For relative newcomers to the hotel industry, the yearly corporate hotel RFP (Request for Proposal) process can seem rather complex and long.
And it involves several steps and interactions between travel management companies (TMCs), hotels, and corporate clients. Here’s a step-by-step breakdown of the typical process:
Preparation Phase
Key Stakeholders: Corporate travel managers, TMC representatives, hotel sales teams
Timeline: 2-3 months before RFP season (usually starts in August/September)
1. Corporate travel managers review their travel program data, including spend, volume, and traveller feedback.
2. They identify target markets and properties to include in the RFP based on this analysis.
3. TMCs assist in gathering and analysing travel data to help define buying power and negotiation strategies.
RFP Creation and Distribution
Timeline: 1-2 months before RFP season
1. Corporate travel managers create the RFP document, often with input from TMCs.
2. The RFP typically includes:
– Company information
– Travel volume and patterns
– Room type requirements
– Amenities needed
– Rate expectations
– Sustainability requirements
– Deadlines for submission
3. TMCs typically use automated tools like Cvent Transient (Lanyon) to distribute RFPs to selected hotels.
Hotel Response Phase
Timeline: 4-6 weeks
1. Hotels receive RFPs and review requirements.
2. Hotel sales teams prepare responses, including:
– Proposed rates
– Available amenities
– Concessions offered
– Property information
3. Hotels submit their proposals through designated channels, often using industry-standard formats like GBTA’s Hotel RFP template which has hundreds of information fields.
Evaluation and Negotiation
Timeline: 4-6 weeks
1. Corporate travel managers and TMCs review hotel proposals.
2. They evaluate based on criteria such as:
– Competitive pricing
– Alignment with travel policy
– Property quality and amenities
– Past performance (if applicable)
3. TMCs may assist in negotiations with hotels to secure better rates or additional concessions.
Selection and Contracting
Timeline: 2-4 weeks
1. Final selections are made based on the evaluation process.
2. Contracts are drafted and reviewed by legal teams.
3. Rates are loaded into the TMC’s booking systems and global distribution systems (GDS).
Implementation and Communication
Timeline: 1-2 weeks before new rates go live (typically January 1st but it can be late with larger hotel groups)
1. TMCs ensure all negotiated rates are accurately loaded and available for booking.
2. Corporate travel managers communicate new hotel programme details to employees.
3. TMCs may provide training on new booking procedures if needed.
Tools and Formats Used:
– RFP management platforms (e.g., Lanyon, Cvent)
– GBTA’s Hotel RFP template
– Excel spreadsheets for data analysis and rate comparisons
– Online booking tools and GDS for rate loading and availability checks
Key Timelines (typical):
– RFP distribution: Usually by end of September
– Hotel responses: Typically due by end of October
– Negotiations and selections: Completed by end of November
– Rate loading and program go-live: January 1st
Throughout this process, TMCs play a crucial role in facilitating communication between corporate clients and hotels, providing data analysis, and offering expertise to optimise the hotel programme. They help automate much of the process, allowing corporate travel managers to focus on strategic decisions and programme improvements.