How much does my company need to use a particular hotel before we can get a discounted rate?

The answer depends on a number of variables. These include, but are not limited to, hotel location, how much more business the hotel could get from you by offering a discount, your pattern of stay, etc. As with airfare and car rental, the more business you can commit – and deliver – to the hotel, the greater the discount. In some markets 100 room nights might be enough while in other markets the magic number could be 500, 1000, or more. It depends on the supply and demand for hotel rooms in that particular area as well as in the specific hotel. The nights you typically book and the average length of stay can also work for or against you. If the hotel is in a market that already has a lot of Tuesday and Wednesday arrivals for one-night stays and that is your pattern as well you may find that there isn’t much you can do to negotiate. However, if your needs are more for nights the hotel needs to fill, such as Sunday through Tuesday or Thursday through Saturday, then you may have more bargaining power. The same is true if you typically book upscale rooms or suites that are more profitable for the hotel and harder to sell to others. New hotels or properties that have just changed brands are sometimes able to bargain a bit more than competitors while they establish themselves in the marketplace. Conversely, if the hotel is the only one in the immediate area or otherwise has a “”protected clientele”” based on location that they are not afraid of losing, the hotel will have the upper-and at the negotiating table. In some situations it is also possible, sometimes more advantageous, to negotiation amenities instead of or in addition to the rate. Free breakfast, parking, internet, etc., can substantially reduce your travel spend in areas beyond just the room rate.

For assistance in evaluating your hotel spend and negotiating opportunities, please contact your Travel-On account manager.