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RFPs are headache, say travel buyers
Requests for proposal are a severe drain on time and resources for travel buyers, according to new research by the Institute of Travel Management.
The process, which is used for selecting travel suppliers, creates a considerable increase in workload and is also daunting for suppliers, ITM members said.
Of the 80 travel buyers surveyed, 45% said the average RFP takes four to six months, while 8% said it takes more than a year.
On average, buyers conduct an RFP for their TMC every three to four years but 59% hold an airline RFP annually, and 75% a hotel RFP annually.
Colin Goldney, MD of ITM’s research partner Argate Consulting, believes the survey also demonstrates how daunting the RFP process is for travel suppliers.
“Only 60% of buyers said they will definitely meet suppliers during an RFP. The absence of face-to-face contact has major implications,” he said. “So too does the fact that 80% of buyers work with at least three other internal stakeholders on a travel RFP. That makes it a very complicated sell.”
But using an automated online eRFP tool, which lets buyers give suppliers concise information about their travel patterns and solicit responses that are easy to evaluate, significantly improves the whole process, said buyers.
Asked specifically about travel management company RFPs, 98% rated greater transparency as a high or medium benefit of using an eRFP tool. The same figure said it improved workflow, while 96% said the technology improved response quality and made managing the process more effective.
Asked how satisfied they were with using eRFP tools, 87% said they were satisfied or very satisfied.
The research found eAuction tools, where suppliers participate in a real-time reverse auction to win a buyer’s business, were not as widely liked.
Some 71% of buyers said they were satisfied or very satisfied but 29% were dissatisfied.
“The jury is still out on eAuction tools but the survey clearly shows eRFP tools are really hitting the mark for our buyer members,” said ITM executive director Paul Tilstone.
“However, the survey also reveals that awareness of eRFP tools remains low. One-third of respondents have used an eRFP tool for hotel sourcing but the figure for other travel sub-categories is much lower.”
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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