The cost of accommodation and food undoubtedly eats up the biggest chunk of the
business traveller's budget. Even in these post-recession times,
it should be a high-priority area for most companies that send their executives
abroad with any frequency. Seasoned business travellers often complain about the
high prices of scheduled air fares yet, paradoxically, these same people are quite
willing to pay the full rack rate in a five-star hotel when, more often that not, they
could have got a much better deal for comparatively little effort.
This article by no means guarantees unbeatable prices at five-star hotels, but it will
point you in the right direction and even get you additional benefits.
If you turn up at a hotel without prebooking, you will more than likely be offered a
room on the rack rate. However, if you work for a large corporation, and your
company regularly sends employees to that hotel or hotel chain, it is more than
likely that a corporate rate will have been negotiated. Some hotels will offer
corporate rates to any bona fide business traveller,
although in most cases you will have to book a number of rooms to qualify.
Travel agents, clubs and associations are able to offer corporate rates, which they will
have negotiated on behalf of their clients. These rates offer savings of between
tenand 15 per cent off the published rates. The level of
discount will depend on the volume of room nights the agent or company gives the
hotel or hotel chain. Some hotel companies will offer agents who book a high
number of clients with them a preferred corporate rate, which could represent a
saving of up to 30 per cent on the rack rate. Guests staying on a preferred rate
often receive added benefits as well as savings. For example, some hotels will give
complimentary upgrades, subject to availability at check in. For these reasons,
smaller corporate business, individual business travellers and businessmen who
travel to a wide variety of destinations could consider joining
WEXAS' travel club or
IAPA (the International Airline Passenger Association).
These companies negotiate discounts of between tenand 80
per cent worldwide. Such savings are greater than individual travellers or small- to
medium-sized firms could ever hope to achieve. For example, at the time of going
to press, WEXAS quotes a rate of 22,500 Spanish pesetas at
the four-star Melia Madrid, compared to the published rate of 31,300 Spanish
pesetas; 1400 French francs at the four-star deluxe Concorde St Lazare in Paris,
compared to a rack rate of 1950 French francs; and 1080 Hong Kong dollars at the
five-star Great Eagle in Hong Kong, as opposed to a published rate of 1950 Hong
Kong dollars.
It is worth remembering that often the best deals of all can be obtained on your behalf
by the firm you are visiting. In the Gulf or Far East, for example, local banks and
trading houses often have financial stakes in the cities' better
hotels. So it is a good idea to ask them to book your room as their influence may
secure you a more competitive rate in a better room.
With budget in mind, off season rates are another option for the business traveller,
whose travel is not limited to the school holidays. Many three-, four- and five-star
hotel chains offer seasonal rates during quieter times of year, with savings of up to
50 per cent. Some hotels will offer a flat discount, and in other cases the rate will
be made to look more attractive by value-added benefits that may include
breakfast, free use of the health club and a late check out. Such schemes include
the Great Affordable programme offered by Leading Hotels of the World.
Some hotel companies have year-round packages for individual business travellers,
which they sell alongside their package and corporate rates. Initially these may
look more expensive, but the additional benefits they offer mean they quickly pay
for themselves. For example, if you book a non-discounted room rate at one of the
city Shangri-la hotels in the Far East you automatically receive free return airport
limousine transfers, free laundry and dry cleaning, complimentary breakfast, free
local telephone and fax calls, IDD calls and faxes at cost and
a late check-out. For the resort properties, you receive complimentary breakfast,
free daily buffet dinner or an equivalent credit on room service or at any of the
resort's dining facilities, free non-motorised water sports, free
laundry, late check-out and IDD calls and fax at cost. Inter-
Continental's Global Business Options provides a choice of
upgrade to a club room or suite, full breakfast or double air miles.
As with airlines, some hotels offer APEX bookings (advance
purchase rates). Guests must be prepared to book up to 30 days in advance in
return for savings of up to 30 per cent. Marriott, Starwood, Hilton and Forte all offer
APEX rates. Beware though, APEX
bookings sometimes require full prepayment and have very steep
penalties if you amend or cancel your booking.
All major chains have internet sites that provide valuable information on their
properties. However, it can be very time consuming to check and compare offers
made by the individual chains. Once again, that is where your travel agent or club
can do a search for you to check the best possible rate at
all the major chains.
Which hotel?
