Finding Your Perfect Match
T R AV E L RFP TO O L K I T
TRAVEL RFP TOOLKIT
Icon Key
Linked Document Click on these notes to see the linked document
Definition Indicates a key RFP term.
Quick Tip Indicates quick tips and tricks you won’t want to forget.
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Welcome to your RFP Workbook! Managing a request for proposal (RFP) process can be a daunting proposition. Don’t worry. To simplify this process and help you find your perfect match, we have put together an RFP toolkit that includes strategic approaches, best practice recommendations and valuable tools, templates and tips for managing a successful RFP. Our toolkit will take you through the RFP life cycle, from beginning to end, as each of these essential steps moves you through the process. You can use it as a guide or a companion throughout the RFP process to help keep you on track to meet the RFP objectives.
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R FP Li fe C ycl e
ST E P S TO SU CC E SS
S T E P ON E I NI T I AT I NG
PG 8-11
Laying the groundwork and defining your travel program goals.
S T E P T W O PL A NNI NG
PG 12-19
Planning and research before you go to market.
S T E P T HRE E EXECUT I NG
PG 20-27
Preparing and launching an effective travel management RFP.
S T E P FOUR EVA LUAT I NG
PG 28-30
Conducting the initial evaluation.
S T E P F I V E CLO S I NG
PG 31
Making your final selection.
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TRAVEL RFP TOOLKIT
Why go to market and issue an RFP? U nm an ag ed tr av el pr o g ra m Your current travel program is unmanaged or fragmented, leading to missed savings during contract negotiations, or worse yet, your travelers cannot be located during an emergency, putting them at risk.
P ro g ra m co ns o li da ti o n Your travel program is growing or fragmented, and you want to increase visibility and control costs by consolidating your program locally, regionally, or globally with one TMC.
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by Let us help wn the o d g in break Managed Benefits of u. Travel for yo
Understanding th e differences betw een managed and unmanaged trav el will help you objectiv ely determine opport unities for improvements that will impact your bottom line.
SERVICE You may not be happy with your current travel management company (TMC) not meeting your service requirements or expectations.
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co st sa vi ng s in it ia ti ve in no va ti ve te ch & so lu ti o ns You may want to uncover new innovations, technologies or a solution to a current problem you are experiencing.
You’re looking for a TMC to help you reduce your company’s travel expenses, such as supplier costs (i.e., airline, car and hotel).
c h ang es pe in the sco of req uir em ent s Your business requirements have changed, such as reporting requirements, duty of care, lack of data visibility, or control in your program.
A n ot e o n c o s t s a v in g s A TMC’s fee will typically account for only 2-4% of your total travel budget . However, the low est TMC fee may not produce the lowes t total cost of travel .
DUTY OF CARE The moral and legal obligation that an organization has to their employees in maintaining their well-being, security and safety when traveling for work. Employees need to feel confident that the travel risk of their business trips is minimal and that they’re fully supported from the time they start planning and booking their trip to their return home. 5
TRAVEL RFP TOOLKIT
S TOP!
BE FO RE YO U GE T ST AR TE D As a buyer and organization, there are a few best (and sensible) practices you should do and consider before you start an RFP process: Review the existing TMC contract before it expires.
Only move forward if you genuinely will consider replacing the incumbent.
Include all internal stakeholders and departments that have an interest or role within the managed travel program.
Understand your internal approval process and the levels of approval required to award the bid to a new supplier.
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12 MONTHS PRIOR
9 MONTHS PRIOR 3 MONTHS
Defining your travel program goals
Planning and researching before you go to market
PL AN NI NG
2 MONTHS
EXECUT I NG
14 MONTHS PRIOR
I N IT IAT I N G
ill vary An RFP timeline w d based on its size an gh time scope. Allow enou it will for the process, as an you likely take longer th shows think. This sample ing 15 the process beginn piration months prior to ex ract. of the existing cont
R F P T IM E L IN E
TIP Be aware of cancellation clauses in your current TMC contract, such as those that prevent early solicitation.
