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Hotel negotiations: Top tips for buyers

With the development of multiple brands and increased consolidation in the hotel sector getting the right deal for your travel programme could become increasingly tricky.

Here are 5 tips on getting the right deal for your business:

Welcome multiple brands

 More brands mean more locations, choice and price points within the same company, enabling group-wide deals to be negotiated.

Compliance is key

A tightly controlled programme, capturing data and benchmarking against city averages will help achieve revenue savings and put buyers in a better position to fine-tune policies.

Cheap is not always cheerful

The lowest rate may not be the most cost-effective as negotiated rates often include airport/local transportation, breakfast, wifi, parking and so on.

Rate audits

Check that agreed negotiated rates can be fully accessed through global distribution systems and other channels.

Frequent travellers

Negotiate loyalty cards for top travellers that are preloaded at an above-entry level for the scheme as this can help drive compliance.

Define deals

Mutually agree the definition of such clauses as late-room availability, especially how much of a hotel’s overall room inventory will be included.

Read the full feature from David Churchill on hotel branding

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