Location is a particularly important factor for the business traveller because,
invariably, he or she will need to be near a city's business or
financial centre. City hotels also tend to pamper the business traveller because
more businessmen and women stay in their hotels than budget-conscious tourists.
However, with the current buoyant market, major cities are running much higher
occupancy levels and are therefore not as generous as they were some years ago.
It goes without saying that airport hotels are, on the whole, places to be avoided.
They can be worthwhile, however, if you need a room for a day on a stopover, so
you can have a wash and a rest, or if you need somewhere for business meetings.
They are geared to short stays and odd arrival and check out times and will be far
more likely to accommodate you than the most interesting city centre hotels. As a
general hotel principle, small is beautiful. In anything under 50 rooms, more
attention to detail and character are to be expected.
After location, the main factor in choosing a particular business hotel will be the
facilities it offers. Many companies are prepared to pay for executives to stay in
hotels with a wide range of facilities and benefits as it is felt that the advantages of
less stress and a more comfortable hotel stay will result in a more successful and,
ultimately, more profitable business trip.
Another factor that has come into play is the business executive's
choice of hotel loyalty awards. Frequent flyer schemes were launched in the States
by the major US airlines in the early 1980s and the hotel
industry followed suit. Today virtually every major hotel group has its own reward
programme for frequent guests and the majority of hotel loyalty programmes have
travel industry partners. For example Hyatt Hotel's loyalty
programme is called Gold Passport and is linked to Aeromexico, Qantas, American
Airlines, Cathay Pacific, British Airways, Continental Airlines, Lufthansa and
Singapore Airlines, to name a few, as well as Alamo Rent-a-car and Avis car rental
companies. These loyalty clubs are a huge success, giving the member rewards
and the hotels a database of guest information.
Most hotel chains do not charge for joining their frequent guest programme, basing
the level of your membership (and subsequently the level of benefits) on the
number of stays per calendar year. The Starwood Preferred Guest Programme
covering Westin, Sheraton Hotels, Four Points Sheraton, St Regis, the Luxury
Collection and the W Hotel brands is free; as is the Bass Priority Club Worldwide,
which covers Inter-Continental and Crowne Plaza Hotels and resorts, Holiday Inn
Express hotels, Holiday Inn Garden Court hotels and Staybridge Suites.
Rates are not normally affected by the hotel loyalty cards, however members of the
frequent stayer schemes often receive priority booking, free upgrades subject to
availability and early or late check outs, all of which enhance the business
traveller's stay and, in turn, can save money. In addition, points
can be collected and redeemed for travel packages, specially selected
merchandise, room upgrades, free weekend stays and even free flights.
Airline frequent flyer schemes also attract travel partners in the shape of hotel chains.
Executives who predominantly use one airline will tend to use associated hotel
chains to boost their air miles.
What's in a room?
Long gone are the days where the only amenities a business traveller would find in
his or her room were a telephone and a teasmaid. Today hotels try and offer not
just the home away from home but the office away from the office.
Even with the laptop explosion, many hotels still provide a business centre
- but these are being replaced by business accessories within the
room itself. Modem points are almost statutory in all room categories, but hotels
are offering additional benefits for the frequent business traveller in upgrading
standard rooms to contain larger desk space, personal fax machines, multiple
telephone lines, personalised voice mail and even personalised business cards for
use while in-house. Starwood offers 'smart
rooms', which are specifically designed as a luxury bedroom and
a fully functioning office. Marriott has 'the room that
works', a scheme which includes bright direct lighting, an
adjustable ergonomic chair, voicemail and multiple data ports.
Executive floors
Most business hotels offer an executive or club floor for business travellers. This is
usually on the top floor of the hotel and is designed to offer privacy and a premium
service. Benefits normally include superior accommodation and additions such as
express check in, late check out, use of an executive or club lounge, which
normally offers breakfast and evening cocktails on a complimentary basis, plus
complimentary use of small meeting rooms. Other advantages may include a meet
and greet service at the airport, complimentary use of health facilities, express
laundry and dry cleaning service.
Despite the rush of the average business trip and the range of priorities of the
individual business traveller, this group of travellers is in a very good position to get
the most out of the hotels they use while away. More and more, hotels are gearing
themselves towards their needs and making every effort to solicit and keep their
valuable custom. The key is, of course, information, which is where the travel
agent comes in, but equally the business traveller who wishes to have value for
money must be aware of the increasing amenities available and expect more.