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InterContinental Hotels Group is inviting
preferred business accounts across Asia Pacific to move to a
dynamic pricing model, guaranteeing corporate travellers to always
pay less than best unrestricted rates at its InterContinental,
Hotel Indigo, Crowne Plaza, Holiday Inn, and Holiday Inn Express
hotels in the region.
While the majority of IHG’s
preferred accounts currently enjoy contracted rates, its publicly
available rates are based on a best flexible model – meaning its
rates of the day are scaled according to demand. In providing an
alternative to annually-negotiated rate platforms, IHG is
addressing growing demand among corporate travel managers for more
flexible and market-sensitive hotel rates.
“Corporate travel managers should feel confident they have access
to the best possible rates in our hotels. This model guarantees
they will pay less than any other unrestricted rates in our
hotels, every day of the year,” said Gary Rosen, vice president,
sales & marketing, IHG Asia Pacific.
Annualised
rates may account for high and low seasonality, but cannot respond
to unexpected market conditions. As hotel pricing has become more
fluid industry-wide over the last few years, and the number of
booking channels has increased, the appeal of dynamic pricing to
corporate travellers has grown as well.
“Put simply, this model will help travel managers
reduce costs when staying at our hotels. It also provides greater
booking flexibility, by offering greater access to each hotel’s
full room inventory, and removing any blackout dates that may be
built into contracted RFP rates,” Gary added. “As the leaders in
the industry, we recognise that a programme like Dynamic Pricing
is in line with customer expectations, makes it easier for
corporate travel managers to track, as well as, being a
responsible business practice.”
Under IHG’s dynamic
pricing model, preferred accounts will negotiate a set percentage
discount off the best unrestricted, daily market rates at any of
its hotels. It will also bring its pricing in line with other
sectors of the travel industry – such as airlines – where travel
managers have learnt to take advantage of advance booking patterns
and market conditions to further reduce expenditure.
“We already have a number of preferred accounts on this model.
The feedback has been positive, especially as these corporate
customers usually end up paying less than their RFP-contracted
counterparts. From our perspective, we have seen these accounts
place a larger volume of their business with our hotels as a
result. Our teams across the region will be proactively
approaching preferred accounts over coming weeks to invite them to
consider the new pricing model, and answer any questions. In the
meantime though, any corporate travel managers interested in
considering such an approach with IHG should give us a call,” Gary
said.
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