ROOMS TO MANOEUVRE

INEVITABLE CHANGE

The pandemic saw many corporates roll over existing rates but many are also intensifying dynamic pricing efforts along with chainwide discounts. Meanwhile, the annual RFP process is being replaced by a continuous sourcing cycle for a growing number of companies.

MAKING THE MOST OF IT

For optimal discounts, know your total accommodation spend by city, property and chain, and understand your ability to shift share. Buyers should approach negotiations armed with validated historical information to show the organisation’s specific travel patterns like day of arrival/day of departure, projected room nights and average rates.

CHASING NUMBERS

Analysing multiple sources of data – TMC, credit card reports, expense management reports – will allow you to leverage higher volumes in your negotiations and to understand your marketshare potential.

TIER CONSIDERATIONS

Be clear on your intentions with regards different hotel tiers and the mix you’re likely to need, and try and identify the number or percentage of hotels in each price tier: budget, economy, midscale with food and beverage, midscale without food and beverage, extended-stay, upscale, upper-upscale and luxury.

EXTRA, EXTRA

Be clear on what extras are included when negotiating preferred properties and what you want on top. These include the likes of breakfast, WiFi, parking, early check-in, late check-out and gym access.

WATCH OUT

Beware of surcharges on room rates – including occupancy taxes, city taxes and the like – and their overall cost implications which can be considerable.

CHAINWIDE DEALS

Negotiating a chainwide deal might allow you to leverage your travel volume to the greatest effect, especially if many of those nights are booked in second or third-tier cities. Multiyear chain deals can save time and money for future negotiations and include value-added amenities unable to be negotiated locally or regionally.

THE RIGHT MIX

Chainwide deals are often dynamically priced, with an established percentage off best available rates. In many cases, these can be as good or better than a flat discount and can include amenities. Some chains will offer a combination of fixed-rate pricing in high-volume cities and dynamic pricing for other locations.

BIG IS (SOMETIMES) BETTER

By working with multibrand hotel groups you can include hotels at different price points in a single negotiation.

GOING DIRECT

Discounts obtained through volume-based negotiations can be greater when dealing with individual hotels directly than when negotiating chainwide rate concessions.

LRA

Determine how you want to approach last room availability. Hotels often charge a premium for the right to book the last room at a property, so a cost/benefit analysis should be performed.

GREEN MEASURES

Consider your sustainability goals and whether they, pricing or traveller experience take precedence. Your negotiations could look very different.

SOUNDS OBVIOUS BUT…

Make sure the hotel chains you select have properties in most, if not all, of the key destinations your business travellers visit, including international locations.

MAKE CERTAIN

Before agreeing to a preferred relationship with a hotel, be sure travellers realistically will use the hotel for a reasonable number of annual room nights. A strong, enforced and aggressively communicated travel policy will help drive greater compliance.

SMALL REWARDS

Before agreeing to a preferred relationship with a hotel, be sure travellers realistically will use the hotel for a reasonable number of annual room nights. A strong, enforced and aggressively communicated travel policy will help drive greater compliance.

KEEPING TRACK

Rate auditing or hotel reshopping tools are more important than ever to keep a handle on the best prices available in this quickly changing market.