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
Why Western Couples Are Choosing India For Their Big Day?
Decoding the reason, and how to cater to them...
A Match Made in India
Director General of Tourism Mugdha Sinha's grand vision for wedding tourism...
Tee Off in Style
Hoteliers are giving golfing facilities a boost even as they offer putting greens that make the sport popular.
Bespoke Getaways: What Makes Them Desirable?
Boutique hotels are increasingly becoming the first choice among discerning guests as they provide meaningful breaks.
Blending Tradition with Innovation
The balance of honouring tradition while adding a dash of modern flair is what keeps the culinary scene fresh and exciting...
DON'T THINK, OUTSIDE THE BOX
The oft-quoted maxim, \"Think out of the box!\" does little to encourage creativity or innovation and often is their enemy.
Putting the Wow into Weddings
As hotels become the preferred venue choices for weddings, the industry is certainly shaking things up.
Innovation Is Not an Option but a Necessity
Emphasizing the need for the Indian hospitality sector to innovate and disrupt itself in the current transformative period.
Why Marriott built its GCC in India?
Drew Pinto, Executive Vice President and Chief Revenue & Technology Officer of Marriott International, tells Hotelier India all about finding the best talent in India...
FROM POTENTIAL TO POWERHOUSE
In an exclusive and candid interview with Hotelier India, Gajendra Singh Shekhawat, India's Minister of Culture and Tourism, speaks about how tourism and hospitality will power India's economy by 2047.