Greetings!

I wanted to dedicate this issue to the topic of a deeper understanding of the implications regarding the Electronic Request for Proposal or the "eRFP" process. First let's step back in time. A mere 10 years ago, most of the RFPs were handled manually, either via a telephone call or a fax to a hotel. The process was relatively simple:

1. Gain an understanding of the program we were planning for our client
2. Based on those requirements, we would research potential destinations
3. Once the destination was identified, we would research hotels in the area
4. After a few hotels that fit the business requirements were identified, we would call or fax the hotel to determine availability
5. We would ask for a proposal from hotels fit the meeting specifications,
6. If none of the hotels had availability or were not the right fit, we would reach out to another few hotels until the right property was identified and ultimately contracted for the meeting.

The key points to note are:

• This was an iterative process
• There was usually a short list of potential hotels
• Each hotel was contacted individually because it was a manual process

Fast forward to today where we live in a world of on-line technology tools, which allows for eRFPs that can be sent out to any number of hotels at once. Statics that I have heard recently are staggering! Some of the large convention hotels in Tier One cities can get 30 to 40 eRFPs per day through the variety of electronic channels available to planners today. For the complex meetings that are seeking these "big box" hotels, the time needed to respond completely to the detailed RFP is at least 45 minutes. Let's do the math, 30 RFP x 45 minutes = 22.5 hours of work. If we are working an 8 hour work day, it would take 3 hotel sales reps per day, all day, just to keep up with re-actively filling out eRFP forms, rather than being proactively engaged selling. 

It is important to recognize that we are at a tipping point with the hotels. They have limited resources, just as the planners have limited resources. We have got to help reduce the volume of eRFPs that are being sent out. I hear that some planners will send out 25 or more eRFPs to the same city for one meeting, versus other planners who send out 6 or 7 eRFPs targeting specific properties for the same type of meeting. Why such a difference? Maybe it is the experience level of the planners; the ease of access to so many hotels via eRFP; concern that there won't be any availability if a smaller number of hotels are approached, or we are asking the hotels to conduct the due diligence that the planners used to do.  

In fact, hotels are studying the volume of RFP's they are receiving and comparing that with the close rate (business actually contracted) from various entities. Some close rates are in the 15% range versus others that are in the 2% range. In an effort for the hoteliers to manage the volume most effectively, they will have to use this information to help them prioritize which eRFPs to respond to first. I suspect that those entities that send out a high volume of RFPs with low close rates, will eventually find themselves in the position of receiving a very late response, if they receive a response at all.

Tip #1: Help the hotels understand they have a better chance for your business by letting them know  the limited number of hotels that you are sourcing.

Bondurant Consulting provides the following services:  

• Assessment of SMMP potential for your organization   
• Development and implementation of SMMP for meeting & travel managers
• Training programs for hotel companies and 3^rd party meeting planning agencies which increase their understanding of Strategic Meetings Management, resulting in more successful engagements with clients who are involved with SMM