Business Travel News
Business Travel News
  • SECTIONSOpen Menu
    • Distribution
    • Global
    • Lodging
    • Payment & Expense
    • Meetings
    • Sustainability
    • Technology
    • Transportation
    • Travel Management
    • VIEW ALL
  • VOICESOpen Menu
    • Expert Q&A
    • 5Qs
    • OpEds
    • Sponsored Content
    • Podcasts
    • What to Watch 2025
  • RESEARCHOpen Menu
    • 2026 Guide to Booking Tools
    • Participate in BTN Surveys
    • Corporate Travel 100
    • Corporate Travel Index
    • Salary Survey
    • Small & Midsize Enterprise
    • Strategic Meetings Report
    • VIEW ALL
  • WEBINARS & FORUMSOpen Menu
    • All BTN News Desks
    • BTN Communities
    • VIEW ALL WEBINARS
  • EVENTSOpen Menu
    • Webinars
    • Business Travel Show
    • Business Travel Trends Forecasts
    • Business Travel Tech Talk
    • Business Travel ESG Summit
    • Entertainment, Sports & Media Travel Summit
    • Strategic Meetings Summit
    • Government Travel Summit
    • Global Travel Risk Summit
    • Business Travel Lodging Summit
    • Business Travel Hall of Fame
    • Business Travel Awards Europe
    • Travel Manager of the Year
    • VIEW ALL EVENTS
  • RESOURCESOpen Menu
    • BTN Academy
    • BTN Communities
    • BTN Primers
    • BTN Weekend Archives
    • Business Travel Buyer's Handbook
    • Business Travel Buyer's Techbook
    • Corporate Travel Index
    • Data Sources: The Reference Guide
    • Industry Terms Glossary
    • Hotel Search
    • Influencers
    • Traveler Experience Index
    • Webinars
    • White Papers & Case Studies
Business Travel News
  • Business Travel News on X
  • Business Travel News on LinkedIn
  • Business Travel News on Facebook
  • SECTIONS
    • Distribution
    • Global
    • Lodging
    • Payment & Expense
    • Meetings
    • Sustainability
    • Technology
    • Transportation
    • Travel Management
    • VIEW ALL
    Managed Travel GuidesNEW! BTN ElevateNEW! BTN IntelligenceNEW! BTN Next
    Subscribe to NewslettersBTN DailyBTN EuropeBTN Elevate for SMEsBTN SustainabilityBTN Next for Tech & DistributionBTN IntelligenceBTN Weekend
  • VOICES
    • Expert Q&A
    • 5Qs
    • OpEds
    • Sponsored Content
    • Podcasts
    • What to Watch 2025
    HRS: AI Could Cut Corporate Travel Task Costs by 75 PercentHRS: AI Could Cut Corporate Travel Task Costs by 75 Percent
    Accor Looks to Bridge Sales-Revenue Divide to Align Corp. PricingAccor Looks to Bridge Sales-Revenue Divide to Align Corp. Pricing
    'Presence Premium' Amps Event Value'Presence Premium' Amps Event Value
  • RESEARCH
    • 2026 Guide to Booking Tools
    • Participate in BTN Surveys
    • Corporate Travel 100
    • Corporate Travel Index
    • Salary Survey
    • Small & Midsize Enterprise
    • Strategic Meetings Report
    • VIEW ALL
    Annual Supplier Ratings• Car Rental Survey & Report• Hotel Survey & Report• Airline Survey & Report
    Special Reports• Meetings Tech Goes AI• Travel Payment Innovation 2026• BTN Intelligence's 2026 SME Report• BTN Intelligence's 2026 AI Report• Travel Risk Outlook 2026
  • WEBINARS & FORUMS
    • All BTN News Desks
    • BTN Communities
    • VIEW ALL WEBINARS
    Duty of Care Under Pressure: What 2026 Exposed About Corporate Travel Risk Management

    Weds., Nov. 18 at 9am PT / 12pm ET

    Sponsored by: Altour

    Beyond the Budget: What Travel Spend Reveals About Business Growth

    Thurs., Nov. 12 at 8am PT / 11am ET

    Sponsored by: Emburse

    Why Travelers Bypass Your Travel Program and How to Win Them Back

    Thurs., Nov. 17 at 9am PT / 12pm ET

    Sponsored by: Direct Travel, Spotnana

  • EVENTS
    • Webinars
    • Business Travel Show
    • Business Travel Trends Forecasts
    • Business Travel Tech Talk
    • Business Travel ESG Summit
    • Entertainment, Sports & Media Travel Summit
    • Strategic Meetings Summit
    • Government Travel Summit
    • Global Travel Risk Summit
    • Business Travel Lodging Summit
    • Business Travel Hall of Fame
    • Business Travel Awards Europe
    • Travel Manager of the Year
    • VIEW ALL EVENTS
    3rd Annual Business Travel Tech Talk Boston

