The short answer
Fixed-rate contracting with wholesalers still works for standalone hotels and properties in Tier-2, Tier-3 and remote locations, even as the larger brands move away from it. The discipline is to be selective rather than to contract for its own sake: judge each partner by the demand it genuinely originates, protect your high-demand dates, and review real production behind every rate you sign.
While many hotel brands are moving away from fixed-rate contracting with wholesalers, it remains a key strategy for standalone hotels or those in tier-2, tier-3 cities, or remote locations.
However, as a hotel sales professional, it’s important to approach rate contracting with purpose, rather than doing it just for the sake of it. To ensure success, the sales team should be selective and strategic by considering the following:
✅ Expected Room Nights: Assess the potential bookings from the account over a quarter or year. ✅ Rate Potential: Evaluate whether the rate aligns with your revenue goals. ✅ F&B Potential: Consider additional revenue opportunities from food and beverage business.
💡 Pro Tip: Sometimes it pays off to offer special rates to smaller or newer travel agencies that are eager to promote your hotel aggressively. While larger agents have extensive networks, they often focus on a broad portfolio, which might dilute attention on your property.
Lastly, continuous engagement with accounts and regular performance reviews are critical to driving sustainable business growth.
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Frequently Asked Questions
Quick answers on fixed rate contracting: still relevant, but be strategic!.
Yes, for standalone hotels and properties in Tier-2, Tier-3 and remote locations, even though many brands are moving away from it. The point is to contract with purpose rather than for its own sake.
Three things: the expected room nights the account can deliver over a quarter or a year, whether the rate aligns with your revenue goals, and the additional food and beverage revenue the business brings.
Not necessarily. Larger agents have extensive networks but spread attention across a broad portfolio. It can pay to offer special rates to smaller or newer agencies that will promote your hotel aggressively.
Continuous engagement with the account and regular performance reviews against the room nights that were expected. Without that, a contracted rate quietly becomes a discount with nothing behind it.
Written by
Rachit Goel
Founder & Principal Hospitality Consultant
Founder of The Hotel Adviser and a hospitality leader with 25+ years of hands-on experience across Marriott, Radisson, Ramada and Taj — spanning pre-opening, operations, revenue management and food & beverage.
