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Corporate & Consortia 'rate bidding season' runs from late June through to late September. The RFP process is where global businesses and Travel Agent groups (consortia) negotiate rates with hotels for the following year.
The intent is for travel agents and corporations to reduce and manage their business spend by booking preferred hotels at preferred rates.
We recommend seek advice from your GDS service provider regarding RFP services.
Consortia (and negotiated corporate rates) remain important revenue sources for hotels at major destinations worldwide.
Every year bidding for consortia starts late June and closes with most major Travel Agent buying groups in late September each year.
2 major reasons for hotels to participate in Consortia Programs and negotiated corporate rates are to:
1. Increased revenue
2. Marketing and advertising opportunities through corporate newsletters, incentives and direct mailings from the consortia.
Hotels that want to increase their corporate business contract should ensure participating with consortia. After signing the contract with the consortia group, it is then important to ensure your agreed rates are loaded on the appropriate GDS channels.
Examples of Consortia are shown below courtesy Travel Weekly 2016.
Each consortia has rules and guidelines for hotels to participate. If you decide to participate in a consortia program, you must verify the terms and conditions directly with the consortia. Fees apply to participate in consortia programs and each consortia will have conditions that must be met.
These terms will usually include-
* Last room availability and Run of the House.
* Rates must be at least 10% less than published rates and commissionable
* Rates must be guaranteed 1st. January through to 31st. December.
Shown below are the major consortia reported courtesy http://www.travelweekly.com/Powerlist2016
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