Business Travel Executive, February 2019

150 room nights per year suppliers arent going to offer double digit discounts Instead companies may save somewhere around 6 percent And Brittany Taylor program manager with 4D Travel a division of the Flight Centre Group says discussions for changes to the RFP process are constant but change is gradual Its a tedious sixmonth process for a year long contract she says RFP Reform Its no secret that suppliers are thinking differently about RFPs At this stage its not so much a case of whiz bang technology but more about customizing programs to a companys mission and goals Instead of asking a supplier to respond to predefined needs via RFP Jonathan Kaplan vice president of global sales strategy at IHG advises travel managers to share their problems with the supplier who then provides a solution via RFS Request for Solution This changes the conversation and how you engage in the buying process says Kaplan Thinking about the process differently with clients Kaplan notes has resulted in tailored solutions for both large and small enterprises and win win solutions that resulted in accounts more than doubling their savings Wendy Ferrill global head of sales for Best Western does not see a lot of change in the RFP process as many programs continue to use the GBTA format However she says a number of travel buyers are taking a step back evaluating their strategy and deciding what the desired outcomes are for their travel programs This is where we have rich conversations with buyers says Ferrill We can get to a better place when we understand the companys strategy and can align it with our brand This is where buyers have really stepped up What can make the process easier are insights travel managers can provide into how their current travel programs are performing with details like the ADR produced and performance at preferred hotels overall hotel spend and traveler booking behaviors according to Virginie Pouget director of global consulting for Egencia She explains tools like the Egencia Analytics Studio make it quicker for travel managers to not only access this information but also build their own negotiation strategies and prepare their supplier reviews throughout the year Trumpeting Transparency No enhancements to travel program processes are worthwhile if travel managers cant easily see whats going on With a landscape that has become overly complicated and fragmented transparency has emerged as a central mission for providers according to Suzanne Neufang vice president Americas for HRS the global hotel distribution company For travel managers she says that means knowing where a rate came from whether it was used or suppressed and much more An important tool in achieving transparency says Neufang is a machine learning supported rate filter introduced last year by HRS that eliminates the problem of squatter rates where non preferred hotels load rates into a system Another factor enabling transparency is monitoring the process throughout the year not just during one painful annual process Managers can always see what is being saved how bookings were made and whether it was a transient or a negotiated rate Travel management company Egencia is also emphasizing transparency Pouget says Because Egencia delivers a fullyintegrated global business travel platform travel managers have complete visibility into all aspects of their program And 4DTravel takes a deep dive into contract status quarterly to insure goals are being met Taylor says her team meets with suppliers every quarter as well to monitor programs Every RFP has a customized cover letter specifying targets and goals so suppliers understand what the client is looking for Custom Fit Another change A one size fits all travel program is a thing of the past Hyden says each city and market is so different that it is important for travel managers to understand the individual market dynamics Utilizing ADR predictions like the CWT GBTA Forecast and tracking key metrics like occupancy rates play a significant role in understanding negotiation opportunities Hyden notes Id also like to dispel the notion says Hyden that non refundable rates cant work They can drive significant savings and the gains often outweigh a small percentage of cancellations At Hyatt the company works with each customer to design a travel program with customized offerings that are meaningful for travelers and meet the customers goals according to Gus Vonderheide vice president of global sales Hyatt Sales Force Collaboration is key for Hyatt says Vonderheide and we find success when a companys culture supports travel managers taking a similar approach The focus on traveler satisfaction as an avenue toward higher productivity and greater employee retention is intensifying According to a recent survey conducted by Hilton 75 percent of young professionals consider travel a work perk Furthermore No enhancements to travel program processes are worthwhile if travel managers cant easily see whats going 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