By Neil Hammond, GoldSpring Partner
As we begin another hotel RFP season, many buyers are still aware of the pain points that go along with this time of the year. A resource consuming exercise with hundreds of bidders pounding on the door on top of the numerous internal stakeholders to be placated. At the end of this process buyers will normally be seeing an increase in rates and denied the opportunity to report a nice savings contribution to the annual procurement target.
The preparation process will still show that much of the program activity was not visible through designated booking channels, travelers seem to make up their own minds where they want to stay and how they want to book.
There are some bright spots on the horizon. The success of reshopping tools such as TRIPBAM and Yapta have helped drive compliance back through authorized booking channels, and the emergence of dynamic discounts should provide an opportunity for buyers to negotiate multi-year contracts.
At GoldSpring, we approach hotel sourcing with a holistic approach and recognize that there are different solutions for different parts of the program. Fixed rates are usually the best option for high activity properties whilst dynamic discounts are a great option when there is less leverage. Chain deals can complete coverage in a program, and the reshopping tools are a no brainer which produce large savings, particularly on the non-preferred properties. The challenge is to effectively use the right tools in the right place
If you are still wondering how to achieve this then let us help you for your 2020 program. We can use data analytics from multiple sources to help you:
· Determine fixed rate or dynamic discounts at a property level
· Identify alternatives
· Use your reshopping tool data
· Ensure you get the best rates based on your activity
· Source the right number of properties for your program
· Migrate your program from the annual RFP season to a dynamically sourced program that continually monitors and optimizes your hotel spend.
In the current environment where hotel rates are climbing every year, you need a trusted consultant who drives for the best results in accordance with your stated goals and objectives. We focus our efforts on total cost of stay – not only seeking out the best in room rates, but also the best in those amenities of importance to your travelers. Email or give us a call (832-314-1659) if we can help.