In this article you will find information about the best & most popular hotel rfp software tools that exist on the market. Our intention is to assist you in understanding of:
- What is a hotel rfp?
- Who are the professionals that use hotel rfp software tools?
- Why is a hotel rfp software worth using instead of the online service provided by OTAs (online travel agencies – ie. booking.com , expedia, agoda, tophotels, laterooms etc)
- Which are the most popular hotel rfp software tools
- What can be achieved with a hotel rfp management tool?
- Hotel rfp template – explained in simple English
So, let’s start..
What is a hotel rfp?
According to wikipedia a request for proposal (RFP) is:
a document that solicits proposal, often made through a bidding process, by an agency or company interested in procurement of a commodity, service, or valuable asset, to potential suppliers to submit business proposals.It is submitted early in the procurement cycle, either at the preliminary study, or procurement stage.
The hotel rfp meaning refers to a program where a corporations, associations, or organizations negotiate a discount with specific hotels in locations where their employees/members travel to, in order to reduce the cost of travel for the company.
In our times the hotel eRFPs are made through online processes using specialized hotel rfp tools which make the bidding process fast and simple. Corporations carry out RFP programmes for several reasons:
to reduce overall travel expenditure costs
to provide a service and efficiency to their employees
to control travel and understand travel needs for the company
to perform a “duty of care” in knowing where their employees are, and that they are in a safe environment.
The companies interested in booking hotel rooms submit hotel RFPs in advance in order to get the best possible bids from the hotels that comply with listed requirements.
Who are the professionals that use hotel rfp software tools?
Usually there are two types of professionals that need or use a hotel rfp software. The ones who request the service and the ones who can offer it.
Who creates hotel RFPs?
Hotel rfps are requested by any party that might need to book in advance a relatively big number of hotel rooms in a specified destination. E.g.:
Travel agents / Tour operators
Big companies / Corporations
Non profit organizations
Corporations, associations, organizations, and governments will either run an annual program which negotiates rates for the whole year across multiple locations or a specific programme for a project for a period of time in one or more locations.
At the meantime, travel agents, tour operators, and event organizers usually run a small programme for a single event in a single location or a programme for a specific project/event.
The main reason to create a hotel RFP is to cut down overall travel expenditure costs and facilitate travel budget forecasting for next year. On top of that, companies can easily find hotels that meet their travel needs and satisfy their demand, while ensuring a “duty of care” to their employees.
Who receives hotel RFPs?
In most of the cases, hotel managers are responsible for sales and marketing promotion thus are the ones who receive these requests and reply by bidding prices and giving custom made offers depending on the requirements.
Why is a hotel rfp software worth using instead of the online service provided by OTAs (online travel agencies)
Online travel agent websites like booking.com, expedia, agoda etc. eat a big piece of hotels’ budget away. According to hotelmanagement.net Hoteliers in the United States are paying, on average, 16 percent to 18 percent to acquire customers, with many paying as much as 25 percent to 35 percent. About half is paid to third parties and half is paid for direct expenses. This is a very big % of a hotel’s turnover and the more the hotels become dependent on services alike, the more likely we will see this % increasing in the future.
Moreover, there is a rate parity agreement in which hotels guarantee to use the same terms and rates on all the distribution channels. This means that the hotel is obliged to provide the same prices on all the booking platforms and its own website. Consequently, hoteliers have to offer the same rate for a room, no matter which source the guest is using for booking, and no matter the commission they pay to the OTA.
The higher OTA’s commission is, the less money the hotels earn. When in fact the rates have to constantly remain on the same level, Online Travel Agencies can easily increase the fee and thus earn more while the hotel loses.
Corporate clients creating the hotel rfp are ensured that the hotels bids are much lower than the available prices through the OTA services. The reason is that the price range of a B2B market requires better offers because its demand is characterized by volume and contracts in advance.
How does a hotel rfp template looks like in a digital form
Before unveiling the hotel rfp template let’s have a look at the required information one should have and explain the hotel RFP template steps in simple English.
HOTEL RFP STEP 1:
– Location: First we need to know what is the geographical area we want the hotel to reside in: the country and the city of hotels request.