2 MONTHS PRIOR 2 MONTHS
Preparing and launching your RFP
Conducting the initial evaluation
Making your final selection
C LO SI NG
2 MONTHS
EVA LUAT I NG
3 MONTHS
CONTRACT EXPIRATION 2 MONTHS
Implementation of your new travel program
G O L IVE
4 MONTHS PRIOR
CO N T RACT
6 MONTHS PRIOR
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TRAVEL RFP TOOLKIT
STEP ON E I N I TIATING Laying the Groundwork And Defining your Travel P r o g r a m G o a ls An RFP process will not be successful without laying the groundwork and getting a firm grasp on the needs and goals for your travel program.
Build a Travel Program to Fit Your Organization’s Culture and Priorities What is your company strategy for your program?
Does your travel policy fit your culture?
What is your vision for the program?
What does a successful program look like?
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S ta r t D ata g n i t c e l l Co te travel
accura Providing give les TMCs to data enab ilored ant and ta v le re re o m t ing to mee c ri p d n a s solution data es. The less v ti c je b o r you d less focuse e th , e id v you pro and responses ’ s C M T e th l be. pricing wil
Listen to the Voice of Your Travelers Gain travelers’ sentiment through surveys, such as Net Promoter Score feedback or TMC surveys. What do they value most in your program?
INSIGHT
What are their pain points and why might they be booking outside the program?
By creating a business travel program that listens to your travelers, it is possible to simultaneously reduce costs and create a high level of employee engagement.
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TRAVEL RFP TOOLKIT
Work Wi n
TIP When assembling an RFP team, engage each stakeholder individually rather than as a group. It may seem like more work, but it’s worth it. Here’s why — in large groups, RFP evaluation tends to be influenced by the loudest voices or strongest opinions.
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Together After defining your goals, the next step will be to assemble an RFP team. The travel manager or procurement manager often leads this team. Help solidify your goals by working together and gathering insight through discovery sessions with key stakeholders across your organization, such as procurement, HR, IT, finance, security, risk management, executive leadership and more. Ask stakeholders for information about their needs and pain points. What challenges do they need to solve? Use that information to detail the purpose of the RFP. This sets expectations early and ensures you only receive proposals from qualified suppliers. They can also help create RFP questions, establish scope and prioritize selection criteria.
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Set Results-Oriented Goals and Initiatives The RFP should inform the TMCs about the challenges in your program you’d like to solve and what goals you want to achieve by implementing a new solution. Be as clear as possible. Here are some examples:
HOTEL ATTACHMENT When a hotel reservation is booked along with an airline
Improve program efficiencies by eliminating redundancies and streamlining the reservation process.
reservation.
Boost online bookings, with a goal of reaching X% online adoption in the first year.
important to your organization?
Help drive program compliance and traveler safety and savings by increasing hotel attachment. Increase the travelers’ satisfaction scores by improving the travelers’ booking experience. Increase visibility across all travel data for better leverage with supplier negotiations. Provide flexible on-demand reporting capabilities across all business units. Enhance duty of care while on the road, giving travelers immediate access to 24/7/365 agent support when and where they need it. Help develop a travel policy to improve program compliance and traveler satisfaction. Fox World Travel Sample Travel Policy
Why is hotel attachment If a hotel is booked outside of the travel program or TMC’s booking platform, not only will the organization lose savings from hotel discount programs, but the duty of care for the traveler may be at risk if the traveler cannot be located in the event of an emergency.
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st best intere It’s in your . as possible r a le c s a e to b formation The more in , the more you provide d focused accurate an s al response the propos r eeting you will be to m objectives.
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TRAVEL RFP TOOLKIT
STEP TW O PL A NNING Important Planning and Research Before You G o to M a r k et Before you can get started in finding your perfect match, the key to a successful RFP is planning and research. Knowing whom to invite and what you need to do before going to market.
