What is the agreed hotel rate?

Agreed hotel rate is a specialized term within the hotel industry.

An agreed hotel rate is a discounted rate agreed upon when a company signs an agreement with a hotel for that company’s guests or employees to stay at that hotel. It is generally lower than the hotel’s listed rate, but this is usually subject to a certain occupancy rate.

For those who are engaged in hotel-related work or often stay in the hotel should be very clear, the hotel price system is divided into several kinds. Hotel is an asset-heavy industry, fixed costs are very high, which has a certain requirement on the daily bookings and revenue, in order to increase the bookings at the same time to ensure revenue, so the hotel will have their own price system.

Offline price: that is, directly to the front desk of the hotel to stay in a class of customers, temporarily looking for rooms to live, without any preparation, the front desk booking is what price is what price, usually also the most expensive.

OTA price: that is, online booking, through some online booking platform to book a room, above you can see the room of the nearby hotels, prices, details and other content will be understood clearly. As long as the top ranked hotels will be searched, online booking belongs to the second most expensive, because each hotel stationed on the platform, are required to pay a certain amount of deposit, the platform will also charge a certain amount of commission, the commission is generally in the 8% -15% or so.

Business company prices: some large-scale companies, such as Huawei, Tencent, Ali, etc. with the hotel is certainly a cooperation, the price is also with the hotel pre-negotiated, this kind of price is generally not higher than online.

Travel agency agreement price: travel agency and the hotel reached an agreement is, I promise to bring you 100 guests in a certain period of time, you give me 20% off the price. Or I give you in a certain period of time to bring 500 guests, you give me 60% off the price. If the travel agency can not reach the agreement agreed occupancy rate, generally need to make up a certain amount of difference or out of their own pocket to make up for the remainder of the room.

One of the fast-growing hotel orders is the travel agency, so the hotel for travel agencies in the price of a great incentives, we talk to the hotel when the low price is naturally in accordance with the strength of the largest concessions to talk about.

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