From ‘secret menus’ to ‘coupon codes’ that unlock special savings, everyone is currently looking for a deal. However, before the internet made it possible to scour millions of data points to mine these hidden gems, one really did have to ‘know a guy, who knew a guy’ to get deals at hotels.
That is unless they qualified for a long-term contract (LTC) or ‘corporate rate.’ Before, I explain why this type of booking is poised for a comeback, let’s go back to basics – what are long-term contracts?
The concept of long-term contracts is simple; a hotel, or chain, offers a guaranteed room rate to guests from a particular company or agency, in exchange for a negotiated minimum number of rooms, at a discounted rate, within a fixed period.
There are pluses and negatives for this type of booking for hotels. The benefit is obvious: guaranteed income in a challenging market, no matter how situations, like COVID-19, affect demand.
The downside: when the market is stable and demand is high, room rates increase. But if a property has already locked themselves into long-term contracts, that minimises the number of rooms that they can sell to leisure travellers who are willing to pay full price for their stay.
To show you why this type of booking is going to be a key revenue generator for hotels today (and a money-saver for group buyers, in a time when bottomlines are contracting to unheard-of levels), it is important to understand the history of long-term contracts.
BACK TO THE FUTURE
Once upon a time, corporate rates were pretty easy for almost any company to negotiate and their use was policed generously, if at all, by hotels. Anyone with the right business card could access deeply discounted room rates for their business or personal use.
Denne historien er fra February 2022-utgaven av Hotelier India.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra February 2022-utgaven av Hotelier India.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Toxicity Derailing You?
A young lady employee in Pune apparently died due to work stress. This elicited a severe backlash. Platforms are abuzz with the urban educated venting about exploitative practices, dealing with stress and a toxic work culture. Looking at this trending topic from a different angle.
The Future of Dining
Here's how to position your restaurant for long-term success.
From Smart Showers to Self-Cleaning Toilets
Innovations in hotel bath fittings are here to Stay...
A Winning Affair
The Hotelier India GM Summit & ESG Awards 2024 (Northern Region) was an evening to remember.
The Celebrity Chef Connection
Hotels are shaking and stirring up their food and beverage offerings by having celebrity chefs showcase their repertoire to serve guests new experiences.
Sleep Like A Baby
As sleep tourism gains ground, the hospitality industry is all set to ensure that guests can make the most of the movement.
Cyber Security in Hospitality
Here's how to protect your guests from digital intruders.
Untouched Trails
Rahul Uppal and Manoj Sihag, Directors, Echor Hotels Pvt Ltd, share their passion for creating travel experiences in offbeat destinations...
From Maldives to India
Stéphane Laguette, Chief Commercial Officer, Atmosphere Core, on his company's next big move: India.
"Fostering meaningful relationships is crucial"
General Manager, Conrad Bengaluru, Digvijay Singh on his management mantras, challenges as a hotel GM, advice to aspiring GMs and more...