Communicate With Your Incumbent TMC Be aware of cancellation clauses in your current contract, such as those preventing early solicitation. Make sure you have contractual language that addresses a three- to fourmonth transitional service obligation, should the incumbent not be selected.
Get to Know the TMCs Researching and engaging with TMCs shouldn’t start the day you go out to bid. There are many ways to meet and improve your knowledge of the TMC network. These include: Attending online or in-person travel trade events and conferences, such as the GBTA conference. Asking your partner organizations whom they are using. Getting referrals from industry leaders, such as SAP Concur, Deem, Travelport and rental car and hotel partners. Reviewing their websites and company backgrounds. Are they an award-winning TMC? Do they maintain accreditations and memberships in the industry? Reading business travel press, such as Travel Weekly or Business Travel News (BTN). Subscribe to TMCs newsletters and follow them on social media. Or, if you hear about a new product or service that interests you, ask them for a demo! Develop a good list of prospective TMCs and continue to vet. It’s a lot easier to begin with more prospects during this step than it is to fall short in the RFP phase. 12
Who to Invite TMCs come in all sizes and expertise, from local family owned agencies to regional agencies offering national support services to large mega agencies offering global capabilities. Some are privately owned, and others are public. Some specialize in managing travel for a specific market, such as education, athletic or nonprofit. Most offer technology solutions such as online booking engines and data analysis tools, and a wide range of customer services. No matter the number of TMCs, the size or scope, the key to selecting the best TMCs to invite is to match your organization’s service needs, program goals and culture. For example, small or midsize accounts considering a mega TMC should investigate services it typically offers customers of that size and ensure they meet your needs.
TIP Narrow down the number of TMCs you invite to the RFP. Keep in mind the more TMCs you invite, the more responses you have to evaluate.
Mutual NDA Before releasing the RFP, anyone involved in the RFP process should sign a mutual non-disclosure agreement (NDA). Mutual NDAs protect your interests and those of your bidders.
MUTUAL NDA Or, mutual nondisclosure agreement, is a legally binding document used to protect both parties when intending to share confidential information. A mutual NDA protects both parties.
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TRAVEL RFP TOOLKIT
RFI, RFP O R R FQ? WHAT’S THE DIFFERENC E AND WHAT’S RIGHT FOR YOU? RFIs, RFPs and RFQs are often combined with one another or independently. Knowing when to use each document will depend on what you want to accomplish and where you are in the procurement process.
RFI
RFP
RFQ
Request for Information
Request for Proposal
Request for Quotation
You’re seeking general information, requiring TMCs to meet minimum criteria. You have broad questions with yes/no answers. You’re exploring the market and not sure what you’re looking for. Helps narrow down the field of potential TMCs usually followed by an RFP. Typically, does not include pricing.
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You’re certain you want to reevaluate your current TMC contract or seek a new TMC partnership.
You only want to compare TMCs based on price.
You have specific questions you want to address.
You know exactly what you want.
You have a good idea of what you want, but you need more details. Provides a clear comparison of TMCs offers and capabilities. Typically, includes a pricing proposal.
Often used in renewals.
All available solutions are extremely similar. Allows you to focus on price only. Detailed travel data required for TMCs to provide accurate pricing.
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Is a Formal RFP Necessary? While some organizations are obligated to undertake a formal RFP process, any company can choose this route. Keep in mind the RFP process can be costly and time consuming. Before you get started, ask yourself, is your company serious about making a change, or are you just testing the market? An informal RFP process may simply involve an email or call to a select number of TMCs asking them how they’d solve a problem (and what their costs are for doing so). Check with your company’s procurement/ sourcing requirements. Is there a formalized process in place for selecting supplier partners? If you’re not sure about changing TMCs and just looking for better pricing, go directly to your current TMC and request a price review. If then you are not getting the pricing you are looking for, you can always conduct an RFQ. Invite fewer TMCs to the bidding process with fewer solution-focused questions.
