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Do We Still Need Hotel RFPs? The Contrarian View Travel Managers Are Debating

For decades, the hotel RFP has been the backbone of corporate travel management. Every year, travel managers send out hundreds of bids, negotiate rates, and finalize contracts for their company’s preferred hotel program. It’s the way things have always been done.

But in 2025, many in the industry are asking a tough question: Do we still need hotel RFPs at all?

On one side, traditionalists argue that RFPs provide structure, leverage, and contractual protections. On the other, a new generation of travel managers believes automation, dynamic rates, and continuous sourcing have made the old annual cycle outdated.

This article takes a contrarian look at the debate, examining both perspectives-and showing why the real answer lies in adopting smarter automation tools like rethinking the future of hotel RFPs with automation and continuous sourcing. Whether you believe RFPs are essential or obsolete, one thing is clear: a modern hotel rfp solution transforms the way we approach sourcing.

The Case for “Yes, We Still Need Hotel RFPs”

Despite new approaches, RFPs continue to play a critical role in corporate travel programs.

1. Cost Control and Benchmarking

RFPs let corporations compare hotel bids side by side, benchmark them against market averages, and negotiate discounts based on volume. Without this structure, companies risk overpaying.

2. Contractual Protections

RFPs create legally binding agreements that cover cancellation policies, blackout dates, commissions, and amenities-protecting corporations from surprises.

3. Transparency for Finance

Finance departments rely on RFP-generated reports to validate savings, forecast budgets, and measure compliance.

4. Supplier Accountability

Hotels commit to performance expectations in writing, something dynamic discount models don’t always guarantee.

The Case for “No, RFPs Are Obsolete”

A growing number of travel managers argue that RFPs are outdated.

1. Annual Cycles Don’t Match Market Realities

Markets change quickly. Waiting a year to renegotiate means leaving savings on the table.

2. Traveler Needs Are Ignored

Annual RFPs focus on cost but often overlook traveler satisfaction and convenience.

3. High Workload, Low ROI

Traditional RFPs take months to run, requiring hundreds of staff hours. Many believe the effort outweighs the results.

4. Technology Has Changed the Game

With Smart hotel RFP automation, companies can renegotiate instantly, benchmark rates in real time, and enforce compliance dynamically.

The Contrarian View: RFPs Aren’t Dead-They Just Need Evolution

So, do we still need hotel RFPs? The contrarian answer is: not in their old form, but in a smarter, automated form.

  • Instead of once-a-year events, RFPs should be continuous and dynamic.

  • Instead of manual spreadsheets, RFPs should be managed with Corporate hotel RFP platforms.

  • Instead of weak compliance, programs should include automated auditing to ensure negotiated rates load correctly.

  • Instead of long delays, RFPs should use Automated hotel RFP solutions with instant follow-ups and real-time reporting.

In other words, we don’t need to abandon RFPs-we need to evolve them.

What Automation Brings to the Debate

Here’s how automation reshapes the RFP conversation:

  • Enterprise hotel RFP software scales across global programs, eliminating the workload problem.

  • Benchmarking tools ensure RFPs deliver actual savings, not just paper promises.

  • Rate auditing prevents leakage, recovering 8-10% in lost discounts.

  • Dynamic directories keep travelers compliant without manual updates.

  • Continuous sourcing means renegotiation anytime-not just once a year.

Automation bridges the gap between traditionalists and innovators, making RFPs both structured and flexible.

The Ripple Effect Across Travel Procurement

The RFP debate doesn’t just affect sourcing-it impacts the entire procurement ecosystem.

  • TMCs gain efficiency with integrations. See how Travel Management Companies are embracing automated RFPs.

  • Corporations prove ROI with real-time dashboards. Explore how a Business travel RFP solution connects sourcing directly to finance.

  • Executives gain visibility into negotiated savings and compliance rates, strengthening procurement credibility.

Lessons from the Field

From reviewing hundreds of programs, one pattern stands out:

  • Manual RFPs = Frustration

    Companies report low response rates, weak savings, and long cycles.

  • Automated RFPs = Control

    Companies using a Hotel RFP management system achieve higher compliance, faster cycles, and measurable ROI.

Expert Reads on the Debate

Final Thoughts

So, do we still need hotel RFPs? The contrarian answer is both yes and no. The traditional, manual RFP model is outdated, inefficient, and expensive. But the evolved, automated RFP-driven by real-time data, continuous sourcing, and compliance auditing-is more essential than ever.

The future of hotel sourcing isn’t abandoning RFPs-it’s reinventing them. By adopting a modern hotel rfp platform like ReadyBid, travel managers gain the structure of traditional RFPs with the flexibility of modern technology.

Book a Demo today and see how ReadyBid redefines the hotel RFP for the future of corporate travel.

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