The Business Travel Magazine Oct/Nov 2019

ARRIVALS
THE KNOWLEDGE
How to... Take your RFP
in the right direction
Culture, capability and cost are the three
key factors influencing an organisation’s
selection of travel management
company. Read on to find out how one
global business went about it.
THE BACKGROUND
“You’ve got to have a really good
understanding of your objectives and
requirements,” advises the head of travel
for a London-headquartered
financial services business.
“Going to RFP for a TMC is a
really time-consuming process
for both you and the TMCs you
meet with,” they explain.
The organisation had been
with the same TMC for five
years and was seeking a new
approach. “We’d directly contracted with
Concur as our booking tool and we needed
a TMC that could work with that, so the
process was very geared towards that.”
They stress the importance of doing your
research within your own organisation:
“We engaged our stakeholders from the
start. Finding out what they wanted was
key. You also need buy-in – not just from
your senior people but from your bookers
and travellers too.”
THE SHORTLIST
For this organisation,
there was a limited
number of TMCs that had
the global presence and
capability to serve their
needs. “We wanted global
consistency – working
with multiple TMCs was too complex,”
explains the head of travel.
“We went out to five TMCs and it was a
very structured process. We looked at their
technical expertise – specifically relating to
Concur – plus their reporting capabilities
and cost effectiveness.”
They continue: “The incumbent has an
advantage because they know your
programme and culture, so we wanted to
help the others understand our specific
requirements too.” The organisation
narrowed the shortlist down to three TMCs
it believed could meet their needs.
THE TMC POINT OF VIEW
“They did a tremendous job throughout
the procurement processes,” says a
senior member of one of the
shortlisted TMCs. “Bidding isn’t
cheap for a TMC so we have
to be careful what we go for.
Sales used to be about
going for every bit of
business, but that just
doesn’t work
anymore.”
They add:
“We also have
to consider the
risk: will that
company be around
for long? Is it a good
name for us to work with? Would we prefer
a rival? Are they currently with a TMC that
we’d like to take them off?”
And what helps TMCs during the RFP
process? “Companies need to share the real
reasons behind the RFP before it is even
issued. I can name many companies who
habitually go out to RFP every three years
just to screw their incumbent on price,”
says the TMC spokesperson.
“Don’t waste everyone’s time doing that.
It’s expensive for all parties and it’s also
time-consuming.”
Transparency is key, they add: “Companies
being secretive during the process doesn’t
help us one iota. We don’t mind if we ask
for more information and they therefore
have to share that with all bidders.”
And as for unsolicited TMCs... “If you
receive an invitation to bid out of the blue
then you know you’re probably just making
up the numbers,” says another TMC boss.
“That’s probably a piece of business we
wouldn’t pursue.”
THE OUTCOME
It took 10 months from
start to finish for the
organisation to carry out
the RFP process and
make its selection.
“We absolutely made
the right decision,” says
the head of travel, who
attributes the successful
outcome to constant stakeholder
communication and a thorough and
fair RFP process.
“We kept revisiting them to advise them
on progress along the way. Our goals had
been identified from the offset and referred
to throughout, which was key to the whole
process – it was a consistent evaluation
process,” they explain.
And one last piece of advice: “Going
through an RFP for a global TMC is a heck of
process – I’d say to do it no more frequently
than every five years.”
THEBUSINESSTRAVELMAG.COM
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