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EmpyreanTravel · Est. 1984

Travel Glossary · Corporate Travel

Negotiated Fare (Corporate Rate)

Definition

Negotiated Fare (Corporate Rate): A negotiated fare is a discounted airline or hotel rate a company secures through a direct agreement with a supplier, usually in exchange for committed volume or market share.

Corporate airline agreements usually take the form of a percentage discount off published fares on certain routes or cabins, sometimes with added perks. They are loaded under a corporate identifier or tour code so the discount applies at ticketing. Hotel agreements set a fixed nightly rate per property, ideally with last-room availability, meaning the rate holds whenever a standard room is for sale.

Agreements come with obligations. Airlines track whether a company delivers the promised share of its spending, and hotels review room-night volume each year, so deals that go unused get downgraded or dropped. That is why booking through a managed channel, where the negotiated rate appears first and usage can be measured, matters as much as the discount itself.

Smaller companies may not qualify for direct deals but can still benefit from airline small-business programs and agency or consortium rates. An advisor can show where your volume could earn better terms; see reduce corporate travel costs and our corporate travel RFP guide.

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