Corporate Account Management Flashcards

What is a 'preferred vendor agreement' in corporate hotel sales?

Answer: A negotiated contract granting a company discounted rates and priority booking in exchange for a committed volume of room nights

Preferred vendor agreements create a mutually beneficial, long-term relationship by exchanging volume commitment for preferential rates and services.

When managing a national corporate account, which action best supports account retention?

Answer: Conducting regular business reviews to assess performance, address issues, and identify new opportunities

Proactive business reviews demonstrate value and allow the sales manager to resolve dissatisfaction before it leads to account loss.

What does 'RFP' stand for in corporate hotel sales, and what is its function?

Answer: Request for Proposal — a formal document companies use to solicit bids from hotels for their travel program

The RFP process is the standard mechanism through which corporate travel managers evaluate and select preferred hotels for their programs.

Which metric is most important when evaluating the value of a corporate account to the hotel?

Answer: Total annual room night production and average daily rate (ADR) achieved

Room night volume multiplied by ADR gives the clearest picture of a corporate account's revenue contribution.

In corporate account management, what is 'wallet share'?

Answer: The percentage of a company's total hotel spend captured by a specific hotel or brand

Increasing wallet share means capturing more of a company's existing travel spend rather than finding entirely new clients.

What is the purpose of a 'rate cap' in a corporate hotel agreement?

Answer: To set a maximum negotiated rate that protects the corporation from price increases during the contract period

A rate cap gives corporate travel managers budget predictability by guaranteeing the negotiated rate won't exceed a specified ceiling.