For years, corporate travel managers and procurement teams relied on legacy hotel RFP platforms to manage their sourcing programs. While these tools served a purpose in their time, their outdated pricing models and limited flexibility have become a burden for companies looking to optimize travel spend. Many organizations now realize that legacy providers like Lanyon or Sabre RFP simply overcharge compared to modern hotel RFP solutions such as ReadyBid.
But why do these legacy platforms cost so much? And how do modern hotel rfp tools deliver more value at a fraction of the price? In this article, we’ll examine the reasons behind the inflated costs of legacy systems, explore the advantages of new solutions, and explain why travel managers are making the switch to platforms like ReadyBid.
The Legacy Hotel RFP Pricing Model
Traditional hotel RFP platforms were built decades ago, and their pricing models reflect an older way of doing business. Typical charges include:
Per user fees - Every new user added to the system comes with an additional cost.
Per RFP fees - Companies pay for each program they launch, discouraging continuous sourcing.
Per bid fees - Hotels or agencies pay to submit bids, reducing competition.
Add-on fees - Features like reporting, auditing, or data exports come with extra charges.
Annual contracts - Companies are locked into multi-year agreements with little flexibility.
The result? Corporations spend tens or even hundreds of thousands of dollars annually just to run their hotel RFP programs.
Why Legacy Platforms Overcharge1. Outdated Infrastructure
Older systems are expensive to maintain. Legacy providers pass those costs onto customers.
2. Per-Bid Pricing Models
By charging per bid or per RFP, legacy platforms maximize revenue at the expense of competition. This discourages broad sourcing and inflates hotel rates.
3. Hidden Fees
Need rate auditing? That’s extra. Want custom reports? Another fee. These nickel-and-dime tactics add up quickly.
4. Limited Competition
Because they’ve been around longer, legacy providers rely on market dominance rather than innovation, allowing them to overcharge.
5. Lack of Transparency
Complex contracts make it difficult for customers to fully understand costs upfront.
The Modern Alternative: Transparent Flat-Rate Pricing
Modern hotel rfp solutions like ReadyBid disrupt this model with transparent, flat-rate pricing. Instead of charging per RFP or user, ReadyBid includes:
Unlimited RFPs.
Unlimited bids.
Unlimited users.
Built-in benchmarking and reporting.
Automated rate auditing.
This flat-rate subscription eliminates surprise fees and gives companies full flexibility to scale their sourcing programs.
How Legacy Pricing Hurts Hotel Sourcing
Reduced Competition
When hotels are charged per bid, fewer participate. This limits choice and drives up costs.
Slower Negotiations
High per-RFP costs discourage companies from running mid-year sourcing programs, delaying savings.
Budget Waste
Money spent on platform fees could instead be invested in negotiated savings or program improvements.
Traveler Dissatisfaction
Fewer hotel options and inconsistent amenities result in lower traveler compliance and satisfaction.
Why Modern Hotel RFP Tools Cost Less
Platforms like ReadyBid are built on newer infrastructure, reducing overhead. They prioritize:
Efficiency - Automating manual work saves time and resources.
Accessibility - Flat-rate models make powerful features available to organizations of all sizes.
Transparency - No hidden fees or multi-year lock-ins.
Value - Companies pay for outcomes, not arbitrary usage limits.
The result is a best hotel rfp tool that costs significantly less while delivering far more value.
Switching from Legacy to Modern
A global consulting firm previously used a legacy provider, paying nearly $150,000 annually in fees. Frustrated by costs and slow processes, they switched to ReadyBid.
Results included:
Flat-rate pricing reduced costs by 70%.
Unlimited RFPs allowed continuous sourcing across 20+ markets.
Benchmarking tools delivered an additional 12% in negotiated savings.
Automated rate auditing recovered $600,000 in missed savings.
By moving away from legacy, the firm not only saved on platform fees but also unlocked significantly more value from its hotel program.
Key Features of Modern Hotel RFP Solutions
When evaluating alternatives to legacy providers, look for:
Flat-rate subscription pricing.
Unlimited RFPs, bids, and users.
Verified hotel contacts for higher response rates.
Bulk negotiation features.
Multi-GDS rate auditing.
Real-time benchmarking.
Seamless integration with corporate travel systems.
Strong onboarding and support.
These features ensure that the platform delivers measurable ROI without overcharging.
FAQs About Legacy vs. Modern Hotel RFP ToolsWhy are legacy providers still in use?
Many companies stick with legacy platforms out of habit or because switching seems daunting. However, modern onboarding makes transitions smooth and cost-effective.
Are modern tools reliable enough for global programs?
Yes. Platforms like hotel rfp software are already used by hundreds of corporations and TMCs worldwide, managing complex global hotel programs with ease.
Do hotels prefer modern platforms?
Absolutely. Hotels appreciate platforms that eliminate per-bid charges, increasing fairness and transparency.
Resources for Travel Managers
Why modern hotel sourcing tools are replacing legacy systems
How transparent pricing changes corporate travel procurement
Conclusion
Legacy hotel RFP platforms overcharge because they rely on outdated pricing models, hidden fees, and restricted access. These costs add up quickly, hurting both corporations and hotels. In contrast, modern solutions like ReadyBid offer transparent, flat-rate pricing with unlimited usage, robust features, and proven results.
By making the switch, organizations reduce costs, increase savings, and unlock the flexibility needed for continuous hotel sourcing. For today’s corporate travel managers, the question isn’t whether legacy platforms overcharge-it’s how quickly you can transition to a smarter, more cost-effective solution.
ReadyBid stands out as the best hotel rfp tool for corporations and TMCs, combining unlimited RFPs, automated auditing, and benchmarking in one affordable package.
Book a Demo Today and see how ReadyBid can replace your legacy platform with a modern, cost-effective alternative.