Introduction
Corporate lodging programs are complex, requiring coordination across procurement, finance, legal, and traveler experience teams. The biggest question many organizations face each year is: who should manage the hotel sourcing process? Should it be handled internally by corporate travel managers, outsourced to travel management companies (TMCs), or left to independent consultants?
The answer depends on company size, travel spend, and strategic goals. However, one fact is clear: no matter who leads sourcing, success depends on the right technology. For organizations evaluating a corporate hotel procurement software and hotel RFP tool designed for automation, platforms like ReadyBid make the process faster, smarter, and more cost-efficient. For some companies, the best choice is internal ownership, while others gain leverage through TMC expertise or consultant flexibility. In all cases, using a hotel procurement tool ensures sourcing is data-driven rather than reactive.
Why This Decision Matters
Choosing the right ownership model impacts:
Cost savings: Who negotiates the best rates and ensures compliance?
Program efficiency: How are RFPs created, distributed, and tracked?
Stakeholder satisfaction: Are traveler needs balanced with procurement goals?
Scalability: Can the process handle global destinations and multiple markets?
By aligning ownership with strategy, corporations maximize the ROI of their hotel programs.
Option 1: Corporate Travel Managers Lead SourcingAdvantages
Full control: Corporations maintain direct relationships with hotels and chains.
Customization: Programs are designed around specific business needs.
Cost transparency: No additional fees for outsourcing to third parties.
Institutional knowledge: Travel managers understand company culture and traveler preferences.
Challenges
Resource intensive-collecting data, managing RFPs, and auditing requires time.
Limited benchmarking if managers lack access to global industry data.
Risk of siloed processes if not paired with automation.
Corporate teams leading sourcing gain the most by using a hotel RFP automation software that reduces manual work while providing benchmarking insights.
Option 2: Travel Management Companies (TMCs)Advantages
Expertise: TMCs manage sourcing for multiple clients and know industry benchmarks.
Efficiency: They often have established processes for RFP creation and auditing.
Leverage: Stronger negotiating power with chains due to aggregate client volume.
Challenges
Costs-outsourcing to a TMC can add fees on top of negotiated hotel rates.
Less customization, since sourcing is standardized across clients.
Potential conflicts of interest if TMCs promote preferred supplier deals.
When TMCs manage sourcing, they benefit from platforms like a corporate hotel RFP platform, which lets them scale programs for multiple clients without sacrificing customization.
Option 3: Independent ConsultantsAdvantages
Flexibility: Consultants offer a tailored approach without the overhead of TMC contracts.
Expert guidance: Many bring decades of hotel sourcing experience.
Project-based: Useful for companies that need temporary expertise.
Challenges
Limited resources compared to larger TMCs.
Reliance on one individual may create knowledge gaps.
Cost per engagement can add up depending on program size.
For consultants, using an enterprise hotel RFP software provides credibility and efficiency, ensuring deliverables match corporate expectations.
How Technology Levels the Playing Field
Regardless of who manages sourcing, success depends on leveraging automation. ReadyBid, for example, provides:
Unlimited RFPs and users with no per-user costs.
230,000+ hotel database covering GDS and non-GDS properties.
Benchmarking to compare proposed rates against industry averages.
Unlimited negotiation rounds with hotels.
Multi-GDS auditing to ensure contracted rates are loaded.
Customizable hotel directories mapped to office locations.
This makes ReadyBid a true hotel RFP management platform, giving corporations, TMCs, and consultants the same competitive edge.
Who Benefits Most in Each Scenario
Corporations benefit when they have the internal bandwidth to manage sourcing and want maximum control.
TMCs benefit when handling multiple clients, leveraging automation for scale and efficiency.
Consultants benefit when working project-based, offering expertise supported by modern tools.
Ultimately, the choice comes down to resourcing. But technology ensures whichever model is chosen, the outcomes remain consistent: savings, compliance, and efficiency.
The Case for Hybrid Models
Many corporations adopt a hybrid model:
Internal travel managers oversee strategy.
TMCs execute RFPs and audits.
Consultants step in for benchmarking or negotiations.
In these scenarios, the common denominator is technology. By using a strategic hotel sourcing technology, corporations ensure every stakeholder operates from the same centralized platform.
Real-World Examples
Adelman Travel: Leveraged ReadyBid to support clients while customizing features for unique sourcing needs.
Leo Pharma: Adopted ReadyBid to streamline global travel sourcing, improving compliance and rate auditing.
Independent Hotels: Benefited from competitive bidding to secure corporate clients they weren’t initially invited to bid for.
These examples demonstrate that no matter who leads sourcing, automation delivers results.
Key Considerations When Deciding
Volume: High-volume travel programs may justify internal management with automation.
Budget: Smaller programs may lean on consultants or TMCs to avoid overhead.
Geography: Global programs benefit from TMC scale but require strong auditing tools.
Control vs. Outsourcing: Corporations must weigh transparency against convenience.
Additional Resources
For further reading on ownership models and sourcing strategies:
Why Hotel Sourcing is More Complex Than Ever and How to Simplify It
Hotel Sourcing Made Simple: Why Corporate Travel Teams Need a Modern Hotel RFP Tool
Best Practices for Hotel RFP Management: Why ReadyBid Leads the Way
15 Common Mistakes in Hotel Procurement and How ReadyBid Prevents Them
Conclusion
The decision of who should manage hotel sourcing depends on resources, priorities, and program complexity. Corporate teams, TMCs, and consultants each bring unique strengths to the table. But the real differentiator is technology.
By adopting a hotel RFP solution, corporations ensure sourcing is efficient, compliant, and cost-effective regardless of who leads. For organizations seeking maximum impact, pairing the right ownership model with the best hotel RFP tool is the winning formula.
Book a Demo Today to see how ReadyBid empowers corporations, TMCs, and consultants alike.