In order to achieve a successful airline programme it’s important to have a good, honest, relationship with the airline representative

Trust and credibility are vitally important, so discuss your objectives and ensure you are clear in your ability to move business to or away from a preferred carrier.

TMC booking data is vital. Look at FMS (fair market share). FMS is the airline’s schedule-based expected share of a city pair’s volume, before price or loyalty is considered.

FMS is the baseline share against which the current programme will be measured by most major airlines. There is no single source for FMS data. Airlines may calculate their own FMS or buy it from aviation data firms or global distribution systems; buyers typically acquire FMS via their airline sourcing consultants.  Compare the market share given to each airline against the airline’s FMS to understand the share differential. This will indicate how hungry the airline should be in any market.  Ability to shift market share to or from the airline and the displacement price of the seats in question are key. Displacement prices are an airline’s estimate of what the seats would sell for if not sold to the buyer.  The size of spend is not a primary factor. Buyers who have the ability to shift market share, and who buy higher-priced tickets, will receive far better offers than those with little ability to shift share or who purchase inexpensive seats.  Once the offers are received from the airlines the options must be analysed. The goal is to understand the trade-offs available and to leverage that insight into a stronger, fact-based negotiating position.