The travel landscape has evolved significantly, making it more important than ever to partner with the right Travel Management Company (TMC). But with shifting industry dynamics, how can you be certain you’re receiving the best service and value?
The reality is, you can’t—at least, not without a structured approach.
In today’s unpredictable world, a reliable TMC is essential. Your travel requirements may have changed, and your current provider might no longer be meeting your expectations. That’s why a well-crafted Request for Proposal (RFP) is crucial in finding the right fit.
In this article, we’ll walk you through the RFP process, ensuring you select a TMC that aligns with your business travel needs.
What is an RFP?
A Request for Proposal (RFP) is a formal document businesses use to define their travel requirements and invite proposals from Travel Management Companies (TMCs). Unlike a Request for Information (RFI) or a Request for Quotation (RFQ), an RFP requires a more comprehensive response, allowing companies to assess potential TMCs in detail.
The complexity of the RFP process varies depending on the organisation’s needs. Many companies seek a new TMC to improve cost efficiency, as business travel is often one of the largest expenditures after salaries. If your current provider isn’t meeting expectations, launching an RFP can help you explore better options.
Perhaps your existing TMC lacks the technology or processes to support your business effectively, or your contract is nearing its end, prompting a review of alternative providers. Even if you’re conducting routine quality control, an RFP plays a crucial role in securing a TMC that aligns with your organisation’s evolving travel needs.
How to write an effective RFP?
A well-structured Request for Proposal (RFP) is key to finding the right Travel Management Company (TMC) for your organisation. While every business has unique travel needs, certain essential components should be included to ensure vendors can provide accurate and relevant proposals.
Key information to provide to vendors
To help vendors understand your requirements, outline the following details in your RFP:
- Company background – Provide insights into your organisation, including office locations, the number of travelling employees per month, travel budget, and whether you require domestic or international travel services.
- Travel programme overview – Summarise your current travel programme, highlighting what’s working well and areas that need improvement. Specify the services you are looking for, such as booking, reporting, or policy enforcement.
- Scope of work – Define the services required from a TMC, such as flight bookings, hotel arrangements, expense reporting, and compliance with travel policies.
- Project timeline – Establish clear deadlines and milestones to help vendors assess their capacity and resource planning.
- Operational constraints – Highlight any limitations, such as software integration requirements or compliance with specific internal processes.
Key information to seek from vendors
To ensure you select a TMC that aligns with your business travel goals, request the following information from potential vendors:
- Company overview – Understand the vendor’s history, industry experience, and expertise in handling corporate travel.
- Relevant experience – Request case studies or references from similar clients to assess their ability to meet your needs.
- Service methodology – Ask vendors to outline their approach to managing travel services, from booking processes to policy enforcement and reporting.
- Pricing structure – Seek a transparent cost breakdown to avoid hidden fees and ensure budget alignment.
- Client references – Request testimonials from past or current clients to gauge vendor performance and customer satisfaction.
- Technical capabilities – If technology plays a role in your travel management, inquire about system compatibility and integration with your existing platforms.
- Post-implementation support – Ensure the vendor provides reliable support, including response times and service availability.
Additional tips for writing an effective RFP
While the above provides a comprehensive list of essential elements, you can also enhance your RFP by considering:
- Internal stakeholder input – Engage internal teams, such as finance or administration, to ensure all aspects of the RFP are covered, from cost to policy adherence.
- Template usage – If you’re unsure how to structure the RFP, consider using an RFP template to streamline the process and ensure you’re not missing any critical details.
How to choose the right Travel Management Company (TMC) for your organisation
After collaborating with internal stakeholders and finalising a detailed RFP, it’s time to evaluate your shortlist and make a well-informed decision. The reasons behind seeking a new Travel Management Company (TMC) will heavily influence the key factors you prioritise in your selection process. To help guide you, here are vital considerations to keep in mind:
1. Will they help lower your travel cost?
One of the primary reasons for switching or selecting a new TMC is cost reduction. A quality TMC should be able to bring down overall travel expenses without compromising service quality.
Take the time to compare pricing models from different TMCs and understand how each company works to save on costs, from securing better airfares to offering cost-effective ground transportation options. Their ability to optimise your travel budget is a critical factor in the decision-making process.
2. Do they offer exceptional support?
In today’s fast-paced travel world, having 24/7 customer service is essential. A quality TMC should provide quick and effective support via phone, chat, or email, especially when things go wrong.
Evaluate how well they communicate and assist with issues like last-minute cancellations, unused tickets, or account management. Also, check customer reviews to see how they handle travel challenges. For employees travelling across time zones, immediate support is crucial to minimise disruptions. Fast response and resolution times are key to keeping things on track.
