GLOBAL UPDATE : MARKETING
site , which generally caps eRFPs at seven properties per submission , does demand a property response within 24 hours — but the responses need only be high-level confirmations of availability . “ Planners don ’ t need full-blown responses ( immediately ), they just want to know what the rate is going to be and if there ’ s going to be availability ,” Markham says .
Sales departments evolving Speed of responses notwithstanding , the rise of eRFPs has fundamentally changed the role of the salespeople in many hotel organizations . Given that property-level sales staff are now spending so much time doing what amounts to clerical work in responding to eRFPs , the corporate sales department at consortium Preferred Hotel Group is doing what it can to make up for the diminished time spent interacting with potential leads , says Craig Jacobs , senior vice president of group sales . “ Our role in the national sales office is to try to be the liaison , so when we have accounts that we have relationships with , we can talk to a human being in the client ’ s organization to give the hotel a temperature of how they ’ re being considered for [ an event ],” Jacobs says .
The eRFP story is not all bad for hotels , of course . The Internet as level playing field for small chains and independent properties certainly applies in the case of event planning , with planners able to digitally stumble upon facilities they may not otherwise consider . But that broad search makes it that much harder to whittle down to a short list , further compounding the problem of eRFP volume .
Besides volume , eRFPs have other drawbacks for hoteliers . Compared to more traditional RFP methods — namely , direct phone calls and negotiations based on relationships cultivated between planners and salespeople — eRFPs tend to be less precise and detailed . Salespeople are often unable to ask follow-up questions that might help better craft a bid , and the lack of personal interaction makes it hard for a salesperson to highlight the hotel ’ s strengths and differentiators . “ Any salesperson ’ s goal is to make the shortlist ,” Gilbert says , “ and if you can ’ t really design a targeted RFP to stand out from the others , then your chances of making the shortlist aren ’ t as good . That really adds to the commoditization that the hotel is trying to get away from .”
Such lack of direct interaction leads some high-end hoteliers to question the value of the eRFP system altogether . Patrick Smith , senior director of group sales for consortium The Leading Hotels of the World , believes luxury properties have little to gain from being included in an event space database search with hotels from other service categories . Planners who rely solely on eRFPs to source proposals are typically basing their decisions on rates . Intangibles like excellent service , high design and historical significance are difficult to capture in an eRFP search , Smith says .
Systems that work It is ultimately in the best interest of eRFP providers to create a system that works for both sides of the equation , of course . Active Network , the parent company of StarCite , is on board with hoteliers ’ preference for quality leads over mere quantity of RFPs . Anthony Miller , vice president of strategy for Active Network , says frequent meetings with hotel partners have led to improvements in StarCite ’ s interface that are more hotel-friendly . “ The game has changed — it is now about assisting hotels in driving quality leads and their market share ,” Miller says . “ We provide analytics that help suppliers run their businesses and track in a more streamlined way . We are able to monitor the potential business and provide conversion rates to the chains , brands and hotels .”
The big franchise companies and the event planning community have had informal talks about standardizing the eRFP process , including establishing guidelines and best practices that will help hoteliers better handle the ever-growing flood of eRFPs . The Convention Industry Council recently published its own set of eRFP best practices , called Apex , which can be viewed at ConventionIndustry . org .
It remains to be seen whether Apex or another standard will be put into widespread use . Alex Gregory , chairman of the HSMAI Resort Marketing Council , sees such guidelines as essential to the successful functioning of many hotel sales and marketing departments . “ We need to really standardize those best practices ,” Gregory says . “ If the eRFP community can agree that there is certain information that is important at certain stages of the proposal , then planners could agree that these are the steps that work best .”
www . hotelsmag . com October 2012 HOTELS 9