Negotiated accounts, such as Local Negotiated Rates (LNRs) and Request for Proposals (RFPs), play a pivotal role in driving revenue for hotels. Yet, managing these accounts—especially during the renewal process—requires careful planning, precise data analysis, and excellent organizational skills. From determining the right rate to ensuring smooth implementation, every step matters. This guide explores the best practices for negotiating and renegotiating accounts while leveraging tools like Matrix SMS to streamline the process.
LNR and RFP Negotiations: The Foundation of Success
Local Negotiated Rates (LNRs) and RFPs represent the backbone of many corporate relationships. However, renegotiating these accounts is an art form. It’s not just about securing a favorable rate but also about selling the benefits of a continued partnership. Before we dive in deep let’s sort out the hotel jargon of what we consider a LNR account and a RFP account. LNR, local negotiated rate, is usually done by prospecting in our hotels’ backyard. These are sometimes also referred to as ‘backyard accounts’. They typically consist of smaller businesses that are not sourcing room nights nationally or via a travel manager. Usually we don’t load LNR accounts to the GDS, they are mostly booked directly with the hotel or via a online booking link. RFP accounts are RFP that are usually pushed out by your franchisor to specific markets and hotels on behalf of a large corporation. RFP accounts are usually loaded into the GDS and you hotel will need to make local contacts with the company as they probably sourced several local hotels and you want to win your market share.
Whether your putting together a hotel presentation for a local LNR account or filling out a lengthy RFP for a multi-national corporation, you will need to make sure you are paying attention to details. Selling your amenities on these proposals is very important, as small amenities such as distance to their office, hotel shuttle, or late checkout can give you a leg up on your competition.
Determining the Right Rate to Extend
How do you decide what rate to offer? This requires digging into performance data to ensure rates are competitive yet profitable. Usually a hotel will know what rate ranges they will be targeting for the year that they are bidding rates for. The hotel decision makers will use data points such as:
- Actual room nights (RNs) consumed in your market the previous year along with forecasted production for the following year
- Day-of-week (DOW) analysis to determine the clients stay pattern and if you want their business over those nights. High occupancy hotels will need to make sure they aren’t offering discounts on days where the occupancy isn’t needed.
- Length of stay (LOS) and stay patterns
- Conduct competitive rate shops to benchmark you potential rate. This can be done both via online shopping tools or manually by calling or emailing the hotel. Doing these shops will also help you determine the effectiveness of competitor sales teams.
Tools such as Matrix SMS can consolidate this data into one place and allow for easy collaboration, analysis, and as a guide throughout the hotel’s sales process. We also recommend that you use other available revenue management and rate shop tools together to arrive at your proposed rate.
Staying Organized: A Seamless Renewal Workflow
Organization is the foundation of a successful renewal strategy, especially when managing multiple LNR and RFP opportunities. With Matrix, staying on top of renewals is effortless. The platform’s Kanban Boards—tailored for Group, LNR, and RFP processes—provide a visual representation of the hotel sales pipeline, allowing sales and operations teams to track opportunities through every stage, including the critical Rate Renewal status. Matrix automatically transitions opportunities into renewal mode ahead of rate expiration, giving teams ample time to act. Collaboration across teams is seamless with Matrix’s cloud-based solution, ensuring all stakeholders are aligned, no matter their location. Follow-ups, task completion, and key documents are meticulously tracked within the platform, addressing common pain points and fostering accountability. With Matrix as your organizational ally, your team can handle renewals with efficiency, clarity, and confidence.
Making the Renewal Process Easy for Clients
Renewals should never feel like a burden for your clients, and Matrix ensures they don’t. By streamlining the process, Matrix empowers sales teams to offer a quick and seamless renewal experience. With automated rate renewal alerts, sales teams can act proactively, ensuring no account expiration goes unnoticed. Clients benefit from the transparency provided by Matrix’s Kanban Boards, where the entire sales cycle—from initial engagement to renewal—is visually tracked and easily accessible. This not only reassures clients but also helps foster trust and collaboration.
Matrix also eliminates common pain points, such as understanding account history in cases of sales team turnover, ensuring continuity and a personalized touch throughout the process. By simplifying internal workflows and maintaining transparency across the entire hotel team, Matrix frees clients from unnecessary back-and-forth, making the renewal process efficient, organized, and stress-free. In turn, your sales team can focus on building relationships and delivering results, all while creating a positive and professional experience for your clients.
Rate Load and Post-Renewal Confirmation
Accuracy and efficiency in the rate-loading process are critical to ensuring a smooth transition after a renewal is finalized. Matrix plays a pivotal role in guiding and tracking this process, helping hotel teams avoid costly errors or delays. Through its intuitive task tracking features, Matrix ensures that every step of the rate-loading process is accounted for, prompting teams to verify that negotiated rates are correctly loaded into their systems.
Once the rates are successfully loaded, the assigned Opportunity owner can manually notify the client via email, ensuring clear communication and a professional touch. Also trackable tasks are: test sell confirmations, GDS screenshots to confirm accuracy, and tracking direct booking links. Matrix tracks these email activities within the Opportunity, providing a comprehensive record of all post-renewal interactions. Matrix lays the groundwork for an organized and accountable workflow, ensuring that rate loads are completed seamlessly and clients are kept informed. With Matrix, your team can confidently handle the final steps of renewal, reinforcing trust and satisfaction with your clients.
How Matrix SMS Helps with Negotiated Account Renewals
Matrix SMS is designed to simplify and optimize every step of the negotiated account renewal process, ensuring no detail is overlooked. By streamlining workflows, improving collaboration, and providing essential tools for tracking and communication, Matrix equips hotel sales teams to renew accounts efficiently and confidently.
Key Benefits of Using Matrix SMS:
Data-Driven Insights: While performance data such as room night production, day-of-week (DOW) analysis, and comp set benchmarks are typically sourced from external systems, Matrix allows you to input and organize this data for smarter decision-making. By combining insights from various tools, Matrix serves as a centralized hub to guide renewal strategies.
Renewal Tracking Made Easy: Matrix keeps teams on track with automated reminders, ensuring that expirations and follow-ups are never missed. Coupled with the powerful Kanban Boards, which visually map out the entire sales and renewal process, teams can stay organized and quickly identify opportunities that require immediate attention. This combination simplifies workflows and keeps all stakeholders aligned.
Comprehensive Data Management: Matrix enables teams to store and track key data points related to accounts and opportunities. This ensures all critical information is easily accessible, fostering transparency and informed decision-making during the renewal process.
Task Tracking for Accuracy: With Matrix’s intuitive task tracking features, teams can seamlessly manage every step of the renewal process, ensuring that all critical tasks are completed on time and accurately. From rate renewal status to follow-ups, Matrix keeps your team organized and on track.
Matrix SMS doesn’t just simplify renewals—it empowers your team with the tools and insights needed to create a professional and effortless renewal experience for clients.