Narrow Down Your Search and Start with an RFI If you are in fact-finding mode and still exploring the market, then you may want to conduct an RFI to narrow down your search before you start the RFP process. The basic components of an RFI should include: Company overview/background. Introduction and purpose of the RFI. Explanation of scope of requirements. Broad questions: yes or no questions may suffice. Details of next steps - RFP or RFQ.
N ot e : At the end of th e RFI process, ideally, you should have it n arrowed to 3-5 TMCs.
Ask a select number of TMCs to conduct a company capabilities proposal and/ or presentation, including product demonstrations. Follow up with clarification questions and an RFQ. 15
TRAVEL RFP TOOLKIT
Start to pre-define RFP Evaluation Criteria and Scori ng Syste m Before issuing an RFP, it’s imperative to create pre-defined RFP evaluation criteria and set up a scoring system early in the process. Clearly defining the evaluation criteria will improve your confidence in the TMC selection and set expectations with the bidding participants, ensuring high-quality RFP responses while delivering fairness and transparency. Including the scoring guidelines will help TMCs to focus on the issues you need to solve the requirements most important to you and your organization.
Scoring Approaches
TIP Remember the RFP team of internal stakeholders you assembled in the first step of the RFP process. Work with this team to develop and prioritize your evaluation and selection criteria.
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There are two primary approaches to scoring proposals — simple scoring and weighted scoring. Both strategies have pros and cons. 1. Simple Scoring
In this approach, each question is evaluated on a set scale, often from one to five. Evaluators assign the score based on your pre-defined scoring criteria. For example: 1 Noncompliant 2 Minimal
(Does not meet requirements)
compliance (Meets minimum requirements)
3 Partial
compliance (Acceptable response)
4 Mostly
compliant (Good response)
5 Fully
compliant (Excellent response)
Benefit As the name suggests, simple scoring is straightforward and can be applied when using the sample TMC RFP Scorecard template included with this workbook.
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2. Weighted Scoring
Benefit
The weighted scoring approach enables you to prioritize or weight, different elements of your RFP based on their importance to your organization. For strategic RFPs, this scoring model enables a clearer picture of which TMC offers the best long-term value. Generally, weighted scoring is the preferred approach for most procurement professionals.
You can fully customize the value of each question and section of the RFP. Consequently, sharing this information with your TMCs enables them to dedicate more time and attention to the areas of the RFP that are most important to you.
ard
TMC RFP Scorec Template
Basic Weighted Scoring Example
This sample template can be used as a side-byside scoring tool when evaluating the TMC RFP responses.
List your RFP evaluation criteria in order of priority. Using a point system (as shown in the sample scoring matrix below), a maximum number of points are assigned to each criteria component according to the degree (extent) to which the proposed solution meets stated requirements. The higher the maximum number of points possible, the more the scoring system is weighted towards that question or topic.
Decision Criteria
Maximum Points
TMC experience - Are they the right fit for our organization and culture?
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Traveler Services - Responsive, friendly 24/7 support
10
Online booking tool/solution - User experience to drive online adoption
10
Improve cost savings - Cost reduction strategies/supplier negotiations
10
Account management support - Ongoing proactive consultation
10
Implementation & Training – Adoption process and timing
10
Duty of Care – Traveler alerts and tracking
10
Reporting capabilities – Increase visibility and control
10
Pricing – Competitive pricing and simplistic fee structure
5
Technology and innovation – Ability to deliver customized solutions
5
Customer references and reputation
5
Total Points
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TRAVEL RFP TOOLKIT
Outsource to an RFP Consulting Firm If you don’t have the time or dedicated resources to commit to a lengthy RFP process, consider outsourcing to an RFP consulting firm. Consulting firms assist with creating the RFP, finding qualified TMC bidders and issuing the RFP. They can perform bid analysis, help evaluate bid responses and support you with final decision-making if needed. Some even help with the implementation should a new TMC be selected.
