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By: Jeanna André-Murdie

The most significant factors that determine hotel rates are:  time of year, day of the week, competitor prices and available inventory.

Here are the Top 5 Rate Categories:

  1. Online Booking Engines – Online Travel Agency rates as the hotels call them are companies like Expedia, Hotels.com, Trivago, and Travelocity. The hotels created this ‘distribution channel’ years ago and are now wondering if they created a monster. This distribution channel was designed to fill in need dates and slow periods. There is a ‘buyer beware’ component to these reservations because it is the first room that the hotel will use to move a client to another hotel if they are oversold.
  2. Special and Club Rates – CAA, AAA, Senior, Promo, Best Flex, Best with Breakfast. There are so many rates on the hotel website available to you if you are a member.  Pending the compression of a city and availability, this rate offers a minimal discount.
  3. Group Rates – When you work with room blocks of 10+ rooms, you are able to negotiate many conditions, one of which is rate. These secured blocks for a hotel are a great base whereby they layer the other reservations around. Working two, three and four years out does require reviews to determine the economy is in alignment to the secured rate.
  4. Government Rates – The government rates are negotiated each year with national hotels. This discount is extended due to volume and is to be used for official work.  It must be clearly stated that hotels are not obligated to extend government rates for group business or conferences. Some hotels pending availability may extend some government rates but it is not a requirement.
  5. Corporate Negotiated Rates – Similar to the Government rates, the corporate rate is annually negotiated based on volume. Minimally hotels will set a rate if your organization exceeds 5000 room nights.

 

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