Follow our step-by-step guide on how to tender for travel management services

THE practice of issuing RFP’s (or RFQ’s – Request for Quotation) is very much an integral part of the professional purchaser's diet, and certain methodologies in terms of service can be easily integrated into the travel RFP, especially the tools and techniques which are used to remove as much subjectivity from the decision making process as possible.

STEP 1: Understand your objectives and set clear goals. Some companies have specific purchasing rules relating to the timing of tenders for major contracts, but, if you are merely experiencing service concerns with your current TMC, is a tender the answer? What are you hoping to achieve? Are you really prepared to change agents? Only when these points are fully understood should you proceed. A tender is a very timely and costly exercise, and it is likely you will not get full value from the exercise, nor will your professional reputation be enhanced, if you are simply 'benchmarking'. It is also as much about communication and change management skills, as it is about the procurement process.

STEP 2: Collect as much MI as you can relating to the current booking process and spend. I suggest by category – air, car, hotel etc – by supplier/route/class etc, by number of transactions, both off and on-line, booking processes, number of travellers, number of refunds and amendments, etc. Also, detail all the systems and operational processes you employ in-house.

STEP 3: If the size and complexity of your current programme warrants it, establish a steering group (typically operations, finance, legal, HR, key stakeholders). Focus groups involving bookers and your business travellers could also make a very valuable contribution.

STEP 4: Tender process research and due diligence. Understand your expected service levels, TUPE implications, cost models, communication plans, decision criteria and financial arrangements. If there are aspects of the above which concern you, either solicit help from a third party or conduct a pre-tender meeting involving all your potential bidders to openly discuss what you are trying to achieve and the information they will require your company to provide to assist them in producing a professional bid.

STEP 5: Draft the ITT (Invitation to Tender) document, and employ the KISS principal – keep it simple. Include the information referred to above, and also outline the key aspects (likely to be cost and service provision) of the programme which you would like to address, together with a detailed timeline for the process. Give your bidders a reasonable time span (a minimum of four weeks) for them to produce their response.

STEP 6: The decision process. It involves an evaluation of the bids so establish a short list, refine the decision matrix, clarify matters arising from bidders' presentations, undertake client/site visits, and select the successful bidder together with the steering group and project sponsor. Negotiate a contract.

STEP 7: Internal announcement, communication plan, and debrief for unsuccessful bidders.

STEP 8: Implementation process. Stage a kick-off meeting, then start the communication campaign. The process will involve significant work on recruitment, contracts, profiles, procedures, MI configuration, tech-nology, training, marketing, admin, accounting processes, premises and SLA/KPI agreements.

BACK