It is no secret that companies spend a lot on employee travel. The budgets and exact spend are kept internal for various reasons. The main reason, in my opinion, is so the competition does not try lower prices to win corporate contracts. A few days ago, I came across leaked United Airlines banners with detailed corporate spending listed.
Curious who are @United largest global corporate accounts? @Apple is in the top spot and contributes very much to success of SFO international flying especially the Shanghai service #UnitedAirlines #United #Apple #SFO #PVG #Shanghai #China pic.twitter.com/HNvIrz8wDg
— LAflyer (@LAflyr) January 11, 2019
The photo has been removed from Twitter, but not before I saved it. 😬
I find this information very interesting. The first thing that stands out is the amount of annual spending that Apple has budgeted for flights on United Airlines. The San Francisco to Shanghai route, the #1 market for Apple travelers, accounts for 25 percent of the total budget. Apple purchases 50 business class seats daily on the route.
I knew that Apple was global, but the list of the company’s top 10 destinations is fascinating.
1. Shanghai
2. Hong Kong
3. Taipei
4. London
5. Seoul
6. Singapore
7. Munich
8. Tokyo
9. Beijing
10. Tel Aviv
The other thing that I find interesting how United separated the other companies. One group is over $10 million, but not quite in the $12 to $17 million range, while a few are over $34 million. I am positive that United has some intelligent people in the company who could have come up with a standard money increment (i.e. up to $15 million, $15 to $30 million, and over $30 million). Maybe I am just being picky.
Final Word
The release of this confidential information by an employee surely violates company policy. In the age of social media, there are not too many things that are sacred, even if told not to share. This could hurt United in the future when it comes time for contract renewal talks. I am fascinated by the information as it shows what companies are willing to pay for employee travel.
These numbers are so impressive Rob, when you begin pondering 100 millie on a single airline. Amazing. Such is the power of providing massive service generously for a long time, and scaling. Immense wealth flows in, eventually.