How to negotiate better corporate hotel rates for your company

Last updated on June 29, 2023

Hotel and other expenses related to the accommodation of employees make up a considerable portion of a company’s travel expenses. However, people in corporate enjoy the benefit of corporate hotel rates which are less than the usual hotel rates. But what if we told you there is a way by which you can get huge discounts on these corporate rates? We will discuss some tips on how to get a considerable discount, but first, let’s understand how corporate hotel rates work. 

To know more about SEO Tool visit:

What are corporate hotel rates and how do they work?

Corporate hotel rates are negotiated rates that are offered to businesses and their employees for hotel stays. These rates are typically lower than the standard published rates and are available to companies that have an agreement or contract with the hotel or through a corporate travel management company.

These are the rates that the corporate travel consultant of the company and the hotel finalizes. Once the rate is negotiated, the employees get a corporate code that they can use to avail the benefits. This code is usually used at the time of booking in place of a discount coupon on the booking window. Corporate codes may have validity up to a year, and you can use them multiple times, depending on the terms negotiated between the hotel and the company. 

Corporate rates save you a lot of money on travel expenses and include additional perks such as an easier cancellation policy and bonus points, which can be redeemed later. 

Now that you know how these rates work, let’s discuss some tips for getting better rates. If you are the corporate travel consultant of your company, these tips will make your job easier and give your employees additional perks and amenities. 

• Have A Look At The Travel Budget

The travel budget is the most important task that you must do before you negotiate the hotel rates. This will give you an idea of how much flexibility you can have in your negotiations with the hotel manager. This budget should be backed by the data from regular audits that a company does to keep track of their travel expenses. 

You also need to gather information about the cities where your company sends employees more frequently. With this, you can have an estimated volume of accommodation that you can promise to the hotel. This information about your company’s budget and the locations where they are spent will give you an edge during the negotiation.  

• Talk With The Manager Directly.

If you are a corporate travel consultant, you should talk directly with the hotel’s manager, booking director, or any senior official who may be present. This will put you in direct contact with the key decision-makers of the hotel and with whom you can carve out a favorable hotel rate for your team, which comes with add-ons and amenities. 

• Be Confident

While negotiating the hotel rates, you should be very confident and see it as a two-way conversation where both you and the hotel company will reap benefits. You should try to highlight the benefits that the hotel company will get by establishing relationships with your company. Talk about the volume of bookings that your company can provide them within a year and lure them into giving you the cheapest rates based on this. 

Moreover, you also need to discuss tariffs, surcharges, and taxes that may be levied by the hotel. Keep the communication line open with the management of the hotel to ensure that if any inconveniences arise in the future, you can sort it out easily. 

• Make A Contract

If you want to get the best corporate hotel rates, you should approach the hotel with at least 100 annual bookings. However, this number could vary depending on the size and footfall of the hotel. It is important to remember that most hotels prefer to keep their room instead of leaving them idle. Giving them a contract guarantees the hotel a certain number of bookings on paper, making them more flexible while negotiating. 

However, if you are planning on getting corporate hotel rates from big hotel chains, you need to pledge a higher volume of bookings. Booking stays in big hotel chains might not be feasible for small companies. Therefore, they need to look for small hotels and independent boutique hotels that can give them good rates. When negotiating with small hotels, you can get the best rates by pledging as low as fifty bookings per annum. 

• Ask For Company Volume Guaranteed Rate

Unlike usual hotel rates that fluctuate daily, some hotels also offer Company Volume Guaranteed Rate, which remains constant throughout the year. If you are trying to book around the holiday season when rates are very high, you can benefit from this rate. However, hotels have eligibility criteria for companies to be eligible for this rate, do check these criteria before you start negotiating the rates. 

• Include Meals In The Deal. 

Most hotels charge extra for food and do not include it in the stay. But if you plan to get the best out of your company’s travel expenses, book hotels that include meals in the booking charge. Hotels follow one of the following meal plans that you should know about – 

• American plan – This plan includes three meals at the room’s price but excludes tea and coffee before lunch and after dinner. 
• Continental plan – In this plan, only breakfast is included in the price, and other meals are billed separately. 
• European plan – If a hotel follows this plan, they would only include a stay and not food. The person is free to eat at the hotel restaurant or order from outside. 
• Modified American plan – This is the most preferred plan where people are offered breakfast, either lunch or dinner, according to their choice. 

So if you are booking a hotel, inquire about their meal plan and find the one that best suits the company’s schedule. This will help you minimize expenses in terms of meals at the hotel. 

• Look Around

If you are booking a hotel in a city, it is the best practice to approach at least five or more different hotels in the area. This will help you compare the rates and negotiate better. Look at the amenities offered by different hotels at a given rate and pick the one that meets your requirement and whose corporate hotel rates work best with your company. 

• Opt For Non-Refundable Rates.

Most companies create their travel calendars way before the actual dates, and you can take advantage of this while negotiating the rates. By paying money upfront for the booking, you can get as high as a 25 percent discount on your bookings. 

• Negotiate Extended Stays

Business trips can sometimes get extended longer than they should be able to avail of the benefits of extended stay benefits. Therefore, you should discuss this while discussing the hotel rates with the hotel to avoid any inconveniences later. 

Bottomline 

The key to getting the best corporate hotel rates is the way in which the deal is done. The corporate travel consultant of the company should be able to project the volume of travelers and the consistency of trips to the hotels to get the best return. They should also be able to ensure that the travelers do not face any issues with the meal or amenities at the hotel.