    Hyatt Regency Boston - November 5, 2026

    8th Annual Business Travel Lodging Summit Americas

    Conrad New York Downtown, November 5, 2026

    15th Annual Business Travel Trends and Forecasts Chicago

    The Royal Sonesta Chicago Downtown - November 17,

    15th Annual Business Travel Hall of Fame

    The Plaza, NYC - December 2, 2026

  • RESOURCES
    • BTN Academy
    • BTN Communities
    • BTN Primers
    • BTN Weekend Archives
    • Business Travel Buyer's Handbook
    • Business Travel Buyer's Techbook
    • Corporate Travel Index
    • Data Sources: The Reference Guide
    • Industry Terms Glossary
    • Hotel Search
    • Influencers
    • Traveler Experience Index
    • Webinars
    • White Papers & Case Studies
    BTN's Business Travel Management Tool Box

    The BTN Group has a variety of resources for corporate travel managers to build and refine their program strategies. Not sure where to begin? Check out this starter pack.

    BTN CTI Calculator - New Q1 2026 Data Added

    Filter in or out as many as 200 cities, as well as hotel and car rental class and meals of the day and watch as the per-diem calculator automatically adjusts per diems to your program. Drill down into cost breakdowns and export the results.

  • Business Travel News Supplier DirectorySUPPLIER DIRECTORY

Price-Focused RFPs Not Driving Deals: Chauffeured Transportation Requests For Proposals Proliferate

By Michael B. Baker / July 16, 2006 / Contact Reporter
Business Travel News on X
As requests for proposals for chauffeured transportation service are becoming more commonplace, travel managers are not always taking the correct approach in their requests to ensure they get the service they desire—to the point where some major ground transportation won't even respond to their requests, according to the suppliers.

Major suppliers across the board said they are witnessing the disappearance of the reverse auction for corporate chauffeured services, much to their delight. Some travel managers, however, have begun taking the same approach with their RFPs, which the suppliers said ultimately weakens the managers' ground transportation programs.

"There's always companies that are price-focused in their RFPs," said Scott Solombrino, president of Chelsea, Mass.-based Dav El Chauffeured Transportation Network. "Some companies are just so driven by price that we can't compete. Our job is to convince the corporation that we can fit all of their needs and deliver them the highest quality service in the marketplace."

Other giants in the industry are echoing Solombrino's observation. Jonathan Danforth, CEO of Everett, Mass.-based BostonCoach, told BTN his company received several RFPs to which it will not respond because they are too concerned with price or are just looking for airport transfers, for which his company is not the best fit. Likewise, Norwood, N.J.-based Empire/CLS vice president of sales and marketing Bob Lockett said there is little room for negotiation in prices once his company puts out its proposal.

"We tailor our pricing in that RFP based on anticipated volume," Lockett said. "I'd be foolish to continue to cut that price because it doesn't make any sense. I know that with commoditization or procurement, their mandate is to cut cost, but you can only cut costs with our products so far, and then service levels deteriorate."

The problem, Solombrino said, is that some smaller chauffeured transportation providers often make promises to buyers that they cannot keep. Only a handful of suppliers actually have the assets to service a full-blown RFP, but it's easy for the smaller company to undercut the industry leaders, he said.

Those promises sometimes can be based on a network of affiliates that have varying qualities of service, he said.

"People are pretending that they have assets that they don't have," Solombrino said. "If you go and buy a computer from Dell, you want to make sure that you're getting it from Dell."

Kevin Iwamoto, a former president of the National Business Travel Association, who has experience on the travel buyer side with chauffeured transportation RFPs, said despite the suppliers' insistence on not becoming a commodity, price will always be an element in the RFP. However, Iwamoto agreed with the suppliers in that price should not be the top concern.

The key factors in choosing a ground transportation provider, according to Iwamoto, should be safety and security, risk mitigation and reliability, particularly when talking outside of the airport transfer realm. Because those who use the service are usually CEOs, other high-ranking executives or VIP guests, a lapse in any of those areas is going to be seen from the top, he said.

"Travel managers who make a selection just based on price are probably setting themselves up for failure," Iwamoto said. "In terms of commodity spend, it's probably not one of your highest spend areas. However, it's probably one of your highest-profile."

Many travel managers learn the hard way, said Jeff Greene, president of both the National Limousine Association and his own company, Greene Classic Limousines in Atlanta. A company that selects a supplier based solely on price will hear about it when one of their executives encounters a bad service incident.

"Cheap companies are a dime a dozen. They come and go," Greene said. "Companies that provide excellent, high-standard service are really hard to come by."

