OTA Rates vs. Corporate Event Rates: Why They Don’t Add Up

If you’ve ever planned a corporate event and found yourself scratching your head over hotel rates, you’re not alone.

One quick glance at Booking.com, and it looks like you could snag rooms for much cheaper than what’s offered for your group. Confusing, right?

We sat down with Robbert-Jan Meinardi and Bastian Chall - two experts who know the MICE world inside out - to unpack why OTA (Online Travel Agency) rates and corporate event rates often seem so different.

Why OTA Rates Can Be Misleading for Event Planners

According to Bastian, this is one of the most common questions from event planners: “Why am I paying more for my group than the rates I see online?”

It’s All About Volume

“Think of it like booking a flight,” Bastian says. “The fuller the plane gets, the higher the price of the remaining seats. Hotels work the same way.”

When you book a corporate event, your group often takes up a significant portion of the hotel, sometimes even the entire property. Sure, you might see a single room on an OTA for €200, but as your group fills the hotel, the remaining rooms will be priced higher because availability shrinks.

Corporate event pricing, like DDR (Daily Delegate Rate), averages out these room rates, taking into account the fact that you're reserving multiple rooms at once. So while it may look pricier on paper, it reflects the reality of group demand.

More Than Meets the Eye

The rates you see on OTAs often don’t include breakfast, while corporate event packages typically do. Plus, corporate events often need room for changes or cancellations, which OTA rates don’t always offer without a hefty surcharge.

Robbert adds: “If you’re seeing a super-low rate on an OTA, you need to be very careful to know what's included. You’ll likely find it's a barebones offer without the options event planners need.”

Should You Still Browse OTAs?

Long story short: the answer is yes.

Despite the differences, Robbert-Jan believes OTAs have their place in the planning process. In fact, he admits he often browses them himself.

Here's why.

Get a First Impression

These OTAs do a good job in giving an impression of the hotel. They are great for scoping out the basics: location, cleanliness, and even general reviews.

“With all respect, reviews on spas and saunas are not very relevant to the delegates" Robbert-Jan chuckles. “but other basic things like location or cleanliness, it gives you a good feeling of what the hotel should be like.”

Avoid Planning During Peak Chaos

Bastian shares a pro tip: use OTAs to check for spikes in pricing or availability in your destination city.

“If you see room rates sky-high and most rooms already booked, that's how you know something big is happening in town."

That means crowded streets, fully booked restaurants, and pricier everything. It’s probably not the best time for your big corporate event.

OTAs can help you avoid potential headaches by identifying the right timing for your event, saving you trouble down the line.

When Availability Seems Impossible

“Sometimes, the best options for corporate events are new openings or places that don’t list their themselves on OTAs,” Robbert-Jan explains.

If you notice that most hotels are sold out during peak season or room rates are unusually high, don’t panic. Teams like Conference Hotel Group, for example, often know of options that aren’t visible on OTAs.

Experienced teams can leverage their network to help you find the right hotel, even when the usual options seem tapped out.

So, are OTA rates relevant for MICE planners?

Yes and no.

They’re not the full story when it comes to group bookings. But, they are a handy tool for doing your homework.

Think of OTAs as your reconnaissance mission: Use them to scope out hotels, compare options, and get a feel for the city and timing.

But when it’s time to book? Trust your DDR proposal. It’s designed to reflect the bigger picture and ensure a seamless experience for your group.

When it comes to MICE, knowledge is power. Follow us for regular insider tips from Bastian, Robbert-Jan, and the rest of our team.