What if discount hotels

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All Slideshows. This type of discount is a set rate negotiated at the property level and is the most common in the industry for several good reasons. A static rate stays the same for the entire term of the agreement with exceptions applied for specific dates and potential seasonal adjustments. The average static discount generates an effective savings of 34 percent when compared to LQR. These rates typically include amenities free breakfast, Wi-Fi, parking and a more lenient cancellation policy.

Another key benefit is the ability to audit rate availability at the time of booking. The downside of static rates is that hotels may effectively turn them into semi-dynamic rates by applying blackout dates and seasonal adjustments.

Hotels also tend to limit the discount to specific room types, greatly limiting their value. Most companies use a mix of chainwide, static and dynamic discounts. The optimal mix depends on the level of discounts a company is able to obtain. For most companies, covering as many room nights as possible with static rates results in the highest amount of savings acknowledging the cost and time needed to negotiate, and the possible gaps in coverage.

While these rates are more easily audited, you still must be diligent in measuring property performance. We expect a hotel to deliver a static rate at least 85 percent of the time. Many companies are giving dynamic discounts a try. The long-term potential of avoiding the annual RFP process is a huge motivating factor for many travel managers. Unfortunately, we rarely see dynamic discounts offered at high enough levels to offset the static rates currently in place.

Companies with hotel programs generating the highest amount of savings apply a tiered approach. The first tier covers higher-volume properties willing to provide a good static or dynamic discount. Online booking tools can be configured to show only these hotels or bias the display so travelers know they are preferred and offer added amenities.

To avoid leakage, consider a policy of only reimbursing travelers who book preferred properties when available. Best-in-class companies cover at least 60 percent of their nights with property-level discounts. The remaining 25 percent is in a third tier comprised of bookings with smaller, independent hotels. These are covered by agency, consortia and other preferred TMC discounted rates. No matter the strategy and mix of rates, you must regularly monitor hotel and chain performance, and changes in your hotel booking patterns, to obtain the maximum benefit.

Travel managers on their game negotiate deep discounts, actively monitor hotel performance and coverage, establish an ability to shift share as needed and cover as many nights as possible with property-level negotiated rates. Here we are on Twitter. Chainwide Discount Offered by a chain such as Marriott, Hyatt or Hilton to larger customers, the discount is a set percentage off the best available rate BAR at hotels within the chain.

Dynamic Discount Similar to a chainwide discount, this is a floating discount negotiated with an individual property. Unfortunately, there are a few bad apple hotels which use this to their advantage Steve Reynolds, Tripbam founder and CEO. Author: Steve Reynolds Steve Reynolds is CEO and founder of Tripbam , a hotel shopping service changing the way companies and travel agencies procure hotel stays.

First, you might not find anything acceptable, either in price or quality. Or, like Tuchman and many others who have already settled into a hotel room, you might dread the idea of packing up your things to head somewhere else for one night.

After failing at the front desk, Tuchman employed a tactic recommended by consumer advocates in most settings: He went higher up the food chain. To find the right person, travel experts advise asking for the manager on duty, who will usually have the authority to adjust the rate.

Book directly through the hotel's website. A hotel chain "typically treats its direct-booking customers better than outsiders. Hotels will deny they do this when they're on the record. But off the record, they admit it happens," Elliot advises. Hotel sites also apply discounts for some membership organizations directly through their sites, making it possible to stack up even more savings. Gigi Starr is a freelance fashion writer. She previously served as the blog editor for a major online fashion blog and has more than a decade of backstage experience in the beauty and high fashion industries.

She has worked for businesses like an internationally renowned theatrical touring company and events such as the Mercedes-Benz N. Fashion Week. How to Get Discounts at Hotels. Gigi Starr, Leaf Group.