– Max distance from a specific location: In cases where the city is very big we might also want to set a radius of maximum distance from a certain point or a postal code in the city.
– Hotel stars: Depending on our budget as well as the specific requirements of our booking we will most probably have a specific demand on the type of amenities, thus the hotel stars.
HOTEL RFP STEP 2:
– Program start and end dates: A hotel rfp is a request for pre booking hotel rooms from a certain date to a certain date. Accordingly, the start and end dates of the hotel rfp need to be defined.
– Latest date hotels should answer: Define the due date until which hotels should bid their offers. Tell the hotels when you need the proposal returned to you and let them know when you will make the initial cut.
– The bid type. There are two bid types to choose from:
A fixed price, also known as a “flat room rate” means that the rate will always remain constant, even if the publicly available rate (Dynamic) may change due to demand.
A discount of BAR (Best Available Rate) means the rate will always change as the publically available BAR rate changes, but the amount of discount will always be the same.
– Room types. The hotel RFP should also specify:
Room types: i.e. standard room, suite room, one bedroom, two bedroom, three bedroom
Occupancy: how many people will stay in the room (1,2,3,4 etc.)
Room nights: how many nights per room type you would like to request. The number of nights will depend on your specific requirements but usually the minimum requested start from 20 roomnignts.
– Requested amenities: If you have any special requirements for amenities like breakfast, wifi, parking, fitness etc. it is important to include them in your RFP.
Big corporations usually have their hotel RFP requirements laid out in official documents like sustainability strategy, code of conduct, frame contract, etc. which can be attached additionally when submitting hotel RFP digitally.
Lastly, the parties requesting for hotel proposals include the following information about their company and the matter of the RFP:
– Who they are: a brief presentation of the company.
– The purpose to launch a hotel rfp: e.g. company’s salespeople travel regularly to the location specified in the RFP.
– Details of the event planned to organized in the hotel, in case of a small programme for a single event.
– Information about budget limitations.
HOTEL RFP STEP 3
Lastly, a digital hotel RFP must include the contact information of the party that is launching the RFP.
Feel free to download an example of the hotel RFP template in a digital form. The print screens have been taken from the rfpmaker hotel rfp software which now gives a possibility to submit hotel RFPs for free in one location in order to try the tool before buying a paid license.
Which are the most popular hotel rfp software tools
When it comes to the topic of the most popular hotel RFP software it is quite hard to compare the tools that exist in the market for a long time with the ones that have entered in the market recently. Nevertheless, it is worth mentioning that their value for money and easy of use is significant.
* Lanyon RFP / Cvent
* Sabre RFP
Lanyon Solutions is a software-as-a-service (SaaS) company that provided cloud-based software to manage meetings, events and travel and was founded in 1984 in Dallas, Texas and was merged into Cvent in 2017.
Sabre Corporation is a travel technology company based in Southlake, Texas. Founded in 1960, it is considered to be the largest Global Distribution Systems provider and online marketplace that unites corporate travel buyers with hotels to negotiate hotel rooms rates for their corporate hotel programs.
RFPMaker is a streamlined tender tool that creates partnerships between hotel accommodation providers and corporations and large membership associations. Since its launch in September 2017 the platform has created more than 600,000 room nights in demand from major companies like Leo Pharma, JYSK, Danish Investment Association.
What can be achieved with a hotel rfp management tool
A hotel rfp management tool allows companies to:
* Manage their travel contracts negotiations through one interface.
* Access online communications in the form of chat or email exchanges.
* View historic info of RFPs and contracts.
* Access a huge database of hotels with a very simple, fast and low cost way.
* Save operational time on finding the best offers for business travel needs.
On the opposite side of the coin, hotel managers gain the same advantages and also have the chance to bid against big booking projects that help them increase hotels’ turnover and profit significantly without giving a big share of it in commissions.
If you are seriously considering the idea of using a hotel rfp software to promote your hotel or to get the best possible hotel rates for your corporate bookings – request a demo presentation of the rfpmaker.com hotel rfp software and start using some of its features for free or with a very small fee comparing to other tools currently available in this field.