Travelocity Biz To Offer Global Hotel Discounts

Travelocity Business, the business travel portion of the online travel agency that launched last summer, tomorrow will begin providing access to rates at Utell hotels. Discounts are expected to be 20 percent off rack rate. By contrast, large corporate buyers often can negotiate rate discounts of up to 40 percent off rack.

Utell, which is part of Pegasus Solutions, is a network of 4,400 hotels worldwide, most of which are upscale, small to midsize, independently managed properties. According to spokespeople for Travelocity and Pegasus, the Utell rates carry some prepayment and cancellation restrictions, though fewer than on regular merchant model Internet sites.

As Travelocity Business and its direct competitors, Orbitz for Business and Expedia Corporate Travel, seek to increase their hotel bookings by offering discounted rates, travel buyers have resisted the rate "fences" typical of the merchant model sites. Most onerous are provisions that prevent travelers from canceling the reservation, a common practice among business travelers. Expedia Corporate Travel late last year eased many of these restrictions on its merchant model rates known as Expedia Special Rates.

The Utell rates are in addition to special discounts that Travelocity Business negotiates on behalf of specific clients using a wider portfolio of U.S. and international properties.