How to get a corporate rate at hotels? Answer is – Companies often negotiate special rates with hotels commonly known as corporate rates. These rates are typically lower than standard prices. To obtain a corporate rate, you’ll usually need to either work for a company with a negotiated rate, utilize a travel management company, or in some cases, negotiate a rate directly with the hotel.

How to get a corporate rate at hotels?

Business travel can be expensive, and accommodation often takes up a significant chunk of the budget. Corporate hotel rates are a way for companies to manage travel costs effectively while ensuring their employees have comfortable stays.

What are corporate hotel rates?

Corporate hotel rates are special discounted prices that hotels offer to businesses. These rates are the result of negotiations between a hotel or hotel chain and a company.

The agreements are usually based on the company’s anticipated travel volume and the potential for recurring bookings.

Corporate hotel rates are typically lower than the standard rates available to the public, offering significant savings for businesses that send employees on frequent trips.

Benefits of using corporate hotel rates

There are numerous advantages to using corporate hotel rates for business travel:

Cost savings: The most obvious benefit is cost reduction. Corporate rates can translate into significant savings over time, especially for companies with high travel volumes. These savings can directly impact a company’s bottom line.

Consistency: Corporate rates often come with agreements for specific room types and amenities. This ensures a consistent experience for employees across different hotel locations, regardless of where they travel for business.

Convenience: Companies utilizing corporate rates often have access to dedicated booking portals or negotiated codes. This streamlines the booking process, saving time for both the employee and travel management teams.

Simplified Expense Management: Since corporate rates are pre-negotiated and predictable, they simplify expense reporting and budgeting for business travel.

Additional perks: In some cases, corporate hotel agreements may include additional benefits such as flexible cancellation policies, complimentary breakfast, Wi-Fi access, or loyalty program points.

How to Get Corporate Rates at Hotels

The most common way to access corporate hotel rates is by working for a company that has negotiated agreements in place. Here’s how to leverage your company’s existing corporate rate program:

1. Work for a company with negotiated corporate rates

Many businesses, especially those with frequent travel requirements, negotiate corporate rates with hotels to reduce their travel expenditures. These discounts are beneficial for both your company and you as an employee.

How to find out if your company has a corporate rate program

Here are ways to find out if your company offers corporate hotel rates:

Check your company’s travel policy: Most companies have a written travel policy outlining guidelines for booking business travel, including accommodation. This policy often lists preferred hotels and may include information on corporate rates.

Consult with your HR department: Your HR department is usually responsible for managing employee benefits and travel programs. They can confirm if the company has corporate rate agreements and provide instructions on how to utilize them.

Talk to your travel manager (if applicable): If your company has a dedicated travel manager or department, they are the best resource for information on negotiated corporate rates and the booking process.

How to book hotels using your company’s corporate code

Once you’ve confirmed your company’s participation in a corporate rate program, follow these steps to book your hotel accommodations:

Get your corporate code or ID: Your company’s travel policy, HR department, or travel manager will provide you with a specific code or identifier to use when booking hotels with corporate rates.

Find eligible hotels: Your company may have a list of preferred hotels or hotel chains where their corporate rates apply. Be sure to check this list before you book.

Book through designated channels: Companies often have specific ways to access corporate rates. This might include:

• Online booking portal: A dedicated online portal with pre-loaded corporate rates for eligible hotels.
• Travel Management Company (TMC): Your bookings may be handled by a TMC that specializes in negotiating and managing corporate travel.
• Directly on the hotel website: Some hotels allow you to enter your corporate code directly on their website during the booking process.

2. Use a travel management company (TMC)

Travel management companies (TMCs) specialize in streamlining business travel logistics, including negotiating and managing hotel accommodations.

They offer a valuable solution for companies seeking to access corporate rates, even if they don’t have the volume to negotiate favorable deals independently.

Benefits of working with a TMC

Partnering with a TMC provides several advantages when aiming to secure corporate hotel rates:

Extensive network and leverage: TMCs have established relationships with a vast network of hotels across various locations. They leverage their collective booking volume to negotiate better rates than individual companies could often achieve on their own.

