NBTA Aviation Committee Unveils Airline RFP Template

Salt Lake City - The National Business Travel Association's aviation committee this month finally debuted the standardized request for proposal that it had been developing during the past year. The RFP is not a rigid document, it is designed for customization based on the needs of the corporate buyer.

Providing a comprehensive outline, the NBTA airline RFP template suggests a wide range of information and inquiries that companies should include, ranging from travel policy and patterns to agency involvement.

Lengthy lists of pricing and value-added options, customer service items, management reports, program support elements and labor issues provide buyers with a detailed road map, including various pitfalls to watch for, as they begin airline negotiations.

The RFP document received markedly positive feedback from an audience of mainly airline sales representatives during NBTA's annual conference here this month. For example, one sales rep predicted the RFP would reduce turnaround times and bring some efficiency to the negotiating process. Another commented that his carrier's sales force would be better able to make informed decisions on potential clients.

"The document is an outstanding piece of work," said John McGhee, who is vice president of passenger marketing in the Americas for Japan Airlines. McGhee, however, suggested "more of a boilerplate entity similar to the NBTA hotel RFP," so suppliers always will know exactly what to expect. "There has not been a clear understanding as to what is being asked, specifically in terms of data, but this is a giant step in the right direction."

"Feedback was very positive from the airlines, and since the airlines made up the bulk of the group, we are thrilled," said Suzanne Fletcher, aviation committee chair and director of travel and meetings for Weyerhaeuser.

Robert McGurk, vice president at Turner Broadcasting System and a main author of the airline RFP, told audience members that inquiries about third-party data aggregators should be included, as well as out-clauses. "You need the right to renegotiate, especially on marketshare agreements and considering airlines always increase and decrease frequencies."

Regarding timing, McGurk suggested buyers contact the airlines to ask about preferred lead times. "It usually depends on whether the contract is new or a renewal," he added. "But we are encouraging members to take an important first step and first consider a request for information to see if there is a good fit."

Before sending an RFP, McGurk also encouraged companies to assemble stakeholders, including representatives from finance, legal, IT and other departments, which "not many buyers seem to do," and then determine selection and evaluation criteria.

True to the intention of making the RFP "a living document," the committee is adding elements, such as fare loading inquiries, based on audience feedback. The committee plans to make available later this week the updated version on the NBTA Web site.

The aviation committee also distributed a newly completed glossary of terms, which included three pages of entries from airline direct booking to yield management.