How your hotel can sell more rooms using corporate trade

How your hotel can sell more rooms using corporate trade

Like any other business, your hotel chain can benefit from corporate trade by selling closed locations for above market, selling excess inventories of furniture and other supplies for more, and by reducing their bottom line cost of advertising.

But there’s another benefit your hotel can reap that ties to your core business: Filling rooms. Corporate trade can be utilized to place people in otherwise unoccupied rooms, and do so at your normal rate.

Like any corporate trade transaction, capital is created through the placement of your normal advertising. This is the same advertising that will be placed by your advertising people or your advertising agency. The difference is that Evergreen Trading is placing a pre-determined portion of it. The capital created by our placement of your advertising is then used to buy room nights at your normal rate.

As an example, say Evergreen Trading places $6MM of your upcoming broadcast media plan. That media will be placed by our in-house media trading division, Eden Road Trading which is owned by and housed within our partner Horizon Media, a $4 billion award-winning media placement agency. To insure that the media we place is the same media you would have bought without us, the details of the media plan are shared with us including buying parameters, rates and other commercial terms detailed by your advertising plan.

In return, Evergreen Trading will purchase a credit for $1MM of room nights at an agreed upon room rate. The exact amount of this credit will depend on a review of your media as well as an understanding of your financial objectives. Just like your marketing people will want to make sure there are no restrictions on the media we place for you, our agreement with you will stipulate that there are no restrictions on the use of the room credit.

In the end, your hotel chain has put more people in the rooms without it costing you anything out-of-pocket for the added benefit of more people in your restaurants, shops, and future cash reservations from repeat customers.

Hotel deal flow diagram2