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ur ck with yo e h c s y a Alw ing ’s purchas company ting efore star b t n e m t r depa they rocess, as the RFP p ing a purchas e v a h y a m ent and requirem in ent system m re u c ro p place.
E-PROCUREMENT Electronic procurement refers to a set of tools that optimize purchasing. E-procurement solutions are online platforms through which purchasing teams can manage the entire purchasing process.
Deciding on a Response Format and Delivery Method Before you begin building the RFP, you need to determine what response format and delivery method will work best for you and your organization. Many organizations prefer to manage the process and delivery through emails and attachments, while some manage the process and delivery through online e-procurement systems. Yet, some industries in the public sector still require traditional postmarked hard copy proposals. Each format has its pros and cons, so decide which one will provide the greatest value for your RFP process.
PDF via email Pros
Open response format, typically in the TMC’s proposal template. Allows TMCs to be more creative and provide visual components. Bidder can provide hyperlinks to supporting exhibits vs. providing multiple attachments in a separate file. 18
Cons
If response limitations are not set, you may encounter long rambling answers and boilerplate responses. It may be harder to make side-by-side response comparisons as each bidder’s response formats will be inconsistent. Sending documents and sensitive data via email may be less secure unless passwordprotected or encrypted.
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Cons
Spreadsheet via email Pros
Excel format comes with a higher risk of human error and is more time-consuming for the bidder when copying and pasting text from one document to another.
You can lock answers down to the fixed text in a spreadsheet. This ensures that there is more consistency across the submissions.
Narrows the opportunity for creative formatting and graphics, making it harder to read.
Can easily do side-by-side response comparisons between TMCs.
Inability to provide hyperlinks to supporting exhibits, leading to multiple attachments.
Responses are concise and you avoid having to read excessive boilerplate and marketing collateral.
Sending documents and sensitive data via email may be less secure unless password protected or encrypted.
e-Procurement System via the web Pros
Cons
A centralized communication center – you can manage all Q&A, communications, and updates through the tool.
Response character/word and attachment limitations may not allow the bidder to provide a suitable response.
You can configure the system for response criteria (i.e., single line, multiple lines response with character limits), leading to shorter, concise responses.
Bid system may encounter issues or uploading errors causing bidder to be locked out.
Some systems automate the evaluation process, making it quicker and easier to evaluate.
Narrows the opportunity for creative formatting and graphics, making it harder to read. 19
TRAVEL RFP TOOLKIT
STEP TH R E E EXECUTING PREPARE AND LAUNCH AN EFFECTIVE TRAVEL MAN AGE MEN T RFP The key to finding the perfect match is knowing what information you need to provide about your organization and travel program, what information to ask in return from the TMCs and what method you want to use to obtain this information.
Struc turin g The RFP
TIP When using an RFP template, don’t forget to tailor the RFP to articulate your program goals and provide questions that speak to your specific needs and culture. : sample Get started te RFP templa
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At last, it’s time to write the RFP. A standard travel management RFP contains several primary sections to guide bidding TMCs as they make a case for you to select them as your travel management provider. Ideally, the TMCs will structure their proposal response by following the RFP outline you provide. This allows you and your evaluators with the specific information you have requested for a balanced comparison of each bid. An RFP template can provide good structure and guidelines but should always be customized and focused on what matters most to your organization and travel program.
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KEY ELEMENTS TO INCLUDE
I N T HE RFP ST R UCTUR E RFP overview: This provides the TMCs with the specific requirements they must fulfill to respond to your RFP. At a minimum, it should include: Company overview/background. State your program objectives clearly. List any pain points regarding your current program you wish to improve. Detail your travel program profile (scope, current and future state, goals). Include your company travel policy (if available).
Evaluation criteria and scoring approach (rank in order of priority). Consider conducting a bidder’s conference in which you invite potential bidders to an online conference allowing them to ask questions that may not be covered in the RFP. Typically held within one week after the RFP has been launched.
