FlyerTalk Forums - View Single Post - Negotiating long-term rates at luxury hotels
Old Jun 20, 2020, 10:15 am
  #11  
DavidO
 
Join Date: Oct 2003
Location: Asheville, NC
Programs: Virtuoso, FSPP, STARS, MO FAN Club, PEN Club, Bellini Club, Dorchester Diamond Club, Travel Leaders
Posts: 1,854
Originally Posted by Cityflyer10
I’d curious if you are better off directly approaching someone like the director of sales, versus going through an agent. Not having to pay commissions (~10%) vs no existing relationship. I suppose if the TA really knows the sales team, you are better with that approach, otherwise go directly.
There's a counter-intuitive element to consider — sales managers have annual sales goals; if they meet their goal, they earn a bonus. What counts towards a sales manager's goal are leisure sales made through their "clients" — i.e., TA's. For this reason, sales managers are incentivized to work with TA's — and if there is a reason to be flexible (low expected occupancy levels over that period or an extended stay), a sales manager will work with a TA to make the sale. As CityFlyer10 has said, it helps when the two have worked together for a long time and know each other.

While, obviously, a direct individual sale will be more profitable for the owner, you're not negotiating with the owner. The performance of a hotel's sales team is evaluated by RevPAR (total room revenue divided by total number of rooms). Cost of sales, whether they be commissions paid to a TA or salaries paid to the sales team) are not part of the equation. Neither are utilities, housekeeping, taxes, insurance, etc.

Last edited by DavidO; Jun 20, 2020 at 6:45 pm
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