Reports & Guides

5 hotel rate negotiation strategies that actually work in 2025

Stephanie Black

November 3, 2025

Hotel rates have surged post-pandemic, and traditional negotiation tactics aren't delivering the savings they once did. Occupancy rates in key business markets are back to or exceeding 2019 levels, giving hotels less incentive to offer deep discounts. Here are five strategies that leading corporate travel programs are using to secure better rates in this competitive environment.

1. Leverage your total spend data

Hotels respond to comprehensive spend data. Don't just bring room night volume to the negotiation table — include ancillary spend like meeting room rentals, food and beverage, and event bookings. ITS's reporting suite consolidates all hotel spend data to strengthen your negotiating position.

2. Diversify your hotel program

Don't put all your room nights in one basket. Having preferred options at multiple properties in each market gives you negotiating leverage and protects against rate increases at any single property.

3. Consider dynamic rate programs

Fixed negotiated rates are giving way to dynamic discount programs, where companies receive a percentage off the best available rate. These programs can deliver better savings in markets with volatile pricing.

4. Audit your compliance

The best negotiated rates are worthless if travelers aren't booking them. Track hotel program compliance and address leakage. Even a 10-percentage-point improvement in compliance can generate significant savings.

5. Time your RFP strategically

Hotel RFP season typically runs from August through October. Start your preparation early and have clean data ready. Companies that approach the RFP process with clear objectives and solid data consistently secure better terms.

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