Travel data: By providing the bidding TMCs with as much travel data as possible helps facilitate accurate and solution-focused pricing recommendations. Not providing all TMCs with the same detailed pricing that your incumbent will likely have will put them at a disadvantage and you will not have an apples-to-apples comparison. Travel policy (if available, attach with RFP). Locations by country and traveler head count by country. Total travel and expense for the previous fiscal year. Projected volume and transactions for the current fiscal year.
TOO L: To help you compile the data TMCs often
Dow Sam nload Pric ple E the ing xcel tem pla te
require, fill in the
Online booking tools and online adoption rate by country, if applicable.
Travel Program Information requested
List preferred air, hotel and car suppliers, if applicable.
in the second worksheet tab.
Breakdown air, hotel, car rental, rail and ground transportation spending by country. 21
TRAVEL RFP TOOLKIT
RFP and selection timeline: RFP launch date to prospective bidders. Due date for questions from bidders.
BIDDERS CONFERENCE A bidder’s conference is a conference call where all bidders (TMCs) gather to ask any additional questions that
Date answers will be provided to bidders.
were not addressed in the question
Date and time of bidder’s conference (if applicable).
ensure all RFP bidders receive the
Due date and time of the RFP.
the project stakeholders to develop a
Announcement of finalists.
deeper understanding of the project.
phase of the RFP. These conferences same information and gain time with
Projected date(s) of finalist presentations. Final award. Implementation begins. Go-live date.
TIP Allow TMCs at least one month to respond and slate
Optional Contract terms and conditions (T&Cs): Specific contractual terms that will be agreed upon during the selection process.
at least four to six weeks to evaluate responses. Also, allow enough time to negotiate with a shortlisted or winning bidder.
TMC questions: Format your RFP questions into sections by category, so you can easily assign sections to specific team members. Section-based RFP formats also make it easier for TMCs to complete and for you to assess and score later. See sample RFP template for frequently asked RFP questions organized by section.
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Be sure to allow enough time for implementation. Three months is a good guideline for implementation, but this may vary based on the size and scope of your program.
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RFP confidentiality, terms and costs: A statement indicating that all information contained in the RFP provided by you and likewise by the TMCs remain confidential, as well as any costs associated with the preparation of the proposals and their presentations are the responsibility of the bidding TMCs. Proposal preparation requirements: Required documents, response criteria and submission instructions. Rules for submitting questions and feedback with the RFP team (who and how).
Client references: References should only be called if required at this stage in the process. If required, the standard is to request two or three current references of similar size and scope. In addition to asking the TMCs to provide the contact information of each reference, ask them to briefly explain how the references may be similar to your program. Even clients who may not be alike on the surface can be similar in other aspects. For example, perhaps the referenced client also had a tight implementation timeline or experienced a similar service issue and the TMC provided innovative solutions to meet these requirements.
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TRAVEL RFP TOOLKIT
Pricing: BUNDLED PRICING When two or more separate products/services are together in a single package at a different price from the sum of the
Next, request TMC pricing or create your pricing template using the sample Excel pricing template, which includes fields for all components of your requested services. By asking for specific prices or transaction fee pricing rather than bundled or management fee pricing will put you in a better position to compare TMCs’ prices on an apples-to-apples basis.
components’ prices.
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E LS : D O M T S CO
In a transaction-based model, travelers are billed at the point of sale or billed on invoice and centrally billed. The TMC typically retains all supplier commissions, which enables them to keep their transaction fees low.
reference Here’s a quick e most to some of th nd in the common fou ement travel manag industry.
This model also provides an apples-to-apples comparison from one TMC to another, and it’s easy to compare these costs to the self-booking options. Plus, the transaction fee-based approach enables organizations to benefit from services based on needs, especially if usage is low.
