ASK THE EXPERTS
BY MARTIN FERGUSON
ADVICE
FOR WHEN THE RFP
SEASON BEGINS IN EARNEST
IT’S THAT TIME OF YEAR AGAIN. The hotel request for proposal (RFP) season is upon the travel buyer community. Between now and the start of next year, when freshly negotiated rates are loaded into the bookings systems, buyers and suppliers go head-to-head on hotel contracts. Occupancy levels are strong across the UK, and much of Europe and the emerging markets. It’s not necessarily a sellers’ market, but the hotels
are in a strong position. This year the buyers’ objective is less likely to be about driving down rates, and more about finding added value for the programme. In any case, both sides of the deal appreciate the precarious nature of the contemporary global economy. Rest assured, negotiations will be tough but respectful. Buyer-hotel partnerships are for life, not just until Christmas.
the programme. Suppliers have inside knowledge on what is available and what is in the pipeline. Always include the major chains when
The private sector buyer
STEPHEN McGRANE, global travel category manager, Xchanging
THE STARTING POINT: what do you want to achieve: cost savings? Content en- hancement? Consolidation? Collate all the relevant data. Ask suppliers and TMCs [travel management companies] for a raw data file. The T&E [travel and expenses] data is also vital if you are to establish what is being booked out of policy and what is being channelled through the TMC to preferred suppliers.
36 BBT JULY/AUGUST 2015
After the initial assessment, align the RFP questions with your goals. Be sure to involve all relevant stakeholders. You don’t want to miss anything, such as a vital piece of legislation on a multinational RFP, or a chief financial officer’s PA who spends £200,000 annually on hotels. Ask suppliers about how to get the
best from them, and for their opinions on new developments and opportunities. It may give them a sense of belonging to your programme. This is especially useful for ancillaries or adding value to
inviting hotels to tender, particularly on large-scale RFPs, where content can run into thousands of properties. They can help establish a platform of necessary properties to manage demand. Closely align this to the TMC and T&E spend data from your finance team. Feedback on frequently-used prop- erties from bookers may present some savings opportunities and insight into traveller preferences. Outline your expected outcomes and
any changes to your business or pro- gramme since the last RFP. This helps suppliers understand your needs, keeping them focused on your goals instead of just their own revenue points. Keep it simple: too much detail can produce unexpected results. Set up 30-minute calls with chains and existing preferred suppliers to run though the key points and expected outcomes of the RFP, as it can clarify many misunderstandings ahead of time.
BUYINGBUSINESSTRAVEL.COM
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