Computer Maker Dell Breaks From Conventional Methods of Booking Hotels — For Now
Photo Credit: Dell has slowly been moving away from using request-for-proposals to set hotel rates. Pictured is the Dell presence at CES 2020. Dell
Skift Take
More companies are opting for dynamic and not static pricing because there's little risk of rates getting back to 2019's highs this year. Are airfares next?
Dell is now booking all of its rooms based on dynamic pricing, as previously contracted rates have become obsolete in the wake of the pandemic.
More large organizations are being tipped to follow the move, with hotel prices expected to be a lot lower compared to 2019 levels — but for how long remains to be seen.
Traditionally, corporate travel managers will agree on set, or "static," rates with hotels, with negotiations based largely on the number of employees that are expected to stay there. The higher the volume, the lower the rate, as a rule. These negotiations can take time, with the annual request-for-proposal process lasting up to six to nine months.
Now dynamic rates are in vogue: For the travel manager, these are the hotel’s best available rates with an agreed percentage discount.
The Dynamic Switch
“We have slowly been moving away from the traditional request-for-proposal process for quite some time," said Shannon Blando, global category manager, travel, at De