3. Do they have advanced technology solutions?
Look for a TMC with a comprehensive suite of advanced tools to streamline travel management. This includes user-friendly online booking systems, travel management software (TMS) with features like live tracking, policy compliance, and data analytics. A mobile app that allows for real-time updates and offline access adds an extra layer of convenience for your travellers.
Additionally, check whether their technology integrates smoothly with your existing systems, such as accounting software, for seamless data transfer and reporting. The right tech ensures a more efficient, cost-effective travel experience for your company.
4. Does their pricing reflect the value you receive?
As you review RFP responses, assess whether the pricing aligns with the value provided by the TMC. A good TMC should offer a range of services—such as booking assistance, traveller support, policy compliance, and reporting—that meet your company’s needs.
Be mindful of additional costs for services like after-hours support or custom reports. If you’re new to using a TMC, a per-trip fee structure may be more cost-effective than a subscription-based model. Also, gather feedback from current or past clients to gauge whether the pricing reflects the quality of service. Positive testimonials can indicate you’re getting good value.
Top strategies for running a successful travel management RFP
1. Map out the complete RFP path
Think about the entire process from start to finish. If you’re currently under contract with a TMC, check when it’s set to end and plan accordingly. Consider how much time you’ll need to dedicate to the project and identify the key stakeholders who should be involved.
This may include leadership, travellers, travel bookers, and departments like HR, risk management, sustainability, and finance, so it’s important to factor in their availability as well.
2. Clarify the objectives for the RFP
To start, gather input from key stakeholders to identify the main pain points in your business travel process. Once you’ve outlined the challenges, define the primary goals for the RFP.
Different teams may have different priorities, but it’s crucial to align everyone on a single set of objectives. This shared vision will guide the RFP process and ensure you stay focused on what you aim to achieve.
3. Provide comprehensive information
Before issuing your RFP, gather detailed insights into your existing travel programme and the services provided by your current TMC. Include the following in your RFP:
- An assessment of what’s working well and what isn’t in your current programme, along with your top priorities.
- How your current TMC handles the account.
- Your travel and expense policies.
- Key data on your travel programme, such as travel volumes and transaction figures for relevant markets.
- Details about the online tools in use and their adoption rates.
- Information on any systems that may need to integrate, such as expense management or HR systems.
The more detailed you are, the better it will help prospective TMCs understand your needs and determine whether they are the right fit for your business.
4. Decide who should be invited
This step will take longer if you invite more TMCs since you will need to review more responses. You can evaluate a variety of vendors while maintaining a manageable effort by inviting five or fewer businesses to submit an RFP.
Seek out TMCs who offer something unique and align to your company’s objectives, both immediate and long-term. A good place to start when shortlisting TMCs is with industry guides and associations.
5. Make the appropriate enquiries for your organisation
Even if your company may have an RFP for acquiring other products and services, it’s crucial to customise the questions to travel because corporate travel is intricate and sensitive. The same goes for reissuing a template that has been in use for ten years. Travel and the world have evolved, and so too will the requirements your company has for a TMC.
Focus on the enquiries that relate to your primary desires and priorities for your trip. It should be enough to ask 30 to 60 questions. Keep in mind that the more questions you ask, the more you will need to read, review, and compare.
6. Give suppliers a fair amount of time to respond
TMCs will need to hold internal discussions in order to come up with the best answer because tenders are inherently difficult, especially when it comes to larger, more complicated, or multinational bids.
A reasonable bid response time frame is three to four weeks. Timelines that are too tight will not allow you to receive the finest proposals. Allow your suppliers to ask clarifying questions during this step of the process, and allow them time to reply.
7. Determine the next steps after reviewing the responses
Now that the answers have returned, allow yourself and the important parties adequate time to thoroughly examine the submissions. A thorough evaluation, comparison, and scoring of bids may take several weeks, depending on the number of TMCs invited and the questions posed.
Making a shortlist and setting up the presentation stage are the following steps. So think about if a workshop would be more effective than a conventional presentation. This can provide you a true picture of each TMC’s culture, strengths, and shortcomings.
Get expert guidance on the RFP process with Holiday Tours
Creating a well-structured RFP is essential for finding the right travel management partner for your business. Our expert insights help you clearly define your requirements, ensuring a smooth and efficient process.
With Holiday Tours, you gain access to a seamless travel management solution that maintains policy compliance while allowing your employees the flexibility to book their own trips. Plus, our 24/7 support ensures assistance is always available, helping your corporate travel programme run effortlessly from proposal to implementation.
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REACH OUT TO US AT +603 2303 9100 (PRESS 3) OR [email protected]
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