Introduction to Hotel Corporate Discounts: Full Guide
Every year, companies spend significantly on corporate travel. The statistics below prove it:
- The global corporate travel market is expected to grow at 13.3% over the period 2022-2030. (Source).
- International and domestic travelers accounted for nearly 500 million business trips in the United States in 2019. (Source).
- Lodging and air transportation claimed half of the total business travel spending. (Source).
Still, business travel costs are set to rise through 2023, according to a recent CWT industry report. With corporate discounts, businesses, and frequent travelers can get the best deals on accommodations. This, in turn, helps bring down the cost of corporate travel.
In this guide, we’ll provide all the information you need to get the most out of your corporate discounts.
Introduction to Hotel Corporate Discounts
As earlier mentioned, a lot of time, money, and resources are drained in corporate travel. Approximately 10% of a company’s annual revenue goes into business travel. To minimize travel costs, the company’s travel managers leverage hotel corporate discounts.
Before we dive any deeper, it is important to point out that hotel corporate discounts differ from other types of discounts obtained from package deals and early booking. Unlike these forms of discounts, hotel corporate discounts are specifically aimed at attracting corporate clients.
What are Hotel Corporate Discounts?
Hotel corporate discounts offer reduced prices on accommodation, food, and other amenities to corporate clients. Normally, these discounted prices are offered to companies after successful negotiations with the hotel’s management. In most cases, the goal is to minimize travel expenses whilst building relationships with businesses and boosting the customer base.
Types of Hotel Discounts
Hotel corporate discounts come in various types. For instance, business travelers can benefit from rack rate discounts when staying in hotels for multiple nights on a business trip. Other types of discounts include:
- Promotional discounts – Promotional discounts are created to boost awareness and attract guests. Usually, they’re offered through promo codes.
- Long-term stay discounts – Hotels around the world incentivize long-term stay at their properties. One way to achieve this is by providing long-term stay discounts to guests who book a stay for an extended period of time. These discounts typically provide more savings for guests than regular rates.
- Loyalty program discounts – Loyalty program discounts are offered to customers who book multiple stays at the same hotel or chain. As the name implies, loyalty program discounts reward a customer’s loyalty when they stick to a particular hotel.
With a bit of research, it’s easy to find hotel corporate discounts that suit your specific business travel needs.
How Much of a Discount Can You Get as a Corporate Traveler?
Corporate hotel discounts can vary depending on the hotel policies and the terms negotiated by the company. If one was to estimate roughly the size of a hotel corporate discount, it would fall anywhere between 10% to 20% off of the standard rate.
However, you could be eligible for up to 50% off your booking depending on the negotiated terms. The exact discount will also depend on how much business the company is bringing in. It will also depend on the time of the year it (some hotels may discourage corporate rates in peak seasons).
Benefits of Utilizing Hotel Corporate Discounts
Corporate hotel discounts are an excellent way to save money on your next business trip. What’s more, many of the discounted rooms also include additional perks like breakfast, Wi-Fi access, and late checkout.
Furthermore, many hotels provide exclusive rewards and loyalty points to frequent guests. These points can be redeemed later for additional services at the hotel.
Here are the most significant benefits of using hotel corporate discounts:
Business travel is expensive. But savvy traveler managers know that utilizing hotel corporate discounts is an excellent way to save. Not only do you get lower rates than the general public, but you may also find exclusive deals and amenities that are not available to the average traveler.
Corporate discounts often include free Wi-Fi, complimentary breakfasts, late checkout times, and frequent flier miles. Taking advantage of these discounts can help save hundreds of dollars on your trips, with additional perks.
Loyalty Programs and Bonuses
Loyalty programs and bonuses are major incentives for businesses to take advantage of hotel corporate discounts. Loyalty program members can receive rewards such as free nights, discounts on amenities, and bonus points. With these rewards, corporate guests can stretch their budgets while still gaining access to the same services they would get if they were paying full price.
To enjoy loyalty programs, companies must first sign up for the hotel’s loyalty program. Over time, you will be rewarded with loyalty points for using the hotel’s accommodation services. These loyalty programs and bonuses put more money back in your pocket. This allows you to stretch your budget further when booking accommodations.
