Hotel RFP FAQs

Hotel RFP FAQs
Hotel RFP FAQs2018-11-09T08:16:07+00:00

Welcome to our Frequently Asked Questions (FAQs) page. Here you will find FAQs related to:

If you have a question that isn’t answered here, please contact us.
We would like to assist you in any question related to RFPmaker hotel RFP tool.

FAQs related to RFPmaker Hotel RFP solution

We have not heard about RFPMaker before?2018-11-12T10:01:11+00:00

RFPMaker is a Danish company, with offices in Denmark, US, Bulgaria, Ukraine and the UK. The team at RFPMaker has many years experience working in the Corporate Business Travel Industry.

Is there any commission for the bookings?2018-10-18T14:05:56+00:00

In addition to the yearly subscription, the Hotels will additionally pay a fixed transaction fee of 2€ to RFPMaker per each realized room-night booking made by employees, members, or associates of the organizations introduced to HOTEL by RFPMaker via the RFPMaker platform.
Payments of fees according to this clause are calculated according to the client’s actual spent number of room nights, regardless if this number is higher or lower than the original booking.

Please see RFPMaker Terms for more info.

Do I need to pay a subscription fee every time I participate in a tender?2018-10-18T14:06:04+00:00

No, you only pay a yearly subscription fee and you have unlimited access to future tenders.

Which other Bid types does RFPMaker support?2018-10-18T14:06:13+00:00

Our online platform offers to negotiate either a FIXED PRICE or a DISCOUNT OF BEST AVAILABLE RATES (BAR). For more info see “What does a BID TYPE of hotel eRFP program mean?”

Does RFPMaker offer dynamic rates?2018-10-18T14:06:20+00:00

Yes. When negotiating a BAR discount, it is usual that any corporation is able to get 10% off BAR as a standard. Anything above a 15% discount is then a negotiated rate. The higher the volume of room nights and business a corporation guarantees, then the greater the discount they get.

An email I want to use for registration is already used2018-10-18T13:58:37+00:00

If your email is already used in RFPMaker system please use another corporate email. Sometimes, managers are using same general emails to register on RFPMaker platform. In case you can’t enter your account please notify our Support Team via email at support @ rfpmaker.com

FAQs related to Hotel RFP Meaning

What is a Hotel RFP Program?2018-10-18T13:39:34+00:00

A Hotel RFP program is where a corporation, association, or organization, will negotiate a discount with specific hotels in locations where their employees/members travel to, in order to reduce the cost of travel for the company.

A corporation will carry out an RFP program for several reasons:

To reduce overall travel expenditure costs
To provide a service and efficiency to their employees
To control travel and understand travel needs for the company
To perform a “duty of care” in knowing where their employees are, and that they are in a safe environment.

A corporation will either run:

an annual programme which negotiates rates for the whole year across multiple locations
a specific programme for a project for a period of time in one or more locations
a specific programme for a single event in a single location

A corporation will negotiate a discounted rate, either a set rate or a discount of the BAR (Best Available Rate that you will find as a member of the public).

What does a BID TYPE of hotel eRFP program mean?2018-10-18T13:55:22+00:00

A FIXED PRICE, also known as a “flat room rate” means that the rate will always remain constant, even if the publicly available rate (Dynamic) may change due to demand.

A DISCOUNT OF BAR means the rate will always change as the publically available BAR rate changes, but the amount of discount will always be the same.

What is the difference between LRA and Non-LRA rates?2018-10-18T13:55:30+00:00

The rates are usually either LRA or Non-LRA. Last Room Availability (LRA) means that the hotel will not close out the availability of that particular room rate deal until all the rooms in the hotel have been sold. Usually, if a company insists on the rate being LRA, then the rate the hotel gives them will be higher.

Why is rate parity agreement dangerous to the hotel industry?2018-10-18T13:55:35+00:00

Rate parity is a legal agreement between a hotel and the Online Travel Agency (OTA) in which hotels guarantee to use the same terms and rates on all the distribution channels.

In the case of OTAs, a hotel provides the same prices on all the booking platforms and a hotel’s own website. Consequently, hoteliers have to offer the same rate for a room, no matter which source the guest is using for booking and no matter the commission they pay to the OTA.

The most destructive outcome of the rate parity agreement is the commission hoteliers pay to the OTAs. The higher OTA’s commission is, the less money the hotels earn.

