THE PARTICIPANTS The Debate


a contract with a supplier we have very high expectations that they will deliver and be there for the long run. These things definitely weigh into the RFP process. An RFP will always have a place in the buying process; it lets potential suppliers have an opportunity to bid to work with us. An RFP provides a detailed scope of work and requirements so that all suppliers are competing on the same basis and with the same set of information. This in turn allows a proper framework for comparisons and, once moved into a contract or agreement, ensures the work is well understood, work requirements and contracting details are not overlooked, and the most cost effective agreements achieved. So I would say, yes, RFPs are still valuable,


but a faceless automated RFP was never relevant and definitely not efficient.


THE SUPPLIER Russell Green, Director Of Business Travel EMEA, Intercontinental Hotels Traditionally the RFP has been a useful process but with business becoming ever more fast paced we need the process to evolve. It's no coincidence that at IHG we've taken


the step of developing a commercially sound dynamic pricing model to overcome the hotel industry 'boom and bust' mentality caused by the cyclical nature of supply and demand. With ever more sophisticated revenue management tools available to hoteliers, all designed to help them stay competitive, coupled with the need for transparency, the business and leisure guest has never had such buying power. All of which is based upon flexible or dynamic pricing. Add to that the opportunity to derive significant cost savings in return for more market share and you have the antidote to traditional RFPs. The ideal would be to apply


the same principles to our rate negotiations as well as our on-going pricing strategies, so we bypass the RFP process and move to a transparent, dynamic and swifter pricing mechanism. This would allow us to be more profitable because we’d be able to claw back up to six months of our year. The key objectives we


THE INTERMEDIARY Jean Squires, Director of Business Development, EMEA, Lanyon Inc It’s that time of year again – RFP season. “What, already?” I hear you cry. And in many offices around the country that question is quickly followed by... ”Why?” Why are we going through this process again,


so soon, hot on the heels of the last one? (For some corporates, this year’s programme still isn’t finalised!) What are we doing all this for? If we have to ask these questions, then something is very wrong – the process clearly isn’t delivering expectations. Why? Because we put all our effort into the inputs and then abdicate responsibility for actioning the outputs. Let’s get back to basics. Why do we have a negotiated hotel programme? Several standard responses spring to mind including control, leverage and, of course, duty of care and the safety and security of travellers. But first and foremost, the primary focus in procurement terms is to save money. So how do we measure that saving and is this the best way of going about it? Once the programme is finalised we all spend a lot of time and effort calculating the savings that we estimate we have achieved – but at this point we haven’t actually saved a bean. How can anyone suggest that they have saved X times the cost of procuring the programme, when no-one has actually used it yet? Rate sourcing, by itself, doesn’t generate savings – only strategic programme management can do that. The sourcing process is a means to an end, not an end in itself. If effective implementation doesn’t happen, the sourcing process remains just that – a process without a purpose. And by implementation, we


" The RFP has been a useful process but with business becoming ever more fast paced we now need the process to evolve"


hear from corporates and others are to drive compliance, spend less, avoid unnecessary cost and, increasingly, wrap their arms around their meetings spend. These are big ticket items that need time, resource and focus. The answer has to be radical and we need to rethink how we contract meetings and accommodation. The business travel industry is graced with talented individuals yet we have been unable to crack the code. We need to put our personal agendas to one side and work towards the greater good.


don’t just mean posting the list of hotels on the intranet. Certainly, telling stakeholders that there is a new travel programme, where it is and particularly what has changed is vitally important, but how do we know if they have taken any notice? The only way of ensuring


the integrity of the travel programme – and justifying that painstaking RFP process – is to monitor and manage


your travellers' policy compliance. We all know that there are duplications and errors in much of the data and MI that we receive. That is why data analysis is still more of an art than an exact science. However, intuitive analysis – applying what


you know to what you are being told – and challenging what the data alone appears to tell you, will enable you to build a robust picture of activity from which you can start to take effective action with confidence, and actively start to manage and direct your business.


THE BUYER NICOLA LOMAS DIRECTOR, CORPORATE TRAVEL SERVICES, STRATEGIC ALLIANCE SERVICES, INTERNATIONAL, OMNICOM


Nicola joined Omnicom, a global leader in marketing and advertising communications, as director of corporate travel services in 2008. Based in London, Nicola is responsible for supplier selection, contract negotiation and contract management across EMEA and APAC. Prior to joining Omnicom Nicola spent almost two decades in Texas USA where she held supplier roles with American Airlines and several travel management companies.


RUSSELL GREEN DIRECTOR OF BUSINESS TRAVEL EMEA, INTERCONTINENTAL HOTELS GROUP (IHG)


Currently overseeing business travel sales for IHG across EMEA, Russell joined IHG in 2004 as director of corporate sales for UK & Ireland. Prior to joining IHG he was head of UK sales for Queens Moat House Hotels. A relative newcomer to the hotel industry, Russell has worked for a variety of FMCG brands including Eastman Kodak, Cadbury, Reebok, Lego and British American Tobacco in sales and brand management roles.


JEAN SQUIRES DIRECTOR BUSINESS DEVELOPMENT EMEA LANYON INC


Jean’s industry involvement started with British Midland over 25 years ago. Having joined Hogg Robinson Travel as a business travel consultant, she became branch manager before becoming part of the account management team. She then worked in a business development role and was later appointed head of strategy and planning before joining a new department which evolved to become HRG Consulting. She joined Hotelscene in 2008, and is now at Lanyon Inc.


WWW.THEBUSINESSTRAVELMAG.COM I 17


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76