Ascertain how to negotiate hotel room blocks and group hotel rates for cost-effective reunions
When booking a hotel for a large group, prices can be daunting, making it essential to know how to negotiate group hotel rates. Most people know the anxious feeling of opening hotel booking sites to discover sky-high prices, far out of their budget. Perhaps they check different websites, only to find wildly different prices for seemingly no reason.
As you’re researching locations to host your next group gathering, whether it’s for a reunion, corporate travel, or a school field trip, here is a step-by-step guide to follow when negotiating for money-saving group hotel rates.
Packed with ideas, tips, and destinations, the Destination Reunions magazine is your ultimate planning resource. Download it for free now!
7 Tips for How to Negotiate Group Hotel Rates
In our step-by-step guide, we discuss essential aspects of finding and securing cost-saving group hotel accommodation, including information about what a hotel attrition clause is and why it matters.
#1. Know Your Numbers
An essential first step to your group hotel booking is keeping track of the space you need. Before negotiating, you should assess your rate, which depends on the dates of your stay, the number of people you need to accommodate, and your budget. Hotels typically consider groups booking around ten rooms for group rates, and discounted rates depend on your group’s dates and other factors.
Group hotel rate increases are gradually shrinking as leisure travel reduces, leading many hotels to try out dynamic pricing. This gives them the ability to adjust their group rates based on demand. While this practice is still new, it highlights the importance of timing and knowing what you want when planning your group trip.
#2. Build Your Wishlist
Once you’ve worked through the numbers, it’s important to consider your expectations outside of your budget. The real value in your discounted rate comes in the form of perks. For example, resort fees can add to your nightly rate, so consider asking your hotel to waive these fees as part of your group rate. If your group is celebrating someone or something special, you can negotiate a free room upgrade for one of your guests.
If more personal perks like this work for your occasion, consider booking a smaller, independent hotel rather than one belonging to a large chain that often can’t accommodate specific requests. Whether it’s a complimentary meeting space or free breakfast you need, create a list of perks and include them in your negotiations with your hotel.
#3. Timing and Channels
When it comes to group bookings, timing is everything. Having flexible dates for your trip is one of the best ways of ensuring a lower group hotel rate. If possible, always aim to make a reservation between Sunday and Thursday to provide the lowest rates.
Timing is crucial when inquiring about your location. Booking four to five months in advance is often recommended, as it gives hotels enough time to plan for your visit. When approaching hotels about group visits, ask to speak to a director of sales or other available group sales representative, like a general manager. A director of sales will likely have more information on group rates and possible discounts and should be more capable of giving you accurate quotes and information on what your rate will be. You’ll want to get quotes from various hotels in your target area to decide on the best offer.
Seasons and holidays
It’s also vital to keep shoulder seasons in mind when making your group booking. Depending on your location, hotels in the area will likely have peak seasons. You should consider booking a few weeks before or after these peak seasons, in the shoulder seasons. This will significantly reduce your group rate while allowing you to enjoy the same weather as you would during peak season. Keep major holidays in mind, as the days following them are often slower for hotels, which could mean a better group rate for you. Additionally, research your target areas and any possible events that could be taking place when you are there. A major sporting event or festival, for example, could drive up hotel rates.
#4. Negotiation Tactics That Win
When you negotiate group hotel rates, the mediation process can be the most intimidating part. However, there are numerous ways to leverage yourself and your group as desirable guests to secure a lower rate from your hotel.
Complimentary amenities based on group size
Use the number of people in your group to see if you can get access to accommodation options like complimentary spaces or services. Room upgrades can also be a great way to get more bang for your buck at hotels. Part of your negotiation can include a room upgrade for a guest of honor or anyone your group is celebrating during your stay.
Balance flexibility with your must-haves
When it comes to winning negotiations, it’s crucial to find the balance between flexibility and confidence. It’s important to stay flexible when it comes to negotiating dates and understanding the quotes given by hotels, but standing your ground on other factors is equally important. Make sure to be firm with your numbers from the first step in our process.
Your date range, budget ceiling and number of guests are not only important for hotels to make accurate bookings, but also crucial for you to get the most out of your stay. Cancellation fees can often be a hidden cost, so it’s essential to be upfront about the number of attendees and try to negotiate a fee reduction if possible.
Online resources to negotiate group hotel rates
If you are pressed for time or need additional guidance, there are travel management platforms that can help you negotiate a group rate, including TeamOut and EventPipe.
Many hotel booking sites offer ways to switch to the most affordable hotel automatically, but using a travel management platform is a much more fine-tuned form of that process.
#5. Read the Fine Print: What is a hotel attrition clause?
After you negotiate a group hotel rate, carefully review your contract with the hotel to uncover any possible hidden fees. This includes being on the lookout for a hotel attrition clause—if you book more rooms than you use, your hotel can charge you for lost revenue as part of an attrition clause.
- You can renegotiate this by asking for a smaller attrition percentage, so that instead of needing to fill 80% of your rooms, for example, you might only have to fill 70%. This gives you a better margin in case of cancellations and last-minute changes.
- Similarly, keep an eye out for your cancellation window so you know the last possible day to cancel without being charged a fee. This is valuable in case of last-minute changes or emergencies.
- Cut-off dates are another thing to look out for, as these will tell you the last possible day you can make a reservation with group rate discounts and amenities.
As you get closer to making your decision, it’s good to give thought to other factors we often take for granted, like the distance from your hotel to different locations. If you’re flying into your area or taking a bus, keep in mind the distance from airports or bus stops. Knowing this information can help you ensure the safety of your group.
#6. Compare, Decide, Confirm
Now that you’ve expertly negotiated group rates with hotels in your target area, it’s time to sort through your offers and figure out what works best.
Create a spreadsheet
You can create a spreadsheet to keep track of your quoted prices, as well as any perks you were offered. As the past steps show, there’s a lot to consider when trying to find the ideal group rate, which is why it’s so important to keep your information organized.
We recommend sorting your offers into categories like “Yes,” “Needs Work,” and “Hard No.” This way, you can easily see which quotes match up with your initial numbers and wish list and which ones don’t.
Having a “Needs Work” category can also help you keep your options open and leave the opportunity for further negotiation. Always feel free to seek more information or clarity from the hotels in your “Needs Work” category, and make sure to double-check even with those in the “Yes” group. This is often the perfect chance to re-read the fine print.
#7. After the Ink Dries: What groups contribute to hotels
After you book your hotel using your negotiated group rate, you and your hotel will still be in a close-knit relationship until your stay. Your booking will contribute to the hotel’s pick-up report, which states how many reservations a hotel has for a specific period. With dynamic pricing becoming more popular for hotels, these pick-up reports play a key role in determining future rates.
Hotels also operate on an ongoing feedback loop with their guests, meaning they adjust based on the praise and criticism they receive from their customers. Be open with your hotel throughout your experience so they can adjust accordingly. Your feedback is valuable to them and can be helpful for future guests. Maintain a conversation with your hotel throughout the negotiation process, and if your stay goes well, consider recommending your hotel’s team to other potential guests.
Once you secure your cost-savvy hotel rooms, relax and get ready for a memorable gathering. Discover more family reunion insights when you subscribe to Destination Reunions today.
