Travel Matters - August / September 2015

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The Chartered Institute of Purchasing
& Supply (CIPS) estimates that strategic
sourcing of travel, meetings and events will
save a corporate up to a third of its total
category spend.
No wonder that RFPs have become
a familiar – if dreaded – feature of the
business travel calendar. July and August
mark the start of RFP season, when
hundreds of hours are spent compiling,
completing and analysing tender
submissions to corporates large and small.
The RFP process is a challenging one for
everyone, and it is no longer just about
cost. While corporates look to suppliers
to offer the availability and rates to win
their business, they also need to satisfy
their travellers’ location and facility
requirements, as well as their employers’
commitments to sustainability and the
environment.
Meanwhile, airline and hotel sales
managers have to keep both their clients
and their internal revenue managers happy.
In recent years, leading TMCs such
as Chambers, together with corporate
buyers have become more aware of how
technology enables greater sourcing
efficiencies. Yet few TMCs other than
Chambers are technology-builders, so
many RFP tool providers work directly with
corporates.
As corporates’ strategic objectives have
evolved, e-RFP technology has followed
suit. Today RFP tools can deal with a
myriad of variables such as last room
availability, room allocations, breakfast,
WiFi and executive room types – as well as
cost itself.
SMARTER
RFPS
They take an inordinate amount of time, and
money, but there is an easier way. Read on to
discover how Chambers can help you make the
RFP process slick – and painless
In the hotel sector, suppliers’ focus
is increasingly on total revenue per
available room (TRevPAR), which includes
additional spend on food and beverage.
Making company policy on travellers’ F&B
spend can directly help to drive down
accommodation costs – especially for
international travellers who usually spend
more than their domestic counterparts.
But despite making good progress
in streamlining RFP processes, two
fundamental barriers remain. First is poorly
written RFPs. Sales managers will always
interpret unclear requirements in a way
that will favour them first. The second
barrier concerns over optimistic RFP
responses, with suppliers telling you what
they think you want to hear before adding
enough caveats to ensure that a great deal
will never be available.
Here, we’re focusing on what corporates
can do to mitigate the first issue, the poorly
written RFPs. Here are our top ten tips for
making your RFPs slicker and pain-free for
all involved.
1 Before you embark on your RFP talk to
your TMC about their recommended
RFP tools. Make sure the technology
fits your objectives and priorities rather
than the other way around.
2 In the case of hotel RFPs, make sure
the RFP tool is supported by the
widest possible range of options. Many
independent hotels are not listed on
the GDS, which could mean you are
missing out on properties that might
provide a better fit for both company
and travellers.
“The RFP process
is a challenging
one for everyone,
and it is no longer
just about cost”
12 | GREAT IDEAS
DID YOU KNOW?
…that US business travel spending will increase by 4.9% in 2015 to
US$302.7bn, and in 2016 by even more, an estimated 5.4% to US$318.9bn,
according to GBTA Foundation and Visa research.