Close

Cart

Total $0.00

Checkout

By Monica Sanchez

The GBTA Foundation released a new study in partnership with Best Western Hotels & Resorts today that explored the Hotel RFP process from the eyes of a travel manager. A large majority (87 percent) of the travel managers interviewed have some level of involvement with the Hotel RFP process, while 56 percent say they rely somewhat or a lot on a TMC to conduct the RFP process.

Each year, most travel programs work closely with their hotel suppliers to negotiate rates and amenities, so they can find the best partners in this space. Typically, 12 percent of the properties are dropped and 13 percent are newly signed as preferred providers. Three-quarters of companies issue the same RFP around the globe, while 21 percent have customized RFPs for different regions. Overall the process lasts an average of 3.2 months.

In general, most travel managers are satisfied with the RFP process (66 percent), and those who rely somewhat on a TMC for this task have notably higher levels of satisfaction (75 percent). The 33 percent of overall travel managers dissatisfied with the RFP process note several factors driving their dissatisfaction including how long it takes, no tangible benefits from going through the process every year and lack of resources to dedicate to the process.

Companies with larger travel spending also have higher levels of satisfaction with the RFP process possibly because they are able to solve some of the complaints mentioned and have greater resources. More organizations with higher travel spend of $30 million or more (67 percent) claim to rely on a TMC somewhat or a lot compared to those with travel spend of less than $30 million (50 percent).

In 2012, the GBTA Foundation and the GBTA Hotel Committee worked to develop a Hotel RFP template to try to standardize the process. Two-thirds (66 percent) of those surveyed are aware of the template, while two in five (40 percent) say their companies currently use it. Organizations with travel spend of $30 million or more are more likely than those with lower travel spend to not only know about the GBTA Hotel RFP (80 percent vs 60 percent) but also more likely to use it (59 percent and 26 percent respectively).

When looking at specific modules like the Groups/Meetings module and the Corporate Social Responsibility module, a majority of survey respondents indicated they use those modules for informational purposes only, rather than as part of the decision making process.

The top three reasons travel managers use the GBTA Hotel RFP template are the ability to add user-defined questions, the fact there is no cost associated with its use and the ability to choose which modules to use. Most travel managers use the Blackout/Fair Dates (85 percent) and the Safety and Security (82 percent) modules.

“The results of this study confirm the value that TMCs bring to the RFP process, as this is one of their core areas of expertise. By relying on a TMC to assist with the RFP process, travel managers are able to focus on other areas of responsibility, and ultimately deliver more value to their travelers and suppliers alike,” said Dorothy Dowling, Senior Vice President and Chief Marketing Officer at Best Western Hotels & Resorts. “This study is valuable as it truly allows us to better understand the Hotel RFP process from the perspective of travel managers, which will ultimately help brands such as Best Western implement changes to improve the process.”

How can travel managers and suppliers make the Hotel RFP process a more efficient one? Use TMCs for time-consuming activities related to the RFP process while staying involved in the decision-making process. Understand there is not a one-size fits all approach and while yearly reviews may work for some programs, others may be successful with every-other-year reviews.

Travel programs should analyze their decision making process to understand the key elements relevant to them, organize them in tiered levels of importance and identify the top elements as essential to making decisions. The bottom-tier elements may not necessarily need to be collected every year. With this method, travel managers can save time and resources and suppliers will know which data is truly needed to develop strong partnerships with travel programs.

 More Information: The report, Hotel RFPs – The Decision Making Process, is available exclusively to GBTA members by clicking here and non-members may purchase the report through the GBTA Foundation by emailing pyachnes@gbtafoundation.org.

Methodology: This GBTA Foundation conducted an online survey of 161 travel managers who are Direct members of GBTA in the United States and Canada. It was conducted in February of 2017.

About Monica Sanchez

Monica Sanchez joined the GBTA Foundation, the research and education arm of the Global Business Travel Association (GBTA), in 2013 as a Research Project Director. She is responsible for managing and developing Foundation partner research studies in the United States and Globally. Prior to working for GBTA, Monica worked at Experian Marketing Solutions developing consumer behavior models. Monica has more than 10 years of market research experience. Her main areas of expertise are questionnaire design and predictive modeling. She is interested in cross-cultural questionnaire design and its impact on data results. She holds a Bachelor’s in Journalism and a Master’s degree in Survey Research and Methodology from the University of Nebraska - Lincoln. Monica’s favorite season is the Fall when she likes to go hiking and camping with her family.

Contact: Monica Sanchez

MSanchez@gbtafoundation.org / 703.236.1190

Related News

Attracting the High-Value Bleisure Traveler: Insights for Hotels

How Hotels Are Improving Business Networking

Business Travelers Are Still Going Rogue With Hotel Bookings

Global Business Travelers Identify Top Challenges They Face on the Road

Not a Second to Waste – Business Travelers Expect to Manage Travel on All Devices

Best Western Acquires Sweden Hotels

Best Western's Dorothy Dowling Honored as 2017 Silver Stevie® Award Winner for Marketing Executive of the Year

WTTC & Travelport Report Business Travel Sector to Grow 3.7% Annually to 2027 as New Tech Fuels Takeup

Best Western's Pipeline Nearing 500 Properties Worldwide

Owner Sue Werschky Debuts Best Western's SureStay Hotel Brand with Opening of SureStay Plus Poteau, OK

Sharing Economy Significantly Influences Business Travel According to GBTA Foundation's Latest Survey

Best Western’s Ron Pohl Promoted to Senior Vice President and Chief Operations Officer

Is Election Year Uncertainty Putting U.S. Businesses At Risk?

GBTA Foundation Study: Majority of North American Business Travelers Commonly Use Hotel Apps

Best Western Hotels & Resorts Opens Eleven Hotels in July 2016

Global Business Travel and Spend Report Reveals New Sharing Economy Trends, Business Traveler Behaviors

What Apps Business Travelers Use and Why

Business Travel in Brazil Set to Bottom out in 2016 Before a Slight Rebound in 2017

Best Western and India's Sorrel Hospitality Sign Master Franchise Agreement for Future Development Across India, Bangladesh & Sri Lanka

Orion Hotels Enters Agreement with Best Western for Multi-phase Expansion of 13 Hotels in South Africa

All News »

Please login or register to post a comment.