Corporate Account

Definition

A negotiated relationship with a company that produces recurring business. The hotel offers a discounted rate (corporate negotiated rate); the company commits to using the hotel for travel within a region or volume.

What it tells you

Corporate accounts are often the most stable, highest-volume revenue source for business hotels. They’re negotiated annually and require ongoing relationship management.

How to track it

Track per-account room nights, ADR, and lead time. Identify accounts that are growing, declining, or at risk. Sales pipeline tools track upcoming corporate RFPs.

Where it fits

Corporate account management is part sales, part revenue management. The pricing strategy on corporate accounts (negotiated rates, sometimes BAR-minus-percentage) interacts with overall mix and rate-parity considerations.