expenditure are as follows:

Qantas

Annual Air spend Under $300,000 $300,000 to $1,000,000 $1,000,000 and above
Program Qantas Business  Rewards Qantas Business Savings Qantas Corporate Contract
Annual Air spend Program
Under $300,000 Qantas Business Rewards
$300,000 to $1,000,000 Qantas Business Savings
$1,000,000 and above Qantas Corporate Contract

 

Virgin Australia

Annual Air spend Under $300,000 $300,000 to $750,000 $750,000 and above
Program Virgin Accelerate Virgin Mid-Market Deal Virgin Large-Market Deal
Annual Air spend Program
Under $300,000 Virgin Accelerate
$300,000 to $750,000 Virgin Mid-Market Deal
$750,000 and above Virgin Large-Market Deal

 

Under $300,000

The advantage of the airline deals under $300,000 is that there is no market share requirement.
You can join both Virgin and Qantas and get rewards from both. However this does dilute your spend with each carrier; and the more you spend with an airline the higher the discount you get.
Both airlines provide you with point of sale discounts for both domestic and international tickets. These can be accessed via the Airline website or through your Travel Management Company.
In addition:

  • Qantas provides your organisation with frequent flyer points that can used by your flyers;
  • Virgin provides your organisation with ticket credits that can be used in a similar way.

For more detailed information on programs under $300,000 click on the following links:

Over $300,000

Each airline has two programs above $300,000; please refer to the table for expenditure requirements.

In addition to the expenditure requirements both airlines require you to commit to an annual market share requirement.

This Market share ranges from 80{d2fdafc6558e24ad4cd236eb6237ac2166efdb8b494ace4cb2372beea4572086} to 90{d2fdafc6558e24ad4cd236eb6237ac2166efdb8b494ace4cb2372beea4572086} for domestic flights and 60{d2fdafc6558e24ad4cd236eb6237ac2166efdb8b494ace4cb2372beea4572086} to 80{d2fdafc6558e24ad4cd236eb6237ac2166efdb8b494ace4cb2372beea4572086} for international flights. Market share is measured via a monthly report submitted to the airline by your Travel Management Company.

The airline contract is between your organisation and the airline. It is normally tailored to suit the particular requirements of your flyers. It may include:

  • Ticket discounts
  • Increases in frequent flyer status
  • Lounge memberships discounts
  • Account Management
  • Ticket funds

You must make sure the structure of the program maximizes the benefit to your business. The negotiation requires careful analysis and the use of past and future flight data. It would normally include:

  • A representative from your organisation
  • Your Travel Management Company – they have the data
  • The relevant airline

For more information on programs above $300,000 contact:

  • Qantas Business Rewards Service 13 74 78
  • Virgin Australia 1300 246 498 (option one)
  • Your Travel Management Company

If you would like more help please contact me via contact form below or call me on 1300 850 596.

ABOUT THE AUTHOR

Jeremy Martin

Director

Jeremy is originally from beautiful Wales. After attending London University, he qualified as a Chartered Account with PWC and worked for them in London, Hong Kong and Sydney.

In 2000 co-foundered Mettrex in Sydney with Tim Owens.

He has used his financial training to develop a proprietary travel audit system. This has delivered extensive cost savings across Mettrex’s client base.

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