Tr an sa ct io n Fe e- ba se d
Tra nsa cti on Fee -Ba sed Wit h Com mis sio n Reb ate In a transaction fee-based model with a commission rebate, the TMC applies a fee to each transaction; however, the difference occurs in that the TMC returns a pre-determined amount of commissions from the supplier to the client. This often results in higher transaction fees than a model without a commission return. However, this method is also difficult to compare prospective TMCs’ financials as the commission received will vary from provider to provider.
Pe r- tr ip fu ll y bu nd le d In the case of a per-trip fee-based model, clients pay a set fee, usually consisting of a fixed amount per trip regardless of how the trip is booked with the TMC. These fees may be based on a number of criteria and most often inclusive of TMC services and fees. For one, the cost of the original trip typically would not incur any additional post-booking service fees (such as after-hours premium or assistance with an online booking). This fee model simplifies budgeting and forecasting trip costs if the client has strong historical data to apply.
Sub scr ipt ion fee -ba sed This approach charges clients on a peremployee basis or a simple flat fee per period (monthly, quarterly or yearly.) Essentially, this model is based on the client’s number of users and/or expected trip volume at any given time for the billing period
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TRAVEL RFP TOOLKIT
READY, SET,
LAUNCH!
Be Prepared Here is when you’ll start fielding questions around process, requirements and more from your TMCs. If you’ve followed all the previous steps, you’ve got nothing to worry about. You’ve set yourself up for success!
7 helpful rfp writing tips
Focus on question quality, not quantity Review your RFP once it’s written to ensure the narrative is logical and there aren’t any duplicate or overlapping questions. Avoid asking questions that require long paragraph-style responses. Ask one question at a time and be specific to avoid vague responses. Clearly define the project scope and response requirement to compare apples to apples. 26
TIP Ask the TMCs to provide case studies demonstrating proof that they can deliver the solutions you are asking for.
A successful RFP is explicitly clear about any technical issues or possible roadblocks. By explaining this up front, you will weed out TMCs that are not up for the task and connect you to those who are. Request a “no fluff” rule to ensure your bidders keep their answers concise. Ask for proof points and case studies demonstrating their experience or how the TMC has solved a similar problem.
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TRAVEL RFP TOOLKIT
S TEP FOU R EVALUATING CONDUCT THE INITIAL EVALUATION Ok, you’re almost there! The RFPs are in and it’s time for you and your RFP team to dig in and start evaluating!
Your evaluation team
TIP It’s a good idea to create a short guide for your stakeholders to follow. Include evaluation criteria and scoring process, along with roles, responsibilities and timeline.
Work with the RFP team of internal stakeholders you assembled in the first step in the RFP process. You will find it helpful and less daunting to divide and conquer by assigning sections of the proposals to subject matter experts (SMEs) to review and evaluate.
Evaluation criteria and scoring system Using the pre-defined evaluation criteria and scoring system you established and provided to the TMCs in the RFP ensures reviews are as objective as possible. Quantify the areas of evaluation by using the scoring system and weight areas that are most important to the organization.
Technical responses
Start by separating the technical responses of the proposal from the financial proposals. Evaluate the technical proposal and score before evaluating and giving sight to the financial proposals. Evaluating both simultaneously may color your judgment of the technical responses.
Financial proposal Compare financial offers and staffing proposals on spreadsheets. Have financial managers review proposed fee structures or any changes to them. 28
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Terms and conditions Have your legal (SME) review any red-lined requested changes to your terms and conditions (if applicable).
In addition to evaluating responses, there are other things you can do to aid the selection process: When evaluating responses, try not to compare solutions rather than features. Look at the problems you’re trying to solve and how the product or service solves your problem. Refer to your initial strategy in the first step and think about what you’re trying to achieve. It is crucial to remember that your relationship with a TMC extends way beyond the transactional element of booking business travel. Did the TMC showcase case studies and proof points, demonstrating how they meet your requirements? Look at client retention statistics and Net Promoter Score (NPS). Has a TMC been able to keep their customers satisfied and retain? What other industry recognitions have they achieved? Weigh how financial stability might affect the quality of service over the life cycle of a corporate travel program contract. Is the TMC in this for the long haul? Or are they a candidate for a merger or acquisition? Call TMC references, including recently implemented or lost accounts.
