If you’ve been a travel professional for more years than you care to admit, you remember when the phrase, “… I’d like the Corporate Rate” not only signaled an important customer was in-house, but also guaranteed an appreciably discounted rate.
But just like trucker hats and chihuahuas in purses, Corporate Rates fell from popularity by the mid-2000s as rising occupancy, ADRs and better revenue management made gratuitous discounts unnecessary for hotels.
In the post-COVID era however, Corporate Rates, and other long-terms contracts (LTCs) are making a comeback as a GREAT way for hotels to create profitability today, by generating consistent revenue streams of “rooms only” business.
The truth is, individual leisure and business travel are actually rebounding nicely. But large conferences, meetings & events are still lagging and analysts predict that hybrid meetings are contributing to a permanent decrease of in-person attendance. Concurrently, “The Great Resignation” is creating a serious staffing crisis that is forcing some hotels to turn away new business even as demand recovers.
No MICE and no staff? Is it “The Perfect Storm” or the PERFECT time to take a look at the value of long-term contracts?
LTCs never went completely away. They remained an important source of business in niche segments of the travel industry. Airline crew lodging delivers reliably consistent business for hotels located near major airports. Similarly, work crews and military deployments rely on “indefinite delivery/indefinite quantity” contracts to house their workers. Today’s corporate travel buyers need to control costs and deliver on Duty of Care responsibilities for their workers. They’re looking at LTCs as a way to lock in preferred rates and suppliers and minimize risk.
Are you ready to take a fresh look at a viable pathway to new business? The right software makes all the difference.
Most sourcing software available today was developed with only meetings & events in mind. Vindow’s travel sourcing platform was built from the ground up to source ANY type of RFP.
Vindow’s AI-powered RFP fulfillment and sales management platform is the most transparent and efficient marketplace for group buyers and hoteliers to create, search, distribute, analyze and contract RFPs for groups of any size or complexity. Vindow’s radical and innovative solution re-writes the rules on how group accommodations are sourced.