A good rate mix is important to increase your property visibility and bookings from the travel agent systems and On Line Travel Agent web sites (OTAs). By loading a variety of rate categories, you increase the probability your hotel will come up in travel agent searches.
For GDS it remains essential you have a rate loaded against RAC category on these systems otherwise your property does not show on many channels. The best strategy used by many hotels today is to load your best available unrestricted rate against this category.
Another important tip – if a travel agent searches in the GDS your city for a corporate rate and you don’t have this category loaded in the CRS, your property won’t show. The same applies to Promotional and packages as well. If you don’t have rates loaded against these categories you are losing business.
Check by running monthly CRS reports that you are doing best practice by ensuring the following:
1.) Best available unrestricted Rate (BAR) should be loaded on the GDS against the RACK category.
2.) Corporate – For business travelers.
3.) Package – A package can include anything that gives added value such as free parking, a bottle of wine, tickets to events, shuttle service or a meal voucher.
4.) Promotional – Promotional rates are just as flexible. These can be anything from increased travel agent commissions; extended stay pricing, advance purchase prices (lead time) or can be based on any system restriction.
It’s important to note that promotional and package rates can be higher than your best available unrestricted rate if they include value inclusions. Make sure these inclusions are clearly shown on your online sales channels. The diagram below shows a property rates structure covering all of the above.
Another winning strategy is to ensure that you are planning your negotiated and consortia rates now. If you don’t work on these during the next few months you will already be losing business for next year! Most consortia and many of the Fortune 500 companies will not accept bids for their 2011 online business after August. The only way to secure the maximum business from corporate and consortia is to use an online Request for Proposal.