That's also a large reason behind the decline in reverse auctions, said Mike Fogarty, CEO of U.S. operations for United Kingdom-based Tristar Worldwide. A $5 difference in bids goes out the window once an executive is 10 minutes late for an important meeting, he said.

Fogarty said his company still will respond to price-focused RFPs, but he often sees even more basic problems in the RFPs he receives. Some, for example, seem to come from a generic template that include elements bearing no relevance whatsoever to ground transportation, he said.

Chauffeured car RFPs were rare as recently as three years ago, but have grown exponentially since then as more travel managers seek a managed chauffeured transportation program (BTN, March 20). Dav El's Solombrino said he's seen a 25 percent year-over-year increase in RFPs at his company. Despite the problems with the proposals, Solombrino said that on the whole, the quality and sophistication of RFPs appear to be improving, although the onus of educating travel buyers to continue in that direction is on the suppliers. NBTA put out a template RFP about the time the proposals were becoming more prevalent, and more buyers have been following it recently thanks to some of those education efforts, he said.

Even as the wrinkles are ironed out, the increase in RFPs ultimately will be a positive trend for the larger companies. As more companies move to a managed program, they'll be less likely to look at regional providers in lieu of one company that can provide service for their entire program. That RFP trend did not go unnoticed by Tristar, which responded by setting up a U.S. affiliate network, soon to be followed by its own fleet in key markets.

"Companies seemed to be focused on their local providers. Then, it became more of a national RFP," Fogarty said. "Now, we're starting to see a trend of people looking at it globally."
More

Sponsored Content

VIEW ALL
Business Access by Marriott Bonvoy™ at Business Travel Show America
Business Access by Marriott Bonvoy™ at Business Travel Show America
Seamless Solutions for Your Event Travel
Seamless Solutions for Your Event TravelBy Cathay Pacific
Why travel programs need a multi-source content strategy
Why travel programs need a multi-source content strategyBy Spotnana
Redefining Corporate Travel Through Connectivity, Innovation and Value
Redefining Corporate Travel Through Connectivity, Innovation and ValueBy Qatar Airways

Subscribe to Free

BTN Newsletters

pixel2

Click Here for our Terms and Conditions and Privacy Policy.

  • Most Read
  • Most Shared
  1. Marriott Confirms Corporate Job Cuts
  2. American Express to Cut 5 Percent of Workforce
  3. AI Is Changing Business Travel Booking Tools, But Not Everything Underneath
  4. Direct Booking Solutions Combat 'I Found It Cheaper'
  5. United Opens New Concourse, Largest Lounge in Houston's Bush Airport
  1. Advito Piloting Intelligence Platform Across Consulting Practices
  2. JetBlue Increases Checked-Bag Fees, Again
  3. Delta: Planned Heathrow Terminal Move 'Deeply Disappointing'
  4. Expensify, Visa Sign Referral Agreement
  5. Lufthansa Again Cuts Profit Outlook Amid Rising Fuel Costs
Business Travel NewsBusiness Travel News
  • About Us
  • Contact Us
  • Advertise
  • Business Travel News on X
  • Business Travel News on LinkedIn
  • Business Travel News on Facebook
BUSINESS TRAVEL NEWS
NORTHSTAR TRAVEL GROUP
Business Travel News
  • About Us
  • Contact Us
  • Media Kit
  • Subscribe to Newsletters
  • Advertise
  • Editorial Guidelines
  • BTN Europe
  • Purchase Reprints
  • Privacy Policy
  • Terms & Conditions
  • Do Not Sell or Share My Data
Northstar Travel Group
  • Retail Travel
  • Travel Weekly
  • Travel Weekly Asia
  • TravelAge West
  • TravelPulse
  • TravelPulse Canada
  • TravelPulse Quebec

  • Hotel Investment
  • Burba Hotel Network

  • Travel Technology
  • Inntopia
  • Phocuswire
  • Phocuswright
  • Web In Travel
  • Meetings & Incentives
  • Northstar Meetings Group
  • Meetings & Conventions
  • Meetings & Conventions China
  • Meetings & Conventions Asia
  • Meeting News
  • Successful Meetings
  • Incentive
  • SportsTravel

  • Data Products
  • Agent Studio
  • AXUS Travel App
  • Intelliguide
  • travel42
BTNGroup
Business Travel NewsBusiness Travel News EuropeTravel ProcurementThe BeatBusiness Travel Show
Northstar Travel Group
Copyright ©2026 Northstar Travel Media LLC. All Rights Reserved. 301 Rte. 17N, Suite 1150, Rutherford, NJ 07070 USA | Telephone: (201) 902-2000
RRManagement rrtestprocurement