The room rate is not the most important consideration in hotel negotiations anymore. 2010 Increase of travel and economies improvement will play a major factor on how all hotels offer rates. So as their area improves, the rates will increase. Hotels located near major cities will be the first to increase. Rates can still be negotiated based on each individual Companies need. That is why it is extremely important to supply hotels with as much information of your 2011 travel needs and past travel history. For example; below is a list of what rate is determined by and procedures.
Step 1: Company Travel Information submitted to hotel
- What other groups/companies in house are paying
- Group history ( Total Room Nights utilized prior year)
- No history? requires as much detail of your group needs
- Estimated Room Nights for the year
- Patterns ( Length of stay & number of rooms, weekly, monthly… )
- Transient demand in our area
- Type of room
- Number of Guests per room
- Project description
- Amenities Included
Once this information is received, the hotels management team will gather and discuss what the best rate we can offer according to the information supplied.
Company will be contacted and offered rates.
Contract must be signed by Company ( rates not valid until contract returned)
Rates are placed into our system
Based on the company’s estimated number of nights given, 6 months later we will review account to determine whether or not agreement is being held. If not ,Hotel has the right to discard contract.
All is well and company is contacted to start next year’s negotiation.
Larger Corporations normally use the RFP Process:
An iRFP (Implementation Request for Proposal) is a bid submission process used by large key/corporate accounts needing to utilize hotel accommodations. Based on client feedback Travel Buyers for Key Accounts will be more strategic in selecting hotels for their 2011 travel program. By keeping the number of preferred hotels to a minimum, they are best able to negotiate more competitive rates. This means less new additions (hotels) and stronger focus on existing partnerships. In cases where an additional hotel (s) is a requirement, i.e. new office location, project, etc, clients are inclined to choose hotels that offer a distinct competitive advantage In order to do that. “When a hotel representative tells you they will take your RFP to their morning revenue and sales meeting and get back to you,” they are beginning a process where nearly every manager in the hotel is involved. It is a collaborative effort to determine bid acceptance. iRFP Express/ Lanyon is a tool used by many hotels to review reguests.
If you have a specific question about our hotel contracts or would like to start negotiating 2011 Corporate Rates with Candlewood Suites in Secaucus, NJ, please contact: Vivian Colon-Director of Sales – email@example.com
279 Secaucus Road
Secaucus, NJ 07094
Office 201-865-3900 ext 701