If you are a small business owner, you may have difficulty in negotiating corporate hotel rates for your business. There are several ways you can get good hotels for your employees by spending less.
According to a report by Concur Technologies, small businesses spend 19.7% on their travel expenses. This guide will explain to you how to maximize your savings quickly by spending less on traveling and hotels. For some businesses, a travel management company might be a good option but is not a solution for everyone, especially if your business is just flourishing. So, you can follow these essential tips to negotiate a good deal for your business
Tips to Negotiate Corporate Hotel Rates for Small Businesses
Benefit yourself from a Consortium
Consortium or Consortia is a method in which many small companies which join together to get corporate hotel benefits. It has benefits for both hotels and businesses. Hotels get a lot of clients at once, while businesses get far cheaper rates and discounts than they will get individually.
When you are in a consortium, you have more buying power, and thus, you can make corporate hotels accept your terms easily. So, your chances are increased tenfold to get better rates and maximize your savings.
Choose carefully form a variety of vendors
You might be a small business, but your employees may travel to nearly every city in your country. In such a case, you have to choose between Boutique Vendors and Multi-national vendors. Both have their benefits, and it depends upon your requirements.
If you are a small business with a local boundary, you should go with vendors having domestic airlines and few hotels. They will give you the best rates and will serve you according to your taste.
If you are a small business with no boundary, then go for a Multi-national vendor. Other than that, that they are strict in their booking schedule, they work on massive profits, and you might be able to score a more considerable price margin from them.
Clear each term Beforehand
While negotiating, try to send a complete legal contract with the mentioned laws for each point of negotiation. Even if you have done your talks verbally, it is better if you also re-note them on a paper. To avoid any misunderstanding, ask the vendor to sign this paper as well.
Keep mention of everything in your contract. What happens if the hotel is full? Can you obtain credits for early departures? What if rooms of the specific packages are not free?
Mention whether it is going to be dynamic payments or a fixed fee-based contract. However, a fixed payment model might help you get a benefit from discounts.
Question yourself where your clients stay for more time and which cities they visit most? Try to negotiate the number of nights in a hotel where your clients remain the most. It might not work only for those companies whose clients unpredictably visit them.
If possible, ask beforehand for a VIP package for senior management. It will not only distinguish your senior staff from other staff, but there are chances that your other team may be able to enjoy the same VIP packages when you have them in spare.
Check Last Minute Rates
There are many chances that last-minute rates can be more attractive than booking. Hotels manipulate rates because they do not want empty beds. They want something better than nothing. So, if you check prices before departure, there are chances that you might be able to steal a deal.
If your company is localized to a country, there are many chances that you will be booking last-minute deals. Do check for small hotel vendors as they are more likely to be flexible with last-minute deals. Multi-national vendors might not give you a reasonable last-minute rate.
Avoid Event Days
Always do your research before making a deal. If there is an event in the city on your booking days, there are many chances that prices will be high. Better avoid event days, if possible. Or make a contract advance if a hotel is necessary.
Provide Vendor Every detail
Try to make details clear crystal between both parties. Give them details about meeting space and price. In short, provide them a complete overview and features so they can cut you a good deal.
The vendors do not know what type of company you are or what kind of clients you have. Provide the details about your clients as well so that both parties can agree on a suitable package.
Get other commodities for free
If your hotel is not giving you a good deal and it is the only option left, then ask for free perks like free access to a gym or resort. You may get access to more equal things and even a free Wifi, which might cost a few bucks otherwise.
Keep Records of Everything
Demand records from hotels when necessary. Crossmatch them with your list of attendees and hotel guests. Also, ask your clients to keep records.
Still, not able to get a good deal?
Use a Third-Party Aggregator
If you follow the above steps, they are many chances that you will be able to score a good deal from corporate hotels. Still, if you fail, then you can choose a third-party aggregator.There are many third-party aggregator sites like Booking.com, which can save you a lot of money. They can help you find affordable transportation in the local area. They are connected to many hotels in a single place so they can get you a good room at breaking deals. Sometimes, cheaper than what you can get from corporate hotels. You can use such sites, especially to compare between different hotels near you. These sites also provide complete details about each hotel, so you can select one that suits your budget and requirements.