A corporate airfare is a negotiated rate between an airline and an organisation based on committed annual spending volume. These rates are not visible in public search engines and are often lower than the cheapest publicly available fare for the same route and date.
The discount depends on the volume of business the organisation commits to flying with the airline each year:
| Annual Spend Commitment | Typical Discount vs Publicly Available | Additional Benefits |
|---|---|---|
| $50,000 to $150,000 | 5 to 15% | Priority support line |
| $150,000 to $500,000 | 10 to 20% | Lounge access policy; name changes |
| $500,000 to $2,000,000 | 15 to 25% | Dedicated account manager; upgrade allocations |
| $2,000,000+ | 20 to 35% | Custom fare structures; business class at economy-plus rates |
Small organisations without volume commitments book at public fares. They access corporate rate-like savings through Travel Management Companies (TMCs) that aggregate volume across multiple clients.
A TMC is a specialist business travel agency that manages bookings for multiple corporate clients. By pooling volume, they negotiate rates that individual small organisations cannot access alone.
Major TMCs: American Express Global Business Travel, BCD Travel, CWT (Carlson Wagonlit Travel), FCM Travel, Egencia (Expedia's corporate arm).
What a TMC provides:
TMC fees: TMCs charge a transaction fee per booking ($15 to $45 per flight booking) plus management fees. For organisations with high booking volumes, these fees are offset by the rate savings and support value.
Enter your ticket type and corporate fare class to get a clear summary of change fees, refund eligibility and the correct process for modifying a corporate booking through your travel management system.
Get Corporate Fare GuideAsk Ticket Policy QuestionsMost corporate travel policies define specific conditions for business class:
Common business class eligibility rules:
| Flight Duration | Typical Policy |
|---|---|
| Under 3 hours | Economy only |
| 3 to 6 hours | Premium Economy if available |
| 6 to 8 hours | Business class discretionary |
| Over 8 hours | Business class standard |
| Overnight (departure after 8pm) | Business class regardless of duration |
These rules vary significantly between organisations. Some allow business class from 4 hours; others require 10 hours. Check your specific travel policy before booking.
Upgrade programmes within corporate travel:
Airlines offer corporate accounts access to upgrade programmes where business class seats are purchased at a premium over the economy fare rather than at the full business class price. These programmes operate under names like BA's Upgrade Head and American's Business Select Upgrade.
The upgrade price is typically 60 to 80% of the business class fare for account holders, versus 100% for individual travellers buying business class at the public fare.
Hotels offer three rate categories to corporate bookers:
Negotiated rate (corporate rate): Fixed rate agreed between the hotel and the organisation. Typically 15 to 30% below Best Available Rate (BAR). Available year-round at the agreed price regardless of how busy the hotel is.
Programme rates: Rates offered through hotel loyalty programmes to business travellers (Marriott Bonvoy for Business, Hilton for Business, IHG Business Edge). Available to any registered business. Typically 10 to 20% below BAR.
Last Room Availability (LRA): A negotiated rate with a guarantee that the rate applies even on fully booked nights when only the last room is available. This clause is critical for frequent travellers who book at short notice.
UK rail: Many large UK organisations have agreements with specific train operators or use First Group's Corporate account system for volume discounts on UK rail. Employees book through the corporate portal at their negotiated rate.
German DB Business: DB offers corporate accounts access to Firmencard programmes with volume discounts. Annual Firmencard holders also access dedicated business lounges at major German stations.
Eurostar: Eurostar Business Plus rates are available through corporate accounts at prices below the public Business Premier fare for organisations with regular Brussels, Paris and Amsterdam travel.
For travellers submitting expense claims, a correctly booked corporate ticket provides:
Always book through the approved corporate channel. Booking personal tickets and claiming reimbursement loses the negotiated rate, the duty of care tracking and the management reporting. Some organisations enforce this through policy; others rely on employees following procedure.
If you are a frequent corporate traveller, ensure you understand your organisation's travel policy before your first business trip. Booking out of policy, even unintentionally, creates expense claim complications and may result in the difference between policy-compliant and out-of-policy costs being charged to the individual.