3 Insider Tips That Will Save You More $$$ With Your Corporate Travel Program This Year!
So, you’ve been tasked to book a corporate meeting at a hotel? Or, even better negotiate with your local hotel(s) to get a discount rate for your corporate traveler. Well, good news! Here are three (3) things you can do right now to save you time, money, and stress and look like a hero to your boss!
Tip #1: Request meeting room rental discounts based on sleeping room block pick-up
In the hotel world (and in our agreements) we call this a “sleeping room performance” clause. The idea is that based on the amount of sleeping rooms your group block picks up that amount is reduced from the meeting room rental price For example, if I quote you a meeting room rental price of $3000.00 a day and you pick-up $3,000 worth of sleeping rooms then the meeting room rental rate can be free. In some cases, if you order enough food you may be able to get a further discount on the catering menu but each hotel works differently.
Tip #2: Ask for a Meeting Package!
If a hotel has a catering menu there is a good chance that they offer various meeting packages. Most meeting packages can be “modified” by the way to suit your budget. What’s a meeting package? It is when the hotel bundles the meeting room rental with food and maybe AV. Hotels often have an “All Day Meeting Package” in which they include the meeting room rental, an AM break, Lunch Option, PM Break, and All Day Beverage Service. Prices vary based on the amount of overhead the particular hotel has to carry (and budget expectations) but a typical All Day Meeting Package in Atlanta, Los Angeles, Boston, Seattle (all places I’ve worked) range about $65-$85 per person. Don’t forget to take on any service charges and taxes! Need to bring the cost down a bit consider “modifying” your package and take 1 or 2 food elements out of it. The hotel should be able to do this. Of course, the hotel may also argue that they do not want to break up a package because packages are not meant to be broken but – I disagree! ??
Tip #3: Request dynamic rates for your corporate transient program if you can!
Even better get (LRA) Last Room Availability! Business travel is exciting! And I love a good win/win! In my opinions, dynamic rates are the real deal. Why? Because you get a % off the standard rates and you save the most money when your travelers are coming in non-peak days. The challenge I see with static rates is that sometimes they are more expensive than the standard BAR rates the hotel is offering. What happens is a business traveler will have to decide to either be “compliant” to the corporate travel program (which they should if they want to get a minimal rate increase next year) or book a cheaper rate through another channel. Now, in some cases, it makes sense to have a static rate. For example, if you know you’re static rate is going to save you long-term (calendar year) money then do it. Another reason static rates are appealing is you can have a budget. However, if your BTSM knows his/her numbers he can give you a pretty accurate “average” rate of what you would be paying on a calendar year if you go with Dynamic pricing. Now, you may be a small company that has under 300 room nights of travel per year (side note: most hotels won’t offer you a rate, by the way, unless you have a minimum of 50 room nights) but take comfort in this factoid – fortune 500 companies that have over a million dollars of travel spend are switching over to dynamic pricing for its overall savings.
Bonus Tip! Understanding – LRA vs NLRA
If you are thinking of changing hotels or re-negotiating rates for your corporate travel program beware of the NLRA (non-last room available) rate! I can feel the burn of stares from my revenue managers now! ?? So, what do I mean? Well for one chances are if you have an “abnormally” low static rate your rate plan is an “NLRA” rate. This is good for the hotel but not necessarily good fo the company. Why? Because NLRA rates are “yieldable”. Meaning, they are subject to revenue management practices of inventory and pricing restrictions. Ever wonder why when you enter your corporate code online you do not see your rate? It’s because your corporate rate is restricted and now you have to buy at BAR pricing because the hotel sees that there is demand in higher rates channels and plans and is holding out to get them. It’s business baby! But seriously, the point I want to impress upon the travel manager who negotiates corporate rates is this – ask if the rate being agreed upon is LRA or Non-LRA. I believe that full disclosure should be made up front about this. Time and time again when I talk to new clients they are surprised that they never had the availability (and peace of mind) knowing that their travelers were getting their “agreed upon” corporate rate. So, what can you to get a good deal. Pay a little extra for the LRA and keep your expected room night production commitment. Otherwise, pay a premium on high demand days of the week!
Well, that’s it for now. If you have a question or comment please leave it in the comment box below.
Happy New Year!
-PW