The GDS, or Global Distribution System, helps generate billions of dollars in global travel sales every year. Independent travel agents, online agents and travel agencies all use a GDS to search for the best available travel and accommodation rates for their clients. Being represented in the GDS with a specific chain code, such as our HO chain code, is thus crucial for hoteliers in order to stand out from competitors.
The GDS is particularly important when it comes to receiving business from corporates, as many large companies use it to manage their travel expenses. Known as the ‘RFP season’, every year, between July and September, travel managers send RFP (request for proposal) bids from corporate clients, such as IBM or Vodafone. Hotels around the world then compete for this bid to attract more corporate business.
While corporate bids are extremely lucrative, RFP submission can be an overwhelming process for hoteliers, especially for independent properties that may lose to competitors from larger, branded chains. At HotelREZ, we have a very clear hotel RFP process, and our demand generation team works hard to identify new corporate business for our member hotels.
Read on to find out why corporate RFP bids are so important for hoteliers, and how to get more corporate business with our hotel RFP process.
Why corporate RFPs are important
Corporate RFP bids, particularly solicited ones, are a goldmine for hotels. A solicited RFP is when a GDS agency or corporate company has specifically requested a pricing proposal from a hotel for their corporate travel programme. This is more likely to happen if the company is aware of, or in close proximity to, the hotel. Corporate travellers are excellent customers as they are more likely to use other hotel services, such as the restaurant and spa, which increases incremental spending per room.
How to get more corporate business
At HotelREZ, we have over 1000 agreements with global TMCs (travel management companies), consortias and agencies, allowing us to receive centralised RFPs. If you want to respond to a solicited bid with a pricing proposal, there is a certain submission process you need to go through – one that can be quite complex and time consuming.
To make life a little easier, we offer our member hotels the following hotel RFP process: whenever we receive solicited bids from our partners, we add them to our automated RFP tool REZtoMarket, from which you can then make a bid. REZMarket combines different RFP tools that corporate clients use, thus offering one easily accessible and centrally managed RFP tool. This means it includes bids from all major players, including Nexus, Lanyon, RateFinding and Sabre.
Once an RFP is received, your hotel can choose to submit the information requested, which the client then reviews to assess if you meet their criteria. If your application is approved, REZtoMarket’s automated rate services means your proposed rate will instantly load on the GDS, avoiding frustrating loading times for bookers.
As great as solicited RFPs sound, corporate RFPs can also be unsolicited, meaning that RFP requests do not come directly to the hotel, but rather that they need to go out there and find them. HotelREZ uses a tool called TargetworX™ to help manage unsolicited RFPs for our member hotels. Our team checks which corporate companies are booking through a GDS agency in close proximity to your hotel, and will contact them directly to request that your property be considered if it isn’t on their official RFP programme. This way we can act as an extension of your sales team, increasing RevPAR and driving more incremental revenue.
Provide negotiated RFP rates to corporate clients
At HotelREZ, we’re proud to maintain strong relationships with out RFP contacts year on year, which in turn continue to back the RFP programmes of our member hotels. Quality RFP support is part of the distribution, representation, marketing and consultancy services we provide to more than 1,500 hotels in over 100 countries.
HotelREZ Hotels & Resorts was founded in 2004 by Mark Lewis, an experienced hospitality industry professional and entrepreneur. Over the course of over a decade the company has grown to be one of the leading hotel representation companies dedicated to marketing and connecting independent properties with bookers worldwide. HotelREZ now provides distribution, revenue, sales consultancy and marketing services and support to more than 1,500 hotels, apartments and hotel groups in over 100 countries including private label GDS chain code solutions. HotelREZ Hotels & Resorts is a SAAS company. HotelREZ also incorporates the global World Rainbow hotels, the world’s only GDS enabled LGBT global hotel consortia representing some 1200 hotels in 230 destinations across the globe.