Create a Travel Management Company RFP that ensures all your needs are met and that you pick the very best fit for your company culture.

Putting together a Travel Management Company RFP can be intimidating. Not just any standardized RFP form will ensure you make the right choice in partnering with a potential vendor. However, don’t allow that fact to scare you away from the RFP process. Here’s what you need to know to run a Travel Management Company RFP effectively for the first time as an SME.

Key Takeaways

• Avoiding the RFP process can lead to fewer vendor options, a lack of standardization and difficulty comparing vendors.
• Before creating an RFP, consider your travel needs and your goals for your travel program.
• Be as specific and detailed as possible in your RFP.
• Build your RFP with the help of stakeholders to ensure that a chosen vendor meets Travelers’ real-world needs.

Why You Need the RFP Process

A Global Business Travel Association study found that, “Of…Travel Managers at…smaller companies surveyed — with 5,000 or fewer employees — seven in 10 (69%) say they negotiate with hotels entirely outside of an RFP process. This compares to only about one in five at larger companies. Four [Travel Managers] in five [at] mid-sized (79%) and large programs (81%) conduct formal RFPs, including almost two-thirds [of Travel Managers] that negotiate exclusivelythrough RFPs.”

So, if you’re a Travel Manager at an SME and you negotiate with your travel vendors outside of the RFP process, you’re not alone. 

However, the same study found that, despite SME Travel Managers not majority adopting the RFP process, they do recognize the very real risks and drawbacks that come from this decision. Drawbacks cited include less standardization, vendors not fully understanding the contract terms, fewer vendors considered and greater difficulty comparing vendors.

You can avoid drawbacks like these, though. Enjoy a more streamlined, beneficial vendor comparison process when you create an efficient Travel Management Company RFP.

What to Think About Before Creating a Travel Management Company RFP

There are certain things you need to consider as you build out a Travel Management Company RFP. Before you begin laying out your formal, standardized document, consider your current travel program. Think about how you’d like it to develop. Talk to shareholders and leadership. Nail down what it is you’d most like to see from partnering with a new Travel Management Company. What are your goals for the future and how can a Travel Management Company help you reach those goals?

All of this information can help you build out an RFP that ensures you actually partner with a Travel Management Company that can meet your needs.

What to Include in a Travel Management Company RFP

There are a few things you’ll want to include in your Travel Management Company RFP. These inclusions are regardless of your individual, unique goals for your travel program.

First, include some information about your organization. What does a potential vendor need to know about your team, company culture and existing travel programs? Then, list your desired services, as well as what you expect to get out of a relationship with a Travel Management Company. You’ll likely need to go into more than just the base-level services that you expect. Also include what you would like to see in terms of tech resources, user experience and payment options. Be as specific as possible, both in desired outcomes and markers of a successful relationship.

Then, ask companies what they can do for you in light of all of your needs. Furthermore, ask the Travel Management Company to provide examples of clients that are similar to you in their spend, culture and travel needs. This will allow you to get a feel for whether or not the company has enough experience providing the level of service you require.

As you go through the entire RFP creation process, bring in your stakeholders to get their input. What questions do they have? What do they need from an effective relationship with a Travel Management Company? A certain vendor may look good to you, as the decision-maker, on paper. However, you want to ensure that a chosen vendor will improve your travel program for those actually doing the traveling.

How to Distribute Your Travel Management Company RFP

Once you have a Travel Management Company RFP that you feel confident about, and that all stakeholders have signed off on, it’s time to begin soliciting proposals. You can start with Travel Management Companies that you may have worked with in the past, for example, on a more limited basis, or for one-off travel needs. You can ask industry peers for referrals and insights as to whom they’re using for their travel needs.

As you go along the process, trust your instincts. Are companies you’re considering responsive to follow up questions? What behaviors are they exhibiting now that may be an indication of how well (or poorly) they’ll provide services in the future?

When comparing and contrasting potential partners, don’t solely look at price as the deciding factor in who you go with. Flexibility is important to many SMEs when choosing a Travel Management Company, as are scalability and duty of care services. Tech tools and ways that a Travel Management Company can use your data to help you get more out of your travel program are also key considerations.

What’s Next?

As you begin building out your Travel Management Company RFP, use our convenient downloadable template to ensure you’re asking all the right questions.

Need more insights as to what you can expect when working with a Travel Management Company? Check out the JTB Business Travel Waypoint blog for more insights for Executives, Travel Managers and Travelers, as well as our full suite of travel management services.