Corporate hotel rates
A complete guide to gaining value and maximising savings
Are your business travel hotel costs skyrocketing? Let's help you.
Inflation and rising operational costs force hotels to tweak their pricing strategies to stay competitive. If you're not paying attention, hotel stays could eat into your business travel budget faster than you think.
It isn’t all bad news, though. If you take the right approach, your business can navigate these price hikes and turn them into opportunities for savings. Tired of generic hotel bookings and hidden costs? Standard online options might not offer perks or flexibility for your business travellers' trips.
What if you could access exclusive corporate hotel discounts and rates with added value, all tailored to your company's needs? These rates go beyond a discount too. They potentially offer upgrades, flexible cancellation options, and other amenities for a better travel experience.
We’ll take you through how to maximise savings and benefits. You'll learn how to leverage these exclusive offers for a comfortable, productive, and cost-effective business travel experience.
What are corporate hotel rates?
Corporate hotel rates are negotiated contracts offered to businesses and organisations. Hotels, including major hotel chains, provide these rates to companies that book rooms frequently. The promise is consistent business in return for better pricing. It's a win-win: accommodation is more full, and you save money!
If your business sends employees on the road often, these rates can change the game.
Here's why:
- Perks and privileges: Corporate rates might offer extra perks like room upgrades, late check-outs, and access to exclusive hotel services. Employees booking these are more likely to receive those special touches that make travel less stressful and more productive.
- Cost savings: Every rand saved on travel can be funneled back into your business. And when you multiply those savings across multiple trips and employees, the impact on your bottom line can be significant.
- Consistency and predictability: No more guessing if the hotel will be decent. These rates provide consistent pricing and terms across your hotel bookings. That means fewer surprises and more predictable expenses, making it easier to manage your corporate travel budget.
And let's not forget about the intangibles. Happy, well-rested employees are more productive and satisfied with their jobs. Above all, working with a travel management company means leveraging additional buying power to negotiate better rates.
How do corporate hotel rates work?
Corporate hotel rates are negotiated based on how often a company books and its loyalty to a hotel brand.
Once in place, employees book using a corporate rate code and enjoy discounted rates, along with perks like flexible cancellations or complimentary amenities.
Here's how it works:
- Value-added benefits: Beyond the discounted room rate, corporate deals sometimes come with extra perks. Think flexible cancellation policies, free breakfast, complimentary Wi-Fi, or even access to meeting rooms. These added benefits make the stay more comfortable and productive which is a win for your employees and your bottom line.
- Negotiated corporate rates: The process typically begins with a negotiation between your company and the hotel or hotel chain. The hotel looks at factors like how frequently your employees travel, how many rooms you'll likely book in a year, and how loyal you are to their brand. Based on this, they'll offer a discounted rate, usually starting at around 10% off the rack rate.
- Hotel booking process: Once the rate is set, booking is pretty straightforward. Your employees simply enter a corporate code when making a reservation, which applies the agreed-upon rate. It's like having a VIP pass, just for being part of your company. Sometimes, they may need to show company ID at check-in to confirm they're eligible for the special rate.
Negotiating these rates is where the magic happens
The key to a great corporate hotel rate is solid negotiation. This involves understanding your company's travel patterns, such as how many rooms you need, where, and how often. With this info, you can approach multiple hotels and accommodation providers to create competition. Hotels know they're vying for your business, so they're likely to offer better deals when they know they're not the only ones you're considering.
Pro tip: If your company's travel needs are significant, consider partnering with a travel management company (TMC). A TMC has the expertise to negotiate on your behalf and might already have established hotel relationships. It gives you access to even better rates and terms without the hassle of handling it all yourself.
So, while it may seem like just a few rands saved on each booking, those savings add up fast, especially when considering the added perks of a well-negotiated rate. It's all about getting the best value for your business, and when done right, everyone wins.
Types of corporate hotel rates
Let's talk about the different rates you might encounter. Believe it or not, not all corporate travel discounts are created equal!
Each type has pros, so it's all about finding what works best for your business. Whether you prefer the predictability of flat rates, volume-based discounts, or the flexibility of dynamic pricing, a corporate hotel rate can help you save money and keep your travel budget in check.
Benefits of corporate hotel rates
Let's discuss the tangible perks of securing these rates for business travel.
-
Cost savings
We crunched the numbers in a six-month pre-pandemic study, looking at 1,000 hotel room nights from properties around the world. It covered a wide range, from big-name hotel chains to some charming local spots
We compared our Corporate Traveller rates against those of the usual suspects, such as Booking.com, Hotels.com, Expedia, and direct on hotel websites.
The results? On average, Corporate Traveller saved R614 per night, or 13.9%. That adds up! If your company books 1,000 room nights a year at rates over R2191 per night, you're looking at saving over R306,692 annually. Imagine what you could do with that extra cash, maybe fund another business trip to visit a client, or give your team some well-deserved rewards.
-
Convenience
These rates also make your life easier! With these rates, the booking process is streamlined. Instead of jumping from site to site, comparing prices and deals, everything is consolidated in one place.
No more guessing which rate includes breakfast in the restaurant or whether Wi-Fi is complimentary, it's all taken care of. Plus, when your employees travel, they just need to enter a corporate code, and voilà! They're good to go. This simplicity reduces booking time and the stress of managing travel logistics.
