Five Steps to …Negotiating the Best Hotel Rates

Step 1 – Collect your spend data

The more you can show a hotel how much you already spend with it, and also with its

competitors, the bigger the discount it is likely to offer. Potential sources for spend data

include your travel management company, payment card provider and expense

management system. You can also ask the hotel if it has any data.

Step 2 – Focus on your major destinations

Go for the big wins. Identify the top 10-20 destinations where you spend most money and

negotiate with individual hotels in those destinations only. Aim for no more than two or

three hotel deals in each destination so that you can concentrate your spending power.

Step 3 – Accept dynamic rates elsewhere

In all other destinations sign up for dynamic rates: a percentage discount off the best

available public rate on the day. This will save a lot of time. But don’t let hotels pressure

you into accepting dynamic rates in your major destinations (see Step 2), where you will

save more with a specially agreed fixed rate.

Step 4 – Check the terms and conditions

Read contracts carefully, and ask for help if you need it – from a consultant, for example.

Potential problems to look for are blackout dates when the hotel won’t honour negotiated rates, and cancellation terms.

Step 5 – Check the rates are available

Once you have agreed rates with a hotel, make sure your travellers can access those

prices when they book. This does not always happen for many reasons, including

mistakes in loading special rates into distribution systems. If you identify a problem, show your evidence to the hotel.

Source: World Business Travel Forum