The TMC
NICKY TRAYNOR, commercial manager, NYS Corporate
START BY REVISITING AND MEASURING the previous year’s objectives and ascertain next year’s goals. Data plays a vital role in the process. Provide a clear picture of key locations, hotel volumes, feedback and average achieved rates. This helps identify appropriate suppliers to take part, and helps us to undertake an effective negotiation ex- ercise and consolidate a preferred hotel
programme that will be used by the client’s travellers. For existing clients, data is easily acces- sible through MI [management informa- tion] and hotel reporting. However, for new clients we rely on analysing one or multiple information channels: expense systems and credit or procurement card reports. Speaking to key bookers and travellers helps the TMC paint a picture of their expenditure and booking patterns. Hotels with previous high bed-night volumes, chains with geographical
coverage in key locations, new openings and a wild-card recommendation assist with competiveness and would be invited to partake in an RFP. To reduce challenges, it is essential all hotels fit the original brief and the client’s objectives. Including a testimonial from the travel buyer and a top level booking pattern overview helps in outlining the requirements. During the process, it is important the hotel reads and completes all details, under- stands the objectives and replies in time for the specified deadline. Price negotiation is a key element of the
RFP process – but we encourage hotels to think outside the box. They should include added-value items such as free wifi and car parking, or look at package pricing and incorporate taxi fares from the hotel to the office or station. Discounts on food and beverages for guests reduce subsistence charges to the company. Sup- porting local companies with staff dis- counts is a great way to show you wish to work in partnership. For the travel buyer, these inclusions within the rates reduce the overall cost of a stay and add value to the company and business traveller.
The PUBLIC sector buyer
CHARLOTTE LOWE, travel manager, University of East London
TRAVEL MANAGERS KNOW a high volume of room nights means an RFP process is the smart way to secure best-negotiated rates for their programme. It’s essential to get good data pinned down and analysed prior to entering into an RFP. TMCs are there to assist, so you should work closely with them. If your data is good and you know your city room nights, booking trends and the objectives
BUYINGBUSINESSTRAVEL.COM
of your programme, then the rest of the process will be far easier and a much more pleasant experience for both parties. A hotel programme needs to be moni-
tored regularly. There will be times when particular hotels in your portfolio aren’t matching where travellers actually want to stay. No matter what you do they’ll choose that particular hotel anyway, which creates leakage. It’s worth trying to find the balance. Understand why it is hap- pening. If there’s a legitimate reason, you
may be better off bringing that hotel into the portfolio to ensure competitive rates. Communication with bookers and trav- ellers is key. A hotel programme needs to be publicised throughout your business. Most OBTs [online booking tools] will prioritise these rates during searches. But it’s often worth consulting bookers and travellers so they feel part of the process and encourage commitment to the hotels in the programme. This two-way conversation helps you get feedback, so managers can ensure the service being paid for is being delivered to the guests. We’re also looking into dynamic pricing.
For a business like ours, which doesn’t have hundreds of room nights in par- ticular cities, we find ourselves booking the best available rate [BAR]. We do have a small hotel programme and it can be challenging to utilise our rates, because of the demand on rooms where we’re located – on the doorstep of the London Excel exhibition and convention centre and the Olympic Park. So having a mix of negotiated rates in some locations and a percentage off BAR in others is potentially the best way of achieving value for money.
BBT JULY/AUGUST 2015 37
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