|
Each issue of Keeping it SiMMPle addresses a component of the A to Z of SMM from a Practical, Light & Effective perspective. In this issue E is for Extreme eRFPs.
|
Last year I discussed the need to better understand the impact the extremely high volume of electronic Request for Proposals (eRFPS) for meetings are having on our industry. As the situation seems to be getting worse, it is worth divining into this topic again. The volume of eRFPs is increasing and it is exacerbated by three current industry trends:
- Growing meeting demand
- Modest increases new hotel supply
- Unbelievably short lead times
Let's examine how these trends affect the volume of eRFPs that planners are sending out. In the past several months we have seen increased demand for meetings and events. Plus, there has been limited growth in the hotel sector because construction loans have been hard to secure as a result of the economic troubles since 2008. This means that more responses to proposals are coming back with no space available, so planners need to send out a second round of eRFPs, which takes additional time. In order to avoid having to resend the request for proposal we are seeing that eRFPs are being sent to 20+ hotels in 5 or more cites at one time for a small meeting of 40 people for 2 days. That's 100 RFPs that need to be responded to by the hotel sales managers for one small meeting! Additionally, lead times are now under 30 days for small meetings, so time constraints also drives the high volume of eRFPs are being sent out.
The reality is that there are only 8 (or 10) hours in the work day and there are far more eRFPs than can be handled within the 24 to 48 hour window that many companies require to have responses back for their RFPS. The bottom line is that some RFPs will get responded to more quickly than others. It makes sense to me that hotels would respond promptly to companies that have had a proven track record of sending out viable leads, versus companies that have a reputation of submitting high volumes of RFPs that rarely convert to definite business for hotels.
Why should extreme eRFP volume matter to you? As professional meeting planners, you need to get the right space for your program; so you want hotel sales mangers to pay attention to your RFP and spend time developing the best solution for your meeting. As a hotel sale manager, you want to spend time bidding on business that has a high probability of closing. As an industry we need to figure out ways to increase our productivity and reduce eRFP spam. Use the following tips to get the RFP response you need:
|
|
|
SiMMPle Tips
|
TIP #1: 1 Implement internal sourcing guidelines that limit the number of cities and hotels per city that are initially sourced
TIP #2: Be sure to let the hoteliers know if you are sending out a limited number of RFPs for your meeting, this way they know their odds of getting the business are higher
TIP #3: Help your hoteliers save time: don't have them map out every details of your meeting space until you know the hotel fits all other meeting requirements
|
|