Free Amenities, e.g. Free Parking & WiFi
Free amenities such as free parking and WiFi can be yet another bonus for businesses looking to save money on their hotel stays. With free parking, your employees do not have to worry about paying for expensive overnight rates. Free WiFi keeps them connected to the rest of the workforce.
Combined, all these free amenities can save your employees time and money that would have otherwise gone into seeking other parking and communication alternatives.
How to Get Corporate Discounts on Hotels
Getting started with finding the right corporate discounts that suit your needs starts with research.
- Take the time to research the different hotel chains in your area or those near your destination ahead of time.
- Check out what discounts they offer and compare the rates among their competitors.
Normally, corporate discounts on hotels are provided through hotel corporate codes. After successful negotiations with the hotel management, corporate clientele are awarded a specific code. Employees using corporate codes for hotels can get their discount by typing it on the hotel’s website when booking.
That said, here are the steps you can take to get corporate discounts on hotels:
1. Find a Business Travel Agency that Can Get Better Rates for You
Business travel agencies are always in the loop regarding ways to save on corporate travel. They host some of the world’s best travel and business experts with access to the best possible rates for your stays.
Business travel agencies also have one solid bargaining chip unavailable to solo travelers, i.e. solid relationships with hotels around the world thanks to the collective volume of business travelers they are able to provide. As such, they know exactly where to look for the best deals.
They also understand the needs of corporate travelers. With their help, you can save big on airfare, hotel stays, car rentals, and so much more.
2. Stick to one Provider (Hotel) for All Your Accommodation Needs
Business travelers are often on the road for long periods of time, sometimes for weeks or even months. In such circumstances, it pays to stick to one hotel chain for all your accommodation needs.
Not only does this allow you to take advantage of any corporate discount rates that may be available. It also gives you the benefit of becoming familiar with the hotel and its staff at different locations. As such, you’ll have access to consistent service and accommodations, ensuring that your stay is comfortable and stress-free every time.
And by building loyalty with one provider, you can often unlock additional perks such as room upgrades or special discounts.
3. Keep an Eye on Deals and Offers and Last Minute Cancellations
One way travelers can save money on their hotel stays is by keeping up with the latest deals and offers posted by the hotels themselves. Many hotels offer special discounts or packages for corporate travelers. What’s more, many hotels offer discounted rates during certain times of the year, such as during off-peak seasons when there is decreased demand for accommodation.
Keep an eye out for last-minute cancellations – hotels may offer steep discounts to fill rooms that they would otherwise keep empty. It is in the hotel’s best interests to keep its rooms occupied. This aids the hotel in generating a foreseeable income from guaranteed stays.
4. Negotiating Discounts with Individual Hotels
First and foremost, you should be organized and come prepared with all your information when negotiating with the hotel’s management.
Be sure to do your research in advance so that you know what kind of rates other hotels in the area are offering. This will give you leverage when negotiating with a particular hotel.
Additionally, keep an open mind and be willing to compromise – even if the hotel isn’t able to provide you with a discount they may still be able to offer some other incentives, such as free breakfast.
Tips for Better Negotiations
It’s important to research the hotel and find out who the key contact persons are, such as the front desk manager, sales and marketing director, etc.
Once you’ve identified the right person to contact, be sure to let them know your budget and the number of employees you may have traveling throughout the year. With this information in hand, they can better prepare a customized offer that fits within your budget.
Analyze Your Past Hotel Spend
Analyzing past hotel spend is a great way to identify areas where you can save money and get better value for your budget. Start by reviewing past invoices. Here, you can see which hotels you have been using most frequently and gauge how competitive their rates have been.
You can also identify any potential discounts that may have been missed in the past, from loyalty programs or corporate rate codes. Additionally, analyzing past spending data can help you to determine which hotel chains offer the best value for your company’s needs.
Formalizing the Agreement
At this stage, the travel expense manager and finance department should be heavily involved in formalizing an agreement with the hotel. This includes making sure that any discounts or special offers available to the business are clearly stated in the agreement.
Additionally, details such as payment terms, cancellation policies, and other relevant information should be included in the agreement.
