How to get corporate rates and discounts on hotels for your business

If your company incurs a lot of business travel expenses, corporate accommodation discounts can save you a lot of money. Each discount by itself may not seem like much, but they add up over the course of the year.

Profitability is the bottom line for every business, big or small. So when you find ways to save money, such as corporate discounts, it makes smart financial sense to incorporate them into your regular process.

Did you know you can negotiate interest rates and use other strategies to increase the value of your dollar?

Once you’ve mastered the tricks of the trade, you’ll be able to get hotel discounts effortlessly. Either way, you’ll maximize the points you earn to receive free items on the reservations you make.

This article contains all the details you need to start saving money today.

1.How the corporate rate works

When you understand the premise behind corporate rates, you’ll know how to approach the negotiating table.

Hotels, car rentals, airlines and travel agencies offer corporate rates as a way to attract workforce business – especially for medium and large companies.

The idea behind hotels offering discounts to large companies is that these organizations will use these offers frequently so that more bookings will make up for the lower rates. Getting recurring bookings from business customers can be very lucrative for hotels, so making themselves an attractive booking option can be beneficial to them.

Hotels want your business, even at a discount

Any business that offers volume sales uses the same mathematical principle.

When you sell a sufficient quantity of product at a price slightly above cost, you end up with a profit.

Often, hotels will offer a general 10% discount off the available public price. This small concession attracts repeat business and word-of-mouth referrals.

However, 10% is the minimum, and you should not settle for this small reduction when you can negotiate a better rate.

2.Use the platform with the best price

Discount rates are applied using pre-determined codes. In the hotel industry, these booking codes are created for different companies in order to provide them with the best rates based on certain factors.

For example, a company that can generate a significant amount of revenue for a hotel will be able to negotiate a better discount code than a small business with few employees.

These codes are provided by employees, managers or authorized personnel at the time of booking the stay. The general rate is then adjusted accordingly. However, if you know how to use the system, you may be able to find a “code” that is better than your company’s rate.

3.Use credit card to enjoy corporate discounts

The way you pay for your room also varies greatly. Your organization may be eligible for a business credit card that offers cash back or an allowance for using them. The more you spend, the better the allowance.

As long as you don’t allow your credit card balances to accrue too much interest, the allowances and financial rewards will turn into profits.

One of the things to consider when using credit cards for corporate bookings is the increased potential for fraud.

When multiple people have access to a company’s credit card or account, it can be a challenge to control security. This obstacle can be solved with its virtual credit card.

Help you give your employees control over their bookings by assigning virtual business cards to each employee, while still maintaining fraud protection.

These cards are linked back to your original corporate cards. When it’s time to aggregate your monthly invoices, all bookings under these cards are assigned to your company. This way, you can use your business credit card to pay off your invoices and earn points for one large transaction instead of many small ones.

The key to maximizing your credit card usage allowance is to sign up for a card that offers the rewards you will use. Cash back, travel discounts and free hotel rooms for business travel are great benefits that every company can incorporate into their travel policy.

4.Discounts, tiered rewards and extra points

Does your current reservation system allow you to tier your rewards?

You will certainly know this when you reach the checkout screen. Most programs have a discount code option that limits you to one code per booking, and you must pick and choose to find the best price.

Anyone can take advantage of the general discount promotions and then only members can take advantage of the discounts.

Some common hotel discounts include:

• AAA
• AARP
• Military or veteran discounts
• Senior discounts

After you get your hotel corporate code at checkout, you can earn double rewards with your hotel-specific loyalty number.

Between the tiered rewards and your credit card offers, the savings potential is huge.