GTP GTP Supplier Relations & Vendor Management 2 — Questions and Answers
Question 1: A travel management company (TMC) is responsible for which core function in a corporate travel program?
- Booking travel, providing reporting, and offering traveler support services (Correct answer)
- Issuing corporate passports
- Administering employee health insurance
- Managing payroll for travel expenses
Correct 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.
Question 2: Which metric should a GTP professional use to evaluate an airline's performance under a preferred agreement?
- Market share of bookings directed to the preferred carrier vs. target (Correct answer)
- Number of flights the airline operates globally
- Airline safety rating only
- Traveler's personal loyalty points balance
Correct 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.
Question 3: What is the role of a Service Level Agreement (SLA) in a TMC contract?
- It defines measurable performance standards the TMC must meet, with consequences for failure (Correct answer)
- It sets the price of airline tickets
- It outlines traveler personal preferences
- It governs hotel star ratings
Correct 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.
Question 4: When evaluating a new online booking tool (OBT) for corporate travel, which feature is MOST critical for policy compliance?
- Automated enforcement of travel policy rules at the point of booking (Correct answer)
- Colorful user interface design
- Integration with social media platforms
- Support for personal vacation bookings
Correct 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.
Question 5: A corporation is consolidating its hotel program from 200 to 50 preferred properties. What is the PRIMARY benefit of this reduction?
- Increased volume concentration drives deeper discounts and better service from fewer suppliers (Correct answer)
- Travelers have fewer choices, reducing satisfaction
- Less data to manage in the GDS
- Fewer supplier invoices to process
Correct 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.
Question 6: What is the significance of a 'last room availability' (LRA) clause in a hotel contract?
- It guarantees the corporate rate is available even when the hotel is nearly fully booked (Correct answer)
- It gives the corporation exclusive use of the hotel
- It applies only to suite bookings
- It allows free cancellation at any time
Correct 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.
GTP GTP Supplier Relations & Vendor Management 2
A travel management company (TMC) is responsible for which core function in a corporate travel program?