Fixed rate contracting: still relevant, but be strategic!

While many hotel brands are moving away from fixed-rate contracting with wholesalers, it remains a key strategy for standalone hotels or those in tier-2, tier-3 cities, or remote locations.

However, as a hotel sales professional, it’s important to approach rate contracting with purpose, rather than doing it just for the sake of it. To ensure success, the sales team should be selective and strategic by considering the following:

✅ Expected Room Nights: Assess the potential bookings from the account over a quarter or year.
✅ Rate Potential: Evaluate whether the rate aligns with your revenue goals.
✅ F&B Potential: Consider additional revenue opportunities from food and beverage business.

💡𝐏𝐫𝐨 𝐓𝐢𝐩: Sometimes it pays off to offer special rates to smaller or newer travel agencies that are eager to promote your hotel aggressively. While larger agents have extensive networks, they often focus on a broad portfolio, which might dilute attention on your property.

Lastly, continuous engagement with accounts and regular performance reviews are critical to driving sustainable business growth.