The National Business Travel Association's 2005 request for proposals format requires hotels to respond in greater detail than in past years on the pricing of amenities desired by business travelers, high-speed Internet access chief among them. With buyers expecting the toughest negotiating season in three years, hotels are less likely to provide high-speed access, as well as parking, breakfast and use of fitness facilities on a complimentary basis than they were in previous years. Consequently, buyers are more interested in how hotels price these services in the RFP.
"All questions pertaining to price this year have been included in the main module we call the client-specific module because the answers are negotiable and vary client by client," said NBTA hotel committee chairman Beth Caligiuri, who also is procurement manager for travel for Coca-Cola Co. "The specifics of what the hotel provides in each area, which is more static information, appears in the appropriate module"
(BTN, Feb. 9).A rundown of high-speed Internet access, for example, appears in the communication technology module. For HSIA in a wired format, hotels are asked if there is an extra fee charged or if it is included in the base rate. The same questions are asked for wireless. The communication technology module, meanwhile, includes questions on the number of guest rooms equipped with wired and wireless capability, Ethernet jack availability, availability of these tools in the business center, public spaces and lobby kiosks and the availability on-site of technical concierge-type support.
"The new approach is designed to give buyers the information they need to make an informed decision on a hotel in the most streamlined way possible," said committee member Ruth Philpott, who also is general manager of hotel consulting for Eclipse Advisors.
Given the complexity of managing hotel programs, most buyers prefer negotiating deals where they can tell travelers certain features are included across the program on either a complimentary basis or for a consistent price. Many midprice brands, for example, provide HSIA free to guests systemwide.
"It's much easier to tell a traveler, 'Every x hotel in our program has complimentary Internet,' " said Brian Nichols, hotel and ground transportation manager in strategic procurement services at Deloitte. "It's also easier to promote and to monitor. What would be nice to be able to broadcast is when the entire program has high speed and it's complimentary."
Having a feature available in only a portion of the program is of less value. "When you only have it in one-third or half of the hotels, it's hard to tell if you're getting the value you negotiated," Nichols said. "Travelers aren't always aware they're entitled to it in a specific hotel."