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Upon completin g your evaluation using your established criter ia and scoring system you may have a clear-cut winner at this point and can proceed to the cl osing step and begin contract negotiations an d award. 29
Next phase in the evaluation process If you followed the evaluation criteria, you should have two or three short-listed TMCs to select from. However, if they are still too closely ranked, you may be ready to move to the next phase in the evaluation process. Here are some suggestions to get you closer to finding your perfect match:
Clarification questions Gather your evaluation team and develop a final list of clarification questions to send to those TMCs. Again, weigh your questions, tally the score and rank the results.
Best and final presentations Invite the finalist to present (in-person or remotely) and ask questions on their proposals while sticking to an agenda.
TIP Face-to-face meetings are key to building solid relationships and trust.
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Unless you have carte blanche, include decisionmakers from your evaluation team as your presentation panel. Use your weighted criteria and the total proposal score to guide your award decision.
TMC site visits Site visits are also invaluable for getting a feel for how a company operates. Visit TMCs that reflect the culture and service configuration you desire. In addition to meeting the account team (account manager, operations manager and agent team) assigned to your account, meet with the TMC’s leadership. These introductions and visits will tell you a lot about a company’s culture. Face-to-face meetings are key to building strong relationships and trust.
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STEP FI VE C LOSING SELECTING YOUR PERFECT MATCH You’re almost there! You’ve narrowed it down to one leading TMC. It’s time to begin negotiations, lock in your contract, award the winner and notify the TMCs who were not selected.
Be sure you have come to terms before advising non-winning TMCs. If negotiation is needed, focus on the terms and categories that will make the most impact (for example, if a fee category is higher but never used, there is no value in negotiating it). Focus on delivering good news, like celebrating the verbal award with the TMC, even if further contract discussions need to occur before it is official. Further, if a TMC requests a debrief meeting to gain further insight into the scoring or decision-making process, it is advisable to provide this courtesy. Not only does it help the TMC better understand your decision, but you might also gain important feedback on the RFP, which will only serve to improve the process next time.
Need more h elp?
C o n g r a t u l a t io n s! You’ve successfully navigated the RFP process! Now you are ready to get started in finding your perfect match.
Fox offers all th e tools and resources you need to make your travel pro gram a huge success! Call 888-369-8 or email
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TRAVEL RFP TOOLKIT
an d rfp best practices D o ’s Do nt ’s Do
Don’t
Research TMCs up front and invite only those from a select group Researching who you’d like to invite to the process is every bit as important as writing a great RFP. Like any relationship, trust is built (and lost) on communication and chemistry – it is impossible to establish trust in a purely documented process. This is why it is so important to engage with and get to know the bidding TMCs.
Invite more than 3-5 TMCs to the RFP process Comparing proposals is quite challenging and requires a lot of re-reading and notetaking to assess them all. You may also unintentionally discourage the best TMC from responding or taking the time to tailor their response, as they may feel the number of agencies competing undervalues their work and they are just one in the herd.
Do
Don’t
Maximize the value you are getting from the RFP process Invite TMCs to the RFP process that have a legitimate chance at managing your travel program, even if you have an established relationship with a supplier.
Feature-compare, rather, solution compare when evaluating responses All TMCs have comparable core services. Therefore, it’s critical to focus your questions on value rather than features to appreciate how one TMC may differentiate over another.
Do Be as transparent and upfront as possible TMCs spend a great deal of time and energy creating proposals. Truly, they want to provide you with compelling and relevant responses. However, they need to know what matters most to you. Therefore, the more you can tell them about your needs and priorities, the better responses you’ll get. Include your RFP evaluation criteria in the RFP, as well as the weighting you plan to use.
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Don’t Don’t deviate from the RFP criteria Once established, your RFP evaluation criteria should be the foundation and guide to your scoring process.
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