Accommodation expenses often make up a significant portion of a company’s business travel budget. In this article, we will explore how you can reduce costs and take advantage of the best corporate discounts offered by hotels.
Just like other travel service providers, hotels offer their business clients special corporate rates and discounts. These discounts usually start at 10%, but with a little bit of research and negotiation, you can secure an even better deal.
For hotels, it is in their best interest to offer more attractive rates to business travelers in exchange for loyalty and a guaranteed high volume of business.
How do hotel corporate rates work?
Hotel corporate rates are typically negotiated between the hotel or hotel chain and the company, usually through the organization’s travel manager. Once your company’s special rate has been negotiated, you can enjoy the benefits by using a corporate code.
When booking your company’s hotel stay through the hotel’s website, you can enter your corporate code into a coupon or discount code box. During check-in, you might be required to present a company card or identification to prove your eligibility for the corporate hotel discounts.
These rates may be applicable throughout the year or only available on business days or during off-peak seasons, depending on the negotiations between your company and the hotel. In some cases, your employees might also be able to enjoy these discounts when traveling for personal reasons.
Apart from saving money on corporate travel, having good corporate rates allows you to stay within your company’s travel policy and keep track of your spending. Hotel corporate rate agreements often include additional perks such as more flexible cancellation policies and loyalty points that can be exchanged for free nights or add-ons.
How to secure great corporate rates at hotels
If you work for a larger company, the responsibility of finding the best corporate hotel rates usually falls on your travel manager. They have a clear understanding of your business travel needs and budget, which gives them bargaining power.
Here are some tips to help you negotiate better rates at hotels:
- Consider working with a business travel agency that has access to the best corporate rates. While their services may come at a cost, the savings can offset the expense.
- If you have identified a specific hotel or hotel chain that meets your present and future business travel needs, consolidate all your bookings with them. This exclusivity can lead to fantastic rates and benefits.
- Enter into a contract for a fixed number of room nights. By negotiating a predetermined number of nights per year, you can secure better rates.
- Keep an eye out for last-minute rates. Hotels would rather fill empty rooms than leave them vacant. Booking your accommodation close to your arrival date can result in significant savings.
Hotel corporate rates for small businesses
Corporate hotel discounts are not limited to large companies. Small businesses and solopreneurs can also enjoy great rates and benefits. Studies have shown that small businesses tend to spend around 19.7% more on travel compared to larger businesses, making it even more important for them to secure the best rates.
While small businesses may not have the same bargaining power as larger companies, there are strategies to obtain great corporate rates at hotels:
1. Use a travel management platform
Travel management platforms have large networks of providers, giving them access to excellent rates.
2. Shop around
Take the time to research and compare rates from multiple hotels and chains that match your needs. Don’t hesitate to ask hotels to match the best offer you’ve received so far.
3. Request extended stay discounts
If you plan to stay for more than five nights, ask for an extended stay discount. Although not openly advertised, many hotels are willing to provide this discount upon request.
4. Choose non-refundable rates when possible
If cancellation flexibility is not a priority, hotels often offer significant discounts for clients who choose non-refundable rates. In some cases, you can save up to 25% by opting for this type of booking.
5. Take advantage of corporate credit cards and loyalty programs
Many credit card providers offer corporate or business credit cards that provide hotel discounts, free nights, and additional perks. Some hotels also have their own loyalty programs that reward returning business travelers with discounts and free stays.
6. Use a client’s corporate code when visiting
If you are traveling to meet with a client, check if they have their own corporate codes or negotiated hotel discounts with a nearby venue. This could save you money on accommodations.
7. Negotiate your own hotel corporate rates
You can take the initiative and negotiate corporate rates for your small business. Here are some tips to get started:
- Request to speak with the manager or booking director of the hotel.
- Highlight the benefits of establishing a relationship between your company and the hotel, emphasizing the frequency and volume of business you can offer.
- Review the terms and conditions carefully for any hidden costs associated with the negotiated rates.
- Maintain open and friendly communication with your contact person at the hotel to foster a positive working relationship.
How TravelPerk can help you secure the best hotel corporate rates
Using TravelPerk for your travel management needs grants you access to Exclusive Rates that are hard to beat. TravelPerk has negotiated competitive corporate hotel rates with major hotel chains worldwide. These rates are exclusive to businesses and cannot be obtained through consumer booking sites.
Additionally, TravelPerk allows you to add your own negotiated corporate rates with preferred hotels directly to your TravelPerk account.
Lastly, TravelPerk offers a VAT recovery service that simplifies the process of claiming VAT refunds on hotel spending. This can help your company save up to 20% on business travel expenses.
DHPL Travels is dedicated to helping businesses like yours save money on corporate travel while ensuring a comfortable and rewarding experience for your employees.