GTP Supplier Relations & Vendor Management Flashcards

A travel management company (TMC) is responsible for which core function in a corporate travel program?

Answer: Booking travel, providing reporting, and offering traveler support services

A TMC acts as the operational partner that executes bookings, delivers data, and supports travelers on behalf of the corporation.

Which metric should a GTP professional use to evaluate an airline's performance under a preferred agreement?

Answer: Market share of bookings directed to the preferred carrier vs. target

Tracking market share versus commitment targets reveals whether the program is delivering volume that justifies the negotiated rates.

What is the role of a Service Level Agreement (SLA) in a TMC contract?

Answer: It defines measurable performance standards the TMC must meet, with consequences for failure

SLAs hold the TMC accountable to specific standards such as response times, error rates, and reporting accuracy.

When evaluating a new online booking tool (OBT) for corporate travel, which feature is MOST critical for policy compliance?

Answer: Automated enforcement of travel policy rules at the point of booking

Policy enforcement at the booking stage prevents out-of-policy purchases before they occur, reducing compliance failures.

A corporation is consolidating its hotel program from 200 to 50 preferred properties. What is the PRIMARY benefit of this reduction?

Answer: Increased volume concentration drives deeper discounts and better service from fewer suppliers

Concentrating volume with fewer hotels strengthens negotiating leverage and typically yields better rates and amenities.

What is the significance of a 'last room availability' (LRA) clause in a hotel contract?

Answer: It guarantees the corporate rate is available even when the hotel is nearly fully booked

An LRA clause ensures corporate travelers can access contracted rates up to the point the property is completely sold out.