-
Additional perks
Along with the cash savings, corporate rates come with some valuable perks designed to make business travel more comfortable. For example, Corporate Traveller customers can access added benefits through Breakfast Plus, a programme created to deliver more value.
When booking a Breakfast Plus property, travellers receive complimentary breakfast, free Wi-Fi, and 24-hour cancellation as standard. Each stay also includes one additional perk, such as a room upgrade on arrival, early check-in or late check-out, bonus loyalty points, or food and beverage discounts.
These benefits help remove friction from business travel. From starting the day with breakfast included to checking in early after a long journey or enjoying greater flexibility when plans change, programmes like Breakfast Plus focus on comfort, convenience, and added value at every stay.
How to get the best corporate hotel rates?
Getting the best corporate rates boils down to:
1. Mastering the art of negotiation
The key to securing a great corporate hotel rate is negotiation, pure and simple. But this isn't like haggling over a flea market find. You need to go armed with data such as your minimum spend on hotels over a year, how many rooms you need, where you need them (clue: close to your office and company address), and how often.
This gives you the power to negotiate from a position of strength.
Here's the strategy: approach multiple hotels and let them know they're competing for your business. Hotels love a little friendly competition, and when they know they're not the only game in town, they're more likely to sweeten the deal. And if your company's travel volume is hefty, you're in an even better position to demand lower rates.
Now, if all this sounds like a lot of work, that's where a corporate travel manager comes in. Corporate Traveller can negotiate on your behalf. Partnering with us means you're likely to get better rates and terms without lifting a finger. Thanks to long-standing relationships with suppliers, TMCs like us can hook you up with all the rates—millions of them. From Global Distribution System (GDS) to Expedia rates and beyond, we've got your back.
2. Leveraging your booking volume
Volume is your secret weapon to secure the best rates. The more rooms your company books, the better the deals you can score. Hotels love guaranteed business and are willing to cut you a deal to secure those bookings.
If your company frequently sends employees to the same locations, use that to your advantage. Show the hotels that your business can fill their rooms consistently, and you'll be in a prime position to negotiate lower rates. The more you book, the more you save—simple as that.
3. Getting the most out of loyalty programmes
Don't forget loyalty programmes. If your team travels frequently, these programmes can be a goldmine. Enrolling in such programmes and using business credit cards tied to them can rack up points that can be redeemed for free stays, room upgrades, and other perks.
By maximising these loyalty benefits, you save on the front end with discounted rates and get more value on the back end. And when you're booking through a travel management company, those perks can get even better. Exclusive and negotiated rates often come with added benefits unavailable to the general public, so you get VIP treatment every time.
Overcoming common challenges
Securing these rates is not always smooth sailing.
We get it - every business has its unique set of challenges. But don't worry. You're not alone.
Here are some practical solutions to help you tackle these challenges head-on.
-
Low booking volume
It's easy to think that these rates are only for large companies and don't work for small businesses. But that's not true. Even if you don't book thousands of hotel nights a year, there are still ways to secure competitive rates.
The key? Leverage the power of partnerships.
Partnering with a travel management company like Corporate Traveller gives you access to pre-negotiated rates, often better than anything you could secure on your own. With us, you can tap into rates usually reserved for larger corporations. TMCs pool together bookings from multiple sources, giving you access to discounts that would be hard to negotiate on your own.
If you're not ready to partner with a TMC, try building relationships with specific hotels or chains where your employees frequently stay—they might be willing to offer a deal in exchange for your repeat business.
-
Fluctuating rates
One of the biggest frustrations in corporate travel is rate variability—one day, you're paying one price, and the next day, it's something completely different. To keep things consistent, here are some tips:
- Book in advance: Rates tend to rise as availability decreases, so locking in your reservations early can save you a lot of headaches (and money).
-
Policy compliance
We can't stress this enough: having a corporate travel policy is essential, but ensuring compliance is where the actual savings happen. Here's how to make sure everyone's on board:
- Make it easy: Simplify your travel policy so it's straightforward. Complex policies often lead to non-compliance.
- Communicate regularly: Keep your team informed about the importance of sticking to the policy and the benefits it brings.
Every business faces its challenges when it comes to securing and maintaining the best corporate hotel rates. But with the right strategy and tools, you can turn those challenges into opportunities for savings and success. We're here to help.
To sum it all up
We've gone through the ins and outs of corporate hotel rates, and now it's time to pull it all together. Here's a quick recap of the big wins you can expect:
Ready to maximise your corporate hotel bookings?
Now's the perfect time to closely examine your current travel policies. Are you making the most of corporate hotel rates? If not, it might be time to bring on a travel management company to renegotiate those deals and start seeing the savings and benefits your business deserves.
Not sure where to start? Don't sweat it. Reach out to one of our travel experts, who can guide you through the process and help you unlock the best deals tailored to your business. For additional resources and insights for managing corporate travel, visit our comprehensive guide. Let's get those travel savings rolling!
It's time for better business travel management
With the perfect balance of modern travel technology and dedicated experts, you really can have the best of both worlds.
- Dedicated travel manager
- Intuitive all-in-one travel platform
- Search, book, and report in minutes
- 24/7 emergency support & live-chat
- Exclusive deals, negotiated rates, and more!