Sometimes you need to look more than twice to see how good a hotel programme is. Were rate negotiations really based on a robust analysis of volume and sales? Do the underlying General Terms and Conditions take the interests of the company into account? Is the portfolio strategy the right one? Or, as so often in life, would less have been more?
The fact is: even seasoned buyers sometimes fall short in rate negotiations because they don’t have the necessary market and industry knowledge everywhere.
As a customer of DER Corporate Solutions, you will enjoy the advantage of not having to think about such matters. Our RFP Consulting Service will provide you with the necessary detailed knowledge to achieve the very best outcome. We can offer assistance with every phase of the procurement process should you so wish. Get help with identifying optimum conditions on the basis of actual hotel costs. Learn to use any discounts that are offered in an effective manner. Draw up a scorecard for the country-specific evaluation of your buying activities.
If you like, we can even go one step further:
We analyse trends, volumes, and agreements. We define rate caps, hotel portfolios and contractual areas. We also select suitable hotel partners and begin the sourcing process. Once the request for proposals process and negotiations have been concluded, we will evaluate the RFP criteria and make sure your hotel programme is ready in good time. We will then check whether the rates negotiated are actually available in all relevant booking channels.
- We analyse overnight stay volumes with differentiation according to countries, cities or hotels
- We use credit card data, expense reports or booking statistics to determine actual hotel costs
- We carry out a gap analysis in order to check the extent to which the underlying assumptions and target values are in line with predicted developments and identify volume hotels
- We support you in the development or adaptation of rate caps in line with the market
- We scrutinise the General Terms and Conditions agreed
- We analyse your hotel programme and use the latest market data to implement a benchmark
- We develop an appropriate portfolio strategy, identify relevant hotel portfolios or adapt existing portfolios, and identify requirements as appropriate by reducing, swapping or altering star categories
- We use rate caps as a negotiating guideline and for the management of bookings within the respective booking channels
- We develop a procurement strategy and stipulate and implement agreed cost-saving objectives in accordance with defined criteria
- We conduct rate negotiations on behalf of the customer and offer flexible sourcing support
- Clients are provided with flexibility in terms of deciding the extent to which they wish to hand over the negotiating process. They may choose to delegate RFP management in full or may equally opt to pass on responsibility for individual phases only, such as preparation and RFP follow-up
- We use various reports and indicators to evaluate hotel buying and
- check whether are contractual hotels are operating within the stipulated rate cap
- monitor whether the procurement process is on schedule
- assess the procurement on the basis of rates development weighted by overnight stays
- draw up scorecards for the country-specific evaluation of buying activities
- We use our rate loading tests to check whether the rates negotiated are actually available in all relevant booking channels
- We provide a summary of bookability in the GDS (Amadeus, Sabre, Galileo, DHISCO)