Navigating Different Types of Hotel Rates

Travelers often encounter a seemingly overwhelming list of options and rates, sometimes for the exact same room. When booking official travel, it’s important to understand the difference between the varying rates you will encounter on your preferred booking tool.

FedRooms Rate – The FedRooms rate applies to those hotels within the FedRooms program, and on average is the lowest rate among those available for government travelers. Analysis of FedRooms top 80 markets in May of 2019 found that FedRooms rates average $38.98 per night less than the hotel’s Best Available Rate, $10.61 per night less than the GOV rate and $19.00 per night less than per diem. In addition to FedRooms rates being competitive and at or below per diem,  FedRooms rate always ensures that there are no hidden fees, a 4:00pm or later cancellation policy on the day of arrival, no minimum stay requirements, guaranteed complimentary Wi-Fi and often other included amenities. 

Best Available Rate – The "Best Available Rate" (BAR) is the hotel’s standard rate for each room. The other rates you find on a hotel website or other third party sites are based on this rate, and restrictive refund and cancellation policies may apply. Cancellations are usually required to be made at least 24 hours in advance or more, depending on the brand.

GOV Rate – Many hotels offer a “GOV” rate to government and military travelers at their own discretion. These rates are not protected by the FedRooms rate guarantee to be at or below per diem and cancellation and refund penalties frequently apply. 

Advance Purchase– Some hotel websites and third-party booking sites may offer a “discounted” rate if you pre-pay the hotel room. These advance purchases offer few to no protections, and are usually non-refundable if your travel plans change for any reason. In our May analysis, we found that FedRooms rates average $88.76 less than the third-party booking site Trivago, including the site’s instant purchase rates.

Always be sure to book through your agency's approved booking channel, and select the FedRooms rate to ensure that you receive the best value and guaranteed rate, protecting you against last minute changes or cancellations.

The Rise in New Hotel Brands: What is the Strategy?

If you are a loyal traveler to one or two particular hotel brands, you may have seen recent announcements of new brands or extensions under the same chain umbrella. This trend of developing new brands and off-shoots is a rapidly growing strategy for major hotel brands to appeal to different classes and generations of travelers, fill gaps in price differences, increase accessibility and expand into new markets. These types of strategies allow the brand to stay true to its identity while also maximizing its footprint.

InterContinental Hotel Group’s (IHG), for example, has recently developed a new upscale brand, Voco. This new chain promises a lifestyle brand, with an upscale feel and attention to exquisite customer service. Hilton is introducing two brands, Signia and Motto, expanding in both the meetings and events market along with the more moderately priced "micro-hotel" area that provides a hostel-type experience with private accommodations for travelers on a budget. 

In addition to the development of new hotel brands, there have also been a number of large-scale mergers in the past couple of years. Both Marriott's purchase of Starwood and Wyndham Worldwide's purchase of La Quinta have allowed the brands to gain a large number of hotels to add to an already diverse portfolio. Other brands like Best Western have used their purchase of WorldHotels to enter the luxury hotel realm, also expanding their portfolio.

The aim for many of these large brands, and likely the future trend of the hotel industry in general, is to develop loyalty and recognition for a parent hotel brand, under which many new, niche brands or acquisitions only create more options for an already loyal customer base. STR Senior Vice President of lodging insights Jan Freitag explains in this Business Travel News article that the hotel brands try to hook their customers with the promise of loyalty points so "they don't need to leave the fold of that loyalty system because the hotel company offers them [a property] for every occasion and for every price point." For travelers, this is an overall positive move toward offering a more diverse range of rooms and rates, from budget properties to long-term lodging. 

Too Much Technology? What Hotel Guests Really Want

The hospitality industry has made huge strides when it comes to staying on top of technology trends and integrating new features into booking tools, hotel rooms and customer service. According to Oracle Hospitality's 2019 Hospitality Benchmark, these enhancements may not necessarily meet guests’ needs. For instance, a push to promote mobile booking tools has swept the hotel industry, and while guests between the ages of 18 and 34 are likely to adapt to mobile platforms, guests above 34 still prefer email or a phone call. Overall, most guests say that they prefer to interact with an actual person when making reservations or dealing with a customer service problem.

Hotels were also evaluated on their in-room technology and smart device features. The number one amenity guests say they want is better in-room Wi-Fi. Of the respondents, 59% say this feature would make for a more comfortable stay and 56% said they do not want to interact with smart devices, robot butlers and other high-tech room amenities.

While advancements are always in the works and offer very positive and necessary improvements, hotel guests still show the most appreciation for the simplest amenities like housekeeping, friendly staff and room service. As hotels look to the future, there’s significant evidence to show that focusing mainly on exceptional service might be the key to success.

FedRooms Traveler Video

Have you seen the latest version of FedRooms’ traveler video? With updated information and some brand new content, it’s the quickest way to learn about FedRooms and all we have to offer.

Watch the video here and leave comments with any questions!

Lots of Loyalty Love: Club Quarters and World of Hyatt

Club Quarters

Branded as a boutique experience for business travelers, the CQ Rewards program is perfect for the frequent traveler who wants to earn points right away. The free program offers member-only perks like room upgrades upon check-in, exclusive offers and a dedicated reservation line. Plus, after just two stays you will earn enough points for a free night! Read more about CQ Rewards and sign up today.

World of Hyatt

With hundreds of properties around the globe, Hyatt’s reward program, World of Hyatt, makes traveling easier and stays more memorable. Save up to 10% with the member-only rate, and start earning points right away to spend on free nights, dining, spa services and other experiences. The more you stay the better rewards, with top points earners enjoying things like waived resort fees, club lounge access and suite upgrades. Learn more about World of Hyatt and how to register.