In today's competitive travel landscape, effective hotel program management starts with a well-crafted Request for Proposal (RFP). As corporate travel procurement continues to evolve, streamlining your hotel sourcing process can lead to significant cost reduction and program optimization. This guide walks you through creating and managing hotel RFPs that get results.
How to Create Effective Hotel RFPs: A Step-by-Step Guide for Travel Managers
Starting with the Right Hotel RFP Template
The foundation of successful hotel sourcing begins with choosing the appropriate RFP template. While comprehensive information is important, hotels increasingly prefer concise, focused requests:
Keep it simple: Longer, complex RFPs often receive fewer responses
GBTA templates: The Global Business Travel Association offers standardized templates that hotels recognize
Customization matters: Tailor your template to include only what's relevant to your program
"Since implementing a streamlined GBTA short template, our response rates have increased by 35%," notes Timothy Gray, Travel Manager at TransUnion.
Critical Elements for Your Hotel RFP
Whether you're handling strategic meetings management or annual corporate rate negotiations, include these essential components:
Clear leadership: Identify who manages the RFP process (name, email, title)
Program timeline: Specific start and end dates for your hotel program
Rate structure preferences: Static rates, dynamic discounts, or both
Occupancy requirements: Single and double occupancy options
Response deadline: Allow at least two weeks for replies
Key amenities: Focus on high-value items like parking, WiFi, breakfast, and office shuttles
Cancellation policy: Request clear terms
Volume information: Provide historical or projected room night data by city
Distribution: Getting Your RFP to the Right People
Hotel RFP automation has revolutionized the distribution process, but certain principles remain crucial:
Current contacts: Use updated hotel sales contact information
Confirmation system: Implement bid confirmation tracking
Multiple channels: Send via both online platforms and email when possible
Chain consideration: Don't assume national representation without verification
Bulk sending: Distribute all RFPs simultaneously when possible
Delivery verification: Monitor for failed email deliveries
Managing Responses and Negotiation
As responses arrive, focus on these travel program optimization strategies:
Benchmarking
Leverage hotel rate benchmarking to evaluate offers against market rates. Specific property benchmarks are more valuable than general market data, especially when negotiating with properties where you have established volume.
Amenity Negotiations
Request high-value amenities be included in the rate. Hotels are often willing to bundle amenities for corporate clients with reliable volume.
Delivery Confirmation
Ensure your negotiation communications are received. Modern security systems may block messages that appear unusual.
Commission Discussions
Travel Management Companies should negotiate commissions as part of the process. Hotels frequently adjust commission structures for valuable partnerships.
Finalizing Agreements
Your final agreements should contain:
Agreed rates and amenities
Dynamic discount percentages (if applicable)
Blackout dates
Commission terms (if relevant)
GDS rate loading instructions
Take the time to send "No Thank You" messages to unsuccessful bidders. This professional courtesy maintains relationships for future opportunities.
Showcasing Your Program with a Hotel Directory
A comprehensive corporate hotel directory provides tremendous value:
Display negotiated rates and amenities
Allow filtering by travel destination
Enable easy updates to your preferred hotel list
Support seasonal rate adjustments
Include traveler notes and guidance
The Modern Approach: Hotel Sourcing Automation
Manual hotel RFP processes are increasingly being replaced by automated solutions. Platforms like ReadyBid offer comprehensive RFP automation that addresses common pain points:
Time savings: Reduce process time by up to 80%
Response tracking: Monitor bids in real-time
GDS rate auditing: Ensure negotiated rates appear correctly
Bulk negotiations: Manage multiple properties simultaneously
Data-driven decisions: Access hotel program analytics
"ReadyBid simplified our entire hotel sourcing workflow, delivering 17% higher savings while cutting the process time in half," shares Ann Strobbe, Manager of Corporate Travel at Snap-on Incorporated.
Conclusion
Creating effective hotel RFPs requires attention to detail, clear communication, and strategic negotiation. By implementing these best practices and considering hotel sourcing automation tools, travel managers can achieve significant improvements in their hotel program management process.
Ready to transform your hotel RFP process? Book a demo today to see how ReadyBid's hotel bid management platform can optimize
your corporate travel sourcing workflow.