The End of Cheap Travel? Why Corporate Travel RFPs Are Entering a New Era

For years, corporate travel procurement followed a familiar rhythm. Negotiating better rates, better access and better services. In 2026, due to circumstances outside of the normal procurement cycle, that rhythm is changing - possibly for good.

At the recent FACTS RFP Season Kick-Off in Sydney, procurement leaders, corporate travel buyers and industry suppliers came together to unpack some of the most important questions facing the sector.

Two questions stood out:

1. What travel categories should organisations really be sourcing when they go to market for corporate travel?  

2. And when is an RFP critical to the management process, as opposed to a ‘must do’?

The answers are complex. Global disruption is intensifying, airline content is less predictable and hotel inventory is under-pressure. Travel costs remain stubbornly high and will continue to rise, placing budgets under increasing scrutiny.

The corporate travel RFP is shifting from a cost saving exercise to a developing strategic business management layer with far-reaching impact. 

That shift shaped the conversations in Sydney. It will also inform deeper discussion at FACTS 2026, taking place at ICC Sydney in November.

Here’s a summary of the event’s key takeaways and what to expect exploration into at FACTS 2026. 

1. Travel procurement is no longer just about price

The days of assessing a travel program primarily on the lowest fare, cheapest transaction fee or biggest discount are being challenged. Not because cost no longer matters. It obviously does.

But because cost without commercial resilience can be a false economy.

The discussions at FACTS highlighted a clear change in buyer priorities. Organisations are looking beyond the headline price tag and asking more strategic questions about program performance, traveller support, supplier capability and operational risk.

In today’s market, a cheap airfare can become expensive very quickly when a traveller is stranded, a route is cancelled, airspace closes, or a supplier cannot service the booking when it matters most.

Serviceability costs are the new reality shaping the RFP agenda.

2. Geopolitical risk has entered the travel policy

One of the strongest themes from the event was the growing impact of geopolitical disruption on corporate travel decision-making.

The Middle East crisis was front of mind for many attendees, reinforcing that global events are no longer distant issues for travel teams to monitor from the sidelines. They are now real-time operational and board-level considerations.

Duty of care has redefined the business trip.

Travel managers and procurement teams are being asked to consider whether trips should proceed, how quickly travellers can be located, what support is available during disruption, and whether the lowest fare still represents the best value once risk is factored in. Overlay these new challenges with the need to validate and manage new and stricter visa regulations on a global scale, the issue magnifies itself beyond just a business trip.

The traditional balance between price and convenience is being replaced by a more complex equation that includes flexibility, traveller wellbeing, crisis response and supplier accountability.

3. Higher airfares may be the new baseline

Another key discussion point was the ongoing pressure on airfares.

For several years, the industry has anticipated that increased capacity would help restore more stable pricing conditions. However, the signals discussed at the FACTS event suggest buyers should be cautious about expecting a major reset.

Why? Because fuel costs remain volatile, airline operating costs are high, and global seat growth forecasts have softened. And yet, demand continues to hold.

For corporate travel programs entering a new contracting cycle, this creates a difficult planning environment. Many organisations are still budgeting with the hope that future market conditions will provide relief. 

Yet the conversation at the FACTS RFP Season Kick-Off suggested higher fares may not be a short-term spike. They may be the new baseline, or to quote one presenter, “they are here to stay”.

That matters for RFP strategy, budget forecasting and stakeholder education. It also creates a stronger need for buyers to demonstrate value beyond simple year-on-year savings.

4. NDC is now a commercial issue, not a technology topic

The conversation around NDC has also matured. It is no longer being treated as an emerging technology discussion or an industry side issue. It is now central to airline sourcing, content access and commercial competitiveness.

Airlines are increasingly using NDC channels to distribute content, ancillary products and pricing that may not be available in the same way through traditional channels.

For buyers, this continues to raise important questions; Can my TMC access the right content? Can it be serviced properly? Can bookings be changed when disruption occurs? Is cheaper the best when flexibility is important? Can the data be reported clearly? Can travellers still have a simple, supported travel experience?

NDC is not just about whether content is available. It is about whether the corporate travel ecosystem can manage that content without creating complexity, service gaps or traveller friction.

5. Procurement is becoming a risk management function

A clear message from the event was that procurement teams are increasingly evaluating travel suppliers through a risk lens.

Savings remain important, but they are no longer the only measure of travel program success. Buyers are placing greater emphasis on crisis response, duty of care, ESG alignment, data security, supplier stability, force majeure protections and service recovery during disruption.

In simple terms, organisations are not just buying travel services, but also confidence that underpins duty of care and business continuity. 

This is a profound shift for the industry. It changes how travel buyers need to assess supplier capability, how travel suppliers show value, and how both sides define a successful partnership.

6. RFPs are becoming shorter, sharper and harder to win

The structure of the RFP process itself is also evolving. One of the more provocative discussion points from the Sydney event was the move towards more targeted, highly qualified RFP processes.

Organisations are becoming more disciplined about defining deal breakers early, conducting pre-qualification, using AI and eProcurement tools, and moving more quickly to shortlists or Best and Final Offer stages by initiating opening procurement strategies that break suppliers into those who can deliver today and those whose offering is still in development. This creates a very different environment for suppliers.

The future RFP will be less of a broad market scan and more like a qualification process where the door closes quickly to suppliers that cannot meet core requirements from the outset.

For buyers, this can create a more efficient process. For suppliers, it raises the stakes. Clarity, evidence and relevance will matter more than polished promises.

7. Loyalty is being tested against outcomes

Another important theme was the changing role of loyalty in supplier evaluation.

The discussions at FACTS showed that some organisations are placing less weight on loyalty benefits, status considerations and individual perks, and more weight on network suitability, disruption support, service responsiveness and recovery performance.

Corporate loyalty programs are being assessed on how well they support the organisation and support traveller wellbeing, not just how well they reward the individual traveller.

That does not mean loyalty is irrelevant. But it does mean loyalty needs to be considered alongside measurable business outcomes or what is its real value proposition

What does this all mean for the next travel RFP cycle?

The key takeaway from the FACTS RFP Season Kick-Off was that corporate travel procurement is entering a more strategic era.

The next RFP cycle will be shaped by an organisation’s ability to assess value, risk, resilience, content access and traveller outcomes in a more sophisticated, integrated way. This signals a major shift in how corporate travel value is defined.

For buyers, this will mean asking sharper questions. For suppliers, it means proving capability with greater clarity. 

The critical success factor will be how well a corporation understands its travel demands, data, behavioural analysis and future planning. This will become a critical ‘must-have’ to enable future market engagement.  On the supplier side, recognising how the customer buys and demands personalised services, and responding to these in a meaningful manner will draw apart the supplier who understands its customer versus those to just play to win a contract.  Service is no longer a numbers game.

This conversation continues at FACTS 2026

The Sydney RFP Kick-Off event reinforced that the corporate travel industry is no longer operating in a predictable environment. Volatility is no longer an exception, but a core part of the operating model.

This is changing the way corporate buyers, procurement leaders, TMCs, airlines, hotels, technology providers and suppliers need to engage with one another.

FACTS 2026, at ICC Sydney on 25 - 26 November 2026, will bring these important conversations to the surface. These themes and more will be explored in greater depth across the broader corporate travel, aviation, business events, travel payments and technology ecosystem by the industry’s leading experts. 

We hope you can join us there. 

Find out more about FACTS 2026 here, and subscribe to FACTS News to receive updates on the events’ agenda and speaker line-up, and earlybird deals.

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