[SPONSORED POST] Finding the Lowest Hotel Rates

Individual corporate travelers do not always possess an overall view of the travel volume generated by all their colleagues. Finding a one­ – off cheap rate doesn’t help companies consolidate volumes, neither does it gain negotiation power with hotels. With increased transparency and knowledge of public rates through the Online Travel Agencies and price comparison websites, corporate buyers today have trouble distinguishing between the different hotel pricing options available. The availability of free information also means that travelers may see low non – ­refundable saver rates on a hotel’s website and compare them to fully flexible rates negotiated by the company.

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Corporates require the best of both worlds – a choice of hotels to meet travelers’ needs at the lowest price, bearing in mind booking conditions. Effective rate negotiation is as much about choice as price; the mix of rates available is determined by the corporate’s choices. The lowest rate may not be the most cost effective rate, as negotiated rates often include airport or local transportation, breakfast, Internet, parking and other amenities. Corporate buyers no longer need to choose between dynamic and fixed price models when it comes to finding the lowest hotel rates. Neither do procurement managers need to invest the time to create a hybrid model. In order to leverage the best value, HRS, the leading hotel solutions provider, has a few key pieces of advice for buyers:

  1. The key driver in any hotel rate negotiation is occupancy. Volumes can be leveraged to source and shortlist hotels that meet the corporates quality and location requirements – as well as price objectives. Develop an understanding of the day of week, location and seasonality patterns in order to take advantage of the available rate types.
  1.  The cost of amending or cancelling a booking should also be factored into the negotiation. HRS estimates that one in six corporate bookings are cancelled or changed. The incremental cost to the corporate could be as much as 100% of the first night’s stay.
  1.  The dynamic nature of hotel rates means that price does not necessarily equate to quality. It does not always follow that a better quality of hotel should cost more. New hotels are generally more prepared to offer lower rates because they need to ‘lock in’ corporate business and have the flexibility to do so.

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