Re-evaluating Corporate Discounts
Taking the time to maintain and re-evaluate your corporate hotel discount can help you maximize savings on travel expenses. As the market shifts and terms change, companies should review existing agreements with hotels and consider new offers as they become available.
Re-evaluating your corporate hotel discounts will help keep costs low and ensure you’re always getting the best deal possible.
Additional Tips to Consider When Searching for Hotel Corporate Discounts
Unfortunately, hotel corporate discounts don’t come equally. Small businesses don’t get favorable terms that might rival larger companies. That’s because the number of their traveling employees is not as huge as that of larger companies. And that means less business for the hotel.
Despite this, it is still possible to get favorable hotel corporate codes.
We’ve compiled some additional expert tips to consider when searching for hotel corporate discounts:
Take Advantage of Booking Engines such as Orbitz Worldwide, Expedia Inc., and Travelocity Global
Booking engines such as Orbitz Worldwide, Expedia Inc., and Travelocity Global offer information on exclusive discounts and price comparisons. They also provide convenient options for managing your booking information in one place. You can easily keep track of reservations, change or cancel bookings without any hassle.
Although some booking engines offer a one-way ticket to commission-free booking, they are not always the best options when seeking corporate discounts. The sheer number of hotel properties available may overwhelm your decision. On the bright side, you get access to many options to start you off.
Compare Prices and Check Out Any Special Offers they May Have Available Before Making Your Booking
No matter where you’re traveling, it pays to compare prices and check out any special offers available before booking. The internet has made this process easier than ever before, as you can search for the best deals on hotels in just a few clicks.
With so many hotels now running their bookings online, it can be difficult to determine which one will offer the best rates. Think about things like rewards programs, loyalty points, and other discounts that could potentially reduce your spending. Also consider factors like convenience, customer service ratings, and travel policies when comparing different providers – all of these elements can contribute to a successful business trip.
Consider Signing Up for Loyalty Programs with Certain Hotel Chains
Many hotels offer seasonal promotions or special rates if you book in advance – these can be extremely helpful for business travelers who are looking to cut costs. You can also find coupons or promo codes on third-party websites like Groupon.
Try searching for “ [hotel name] + promotional code” or “ [hotel name] + coupon” to see what offers are available. In essence, taking advantage of promotional codes can help ensure that you get the best rate possible on your hotel stay.
A More Efficient Way to Unlock Hotel Corporate Discounts
No matter the size of your company, signing up for a travel management platform (like TravelBank) will allow you take advantage of hotel corporate discounts without all the work. Travel management platforms generally have travel experts, agents, and supplier partnership teams to annually negotiate the best possible rates on behalf of all of their customers. As a result, all of their customers gain access to better discounts than they’d be eligible with just their own travel volume and budget.
In conclusion, corporate hotel discounts can be a great way for business travelers to save money on their trips. From signing up for loyalty programs and taking advantage of special hotel corporate rate codes to optimizing your stay with rewards points, there are plenty of ways to cut travel costs and make the most out of your travel budget.
What is a corporate discount?
A corporate discount is a reduced rate offered by businesses or corporations to their employees or members when booking hotel accommodations. These discounts are often negotiated in advance by the company or organization with specific hotels or hotel chains.
How do I find out what corporate discounts are available at hotels?
One way to find out what corporate discounts are available at hotels is to contact the hotel’s management directly and ask about any corporate rates they offer. You can also check with your company’s travel or human resources department to see if they have any negotiated rates with particular hotels or hotel chains.
Are there any other ways to save money on my hotel stay?
There are several ways to save money on your hotel stay. One way to save more is to be flexible with your travel dates and book during off-peak seasons. You can also use travel reward programs and credit card points to get discounts. Additionally, some hotel booking websites may offer promo codes or discount coupons for specific hotels.
How can I find out if my company has a corporate discount program with a hotel chain?
Find out if your company has a corporate discount program with a hotel chain by checking with your company’s travel or human resources department. They should be able to provide you with information on any negotiated rates or discounts that your company has with specific hotels or hotel chains. Alternatively, you can check with the hotels directly and ask if they have any corporate rates for your company.