In a recent article entitled “The Art of the RFP“, Amanda Fretheim Gates does a good job in covering the debate around the Request for Proposal (RFP) but leaves room for these areas of contention.

  1. Ted Davis, VP of Marketing and Public Affairs with the St. Paul Convention and Visitors Authority suggests that RFPs are a “great way to establish a relationship and a good way to see what’s out there, but it really is an imperfect instrument for the meeting planner and the vendor” is partially correct.  RFPs are a good way to see what’s out there but inadvertently deters the vendor the ability to establish a long-term business with the client.
  2. Distribution – Most online RFP tools, if not all, don’t provide the necessary hierarchical information that gets the RFP to the right hotel salesperson in a timely fashion.  This is critical if you are pressing for a 24 to 48-hour turnaround.
  3. RFP specs – Vendors biggest pet peeve is the too-often lack of basic information such as location, budget or agenda. If the end-user elects not to provide this type of information you can be certain that there will be other challenges down the line.
  4. Budgets - End-users should provide a three-year rate history, if available, along with historical spend for F&B, meeting room rentals, attrition, etc.
  5. In today’s “current economic conditions” there is no such thing as a “preferred vendor”.
  6. RPFs are opportunities that places vendors in a “competitive” bid situation.
  7. Online RFPs don’t leave much room, if any, for creative answers.
  8. Come out of the gate and shoot your best shot.  Going “back and forth” between vendor and client is inefficient and a waste of time.
  9. “Relationships Still Matter” – Today planners and procurement are looking for the best bang for their buck.  If a vendor can provide that, the business relationship continues.  If not, a new relationship is established with one who can.
  10. Channel Distribution – In a marketplace, competitive or not, never rely on a previous relationship with a vendor as the sole reason for your decision.  Two years ago hotels were able to “cherry pick” business.  Today everyone is hungry, even your past preferred suppliers.

RFP Tip Sheet

  • Near or at the top of your RFP or in a cover letter, inform the hotel where will the contract be signed, what “type” of business the RFP represents (Corporate, Association, Government, etc.), and how many guest rooms on peak.  These simple details will get the RFP in the hands of a decision-maker instead of sitting in a pile.
  • Let the hotel know what will make or break this deal.  They can then choose to play or pass on your piece of business.
  • Don’t put a “turn around” time line of 48-hours on the response unless you or the client can respond to the proposal/bid in a timely fashion.
  • If you are the planner, always be available to answer vendor questions.  If you are a vendor, email the planner first and request a couple of minutes to discuss details in person or via the telephone.
  • Vendor response should contain every critical “financial” consideration to include rate, tax, resort fee, F&B minimum, attrition, average per person costs for F&B, tax, service charge and round trip transfer costs to/from airport/hotel.
  • Shoot your best shot on your original proposal/bid.  If you come back and reduce a rate or any other costs, it may look like you were holding back instead of being forthright. 
  • Get the proposal in writing.  There won’t be any room for error on anyone’s part.