In the world of corporate travel management, hotel Request for Proposals (RFPs) remain a critical yet surprisingly unchanged process over the past quarter-century. Despite the digital transformation sweeping across industries, the fundamental challenge of hotel sourcing remains constant: securing responses from hotels.
The Evolution of Hotel RFPs: Why Response Rates Matter More Than Market Intelligence
The Post-COVID Landscape with Hotel RFP
The hospitality industry underwent a seismic shift during the COVID-19 pandemic, with one of the most significant impacts being the mass exodus of experienced hotel sales personnel. This departure of industry veterans has created new challenges in the RFP process, as institutional knowledge and established relationships walked out the door alongside these professionals.
Beyond the Buzzwords
Today's market features several hotel sourcing tools, each claiming to revolutionize the RFP process. While some platforms emphasize sophisticated features like "business analytics" and "market intelligence," these bells and whistles often distract from the core requirement: getting hotels to respond to your RFP.
Here's an inconvenient truth: presenting a hotel with market intelligence rarely leads to significant changes in their corporate rate structure. The real value lies in securing actual responses from hotels and then engaging in meaningful rate negotiations.
The Simple Formula for Success with RFPs
The most effective approach to hotel sourcing follows a straightforward formula:
Focus on maximizing bid responses
Negotiate effectively for a 5-10% discount
Secure the deal
This process doesn't require complex market analysis or sophisticated intelligence tools. It requires a reliable RFP platform that prioritizes one thing above all else: getting hotels to respond to your proposals.
Choosing the Right Hotel RFP Tools
When evaluating hotel RFP tools, consider these priorities:
Response rate tracking and management
Efficient bid distribution systems
Streamlined communication channels with hotel representatives
Simple, clear negotiation workflows
Straightforward rate loading and confirmation processes
The Bottom Line
While the industry continues to evolve and new technologies emerge, the fundamental truth remains: successful hotel sourcing depends on securing responses and negotiating reasonable discounts. Don't get distracted by fancy features and complex analytics. Focus on the basics: prepare a sensible bid list, make sure you distribute 2 ways, via platform and through email. Finally, get hotels to respond to your RFP and negotiate fair rates.
Remember, you don't need market intelligence to secure a competitive hotel rate - you need a response from the hotel. Choose tools and strategies that prioritize this fundamental goal, and you'll be well on your way to building an effective hotel program.
In an age where technology often complicates simple processes, sometimes the most effective approach is to focus on the basics. For hotel RFPs, that means prioritizing response rates over everything else.