Expertise and time savings: TMCs possess deep knowledge of the hospitality industry and travel trends. They handle the time-consuming processes of researching, vetting hotels, and negotiating rates, freeing up your internal resources.

Centralized booking and expense management: A TMC can consolidate all your hotel bookings into a single platform, simplifying the booking process and enabling efficient tracking of travel expenses.

Enhanced traveler support: Reputable TMCs offer 24/7 support to assist business travelers with unexpected issues or changes in travel plans. This minimizes disruptions and adds a layer of security for your employees.

How TMCs negotiate corporate hotel rates

TMCs use various strategies to secure competitive corporate rates for their clients:

Analysis of travel patterns: They thoroughly analyze your company’s travel data to identify frequent destinations, preferred hotels, and peak travel periods. This information provides valuable insights for negotiations.

Volume-based discounts: TMCs combine the travel volume of multiple clients to increase their bargaining power with hotels.

Strategic partnerships: Established TMCs maintain strong relationships with hotels and hotel chains, fostering mutually beneficial partnerships that result in better rates and additional perks.

Customized agreements: While leveraging their network, TMCs also tailor agreements to suit your company’s specific needs, ensuring you get the most out of the negotiated rates.

3. Negotiate your own corporate rates

While large corporations often have dedicated travel teams or utilize travel management companies, it’s possible to directly negotiate corporate rates with hotels even if you’re a smaller business.

This approach gives you more control over the process and can be a viable option under the right circumstances.

When to consider negotiating directly

Focused travel patterns: If your company’s travel is concentrated in a few specific locations or involves frequent stays at particular hotels, direct negotiation could prove beneficial.

Unique requirements: If your business has specialized needs, such as conference rooms, catering services, or long-term stays, negotiating directly allows you to tailor the agreement to your specific requirements.

Smaller travel budget: While you may not have the volume of a large corporation, some hotels are still open to negotiating rates with smaller businesses, especially if you can demonstrate consistent bookings.

How to approach hotels for negotiation

Do your research: Identify hotels that align with your location needs and offer amenities important to your business travelers. Gather information on their standard rates, occupancy levels, and competitor pricing.

Identify the right contact: Reach out to the hotel’s sales manager or general manager. Larger hotels or chains might have a dedicated corporate sales team.

Highlight your value proposition: Clearly outline the potential benefits for the hotel:

• Guaranteed volume: Estimate the number of room nights you anticipate booking annually.
• Consistent business: Emphasize the regularity of your business travel.
• Off-peak stays: If your travel aligns with the hotel’s off-peak periods, this can be a significant bargaining chip.

Start with a reasonable offer: Don’t lowball the hotel. Propose a rate that is fair and reflects your research.

Be flexible and open to negotiation: Be prepared to discuss additional perks beyond room rates, such as breakfast inclusions, loyalty points, or flexible cancellation terms.

Factors that influence negotiated rates

Volume and frequency: The number of room nights you commit to and the consistency of your bookings are key.

Location and hotel type: Hotels in high-demand areas or luxury properties will naturally have less wiggle room on rates.

Seasonality: You might secure better deals during off-peak seasons.

Length of stay: Longer stays can sometimes lead to discounted rates.

Additional services: If you bundle other services like meeting room rentals or catering, you might gain more leverage.

4. Other ways to get discounts on hotel stays

While corporate rates can provide substantial savings, they’re not the only path to finding affordable accommodations. Here are some clever strategies to score deals on hotel rooms:

Membership programs

Hotel loyalty programs: Many hotel chains offer loyalty programs with perks that could translate to savings. These programs often have tiers, where benefits become more enticing as you stay more frequently. Rewards can include:

• Free nights after accumulating points
• Discounted rates for members
• Room upgrades
• Early check-in/late check-out Example: Marriott Bonvoy loyalty program

Membership organizations: Organizations like AAA or AARP sometimes offer discounts on hotel stays for their members. It pays to check out the benefits of any professional or interest-based memberships you might have.

