A method and system for air carrier contract management and optimization is disclosed. In particular, a system is described that facilitates travel contract optimization by generating contract terms and conditions desirable for optimizing client expenditure. Once the contract terms and conditions are determined, a yield management system facilitates compliance with contract terms and conditions by generating and providing selling instructions to booking systems to facilitate compliance with contract terms by travelers. Booking activity is provided back to yield management system to update contract compliance system and to revise selling instructions accordingly.