Hotel Request for Proposal

Hotel RFPs: Worthwhile or Waste of Time?

Say the words “request for proposal” and anyone familiar with the term will probably shudder. No matter the business or end goal, RFPs usually signify the initiation of a process that will take a lot of time and a lot of organization before the end goal is achieved. A hotel request for proposal is no different.

A hotel RFP is a process during which organizations and travel managers solicit, negotiate, and finalize a contract for hotel room rates and amenities for business travel, meetings and incentive programs. Corporate hotel programs differ from organization to organization, but the foundations are generally similar. GBTA recently conducted a study on how to improve the hotel RFP process, and came up with a somewhat surprising result: use travel management companies for the RFP Process.

Maximize Savings & Time during the Hotel RFP Process

In partnership with Best Western Hotels and Resorts, the report surveyed travel managers in regard to their approach to the hotel request for proposal process. Here are some of the key findings:

  • On average, the RFP process takes 3.2 months
  • 81% of travel managers are “very involved” in the process
  • Over half reported that they rely on a TMC for the RFP process (56%)—and they reported higher levels of overall satisfaction with the RFP process (75% vs. 66%)
  • The biggest causes of dissatisfaction stemmed from the length of time the hotel RFP process takes and a lack of resources to devote to the process

Some other conclusions can be drawn from the data. Larger organizations (defined as those with a travel spend exceeding $30 million) are more likely to rely on a TMC than those with a travel spend of less than $30 million. This may help account for some of the dissatisfaction for those who don’t have the resources for a hotel request for proposal; small organizations, making do with less, might think they can make it through the process without a TMC. When, in fact, working with a TMC would lighten some of the load for their organization and perhaps produce better results.

How Travel Management Companies Can Help with Hotel RFPs

Like we said before, RFPs usually aren’t a cause for excitement for company travel managers. Organizations should definitely consult with their TMC and discuss conducting an RFP for locations which pose 100+ room nights. Leverage the expertise of a travel management company, like Carrousel, when the time rolls around for your organization to evaluate existing hotel agreements and policies.

Carrousel Travel, located in Minneapolis, Minnesota, can take care of the time-consuming activities of the hotel RFP process while involving travel managers for the decision-making process. Our years of experience have made a few things clear: in short, that there is no one size fits all solution, and we’re well-equipped to ensure that the unique needs of your organization are met.

Reach out to Carrousel Travel today to learn more!