Your business rate for hotel stays is more negotiable than you think
Economies of scale state the more you buy of something, the more you can save on each individual unit. The same principle can be applied when block booking hotel rooms, particularly when those numbers run to hundreds or even thousands of units annually.
With a plethora of Online Travel Agents (OTAs) and a medley of options (specifically hotel or chain specific online booking engines) all offering last-minute discounts, the question for Travel Bookers is simple: is your company spending over the odds for business travel accommodation?
While there are perceived benefits to setting up contractual agreements with a particular hotel chain, the discerning Travel Booker will notice the fluctuating (or often the downright divergence of) rates advertised across hotel websites and booking engines. Getting the best prices isn’t often possible without the help of a business hotel booking platform.
Why you’re not getting the best rates for booking hotels
The prices prominently displayed on websites – and commonly ‘slashed’ on online booking engines – are what the industry refers to as the hotel’s ‘rack rate’ (also called ‘Best Available Rate’).
The Best Available Rate both validates the room’s worth and also acts as a hotel revenue strategy, a benchmark against which discounts can be calculated. It’s the highest possible price that you can expect to pay for a hotel room of a certain calibre at peak season.
In an affront to its name, the Best Available Rate isn’t actually always the best available rate. It’s simply the best that you’ll get at that moment, when in reality there are multiple other business hotel rates available on the market.
There are obvious advantages of entering into a contract. Block booking – let’s say 350 rooms or so – with a hotel chain for several company conferences and executive meetings per year is one of them. Most hotels will be only too delighted to offer a discount on the Best Available Rate in order to keep you as a customer and to ensure you don’t take a big slice of potential revenue for a sleepover at the nearest competitor.
However, picture the scene: 10 people from your executive team are off to a mid-week industry conference in Birmingham. You made the travel arrangements months ago and, as per the formalised agreement with the hotel, your company is obtaining a 15 percent discount on each of the 10 rooms. Out of curiosity, you type the details of the hotel and location into a popular online booking site; lo-and-behold, in all its red-emboldened-text glory, the same room is on offer at 25 percent less than the rack rate (a further 10 percent on your ‘special’ rate - so much for corporate loyalty!).
Of course, the story could have gone the other way – where the price had shot up and you ended up paying less – but amid a landscape of fluctuating rates, is there any way of guaranteeing whether you’ll be discounted rather than duped?
Get the best deals on hotels for business travel
There’s another option which is guaranteed to save you time trawling the internet, negotiating contracts and hoping you’re getting the best rates available. It’ll also save money and deliver on a quality hotel experience.
Roomex is a business hotel booking platform that has over 1.2 million hotels in its network. We’ve handled negotiating the best rates so that you don’t have to, letting you quickly pop onto the platform, find the best rate in a local area and book it knowing full well you’ve secured the best deal. If you don’t believe us then you can just ask any of the companies that book with Roomex – they saved a combined €1.17 million in Q4 2018 alone.
Our platform advises you of the best prices on an ad-hoc basis. Need a hotel with a conference room or facilities to meet clients? No problem. Our primary goal is helping you figure out how to book business travel better.
Don’t waste anymore time trying to negotiate deals on your own. Book with Roomex and take all of two minutes to get the best business travel prices available.