Credit card rewards

Travel rewards cards: Many credit cards offer rewards points that can be redeemed for hotel stays, flights, and other travel expenses. Look for cards with sign-up bonuses and bonus spending categories that align with your travel habits. [Example: Chase Sapphire Preferred Card] ([invalid URL removed])

Co-branded hotel cards: Some hotel chains have co-branded credit cards that offer accelerated points earning on stays at their properties. These cards often come with additional perks like automatic elite status.

Hotel booking websites

Comparison sites: Websites like Kayak, Hotels.com, or Booking.com let you compare prices across different hotels and online travel agencies. Some of these platforms have loyalty programs that offer exclusive deals for members.

Flash sales: Keep an eye on hotel flash sale websites. These offer heavily discounted rooms, but often with limited booking windows and non-refundable options. Example: HotelTonight

Opaque booking sites: Services like Hotwire or Priceline allow you to book hotels without knowing the exact property in advance. This can lead to significant savings if you’re flexible on location and specific brands.

Work for a company with negotiated corporate rates

If you’re fortunate enough to work for a company that has negotiated corporate hotel rates, here’s how to maximize your advantage:

1. Understand your company’s travel policy

One of the most crucial steps is thoroughly understanding your company’s travel policy. This document is your roadmap to navigating everything related to business travel, including:

Booking procedures: Outlines whether you should book directly through the hotel, a designated online portal, or via a travel management company.

Eligible hotels and chains: Specifies where your corporate rates apply.

Approval process: Details any pre-approval requirements for travel bookings.

Expense reporting guidelines: Covers how to document and submit travel-related expenses for reimbursement.

Restrictions: Highlights any potential limitations on the use of corporate rates, such as room types, length of stay, or booking windows.

2.Familiarize yourself with eligible hotels

Once you understand the rules, take time to get acquainted with the hotels where your company has negotiated rates. This information will streamline your booking process and help you avoid unexpected surprises.

Consider these aspects:

Location: Does the list of eligible hotels conveniently align with the locations you typically travel to for business?

Amenities: Do the hotels offer the amenities essential for your business needs, such as reliable Wi-Fi, meeting spaces, fitness centers, or breakfast options?

Category and pricing: Be aware of any tier-based pricing or restrictions on room types within your corporate rate program.

Loyalty programs: Some hotel chains might allow you to earn loyalty points on top of your corporate rate if the programs are compatible with your company’s policy.

Conclusion

Securing corporate hotel rates is a smart strategy for businesses and their employees to manage travel costs effectively.

Whether you work for a large corporation, partner with a travel management company, or even negotiate rates directly as a smaller business, there are ways to access discounted accommodations.

Key takeaways for getting the best value out of corporate rates:

• Know your company’s policy: Thoroughly understanding your company’s travel guidelines is the foundation for utilizing your corporate rates correctly and ethically.
• Do your research: Invest time in researching eligible hotels and compare their amenities to ensure they align with your travel preferences.
• Leverage additional discounts: Explore membership programs, credit card rewards, and hotel booking websites to potentially stack further savings on top of your corporate rates.
• Plan ahead: Whenever possible, booking early often secures the best availability and prices, especially during busy periods.

FAQs

Q: Can any company get corporate hotel rates?

While larger companies with high travel volumes have greater leverage, hotels may be open to negotiating rates with smaller businesses, particularly if they demonstrate consistent booking patterns.

Q: Are corporate hotel rates always the cheapest option?

While corporate rates provide substantial discounts, it’s still wise to compare them against prices on hotel booking websites or special offers. There might be occasions where you can find an even better deal.

Q: Can I use corporate rates for personal travel?

Absolutely not! Corporate rates are intended exclusively for business travel purposes. Misusing these rates violates company policy and could lead to disciplinary action.

Q: What if my company doesn’t have a formal corporate rate program?

Start a conversation with your HR department or travel manager to explore the potential of establishing one. If that’s not feasible, consider strategies like utilizing a travel management company, joining hotel loyalty programs, or taking advantage of credit card rewards.

Q: How often should I review my company’s corporate rates?

It’s advisable to review your rates annually or when you notice significant fluctuations in hotel prices within your regular travel destinations. This ensures you’re still getting the best value.