Hey fellow hoteliers! 🏨✨
As we gear up for the holiday season, let's dive into a crucial topic that impacts many of us—expiring corporate rates. Negotiating rates with corporate giants or airlines is a norm, but the challenge arises when these rates are set to expire at the end of the year. 🎊🗓
A quick recap: Corporate rates are often negotiated in exchange for a set number of rooms or nights within a given period. For instance, a company might propose bringing 500 room nights in exchange for a sweet deal like £99 a night, including breakfast. These negotiated rates are usually booked through large travel agencies on behalf of the corporate clients.
Now, here's the real kicker—although these rates are typically negotiated for the entire year, they're often only loaded into the system from January 1st to December 31st. The catch? Negotiations can continue well into the new year. This means that if discussions extend beyond December 31st, your corporate rate might suddenly disappear.
Picture this: A travel agent is booking on behalf of a high-profile employee from a company like Nike. If your hotel hasn't extended that corporate rate, you're out of the game, losing potential business while negotiating rates. 💰
The best practice is to provide a grace period. Extend those corporate rates beyond the end of the year, perhaps loading them from January 1st, 2023, until the end of April 2024. This gives room for those ongoing negotiations without jeopardizing your business. Have you tried this strategy? Share your insights and let's keep the conversation going! 💼💻
Read more about corporate rates here 👈🏻