Negotiating preferred hotel rates can be a challenging task, but it is crucial for controlling business travel expenses and ensuring that your employees have access to quality accommodations.
In the wake of the COVID-19 pandemic, the travel industry is seeing a surge in demand for hotel rooms, with millions of people returning to vacationing. However, the supply of new hotel rooms has been constrained by supply chain disruptions, and rising interest rates, resulting in a tight supply. When demand exceeds supply, prices tend to increase.
Apart from the supply and demand dynamics, hotels are also facing other challenges this year. One major issue is the persistently high inflation, which has led to rising energy costs and the cost of goods and services. Hotels must ramp up hiring quickly to restaff their properties. However, the hospitality industry is facing a well-publicized labor shortage, making it difficult to meet hiring goals. These factors will continue to put pressure on hotel prices in the coming months.
Typically, a hotel will require a minimum of 50 room nights per year for small markets and up to 100 or more night per year for major city centres to offer a preferred rate.
Over the past 10 years, McTavish Travel has saved our customers over $2.6 million dollars through negotiated preferred hotel rates.