Thinking Outside the Vendor RFP Process in Hospitality Digital Marketing | By Jason Price - 0 views
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Some believe the vendor RFP process allows a hotel company to pick the most qualified service/product provider through an unbiased decision process. Perhaps this is the case for commoditized supplies or services (housekeeping supplies, linens, laundry, etc.) where the RFP process allows for comparing the proverbial "apples to apples."
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At a typical hotel, who is equipped with the latest best practices in digital technology and marketing to sufficiently and adequately prepare a vendor RFP? Very few hotel companies have the bandwidth and depth of knowledge to adequately identify the digital needs of the property. Nor can they convey the property's needs and wants in the digital space and where it needs to be in 6, 12, 24 and 36 months from now. Lastly, who at the property can afford to devote considerable time to research and prepare a vendor RFP that asks the right questions, conveys the right objectives and provides a solid framework for evaluating and comparing one digital technology and marketing firm to the next?
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On the hotel side, the typical vendor RFP process easily takes 50+ hours from beginning to end. On the digital technology and marketing vendor side, time to review, respond, and present takes upwards of 25-40 hours. Typically, three vendors compete and with all parties combined the entire RFP process will cost upwards of $15,000-$20,000. Beyond the cost, this process consumes the time and energy of multiple people and departments on an average of every two years for the hotel company.
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This article discusses how the traditional vendor RFP (Request for Proposal) model is no longer the ideal way to integrate the right technology marketing that a hotel needs. The traditional vendor RFP model is time-consuming and expensive, and with the way that technology is constantly expanding and changing, hotels need to stay up-to-date with technology more and more frequently, which can mean this process is wasting time and money on an ever-increasing scale. Furthermore, it is not always an accurate indicator of the kinds of technology a hotel might need, especially what a hotel might need in the future, and it is difficult to determine who would best be capable of knowing what the property will need or what exactly to ask for in an RFP. The article talks about three alternatives to the traditional model: the Scorecard model, the Digital Marketing Partner Interview model, and the Trusted Partner model. With the Scorecard model, hotels have a checklist of things they need and can check off each point from each potential vendor. With the Digital Marketing Partner Interview model, which is similar to the traditional vendor RFP process, except that the interview focused on finding a Digital Marketing Partner that aligns with the hotel's management philosophy, values, and culture in order to find the right partnership. With the Trusted Partner model, the hotel works with one particular company with whom they share common goals and objectives, and they work together to solve problems and adapt new technology as the hotel's technological needs are manifested over time.