A corporate rate agreement is a legally binding agreement between a company and a hotel or other accommodation provider that outlines the terms of a discounted rate for corporate travelers. The purpose of a corporate rate agreement is to negotiate a fixed rate or a discount for the company’s employees who frequently travel for business purposes.
Here is a sample corporate rate agreement that can help businesses understand the key elements of such an agreement:
1. Term: This section of the agreement details the timeframe during which the discount rate will be applicable. For example, the agreement may be valid for a year or more.
2. Rates: This section outlines the discounted rates agreed upon for the company’s employees. It may include different rates for different room types or seasons.
3. Room reservations: This section describes the process for making reservations, including the booking method, cancellation policy, and any restrictions.
4. Payment terms: This section specifies the payment terms, including the methods of payment, billing procedures, and due dates.
5. Compliance: This part of the agreement outlines the responsibilities of both parties in terms of complying with the terms of the agreement. For example, the hotel may be required to provide the agreed-upon discounts, while the company agrees to utilize the hotel’s services.
6. Termination: This section outlines the circumstances under which either party can terminate the agreement, including breaches of the terms of the agreement or changes in the company’s travel policy.
It is important to note that each corporate rate agreement will vary based on the needs of the company and the accommodation provider. Therefore, it is crucial for businesses to consult with an experienced travel manager or legal advisor when drafting such an agreement.
By negotiating a corporate rate agreement, businesses can save money on their travel expenses, while providing employees with a comfortable and convenient accommodation option when they’re on the road. It’s a win-win for both parties!