When in fact the rates have to constantly remain on the same level, Online Travel Agencies can easily increase the fee and thus earn more while the hotel loses.

RFPMaker eliminates OTAs commission by offering to negotiate net rates and discounts of BAR directly through the platform.

Why do SMEs use OTAs today?2018-10-18T13:55:40+00:00

Until recently Online Travel Agencies (OTAs) have enforced price parity and there was little benefit to contacting hotels for a better deal, but due to recent court cases, the landscape is changing.

FAQs related to terminology used while making Hotel RFPs

OTA2018-10-18T14:30:48+00:00

Online Travel Agency are third-party online companies that offer consumers to book different travel related services, e.g. hotels, cars, flights, vacation packages directly via the Internet.

CRS Tool2018-10-18T14:13:54+00:00

CRS as a tool is used to reach the Global Distribution System (GDS). Hotel managers use CRS to manage online sales, marketing avenues, project rates, and availabilities which can be easily seen by the sales channels like Online Travel Agencies (OTAs).

Hotel CRS2018-10-18T14:14:33+00:00

Hotel CRS stands for hotel central reservation system and is commonly used in resort and hotel industry. CRS is a computerized system that revolves around storage and distribution of information concerning resorts, hotels and host of lodging facilities.

Commonly, a hotel CRS consists of different modules which include reservation, profiles, groups and blocks, rate and inventory control, administration, reporting, global distribution interface and PMS interface.

Hotel eRFP2018-10-18T14:25:24+00:00

Hotel eRFP is a Request for Proposal where a corporation, association, or organization negotiate a discount with specific hotels in locations where their employees/members travel to, in order to reduce the cost of travel for the company.
The document of RFP specifies what the customer is looking for and establishes evaluation criteria. It outlines the process, the terms and conditions and provides guidance on how the bid should be formatted and presented.

PMS / Hotel OS2018-10-18T14:25:38+00:00

Property Management Systems (PMS) and Hotel Operating System (Hotel OS) serve as a local hotel administration system and is being widely used (in-house) for reservation, availability and occupancy management, check-in/out, images, guest profiles, report generation etc.

GDS2018-10-18T14:25:33+00:00

GDS is a Global Distribution System – a network/platform that enables customers to access travel data, book and compare reservations options.

Flat Rates (Fixed Price)2018-10-18T14:25:04+00:00

A flat room rate means that the rate will always remain constant, even if the publicly available rate (Dynamic) may change due to demand.

Best Available Rate (BAR)2018-10-18T14:25:20+00:00

Best Available Rate is the lowest rate of the day that is available for booking to the general public. Consequently, instead of paying the same price for each room-night, the hotel customers could pay different prices each night.

BAR pricing is aimed to cut down confusion for hotel guests caused by complex rate strategies with lots of various prices. This practice brings transparency in terms of the prices offered by the hotel directly on its website as well as prices on third-party websites like Online Travel Agencies (OTAs).

Discount of BAR2018-10-18T14:25:13+00:00

A discount of BAR means the rate will always change as the publically available BAR rate changes, but the amount of discount will always be the same. When negotiating a BAR discount, it is usual that any corporation is able to get 10% off BAR as a standard. Anything above a 15% discount is then a negotiated rate. The higher the volume of room nights and business a corporation guarantees, then the greater the discount they get.

Dynamic Rates (Dynamic Pricing)2018-10-18T14:24:49+00:00

When it comes to Dynamic Rates, the key is flexibility. Dynamic rate means that the price will always change as the publically available BAR rate changes due to demand.

Last Room Availability (LRA)2018-10-18T14:31:13+00:00

Last Room Availability means that the hotel will not close out the availability of that particular room rate deal until all the rooms in the hotel have been sold. Usually, if a company insists on the rate being LRA, then the rate the hotel gives them will be higher.

Rate Parity2018-10-18T14:29:47+00:00

Rate parity is an agreement between hotels and Online Travel Agencies (OTAs) in which hotels guarantee to provide the same rate and terms for the same room on all distribution channels.

Revenue Per Available Room (RevPAR)2018-10-18T14:31:05+00:00

Revenue Per Available Room is a hotel industry metric to compare hotels of different sizes. It is measured by total room revenue divided by total rooms available.

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