Introduction
If you’ve ever managed a corporate travel program, you know the frustration: you send out dozens of hotel RFPs, only to have a significant percentage of hotels ignore the request or decline to participate. This problem wastes valuable time, reduces competitive leverage, and can leave critical travel markets underserved.
The good news? With modern automation platforms like hotel rfp solutions that improve hotel participation rates, corporations and travel management companies can minimize declines and maximize response rates. By understanding why hotels opt out and using tools that simplify the process, travel managers gain stronger sourcing results and deliver greater value to their organizations.
At its core, the right hotel rfp tool ensures hotels not only receive RFPs but also respond quickly and consistently - making the entire negotiation process more effective.
Why Do Hotels Decline to Bid on RFPs?
Hotels often have legitimate reasons for passing on an RFP. Let’s explore the most common factors:
1. Misaligned Market Demand
If a corporation only has a handful of travelers in a city, hotels may decide the volume doesn’t justify offering a discounted rate.
2. Overly Complex Templates
Lengthy, confusing, or outdated RFP documents discourage hotel participation. Sales teams with limited resources often prioritize easier opportunities.
3. Unclear Value Proposition
Hotels want to know: “What’s in it for us?” If expected room nights or traveler data is unclear, properties hesitate to commit.
4. Rate Caps Too Low
Unrealistic rate expectations compared to market benchmarks lead hotels to decline rather than waste time negotiating.
5. Timing Conflicts
Corporate RFP cycles may not align with hotel budgeting calendars, creating mismatched priorities.
6. Administrative Burden
Responding to RFPs requires effort. If the process involves emails, spreadsheets, or manual uploads, many hotels simply walk away.
7. Lack of Relationship Context
Hotels often prefer working with corporations that show long-term potential, not one-off requests with limited engagement.
The Cost of Declines for Corporations
When hotels decline to bid, corporations face multiple risks:
Reduced Competition: Fewer bids mean less leverage to negotiate favorable rates.
Coverage Gaps: Critical travel markets may go unsourced, forcing employees to book outside the program.
Higher Costs: Without competitive bidding, companies may pay more for hotels.
Compliance Issues: Travelers frustrated by limited options may bypass approved properties.
This is why the best hotel sourcing tools focus on increasing hotel engagement and reducing the rate of declines.
How Hotel Sourcing Tools Help Overcome Declines
Modern hotel sourcing tools like ReadyBid are designed with both the buyer and hotelier in mind, creating a smoother process for everyone.
1. Simplified Templates
ReadyBid provides pre-formatted GBTA-compliant templates that reduce complexity, making it easier for hotels to respond.
2. One-Click Distribution
Travel managers can send RFPs to hundreds of hotels with a single click, ensuring coverage without administrative headaches.
3. Automated Follow-Ups
The system automatically chases late responders, improving participation rates without requiring manual intervention.
4. Clear Data Sharing
RFPs include traveler volumes, office locations, and benchmark data, giving hotels confidence in the opportunity’s value.
5. Benchmarking Support
ReadyBid’s benchmarking ensures rate caps are realistic and competitive, reducing the likelihood of declines based on price misalignment.
6. Competitive Bidding Options
Even if initial invitees decline, travel managers can allow other qualified hotels to bid on hotels competitively, filling gaps and driving down rates.
Overcoming Declines Through Better Communication
Technology plays a major role, but buyer communication strategies are equally important:
Be Transparent: Share expected volumes, historical spend, and traveler needs.
Highlight Long-Term Value: Position the RFP as a partnership, not a transaction.
Clarify Expectations: Be realistic about rates, amenities, and compliance requirements.
Respect Hotel Resources: Use shorter, more focused RFP formats where possible.
By positioning the RFP as a win-win, corporations encourage more hotels to respond.
Competitive Hotel Bidding: A Game-Changer
Even with best practices, some hotels will still decline. That’s why competitive bidding features are critical. With ReadyBid’s hotel bidding process, corporations can:
Accept unsolicited bids from qualified hotels not on the original list
Increase competition in undersourced markets
Score and rank hotels based on criteria like rate, amenities, and traveler safety
Ensure no destination goes without adequate coverage
This not only reduces the impact of declines but also creates more opportunities for hotels to participate.
Why Legacy Hotel RFP Tools Struggle
Legacy platforms like Lanyon or Cvent often exacerbate the problem. Their high costs, rigid processes, and outdated interfaces create barriers for both buyers and suppliers. Hotels see these systems as overly complex, while corporations pay thousands in fees without guaranteed participation.
By contrast, ReadyBid offers:
Unlimited RFPs and unlimited hotels at one low monthly cost
Streamlined templates that encourage responses
Built-in follow-up and auditing tools
Flexibility for both chains and independent properties
It’s this focus on user-friendliness and cost-effectiveness that makes ReadyBid the best hotel rfp tool in today’s market.
Real-World Success Stories
Corporations adopting ReadyBid report:
Higher hotel response rates due to simplified templates and automated follow-ups
Reduced decline rates compared to legacy tools
Improved coverage in secondary and emerging markets
Greater savings from expanded competitive bidding opportunities
Hotels, meanwhile, appreciate the intuitive interface and the ability to respond quickly without drowning in administrative work.
Practical Tips for Travel Managers
To overcome hotel declines, follow these steps:
Set Realistic Rate Expectations: Use benchmarking data to establish fair rate caps.
Use Simplified Templates: Avoid overwhelming hotels with excessive questions.
Share Clear Data: Provide accurate traveler volumes and office locations.
Automate Follow-Ups: Use sourcing tools to chase late responders.
Enable Competitive Bidding: Open the door for other qualified hotels to participate.
Leverage Technology: Adopt a modern hotel rfp solution that benefits both buyers and hotels.
Additional Resources
For further reading, check out these ReadyBid blog guides:
Conclusion
Hotels decline to bid on RFPs for many reasons - misaligned demand, unrealistic expectations, or administrative burden. But with the right strategy and technology, travel managers can minimize declines, improve participation, and secure stronger contracts.
A flexible hotel rfp tool like ReadyBid simplifies the process for both buyers and hotels, boosting response rates and maximizing sourcing value. By combining automation, benchmarking, and competitive bidding, corporations can overcome one of the biggest challenges in hotel procurement.
If your travel program is tired of chasing unresponsive hotels, it’s time to act.