GUEST: Don’t Let Agentic AI Erase A Quarter Century Of Airfare Savings

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Business NewsBusiness Travel NewsGUEST: Don't Let Agentic AI Erase A Quarter Century Of Airfare Savings

Don’t Let Agentic AI Erase a Quarter Century of Airfare Savings

By Bryan Holmes, CEO of Bid Logic Solutions

For more than 25 years, corporate travel has seen sweeping transformations—from deregulation and the advent of global distribution systems (GDS), to the evolution of travel management companies (TMCs) and the rise of online booking tools. Each step promised savings and better management for travel buyers. Now, a new force—agentic artificial intelligence (AI)—is poised to redefine how businesses purchase air tickets. But with great change comes great risk: if not managed carefully, agentic AI could undermine the hard-fought gains in airfare savings achieved by the sector since the late 1990s.

Understanding Agentic AI in Business Travel

Agentic AI refers to digital systems that act independently or semi-independently to perform complex tasks. In travel, this includes AI-powered booking assistants, fare optimizers, and real-time travel management bots. Already, these agents scour massive datasets to suggest flights, optimize itineraries for price and convenience, and even manage disruptions as they occur. According to a 2025 ACTE survey, over 47% of large enterprises have piloted AI-driven booking engines, with more than 25% planning full rollouts by year end.

The Cost-Savings Legacy: What’s at Stake?

Historically, cost control has been the heartbeat of managed corporate travel. After airline deregulation in the US and EU in the late 20th century, pricing became more dynamic but also more opaque. TMCs and tools like SAP Concur and Amadeus emerged, arming corporate buyers with visibility, negotiated fares, and the analytical firepower to drive down costs. McKinsey & Company estimates global corporations saved upwards of $25 billion annually over the last decade through such efforts.

In the last decade, however, savings have become harder to chase. Airlines have tightened the gap between public and private fares, and NDC (New Distribution Capability) has added new layers of complexity. As revenue management becomes increasingly sophisticated, travel buyers rely on their systems and suppliers to continually surface the very best options.

The Risk: How AI Could Unwind Years of Progress

There are critical risks rising with agentic AI. Without adequate governance and transparency, AI systems can be swayed by algorithmic opacity or, worse, conflicts of interest. Some vendors’ algorithms prioritize preferred partners or boost more lucrative content instead of true lowest logical fares. A 2024 GBTA study found that up to 15% of anomaly fare selections by AI tools favored higher-margin tickets over the lowest available, costing companies an average of $300,000 per 1,000 travelers per year.

  • Lack of Transparency: Black-box algorithms can mask fare markups or kickbacks. Without oversight, travel managers may not even know when an AI-recommended fare isn’t cheapest.
  • Loss of Human Judgment: AI excels at crunching data, but human context—understanding company culture, traveler preference or the nuances of supplier contracts—remains vital. Algorithms can miss nuance that only experienced travel buyers or agents detect.
  • Vendor-Driven Bias: Some agentic solutions are owned or influenced by parties with a vested interest in higher fares, risking a slide away from negotiated savings toward revenue maximization for suppliers.

Safeguarding the Future of Airfare Savings

So what can travel buyers and TMCs do to ensure agentic AI sustains, not squanders, their hard-won savings?

  1. Insist on Algorithmic Transparency: Demand AI providers disclose how their models sort and rank airfares. Whenever possible, select partners who make AI decision logic auditable.
  2. Maintain Independent Audits: Regularly conduct third-party fare comparisons to verify that AI sourcing tools are surfacing the true lowest fares in line with policy.
  3. Blend Human and Machine Intelligence: Empower travel managers and designated agents to override or scrutinize AI recommendations. Ensure hybrid workflows for complex, high-value, or irregular trips.
  4. Review and Update Travel Policies: Policies written for traditional channels may be exploitable by AI tools. Review and update rules to ensure they adapt to digital workflows and agentic decision points.
  5. Monitor Supplier Relationships: Keep a watchful eye for content bias—ensure your AI tools aren’t over-representing certain airlines or fare types due to back-office deals.

AI as a Force-Multiplier—Not a Savings Slayer

It’s important not to vilify agentic AI. Properly implemented, these technologies can uncover previously undetected savings, streamline processes, and even improve traveler satisfaction. For instance, advanced AI can proactively identify rebooking opportunities due to schedule changes, automate refund claims for missed connections, and help negotiate near-real-time dynamic corporate discounts.

Recent industry developments reinforce this potential. American Express Global Business Travel, SAP Concur, and emerging startups like Spotnana are rolling out AI-enhanced search and recommendation engines that tout both cost efficiency and user-centricity. Early adopters, such as Fortune 500 manufacturing and pharmaceutical companies, have reported up to 12% additional savings when combining AI fare optimization with continued human oversight.

Looking Ahead: Strategies for the Next Quarter Century

Corporate travel’s future will be hybrid: the power of smart algorithms guided by human expertise and strong governance. The winners will be those who wield agentic AI as a surgical tool, not a sledgehammer, maintaining agility to challenge and optimize fare recommendations at every step.

The next wave of travel savings will come from those who insist not just on innovation, but also on performance measurement and continual scrutiny. As more contract negotiations, traveler experience initiatives, and sustainability requirements become digitally mediated, travel teams must be proactive in ensuring that AI advances, rather than erodes, their strategic goals.

Conclusion

Corporate airfare savings are not a given—they are the product of decades of savvy negotiation, agile technology adoption, and ongoing diligence by travel professionals. As agentic AI cements its place at the center of business travel, companies must double down on oversight, demand transparency from vendors, and retain experienced humans in the process. In doing so, they will safeguard both the bottom line and the traveler experience—ensuring that AI becomes an ally, not an adversary, in the quest for value in managed travel.

Jada | Ai Curator
Jada | Ai Curator
AI Business News Curator Jada is the AI-powered news curator for InvestmentDeals.ai, specializing in uncovering the best business deals and investment stories daily. With advanced AI insights, Jada delivers curated global market trends, emerging opportunities, and must-know business news to help investors and entrepreneurs stay ahead.

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