Hearing 'no' isn't easy sometimes. But Marriott's Rene Mooran is proud that his team says just that to hundreds of RFPs each year, and the hotel chain isn't the only one becoming overwhelmed by the negotiation process.
"To a certain degree I'm proud that bids are turned down. It also means there are less re-bids…and hopefully it gives us more credibility," Mooran said when quizzed at the Business Travel Summit Amsterdam. "In negotiations it's important to keep the conversation real, to work on the same goal and have a long-term view."
Mooran's comments came after a CWT report looking at the company's merger with Starwood said the latter could now follow Marriott's lead and there's a 'threat' that travel managers could see an increase in declines to bid. Kevin Iwamoto's recent Expert piece describes how volume isn't so key anymore either and Mooran agrees.
But is it? Travel management is becoming more strategic and buyers are thinking more carefully about the hotels in their programme. Alison Searle, global travel specialist at Aggreko thinks buyers should consider whether independent hotels or chains are most suitable for travellers and that best available rate (BAR) can often be best for low volume areas. She believes travellers should be offered choice in a controlled environment by keeping the hotel programme simple and relevant, setting rate caps and using BAR rates.
I've heard others buyers mention that their TMC has a lower rate than their negotiated one. Another at the ACTE summit this week said that getting hotel data is a 'black hole' in her programme. When there are so many other ways of getting hotel content, think online travel agents and bedbanks, at low rates and new accommodation options can be booked, the relevance of hotel RFPs dwindles.