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Don't Fence Me In

Jan 29, 2024
How Do Fenced Rates Impact Workforce Travel? Read our Guide on How to Create Flexibility when Booking your Crews
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When booking accommodations for workforce travel, understanding fenced rates and what they mean is vital when making important decisions. These rates can save money but also create significant pain points in how companies manage their travel.  

What is a fenced rate?  

A fenced rate is a special discount that hotels give in exchange for a booking with restrictions placed on the alteration of the reservation, or timeline of the payment.  These are often called an "Advanced Purchase Rate" or "Manager’s Special Rate".  

You may be able to find a rate that seems like a deal, but you must fully understand the terms of the rate that you are agreeing to. 

The idea is to provide a discount and create a sense of urgency to book in return for guaranteeing business for the hotel for a specific timeframe or a non-cancelable reservation. However, these rates can have serious drawbacks for companies arranging travel for their employees.

How do fenced rates impact me? 

While fenced rates can offer upfront cost savings and predictability, they typically limit options, flexibility, and the ability to adapt to changing circumstances. And it’s all buried in the fine print. 

Companies need to weigh the pros and cons carefully and consider the specific needs of their crews before committing to a fenced rate for accommodation.  

Rigid Booking Conditions

Fenced rates may have strict booking conditions, such as: 

  • Non-refundable deposits 

  • Penalties for changes or cancellations 

  • Minimum stay requirements 

  • Lack of available accommodations  

If the company needs flexibility due to changing work schedules, unforeseen circumstances, or a high-demand or remote location, these rigid conditions could result in financial losses, unused bookings, or not finding the right property for crews.  

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Limited Choice 

Fenced rates often come with limitations on the selection of hotels or accommodations available. You may need to compromise location, amenities, and/or quality of lodging.  

Suppose the available options do not suit the specific needs or preferences of the work crew (e.g., location convenience, adequate facilities, proximity to the job site).  

In that case, it can negatively impact the comfort and efficiency of the crew members during their stay. 

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Lack of Negotiation Leverage

While a fenced rate might initially seem like a cost-effective solution, it might prevent the company from negotiating better deals or taking advantage of last-minute discounts or offers from the hotels.  

This lack of flexibility could mean missing out on potentially better rates or more favorable terms that could have been obtained through negotiations or other means. 

Unforeseen Expenses

Sometimes, the terms of a fenced rate might not include all potential expenses. There could be additional charges for services or amenities not covered in the agreed-upon rate, leading to unexpected costs for the company. 

Additional expenses could include:

  • Changes in Itinerary: Additional fees may apply if there are unexpected changes to the travel itinerary, such as a need to extend the stay or alter the booked transportation

  • Wi-Fi and Business Center Charges: Some hotels charge for premium Wi-Fi access or usage of business center facilities.   

  • Parking and Transportation: Fenced rates may not always include parking fees or transportation costs beyond what is initially agreed upon.   

  • Meal Costs: While some corporate travel packages include meals, others may not cover all dining expenses.   

  • Taxes and Fees: Depending on the destination, local taxes or fees may not be included in the fenced rate.   

  • Unforeseen Events: Natural disasters, strikes, or other unforeseen circumstances could disrupt travel plans. Understand the cancellation and rescheduling policies to mitigate potential financial losses. 

Inability to Adapt to Changing Needs 

Work crews' requirements may change during their stay, and a fenced rate might not accommodate these changes.  

These changes could include: 

  • Crew needing additional rooms 

  • Extended stays 

  • Different accommodations due to project modifications or unforeseen circumstances  

The limitations of a fenced rate might make it challenging to adjust the lodging arrangements accordingly without incurring extra costs or penalties. 

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How Can LodgeLink Help?

Through LodgeLink, you streamline the booking and management of your accommodations, bypassing the constraints often tied to platforms or websites that solely provide fenced rates.  

Rather than a catch-all platform built with tourists in mind, our platform has been specifically designed for the unique needs of workforce travel with technology that improves visibility, reporting, and efficiency. 

Why LodgeLink?

Trusted by 800+ companies, LodgeLink’s provides an end-to-end solution for the complexities of workforce travel. 

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Flexibility: 

Opting for LodgeLink ensures not just flexibility, but also addresses rising increases in accommodation costs by providing pre-negotiated rates – without being locked into unwanted conditions. And with a complimentary 24/7 support team dedicated to your success, you can rest assured that we’ll be there to help should something go wrong.  

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Choice: 

With more than 1 million rooms at more than 17,000+ partner properties across Australia and North America, you’ll never suffer from lack of options when booking with LodgeLink. Our rates are pre-negotiated, so there’s no need to spend valuable time browsing web sites to find the best price only to find out you’re missing out on a better rate.  

Transparency:

When you book with LodgeLink, what you pay for your accommodation is what you pay. Our rates are presented ahead of time, with no hidden fees. LodgeLink also allows you to save 20-30% more when you combine upfront savings with added efficiencies, plus benefit from group discounts on air and ground transportation. Plus, we offer simplified payment options and reconcile all your stays from multiple properties into one invoice. 

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Adaptability: 

LodgeLink understands workforce travel, and our platform was built with their needs in mind. If the demands of the job requires additional rooms, extended stays, or different accommodations due to project modifications or unforeseen circumstances, we have a team dedicated to meeting those needs. 

Fenced rates, while initially promising cost-effectiveness, can inadvertently limit options, flexibility, and negotiation leverage for companies managing workforce travel.  

They may impose restrictions on choices, create rigid booking conditions, and sometimes lead to unforeseen expenses, hindering adaptability to changing crew needs. 

LodgeLink offers an end-to-end solution for those seeking flexibility and transparency in this landscape. Our platform, purpose-built for the unique demands of workforce travel, liberates you from the confines of fenced rates.  

With access to a vast network of over 17,000 partner properties across Australia and North America, LodgeLink ensures abundant options with pre-negotiated rates, offering not just flexibility but also transparency and adaptability.  

Say goodbye to hidden fees and rigid conditions while embracing a streamlined, efficient, and supportive workforce travel management experience, customized for the ever-evolving needs of your workforce. 

An End to End Solution for Workforce Travel

LodgeLink helps you manage workforce travel better, with innovative technology and 24/7/365 customer service.

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